Yamana Gold(AUY) Is A Good Buy Now|Yamana Gold: Finding a Silver Lining
By Daniel at 22 August, 2008, 2:31 am
Despite a seasonal slide that pushed gold prices to a nine-month of $773 an ounce last week, a recent rebound put Canadian mining firm Yamana Gold (AUY: 11.47, +0.93, +8.82%) at the top of several analysts’ recommendations as investors see promising entry points.
Gold prices hit a 10-day high Thursday, though they’re still well off the near $1,000 an ounce mark from earlier this year.
Analyst Michael Curran at RBC Capital Markets raised his outlook on Yamana to Outperform from Sector Perform, citing the seasonal upswing and its promising plans for expanding operations.
“Whether or not last Friday’s intraday low of $772 an ounce proves to be the summer 2008 low for gold, we believe many gold equities are at attractive entry points for a subsequent seasonal rally in the fall or later this year,” he wrote.
Credit Suisse analyst Anita Soni also noted that the arrival of the late August wedding season in India will boost demand for gold jewelry, a portable form of wealth that plays a critical role in the annual crop of arranged marriages. In a country of 1.1 billion people, an awful lot of necklaces, bracelets and earrings will be required.
The Bottom Line: Buy
A monsoon of weddings could shower investors with handsome gains.
http://www.smartmoney.com/one-day-wonder/index.cfm?story=20080821-market-movers&afl=yahoo
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