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Gold. Believes we are in the process of bottoming, but bottoming processes are tough to call. Looking for much higher prices down the road. Inflationary component is one of the things that has not shown up. Looking at all the fundamentals, including money printing, demand for physical gold coming out of China, it has been absolutely spectacular. China’s imports from Hong Kong into Beijing were practically nothing 4 years ago and today, in the last 3 months, they have done about 330 tons, which is almost half of the worlds mine production. At these prices he is expecting there will be shutdowns in the industry.

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Silver. Expects the silver price over the next decade will actually outperform the gold price. Silver has a 16 to one relationship with gold, i.e. 16 ounces of silver equals 1 ounce of gold. This basically means that gold at $1600 would have silver at $100. About two thirds of demand for silver right now is from industry.

DON'T BUY

Sold his entire position. Believes there is an outstanding deposit there, but unfortunately previous management was unable to execute on a strategy on budget and on time. As a result, they have built up a fair amount of debt. Have some credibility challenges now. Too many risks.

BUY

Great management team. Just like every gold stock out there, the price has been annihilated. Valuations are at very depressed levels. They’re having a ramp up at their new Apton mine and are doing very well. Also, acquired Rainy River this year. Continues to like this. Very cheap.

DON'T BUY

Great management team and have done a super job of running the operations they have in Mexico. He is not a shareholder because of their low grade deposits. With a low grade, you have to be very conscious about costs and if there are any disruptions, these can be problematic.

BUY

Increased his holdings at the beginning of this year. He likes that in the last 4-5 years, they’ve put a huge amount of cash on the balance sheet. This was from operations so they have been one of the most profitable mines that has been built in the past decade. Nice dividend. Turkey should be their next leg of growth.

COMMENT

Has continued adding to his holdings. This is one of these stocks where capitulation selling has gone on. Valuation is absolutely ridiculous. Have a very nice asset joint venture deposit in Timmins. Expects that one of these days, Goldcorp (G-T) is going to buy them out with a nice hefty premium.

PAST TOP PICK

(A Top Pick Oct 30/12. Down 29.09%.) Still, a big believer in this company. Good management. A lower cost producer. Still a Buy.

PAST TOP PICK

(A Top Pick Oct 30/12. Down 57.43%.) Not doing too much on their Norway project and will probably joint venture it out. Their main focus is in Ireland where they have a 2.7 million ounce resource. Have scoping study that is showing great numbers. Going through the permitting process and will be drifting underground next year. The owner is still buying shares.

PAST TOP PICK

(A Top Pick Oct 30/12. Down 13.07%.) One of the most successful mine builders in the industry. Have just gone into commercial production in Guatemala and are shipping concentrate on a daily basis. Doing a bit of tinkering and getting recoveries up in certain areas. Will be producing about 19-20 million ounces of silver.

COMMENT

CEO is probably one of the best explorer/dealmaker that he knows. In the last couple of years he has put together a very strong team of operating people. Have a bunch of interesting assets. Has a joint venture with Goldcorp (G-T) in the Red Lake district. Doing a feasibility study on a Hardrock project which, potentially, could be one of their 1st operating mines. Also, have a project in Nevada.

COMMENT

Have done some interesting things. New CEO has put a lot of his money into the company. Just announced a deal with Newmont (NMC-T) to buy the Midas Mine and financing it through Franco-Nevada (FNV-T). There is now the potential to see a company that has a decent deposit with high grades going into production. Very interesting story and he has to do more work on this.

BUY

Have some higher operating costs and they have to try and bring those down and have been working on this. Nice big dividend yield of about 5%, but there is a risk it could be cut. Reasonably strong balance sheet so they don’t have to do a cut immediately. With a much higher gold price, he could see this potentially going back to $20.

HOLD

Incredibly cheap. Its cash is pretty close to its Market Cap. Have about a 500,000,000 ounce resource where there have been studies and feasibilities on it. If you own it, keep it in the closet for brighter, sunnier days, because these things will not stay down here.

BUY

One of the best management teams in the business. Team has been together for a couple of decades now. They continue to build mines and explore successfully. Just acquired Volta Resources. Historically has always traded at a premium to others but with the pullback it is a very interesting company at these levels.