Talking about the Gold Miners, Marc Faber says that for now, they're doing well and for the immediate future will outperform gold, but the Mining Industry faces hugh cost increases. And to that extent, he goes on to say that it'll be cheaper for them to acquire explorers than to increase their own reserves. He also cautions that companies in emerging economies have a risk of expropriation and increased royalty payments.

He says holding shares in an exploration company embodies the highest risk.

He suggests buying those with large reserves and low operating costs.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/9/9_Dr._Marc_Faber.html