Purchasing Yamana Gold, Inc.

Posted on October 4, 2006 , filed under Stocks | Print This Post

Today I purchased 2000 shares of Yamana Gold, Inc. (AUY) at $7.91. Gold is currently trading at $559. Gold managed to hold out at $570 levels in the last dip below $600. Gold has been very volatile in recent days going up and down often within a $20 range. I believe there is massive shorting involved with hedge funds that is prompting gold to rapidly fall. Individual investors have been sung a very pretty picture from precious metals analysts and bullish gold fans. I believe that most individual gold investors, including myself, believe that there are still uncertain times ahead that will cause gold to rebound and rise toward new highs.

I expect gold to rebound before the end of 2006 firmly above $600 again. I am continuing to buy shares of my top two picks AUY and Tanzanian Royalty Exploration Corp. (TRE) on dips.

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