$13.55
-0.52 (-3.70%)
Yamana Gold, Inc. (USA) (AUY)
CAPS Rating:
The Company is an intermediate gold producer engaged in the acquisition, exploration, development and operation of mineral properties in Brazil, Argentina, Honduras and Nicaragua.
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Gold is money and will show its true colors in a nation on the verge of bankruptcy.
Mining shares like ABX and AUY are headed higher in 2009 but not because of monetary inflation. We are sorely in debt and the demand for money (whether that be in dollars or gold) is going higher in 2009.
Commodities will be hit hard in the first half of 2009. I think oil could sink a little lower than $40.
Equities are simply not done bleeding. As long as the experts are still calling a bottom I'm increasing my short positions on the market.
The amount of money the Fed is printing "is just a drop in the bucket" compared to amount of debt and that is why you will see more and more people walking away from their houses next year.
The demand is for money. Stay liquid.
Dangerfairy:I agreed with your AUY pick at current price. On top of that, I would like to mention that AUY is a natural hedge by itself. Let's assume the following scenarios:1. When the economy is getting worse:Brazilian Real, Agentine peso would likely to drop, so would the costs of labour drop at their gold mines. = cheaper COGS means higher marginGold price might go even higher because of store of value in bad times= higher sales price means higher marginIf the AUY's book is doing well but not the stock price, the market will correct it eventually. 2. When the economy is reboundingUS dollars will likely to drop= gold price will be relatively higher.Demand for all comodities like oil and metals will likely to go up = sales volume of gold would go upPeople have more money to invest in stocks = likely to see higher stock pricesMaybe it's time to sell it.Right now, AUY is trading around 5 dollars. The book value is around 9 dollars as of September 30. They have even a better cash position at 200 million now than Q3 with very good debt to equity ratio.Watch this one, it is going to get you a good return in long term.
Study that concept about the razor.
fockom's or something.
You're right about gold and debt, but seem to be confused about inflation. US gov't debt, when monetized by the Fed, produces more money from thin air, and is thus by definition inflation.
I'm trying to "stay liquid" but not in US fiat dollars. I'm long gold, silver, oil, and foreign companies producing these (and AUY in particular).