Yamana Gold Inc. (YRI.TO)

Likes gold longer-term, but in the short term he doesn’t know what is going to propel it. Feels that in the long term, 2-4 years, gold will be much higher because someone at some point is going to wake up about all of the paper that the government has printed, which is going to risk inflation, defaults, etc. His main focus is Goldcorp (G-T).

Is on his watch list. Not of tremendous interest but when it catches fire it could move quickly. The financial statements are not great and they are looking to take care of that. When gold prices go up this one will go up a lot more than others because a lot of people follow it.

They have had some operational difficulties that are now behind them.

If you like golds, this is one of the best managed companies along with Goldcorp (G-T). He is completely out of the sector right now. Thinks there is just too much manipulation going on. He is going to stay away until he sees some signs of inflation.

Every time he looks at this one, he ends up with Agnico Eagle (AEM-T), so if you are looking to add to your holdings, he would add it to Agnico before he would look at this.

This might be a good trade rather than an investment, depending on what the gold price does for the next couple of years. He would treat entries into this more from a trading perspective. As an investment, he would prefer to go to the bigger names because they have more liquidity and more flexibility. Goldcorp (G-T) and Silver Wheaton (SLW-T) could have a reasonable run up. What you are looking for is low cost and a good balance sheet.

Gold companies are looking for opportunities to lower the costs and stay economic. Lower gold prices have made a difficult for them. This has been hammered during the past year and is finally showing signs of bottoming and starting to form a nice little base pattern. If it moves above its trading range, then it is off to the races. Gold has 2 periods of seasonal strength, July through to October and the middle of December through to the middle of March. Watch for gold and gold stocks to move significantly higher on a seasonal basis.

Like a lot of North American golds, you have “all in sustaining costs”, so not just what you produce, but what you have to spend to keep mines up and running. That is the number you should be looking at. This one is over $1200, so like most of the others you need higher gold prices for it to rebound. This doesn’t excite him in the short term. He would like to see it turn first, even if he misses the first 10%-15%, and then look at it.

Gold is one of the toughest calls out there. Got out of it a couple of months ago, but is now getting a little bit nervous about not owning it. Had a nice rally and is at the critical $1200 level, which is the cost of production for a lot of these companies. Even though there is some downside risk to gold in the shorter term, ultimately all this money creation and appreciation of the currencies will ultimately be a positive for gold. He is comfortable owning this one in this range.

Has just gone on his watch list. The price of gold is a huge wild cards. Thinks there will be more tax loss selling.

They reported a touch of a loss on account of their dividend, but their production came online and they are a low-cost producer. This is one of the ones that will have the leverage when we come out of this. It just requires patience.

He is not a gold guy. There is no reason to buy gold. Some people think there will be QE 4 next year and it would cause the US dollar to decline. He is staying clear.

As much as he likes gold, he wouldn't rush in just yet. He really wants to see gold base and start to ultimately break out. That means gold would be above $1250, and even as high as going through the 200 day moving average of $1280 and possibly breaking $1300.

He had held a little bullion ETF and had become quite discouraged. With the strength in the US$, which seemingly acts directly against gold and with no evidence that the $ is going to get any weaker, he has backed away from the whole area.

His gold outlook is pretty negative. Higher US$ and no inflation. Now we are below $1200 so there is no support. There is nothing wrong with it as a company.