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  5. ABX: I have about 4% of my portfolio in MNT, ABX, and K, all bought a year ago and 20-25% under water. [Barrick Gold Corporation]
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Investment Q&A

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Q: I have about 4% of my portfolio in MNT, ABX, and K, all bought a year ago and 20-25% under water. I am having trouble deciding if I should cut my losses, put them towards better gold stocks like AEM, or get rid of my gold exposure completely. If you're in my position, what would you do? What is your outlook for gold in the next few years? Are there any catalysts for gold as a sector you can foresee? I have a hard time envisioning them doing well when the economy is growing so nicely
Or is it good to keep as a hedge against the down days like today? The rest of my portfolio is diversified enough tending towards the growthy stocks, if that matters.

Thanks for your insight.

Asked by Connie on July 09, 2021
5i Research Answer:

Investors (like homeowners) should have some insurance before the flood occurs. If this were us, we would be fine at a 4% position. Other sectors are doing well and exposure is not huge. Conditions should be good for gold: stimulus, low interest rates, and a weak US dollar. The sector may be being sold so investors can buy more excitement elsewhere, but this of course could reverse. We like having a bit of gold as a sleep-aid. We like AEM better than K, but MNT is bullion exposure and that can also provide a safety cushion. While every investor is different, in general terms we would prefer at least a bit of exposure to every sector.