Why Agnico Eagle Mines Stock Dropped Today

• Both metallic and golden sold disconnected this morning, with metallic losing astir doubly arsenic overmuch worth arsenic gold.

• Silver prices deed an all-time precocious past night.

• 10 stocks we similar amended than Agnico Eagle Mines ›

Agnico Eagle Mines (NYSE: AEM) banal tumbled 5.7% done 11:30 a.m. ET Monday connected a large reversal of the precious metals trade.

As CNBC reports, metallic deed an all-time precocious terms northbound of $80 an ounce past night, but dropped dramatically this greeting arsenic traders took profits, falling arsenic debased arsenic $70.25 per ounce. At past report, metallic prices were inactive down astir 7.9% astatine $71.12 per ounce, and golden prices were down 4.5% astatine $4,349.30.

2025 has been tremendous for investors successful metallic and golden alike. Silver started the twelvemonth adjacent $20 an ounce, but much than tripled done past night. (Gold prices are up 65%.) For commodity metals that deduce their worth mostly from investors seeking to usage them arsenic hedges against ostentation -- dissimilar banal successful a business, which generates worth by producing goods and services implicit clip -- these are enticing gains.

The benignant of gains that tin person investors to merchantability and fastener successful profits.

This appears to beryllium what's happening today. Adding to the dynamic, pundits are suggesting that what began arsenic a mild bout of profit-taking whitethorn beryllium gathering into a "flash crash" arsenic investors, who bought metallic and golden connected margin, statesman facing borderline calls, thereby expanding the selling pressure.

So is it clip to panic?

Not necessarily. While priced northbound of 26 times GAAP earnings, Agnico Eagle looks cheaper erstwhile valued connected escaped currency travel -- astir 25x. Analysts who travel the banal expect Agnico volition turn net astir 37% per twelvemonth implicit the adjacent 5 years, too, which makes the precocious terms palatable. And Agnico does wage a humble 1% dividend yield.

All things considered, I deliberation the banal should beryllium safe.

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