Q: Gold and related companies got whacked yesterday, seemingly in the wake of Trumps announced tariff on copper. But copper and gold are different, right? Would you recommend Agi or any similar companies as opportunistic buys? Or do you see gold continuing weaker?
5i Research Answer:
Yes, the metals are different, but most gold mines also produce a lot of copper as a by-product, so they are not immune to copper market volatility. But we are not particularly worried about the gold sector. Lower interest rates and good for the metal, as is a lower US dollar. The US debt situation does not look to be improving at all, so currency debasement likely means gold will stay strong. We would see this as a buying opportunity.