Thursday, March 05, 2009

Is it time to buy Yamana Gold

Yamana gold is well known by institutional investors and Jim Cramer. The company has a market cap around $6 Billion.

This chart looks good to me. The chart shows this stock continues to make higher highs, and higher lows. Always a good thing.

The only thing that would bother me right now is the seasonal pattern for gold. Gold tends to make its seasonal high in the February 15-March 15 period. From that point it tends to trend down into the summer. Gold tends to bottom in the August 15-October 15 period.

Gold almost almost always rises from October 15- February 15 no matter what. This is due to strong seasonal demand that comes in the form of physical buying for jewelry, and strong buying out of China and India. I intend to write about this soon.

This is not a recommendation to buy or sell. File this under food for thought. Now go do some homework.
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