news03 (@user03) on getquin

10Mon·

Do any of you have Agnico Eagle on your radar? $AEM (+0.45%)

The company produces gold through mines in safe countries like Canada and has a comparatively low share price despite the current gold price, how can that be?

Yes, there are high costs, but that's why it's down almost 60 percent since the ATH?

3 Comments

Stefan@InvestmentPapa

10Mon

What is the first thing we learn about shares? The future is traded. And that is in 3-6 months at the earliest. So if we look at the gold price, we see high trends today. In terms of gold prices, I (I don't think I need to say much about myself as to why I am commenting on this) actually see corrections or stagnating prices in the coming months. The first signs came with the inflation data from the USA last week. The next trend-setting developments are likely to come shortly before the US election in November. This means that corresponding adjustments can be expected from October onwards.
Personally, I would stay away from gold mining stocks. Unlike oil companies, the gold mining business can very quickly become unprofitable and is exposed to a higher price risk. I would also always invest directly in precious metals. You can possibly find out for yourself whether this is as an ETC or physically by reading my profile.

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Dennis@GordonGekko83

10Mon

Good morning, sir! Does it look any different for other mines? And with a significantly lower P/E ratio. How did you come up with the 30?

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