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6 Gold & Silver Miners to Play the Eurozone Debt Crisis

Stocks in this article: JAG GPL NG AUQ AG NAK

WINDERMERE, Fla. ( Stockpickr) -- Europe is once again teetering on the brink of crisis as the eurozone approaches a key G-20 summit slated for this weekend. The latest drama hitting the wires today was doubt as to whether Greece's parliament will approve a referendum on the country's next bailout.

Some market observers think that Greece is bluffing and that Prime Minster Papandreou is using the threat of a referendum as a way to force the European Union into offering him a better deal on Greece's debt issues. A referendum is a nightmare scenario because it will prolong the debt crisis and could cause a cascading negative effect in the European bond market.

The 10-year Italian debt yields crossed 6% on Monday, which is a level that many traders call the danger zone; between 6% and 7% is where it gets very hard for Italy to service its debt.

>>5 Scary Stock to Sell Now

The unintended consequences of a failed European debt crisis solution are huge. Senator Richard Shelby, who is the ranking member of the Senate Banking Committee, warned today that the euro debt crisis could push the U.S. into a big recession. If Greece were to default, it could be forced to leave the eurozone, which in turn could spark a currency crisis for the euro.

No matter what way you cut it, the renewed fears over the European debt crisis should set up gold and silver for another monster run. If we do end up getting a big bailout in Europe (the likely scenario), then gold and silver should win as central banks will embark on more money printing. If we don't get a bailout and we end up with a Greece or Italian default, then gold and silver should go up in the midst of a currency crisis. If we just simply end up in a big recession, then gold and silver should win again as people pile into the yellow metal as safe haven trade.

The bottom line: Gold and silver will be the winning trades and some of the beaten-down and underperforming (versus the precious metal) mining stocks should win big. I like the idea of playing the mining stocks ahead of what could be new all-time highs coming for gold and silver. Many of these companies are going to feed at the trough of massive profits if those precious metals take off again.

With that in mind, let's take a look at some potential winners and the key technical levels that traders should be watching that could trigger large spikes in the coming days or weeks. Here are six gold and silver miners to play the eurozone debt crisis.

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