Gold Socks Proverbial Gold Mine This Fall?

The traders are watching the action in the gold space after Goldcorp agreed to buy gold miner Andean Resources for $3.4 billion.

The moves trumps a competing offer from rival miner Eldorado Gold.

The takeover is the latest in a series of gold-mining deals this year, including Australia's Newcrest Mining's $8.4 billion purchase of rival Lihir Gold, as near-record prices for the precious metal boost the hunt for reserves and pump cash into the sector.

Gold consumption rose by more than a third in the second quarter of 2010 and appears poised to remain strong with India and China providing the main thrust.

Investment demand is also strong amid uncertainty about the global economic outlook, which boosts the appeal of gold as a safe haven.

How should you play the space?

I think we’re about to see an M&A streak similar to what we’re seeing in technology, says Eric Jackson of Ironfire Capital. Big majors and buying the juniors. And I suggest playing the trend with the following:
Seabridge Gold
US Gold
Rubicon Minerals
NovaGold Resources

Or you can just be long the Gold Miners ETF , adds Joe Terranova.

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Trader disclosure: On September 3rd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Nations owns (CME); Nations owns (SPY); Terranova Owns (APA), (AAPL), (BMO), (FCX), (GS), (IBM), (MRVL), (QCOM), (OXY), (SU), (XBI), (C), (POT), (GLD), (TBT); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST); Jon Najarian owns (GS), short calls;

For Joe Terranova
Terranova is chief market strategist of Virtus Investment Partners, LTD.
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For Steve Grasso:
Stuart Frankel & Co and it’s partners own (BAX
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (DHR)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HPQ)
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Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (TRV)
Stuart Frankel & Co and it’s partners own (XRX)
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Stuart Frankel & Co and it’s partners are short (QQQQ)

For Stephen Weiss
Weiss owns (CSX)
Weiss owns (INTC)
Weiss owns (BAC)
Weiss owns (INFN)
Weiss owns (FNSR)

For Joe Lavorgna
***No Disclosures***

For Eric Jackson
Jackson owns (SA)
Jackson owns (UXG)
Jackson owns (RBY)

CNBC.com with wires.