Q: Hi Peter…would you be buying safe jurisdiction gold miners now? The price of the metal, to my layman’s eye, is acting a little more bipolar now. Last Thursday or Friday all my stocks except for TD, AEM, WGX and GOT were down suggesting a level of panic. Today the golds are down suggesting fear of inflation ticking up triggering higher interest rates. Thinking of selling my WGX to buy AGI because it seems a better miner. Any thoughts you have would be appreciated.
Jim
Jim
5i Research Answer:
The sector has been acting weird but we would remain comfortable buying. Rates may still move lower, and it is not the end of the world for gold if they do not. Meanwhile, it continues to act as insurance against other issues. The materials sector is up 4.7% this year already. We would consider WGX OK but it has had some recent issues. AGI is 4X as large and we would be fine with a switch.