Stock Picks: Gold Miners

**Disclaimer: I am not a stock-broker. Please understand the risks involved with stocks before investing.**

Well I've taken quite a respite from talking about stocks and my stock picks on this blog. Yea I know you've been disappointed.

Back in Feb 2011 I recommended SLV with a price target of $39. Those who followed my recommendation nearly doubled their money if the shares were sold at the price target that I said.

One of the other picks I recommended back in Feb 2011 was GDX. This is a gold mining stock. This stock has not done as well since I recommended it.

At this time I feel this stock is grossly undervalued - as is the rest of the gold mining stocks - and is poised to head higher. This past week saw gold miners get killed for no logical reason that I saw. The price of the stock has not reflected the increase in the price of gold during the same time period. Right now I think is a great time to accumulate this stock.

Along the same lines I believe GDXJ has much better days ahead. This stock is Junior Gold Miners - it is comprised of 10's of smaller gold companies - and as with GDX it's price has not risen with the price of gold.

Global demand for gold has increased over the past few years, driven by India and China as big buyers. I think this trend will continue as China has recently announced it is losing faith in the US dollar as the trading currency of choice and China and India increasingly buy hard assets.