Investors should know the importance of having insurance, Cramer said Wednesday, especially in times of economic chaos or serious inflation. Well, gold is insurance for the portfolio, as the commodity tends to go up when everything else goes down. While he typically recommends buying the SPDR Gold Shares exchange-traded fund, today he recommended taking a look at Agnico-Eagle Mines .
Over the last five years, AEM has jumped 281 percent, beating the GLD’s 148-percent increase. But the stock has been a relatively poor performer more recently, with the third quarter showing problems in everything from maintenance shutdowns and project delays to higher cash costs and weaker-than-expected production.
Then on Feb. 17 Agnico-Eagle reported a better-than-expected fourth quarter, with record production and optimistic guidance. The company also said that it expects gold production to double in 2010 versus last year. And though cash costs will also increase to $399 an ounce from $297, the market price is still at about $1,100 an ounce, leaving AEM a healthy profit.