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Yamana Gold, Inc. Message Board

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  • hapiwondrer hapiwondrer Apr 29, 2011 8:20 PM Flag

    gold up $30, but AUY doesn't reflect

    Here’s “why, why”.

    As previously posted, hedge funds have been pouring money into ETFs like GLD. This puts available investment funds into it, and similar bullion ETFs. Simultaneously they short the gold mining stocks, which drives the share price down, if not immediately, then shortly thereafter, and when they perceive the stocks have bottomed, they cover. There are those who will state that “the amount of shorts currently is a non-issue. But those who are engaging in this activity are not playing by the rules. Their activities are NOT transparent, meaning it is hidden from the view (by FTDs) of those who make these claims. If you look at PM miners, in general, you will see that Yamana is not the only stock that is underperforming. An easy way to verify this is to look at the performance of some of the PM funds, and note which are their top 10 holdings (Yahoo), or even a longer list from Morningstar (25).

    In the past this sort of activity was considered a reason to employ anti-trust charges. But today those that would be expected to put pressure on regulatory authorities and the courts to demand that this sort of criminal activity be stopped have been “captured” as well. The whole financial system is corrupt, and there is also the question of whether PM miner CEOs have not also been captured as participants since evasive action would include large dividend increases. Dividend increases help offset shorting activity since the shorts must pay dividends to those from whom they have borrowed the security.

    These opinions do not emanate from this screen name. They are all over the Internet, and when you ask “why, why” you appear to be either extremely naïve, or to be acting as a poser.

    There are a number of Authors on this message board who state a strategy of going along for the ride as small investors, realizing that the activities of hedge funds have been very predicable. The problem with this strategy is that it goes completely against the positive financials of PM miners. So if, and when, hedge funds take an opposite position on this sector those who are not in the inner circle are going to experience losses.

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