Yamana Gold Will Shine And I'm Buying The Pullback

Gold and silver have been on a tear since central banks around the globe have been racing to debase their currencies in an effort to increase the money supply. First we had the European Central Bank's announcement of an unlimited bond-buying program. Then Ben Bernanke and the U.S. Federal Reserve announced a massive third round of quantitative easing, aka QE3, consisting of buying $40 billion in mortgage assets monthly until unemployment improves. Even the Bank of Japan announced its own round of easing. I suspect other central banks will follow. Given this climate of endless easing, I believe that gold and precious metals will continue to benefit. This week equities have been pulling back, including gold stocks, on Caterpillar's (CAT) earnings forecast and the turmoil in Europe. Even with the pullback the gold ETFs, IAU and GLD, and the silver ETF, SLV, are still up significantly in the last month, rising 4.3%, 4.4% and 9.8%, respectively. I began pounding the table on the precious metal ETFs as well as gold stocks at the end of July and silver stocks shortly thereafter. I reiterated these buys throughout the month highlighting many companies along the way. The mining company ETFs I recommended in August - GDX, GDXJ, NUGT and SIL - were up 9.1%, 6.5%, 26.7% and 11.8%, respectively, in the last month. For the mid- to long-term investor, existing central bank actions along with global uncertainty has already set the long-term trajectory of precious metal prices upward. I believe that gold and silver miners may outperform the metals over the next year or so as their correlation with the metals return to historical norms. In this article, I want to highlight a gold miner that I am buying on the recent pullback off of the highs. That company is Yamana Gold (AUY).........................READ MORE