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  5. AEM: hi, this is less company specific, but I do own a small amount of AEM, which has gone nowhere, even with very high gold prices for some time now. [Agnico Eagle Mines Limited]
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Q: hi,
this is less company specific, but I do own a small amount of AEM, which has gone nowhere, even with very high gold prices for some time now. I see today comments in question section of ABX as one doing better than others, but it is a cash disappearing machine, and trades well below levels 24 years ago. Monk used it as his own printing press, and pilfered for years to build insane things for his own personal benefit, including a ridiculously gaudy marina for his wealthy cabal in Montenegro. is there any rational reason you believe anyone should own these suspect outfits owned/run by ie "gold/precious metals miners" ) ? if you were to be interested in having exposure to precious metals what would you recommend ie a miner? physical gold? ETF?
has not cryptocurrency taken over this hedge on the world collapsing ( which there are of course many signs of, daily ). appreciate your thoughts
cheers
Asked by chris on February 15, 2024
5i Research Answer:

We do like AEM better. But ABX remains one of the largest gold companies in the world, and if gold were to run investors would likely use it as 'go to' name in the sector due to its size and liquidity. We agree it has not been great, but it has the reserves and production that investors would seek out if gold were to rally substantially. It may end up better than many cash-poor illiquid small caps at the end of the day. It is far from perfect, but for a general audience (ours) a large cap for general gold exposure is often better received by investors than some of the smaller alternatives. We like KRR and AGI as well, but they are much smaller. The gold sector has been hard with many other factors, not just mismanagement. The link also adds some crypto comments.