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Agnico Eagle Mines Limited (AEM $284.98)
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Lundin Gold Inc. (LUG $104.24)
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SPDR Gold MiniShares Trust (GLDM $99.28)
Q: Today you recommended selling LUG in a model portfolio. You mentioned the softening momentum in the gold trade as one reason for this recommendation. In your opinion,
1) would you also recommend selling or taking a bit off of other gold stocks such as GLDM?
2) does the softening momentum also apply to gold miners such as AEM?
Thanks
1) would you also recommend selling or taking a bit off of other gold stocks such as GLDM?
2) does the softening momentum also apply to gold miners such as AEM?
Thanks
5i Research Answer:
We are not overly concerned about the gold sector. LUG was a small position, and we needed a "buy more or sell it" decision. We would be OK trimming the sector if an investor has (likely) seen it rise above target. It has been a pretty good run. But considering what is happening in the world, gold still looks good to us. Some weakness could come as the US dollar recovers. But this recovery is really war-related, and thus may not be permanent. We would be less inclined to sell the very large cap golds such as AEM, but again we are fine with a trim to manage position size.