Post from www.goldsilverdata.comSince the HUI is trading near its bottom, many of you are probably wondering what stocks are the best buys. I know that back in 2008 when stocks were crashing, I was wondering what stocks had the best risk/reward profile. I would have loved to have been able to search my database back then.
After analyzing all of the stocks, here are the first 12 stocks that I would buy today (after buying GDXJ, SIL, and silver bullion as a low risk foundation).
Allied Nevada, Gran Colombia, Pan American Silver, and Silver Standard. All producers with absolutely insane valuations. I think these are all solid 10 baggers long term. They are all extremely leveraged to higher gold and silver prices. If you are going to buy some stocks at the bottom, these are 4 solid moderate to low risk picks.
The next tier down, would be Golden Minerals, Richmont Mines, St. Andrew Goldfields, San Gold, and Atna Resources. These are all producers with a little more risk, but solid stocks.
Then another tier down, would be higher risk non-producing stocks: Sandspring Resources, Barkerville Gold, Guyana Goldfields, Victoria Gold, and Vista Gold.
The one thing all 14 of these stocks have in common is that they are all potential 10 baggers. I normally look for potential 5 baggers, but this correction has been so severe that it is possible to look for 10 baggers. I own 12 of the 14, and would own them all if I had extra cash. I have been spending all of my resources lowering the cost basis on stocks that I already own.