AUY and BGO update

Posted on December 16, 2005 , filed under Stocks | Print This Post

With gold trading at low $500’s, AUY, Yamana Gold, Inc. should be trading at $5.30’s and BGO, Bema Gold Corporation, at under $2.50. The fact that gold mining stocks haven’t corrected themsleves shows strong speculation by the market that the dip in gold prices will cause some buying interest by, India, China and Japanese investors. Looking at AUY, the stock has jumped up past gold trading at $540. AUY was my top speculative gold mining stock and it’s moved up tremendously. AUY closed at $5.99 yesterday. I purchased BGO instead of AUY since BGO acted more like the spot price of gold, adjusting itself accordingly. In the last two days, BGO hasn’t adjusted at all and has instead risen along with the speculation surrounding other gold mining stocks. With gold trading at low $500’s, BGO should be at $2.50 or less. BGO closed yesterday at $2.86.

*Disclaimer: I purchased 2000 shares of BGO at $2.80.

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