Q: Good morning 5i. I hold GOLD in a non registered account and am down 36% since purchase. I am considering selling to harvest the capital loss. My two part question; What is your outlook on GOLD over the next year? What would you recommend as a surrogate gold investment if I were to sell GOLD? Thanks very much for your great service.
5i Research Answer:
We think GOLD is a decent company in the sector, with gold leverage to the commodity, a strong balance sheet and an OK dividend while one waits. The sector certainly has been mixed, but we think as rates peak it will do better. We would see AEM as the best proxy, and would be fine with a tax loss capture strategy here.