Q: Hello 5i I own AEM and PAAS and I would like to get your opinion as to the seasonality for gold and you opinion of both companies. As I am thinking of selling them while the price of gold is rising but I think most gold companies stock prices have not appreciated in value as I thought
5i Research Answer:
With gold hitting new highs, many gold stocks may still have room to move. There is some seasonality to gold, based on China and India wedding season demand, but we do not really pay much attention to it. Since it happens every year, more or less, we are of the view that it typically gets priced in anyway. AEM is our favourite large cap gold stock, certainly. It has growth potential, is reasonably priced, and has solid mines in safe jurisdictions. PAAS is certainly one of our favourite silver names, though it has a more volatile history. Silver stocks are typically more expensive, simply as there a less of them available. PAAS's growth over the next couple of years looks solid, and its balance sheet is decent.