Gold is on track for its biggest weekly gain in five weeks on Friday as many analysts now believe the good times might be back for the precious metal. But rather than buying gold outright, one mining analyst recommends investors buy small mining companies that he calls "recovery plays".
John Meyer, a mining analyst at SP Angel says these stocks are down on their luck but have rallied in recent weeks off a very low base.
"What we're going to get now is better performance from many of these companies. Better performance hopefully from gold going forwards and just a resurgence of funds flowing into the sector," Meyer told CNBC Friday.
(Read more: With no Fed tapering in sight, gold gains 4 percent)
Medusa Mining is one such stock that Meyer recommends. Shares in the London listed firm, that is currently expanding operations into the Philippines, currently trade at 136 pence, but SP Angel has a target price of 300 pence for the stock.
"It's had a few problems, it's expanding its production. We think it's monthly production will double between September and December for example. And that's something we think investors should buy into," Meyer said.
Anglo Asian Mining, Noricum Gold and SolGold are three other miners that Meyer sees upside in because of their better profit margins compared with larger players in the sector like Randgold Resources and Petropavlovsk, which have higher running costs.
(Read more: Gartman: Don't get too aggressive on gold)
"We are left with these frontier plays, but those governments are generally more pragmatic, they are pretty good. SolGold for example, its shares went up ten times over the last few months. It's operating in Ecuador...the Ecuadorian government might be quite good to them going forward. So, there's opportunity there."
Gold surged 4.3 percent on Thursday after the U.S. Federal Reserve postponed the tapering of its $85 billion bond-buying program. Spot gold eased 0.2 percent to $1,362.40 an ounce on Friday, not far from a one-week high of $1,374.54 hit on Thursday. It has gained nearly 3 percent this week.