Q: I currently hold both AR and BTO as gold stocks. Down on both. Can you please give me your thoughts to whether I should hold or dump one. Down on both. Thank you in advance.
5i Research Answer:
Gold stocks have disappointed; they 'should' be doing better, with the US losing some strength and rates near peaking. While we like diversifcation, we would be comfortable switching only into BTO here. In a taxable account we would be fine selling AR with a view to look at it again later in the year. It has done better this year, but is significantly more expensive than BTO and also has a much riskier balance sheet (BTO has a large net cash position).