Gold hasn’t turned out to be the haven it usually is. So often the commodity and the stocks related to it are recommended as a way to hedge against loss in your portfolio. That didn’t work this time because we’re actually in a deflationary period and not one driven by inflation, which is when a gold play works.
As a result, gold prices are down to $738 an ounce from $897, and Cramer favorite Agnico-Eagle Mines has plummeted to $22 from the $68 and change it was trading at back when he recommended the stock on Sept. 22.
Needless to say, Cramer’s eating crow over that call, but still he said we could be just two quarters away from a “gold explosion.” So with the sector’s stocks so cheap right now, why not buy on this decline? And if you do, is AEM the one to own?
Cramer brought on Agnico-Eagle Mines CEO Sean Boyd for some answers. Check out the video to find out what the chief executive had to say about his company’s prospects.
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