Gold Stocks: Hedge Funds Love This List of Gold Mining Stocks

Goldprices hit $1,718 per ounce in Asian trading late Monday onfearsregarding the U.S. stock markets and European debt. This was arecordhigh. It also represents a 4.2 percent increase from its Fridayclose inNew York. Gold is up 21 percent year to date (via the Los Angeles Times).

Goldis considered a safe investment because investors believe thatit willalways retain its value -- it has been a much sought-aftercommodity forthousands of years and supply is limited. In times ofcrisis, wheninvestors are most worried that equities, bonds, andcurrencies couldlose value, demand for gold typically soars, usuallyaccompanied byincreased demand for other safe-haven investments likeU.S. Treasuries ina market phenomenon commonly referred to as a "flightto safety." Thisyear, the flight to safety has included increaseddemand for the SwissFranc and silver, in addition to gold and U.S.Treasuries (despite thedowngrade).

Gold and silver prices have also been buoyed by theweak dollar.The precious metals (and oil) are priced in U.S. dollars inmarketsaround the world. Because the dollar has depreciated relative toothercurrencies, foreign investors are able to purchase more dollars foreachunit of their currency, which in turn puts upward pressure on thepriceof dollar-denominated goods and commodities, like gold.

And, because global investors are (rightfully) worried about worsening economic and market conditions in the U.S., Europe, and China, we could be witnessing a global flight to safety.

Inflatedgold prices could reward gold miners around the world.Here is a list ofgold companies that hedge funds have been snapping up.Do you agree withthe optimistic sentiment regarding these stocks?

List sorted by net shares bought by institutional investors as a percentage of the share float. (Click here to access free, interactive tools to analyze these ideas.)

1. Keegan Resources (NYS: KGN):Market cap of $579.81M. During the current quarter,institutionalinvestors have bought 13.4M shares (net), which represents18.49% of the72.47M share float.

2. Banro Corporation (NYS: BAA):Market cap of $731.38M. During the current quarter,institutionalinvestors have bought 18.7M shares (net), which represents10.52% of the177.77M share float.

3. Gold Resource Corp (Nasdaq:GORO): Market cap of$1.29B. During the current quarter, institutionalinvestors have bought2.8M shares (net), which represents 8.77% of the31.91M share float.

4. Allied Nevada Gold Corp. (NYS: ANV):Market cap of $3.14B. During the current quarter,institutionalinvestors have bought 3.7M shares (net), which represents4.56% of the81.20M share float.

5. Compania de Minas Buenaventura SA (NYS: BVN):Market cap of $10.03B. During the current quarter,institutionalinvestors have bought 6.8M shares (net), which represents3.69% of the184.33M share float.

6. IAMGOLD Corp. (NYS: IAG):Market cap of $7.24B. During the current quarter,institutionalinvestors have bought 11.0M shares (net), which represents3.48% of the315.65M share float.

7. Extorre Gold Mines Ltd. Ordinar (NYS: XG):Market cap of $985.46M. During the current quarter,institutionalinvestors have bought 21.3M shares (net), which represents25.83% of the82.45M share float.

8. US Gold Corporation (NYSE:UXG): Market cap of$782.53M. During the current quarter, institutionalinvestors havebought 18.0M shares (net), which represents 16.75% of the107.47M sharefloat.

9. International Tower Hill Mines Ltd. (NYS: THM):Market cap of $585.09M. During the current quarter,institutionalinvestors have bought 1.9M shares (net), which represents2.79% of the68.09M share float.

10. Exeter Resource Corporation (NYS: XRA):Market cap of $355.2M. During the current quarter,institutionalinvestors have bought 1.3M shares (net), which represents1.66% of the78.30M share float.

Interactive Chart: Press Playto compare changes in analystratings over the last two years for thestocks mentioned above. Analystratings sourced from Zacks InvestmentResearch.