Q: What companies are you recommending in this environment? A: Newmont Mining [NEM], which has been a laggard. They've been through a transition in senior management, and the new CEO is talking about optimizing returns on capital.

Q: How about another pick? A: Gold Fields [GFI] is one I like. It is in the doghouse along with Newmont, and both are big-cap, blue-chip names.

Q: Any others? A: One would be Ivanhoe Mines [IVN]. It is very controversial because the chairman and biggest shareholder, Robert Friedland, carries a lot of baggage. The common perception of him is that he is a promoter. But that's based on ancient history.

Q: How about one more idea? A: Randgold Resources [GOLD]. It's run by a very smart guy, Mark Bristow. Randgold has been a good stock, unlike Newmont and Gold Fields. It has got a market-cap of roughly $2 billion. It is based in the Channel Islands and its assets are mainly in West Africa, in Mali and Tanzania and the Ivory Coast. They actually make money, which is unusual for most of these companies. Even though I don't believe gold is a growth business, this company has a growth profile, because it has a smaller base to build on. West Africa is a very good place to be in terms of the geology, and Randgold is the dominant player there. They are in a position to be an aggregator and do some accretive deals.