Q: Hi folks. I bought AEM and GLCC as hedges against market turmoil, but they are falling like everything else. Are quality gold stocks no longer a safe (relatively) haven?
5i Research Answer:
Gold hit a record yesterday, and, despite the size of today's drop, we would see trading as relatively normal after such big gains. Investors are very much in a 'sell everything' mood right now and gold may be being used as a source of cash for margin calls or some bargain hunting. We do not think the long term trend has changed at all.