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  5. AEM: I am interested in investing in gold. [Agnico Eagle Mines Limited]
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Investment Q&A

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Q: I am interested in investing in gold. Please advise if this is a good time to put money into this and if so, which company do you think has the most potential. As well please advise which companies to stay away from at this time.
Thank you for your great service

Asked by Stella on July 16, 2021
5i Research Answer:

Timing is tricky with any sector. Gold can be viewed largely as portfolio 'insurance'. The key to insurance is having it before you need it. Thus, today we are fine with 5% to 10% exposure, depending on investor. We prefer large cap companies in 'safe' jurisdictions, such as AEM, KL, FNV, AGI. We prefer to avoid companies with significant operations in Argentina, Venezuela, DRC and other difficult political areas. We prefer to avoid small caps, just to be risk-adverse. We prefer to avoid companies with a lot of debt: the business is hard enough as miners without worrying about capital. There are hundreds of stocks to avoid, but this can provide some guidance.