Staying the course in commodities?
Don't. You could pull a Bush and end up driving off a cliff. All key bull market trendlines have been busted. The dollar is flying higher, silver is in the dumps, base metals are even worse, even gold is steadily losing ground towards $750. Your average miner is down 50% or so. The junior miners appear to be heading for bankruptcy en masse. Feel free to buy some call options on some of these names as a swing for the fence idea, but don't hold onto these names forever. A stock like Taseko has fallen from $6 to $2 this year. The company is solid, but you got to use stops... a 70% loss is unacceptable--you need a triple to regain your original capital. You can't buy and hold something like this... this is a fine time to nibble, but say you buy a Coeur D'Alene Mines at $1.48.... it's down from $5, but it may very well go to zero. CDE isn't necessarily cheap now. The P/E is still 26... and that is a past P/E based off much better silver prices. CDE could very well be a zero. If you buy, you gotta set a stop at $1.25 and take your money and live for another day should CDE head to a bankruptcy court. It is quite probably that 50-70% of the mining juniors go bankrupt and leave shareholders with squat as this mining bubble collapses.
Miners to nibble on here (no particular order of quality... due your own research on these. Set your stops 10-20% below current market price in case gold makes its move to $600 immediately rather than dead cat bouncing first.) TGB, AUY, JAG, IAG, and EGO. GG is the long-cap stock to play... GG is eventually going to $8 a share... but in the near-term GG could get back to as high as the low 30's before resuming it's collapse. If you're going to take one option play, I'd take the Sept 25's on GG or the AUY Sept 8's.