Investors unsure of which way to turn in this market need only watch the "smart money," says Jeb Handwerger. Billionaires like John Paulson and Carlos Slim are plucking up mining investments on the cheap.
In an environment of rising capital expenses, gold producers big and small are left with little or no free cash flow. Instead of investing in exploration to maintain production, too many companies are cutting costs and high-grading their current resources.
There are gold companies that managed their balance sheets wisely and there are those that burned through cash and are left begging for financing. It's a great time for those flush companies that don't need handouts.
The manic highs and lows of the market are actually good news for those investors who have mastered the discipline of buying low and waiting, according to the senior editor of the International Speculator and Casey Investment Alert.