Against Buy and Hold
I suggested that buying at these levels offered a good entry for a buy and hold style, but take a look at this:
"Yamana Gold Inc. unveiled a deal to buy Extorre Gold Mines Ltd. on Monday for about $414-million, or $4.26 a share. While Yamana offered a 68% premium, Extorre shares traded above $14.00 last summer."
Of course what they don't say is that the gold price peaked and then collapsed from that summer until the $4.26 buyout. Nonetheless, this is a a very tricky and volatile sector. Take heed.