Today we acquired more of the stock of Yamana Gold Incorporated for an average price of $15.47 as gold gained $7.50 and silver gained $0.25. We analysed a number of stocks including Agnico-Eagle (AEM) and Kinross Gold Corporation (KGC) etc, but concluded that Yamana offered the greatest upside potential.
This purchase is in addition to the acquisition that we made on 11th July 2008 when we acquired Yamana for an average price of $14.95.
As we can see from the chart the technical indicators are just turning positive from low positions in their respective zones, which we view as being very positive for this stock. In general we regard buying on or below the 200dma (red line) as an entry point as the downside should be limited.
This acquisition is in keeping with our plan to deploy our opportunity cash over the summer months eventually achieving our target of being fully invested as the precious metals market sector takes off in the fall.
We were expecting more of a lacklustre summer season however with gold trading at $970/oz and silver trading at $19.10/oz our planned schedule of acquisitions has had to be accelerated.
We have also acquired more stock of the Pan American Silver Corporation (PAAS) and the Silver Wheaton Corporation (SLW) today, the details of which we will post on our silver-prices web site just as soon as time permits.
Have a sparkling day.
Yamana Gold Incorporated trades as AUY on the NYSE and as YRI in Toronto.
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