Superb results were issued this week by one of our favourite gold stocks; Agnico-Eagle Mines Limited. The statement went on to say:
“At December 31, 2007 Agnico-Eagle's proven and probable gold reserves hit a record of 16.7 million ounces, an increase of 33% over the year end 2006 level. The growth in gold reserves of 4.5 million ounces (prior to considering 2007 gold production) was a result of successful definition drilling at our development projects, which converted 1.6 million ounces to reserves, and the acquisition of the Meadowbank project.”
When gold decides to make its play for the magical $1000/oz level this stock will be one of the biggest beneficiaries in our humble opinion. We have traded this stock since the early 1980's and just recently we reduced our exposure to the price of gold by selling some of our holdings in Agnico. If you are a regular follower of our trades in gold stocks you will be aware that this is one favourites and we fully intend to more of this stock as and when the pull back takes place.
"The steady growth in gold reserves, and more importantly, gold reserves per share continues to add value for our shareholders. With gold reserves and resources at record levels, and with several of our large deposits open for further expansion, we anticipate further resource to reserve conversion in 2008" said Sean Boyd, Vice-Chairman and Chief Executive Officer.
All good news, should you want to read the article in full then just follow this link.
However, good investment also requires good timing in terms of choosing your point of entry. Take a quick look at the Agnico's chart below:
The technical indicators suggest that this stock is heading south.
The stock price is still almost $20 above the 200dma and this turns us off buying at this point in time.
You may disagree and see gold hitting the moon shortly and Agnico hitting a $100 per share, if so then go for it by commenting below.
For now though, we will try and find some patience and wait for a cheaper entry point to present itself.
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