Yamana Gold Inc (AUY)

[SeriousStockStoke]

Consolidation might be complete in Gold


That was some impressive performance yesterday by both Gold & Gold stocks. The fact that gold made it above $920 is extremely bullish in my opinion and might possibly mean the consolidation pattern it has been experiencing since March may be nearing an end. If the U.S. Dollar continues to slide Gold might be poised to make a move towards $950-$1000 again. I think the dollar will continue tank as the Fed remains in a very tight spot and cannot raise interest rates or shut down the printing presses and begin reporting the M3 again. For the time being, the U.S. will continue to experience extremely slow growth and there aren't that many places to make money. This will make gold even more attractive to investors in the coming months in my opinion.

10-20% gold weighting does not seem like a bad idea currently as the fear is creeping up again on Wall Street and panic sets in. I think there could be more bank failures in the near future and gold provided a great insurance policy in March when Bear Sterns was rescued. I see no reason it cannot provide the same insurance again.


Best of Luck Longs


Position: Long AUY, AEM, FCX, NSC, CAT, RIG,