On Wednesday I purchased 2000 shares of Yamana Gold, Inc. (NYSE: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 has prompted gold to rapidly fall. Individual investors have been sung a very pretty song from precious metals analysts and bullish gold fans. 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.