Peter Schiff’s Gold Picks

By Travis Johnson, Stock Gumshoe, July 23, 2010

Most of the chatter we hear about Peter Schiff these days relates to his battle with Linda McMahon for the Republican slot on the ballot for Chris Dodd’s CT Senate seat — but his Euro Pacific Capital brokerage firm is still drumming up business, trying to get new clients who are interested in a traditional broker (at least in terms of commissions) who will buy precious metals and foreign-listed stocks for their accounts. (Can’t say that I’ve followed the race closely, but given what little I’ve seen of his poll results, perhaps it’s a good thing that he’s still working hard at his day job.)

Most of the interesting picks I’ve sniffed out from Peter Schiff in the past have been small cap overseas stocks that pay large dividends, but his focus has turned pretty overwhelmingly to gold of late — and the latest missive from Euro Pacific is an ad that tells us Schiff has six favorite gold mining stocks (two are actually silver-focused, to be clear) … and a phone call with a broker will get you the information about them, as well as whatever sales pitch that broker chooses to toss your way.

So as usual, I thought we might want to figure out which gold miners Schiff is currently recommending without talking to one of his brokers or signing up for an account. I haven’t seen very much of the super-hyped gold talk in recent weeks, save for Stansberry’s “gold sands” teaser that overwhelmed my inbox for a while, and that’s kind of surprising — gold is down a bit, but it’s still holding firm to well above $1,100 an ounce, and the predictions of $2,000 or more are all over the place.

And if history repeats, as it so often does, then gold miners as a group will trade with some significant leverage to the gold price — meaning that if gold moves up by 50%, the miners might well double. Of course, the reverse side of leverage hits us pretty hard too — if gold falls back significantly below $1,000, then the miners as a group will probably fall a lot more than the metal price. If I’m stretching out the day’s bloviation to cover a handful of companies I’ll have to be pretty skin-deep with my look at each one, but I can at least try to identify them for you.


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