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Commodity Pro: Play Silver with These 3 Miners

Monday, 25 Apr 2011 | 5:44 PM ET

Again silver landed on the trader radar after the white metal hit its highest level in 31 years, just short of an all-time high.

With silver rapidly approaching the psychologically important $50 level, you might be inclined to think that the rally is near an end.

But esteemed trader John Stephenson of First Asset Mgmt thinks silver will continue to have legs - long longs.

The author of The Little Book of Commodity Investing tells Fast Money that silver could go to $60 by the end of the year. But rather than play the spot price, Stephenson suggests long position these 3 miners.

Silver to $60, Gold to $1,750?
Discussing whether New York steak houses will return to gold vaults as gold soars to all-time highs, with John Stephenson, First Asset Management

Gammon Gold
Minefinders
Goldcorp

”These are great names because they’re principally thought of as gold companies. But in the case of Minefinders 54% of revenue comes from silver. And in the case of Gammon it’s 40% and Goldcorp its 23%.

”I think investors will be surprised to the upside when earnings come out in the next couple weeks," Stephenson says.

Check out our entire conversation with John Stephenson. Watch the video now!





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