Allow us to introduce you to The Great and Magnificent Oz, a high school pal who has amassed a fortune via investing for more than two decades. How wealthy is Oz? He owns a fire table. Do you know anyone who owns a fire table? (Why??) Each week, or hopefully more often, Oz will drop some wisdom on us from his lair somewhere deep in the Wasatch Mountains. 

Yes, gold is hot but you know what is not hot? Gold Miners.

That’s why you should act now to dabble into the miners. One recommendation, a stock that is already decimated with I believe a firm floor built into the price, is Nova Gold Resources (NG).

Why NG? For starters, it is a known fact that the highly respected international investor George Soros has started to buy gold again. He exited out of NG and it is my feeling he is getting back in. I know fellow investor extraordinaire John Paulson has stated he is buying NG as well.

The author’s sweet ride.

Plus the overall gold market is strong. The Chinese have significantly reduced their Treasury purchases and are now buying gold more than anyone in the entire world – COMBINED. Then you have the backdrop of firmer appreciation with more QE stimulus.

Sure it may not happen, but if it doesn’t the fallout will be felt with the physical gold price and not as dramatically with the Gold Miners who have seen their prices already reduced.

So, for the long-term buyer: buy NG. For short-term gains or traders, go with the ETF – GDXJ, which focuses on small miners or a more conservative bet would be GDX, its bigger brother.

Happy Hunting!

Oz

NG current price: $4.72 (we’ll check back each week to see how it’s doing)