Another calamitous day for the markets as equities were dumped on a global basis, excluding precious metals stocks, which bounced back in impressive fashion. Agnico-Eagle led the charge with a gain of 12.97% pushing our Call Options to $8.10 by the close, for a gain of 89% since our purchase two days ago.
We purchased the JAN09 Call Options at a strike price of $55.00 for $4.28 per contract just two days earlier so we are really pleased to see them put in such a terrific performance.
Having been dumped earlier in the week with equities in general, it was reassuring to see them follow gold’s lead with the Gold Bugs Index (HUI) putting on 47 points.
Gold has since dropped back and as we write it is trading at $889.70 on the Hong Kong Exchange. There may well be some easing of prices in the gold producing sector tomorrow if gold trades at lower levels. However, in such a nervous market a rumour of two could cause gold prices spike taking the gold stocks to higher ground and our sell order placed at $8.50 could be triggered.
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Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.
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