Minco Gold Corporation (ADR) (AMEX: MGH), Northgate Minerals Corporation (USA) (AMEX: NXG) and Brigus Gold Corporation (AMEX: BRD) are some of the many players in the gold mining space. Here is why one should start buying them.

Global crude oil prices reduced last week after International Energy Agency’s historical intervention and incidentally, gold tumbled during the same time frame. SPDR Gold Trust (ETF) (NYSE:GLD) fell around 4 per cent between 22 June and 1 July before picking up again.

The commodity seems to have developed the fetish for milder corrections instead of limited bigger drops and while the 4 per cent thing may not sound much, there are reasons for gold to not see severe corrections. Continuing geo-politic and financial turbulence in the world is just making investors jittery and even though Dow Jones is trading near the high point of the last couple of years, investors are not selling gold. On the flip side, buying comes after every 4-5 per cent drop. The kind of correction we have witnessed in gold appears to be reasonable enough for the next couple of months.

Greek parliament has passed the austerity measures but the problems in the Eurozone are far from over. Heads appear to be just start rolling again with Moody’s reduction of Portugal’s sovereign debt rating. In this scenario small cap gold stocks are one way of playing it out. The idea is to identify the stocks which are in the process of breaking out or have just started a move in the North.

Minco Gold Corporation (ADR) (AMEX: MGH) is one such play. The stock gave a fresh breakout yesterday jumping 5 per cent. The stock of this exploration stage company corrected significantly in the last quarter but has managed to form a base at $1.4 – $1.5 levels.

Northgate Minerals Corporation (USA) (AMEX: NXG) produces gold and copper in Canada and Australia. Conservative investors may want to have more allocation of this relatively safe stock in their gold portfolio. It has a low beta coefficient and the company has other revenue streams apart from gold making it less volatile. At $2.77, it is trading just 15 per cent above its 52 week low of $2.41.

Brigus Gold Corporation (AMEX: BRD) has a strong chart pattern. Having run-up 15 per cent in the last month after making a base at $1.4, it appears favorably placed for further move on the upside. The stock has a year low of $1.08, year high of $2.23 and current price of $1.76.