Agnico Eagle Mines Ltd. (AEM)

Agnico Eagle is one of the most rock-solid major producers in the gold mining industry. It has fully arrived on the scene as one of the largest-scale gold producers, which it procures at incredibly low cost compared wth its peers. Unlike many of the other major gld producers (Newmont, Goldcorp, etc.), AEM management has done a terrific job with achieving organic growth in a competitive environment. AEM has had an amazing run already, but with its solid fundamentals it has much further to run... even if it may be outpaced by mid-tier producers like Yamana or NovaGold.

Here are the two most bullish factors affecting silver.

1. The world has nearly run out of silver.

2. The nations of the world have printed up nearly unlimited amounts of unbacked paper money.

Put together, these two factors have never occurred before in the history of mankind.

True, the world was once using silver as money in many nations at once. But back then, in the late 1800's, the world had 5-10 billion ounces of silver to use as money. Today, we have much, much less, because most of the silver that has ever been mined in the world has been consumed by industry, and we may be down to about only one billion ounces or less.

True, there have been hyper-inflations as paper money has been printed to excess. But at those times, it was usually in one nation at a time, and there was still plenty of silver (and gold) to be used as money.

Today, no nation is using silver as money. And today, the world is almost out of silver. These factors create this once-in-history opportunity.

Silver today may be the best investment opportunity in the history of mankind.

Gold has been artifically undervalued, and is in the midst of a multi-year correction up to (I estimate) around $1200/oz. As this happens, the rising tide will elevate *all* reasonably-managed gold stocks. Don't believe me? - check out the price of gold vs. the US dollar index since 2001. AEM is particularly attractive since most of its mines are located in politically-stable Canada.

Government is printing money to cope with bad paper etc.
Inflation will be here in spades.
This is one of the best gold companies.

Agnico-Eagle Mines, which has five new mines coming online in the next two years. They pay a small dividend every year. The company operates a very profitable mine in Québec, a safe place politically. Another mine is coming online in Québec in April. Kittila, in Finland, will be the largest mine in Europe when it comes online in September. The company is expecting production to grow 50% in 2008. It's hard to find gold companies with production growing that rapidly and with very low cash costs of about $200 an ounce. If gold prices go as high as I think they will, this could be an explosive stock. It's a Canadian company,

earnings almost tripling in the last quarter . Almost at 52 wk high

Gold play #2. This one's mines are Canada.

AEM has the best directors in the mining industry. CEO Sean Boyd, at the helm since 1985, has led this mining company to a position that

will soon become a classic for the world to envy. Your greatest

reward is to accumulate this stock and hold. To panic and sell for our worthless dollar denotes insanity.

Hedge against inflation in these extraordinary times.

Gold will hit 1250 in 2009 and miner companies will follow suit.

TA indicates bullish. 5/10/20 crossed positive on 12/23, Trix 15 crossed 9 on 12/22, ADX +D1 over -D1. Slo Sto shows possible pullback but most TA looks positive.Weekly chart shows possible retrace but I think trend overall still looks bullish long term.

The demand for gold is soaring. China and India's economies are growing at phenomenal rates. This will create a huge demand for gold in financials, jewelry, and electronics. Combine that with the stability of Canada's government and economy, as opposed to some regions, means this company should be more profitable than most mining companies.

What would you say if your cost of doing business was actually a profit center??? This company actually makes more money on the secondary metals from its gold operations than it costs to mine the gold. Boy I wish my garbage was worth as much as thiers. Gold is going to $1500. Make no mistake. The looming market destruction of the Democrats is going to far outpace anything that the current administration can do to fix the dollar. If they can't tax it they will print more. Either way is good for gold. Also, this company is extreemly well run and is getting into other metals like uranium which hooks them to the energy crisis. This is a great long term play. I would take a few quarters off when gold eventually drops in a few years and then get back in.

cramer gold and metal mining highlight as an alternative to AUY. Canada based

aem operates in great regions, with enormous mines with gold cheap right now i think aem is a buy

Stocking up on the miners while the US dollar stills buys something.

One of the top 25 holdings of USAA Precious Metals and Minerals - USAGX

Risk Average
Rating Rating: 5 out of 5
Return Above Average

Top gold miner. Forward looking management.
New mines coming on stream. "Safe mining locations".

With fear and expectations of economic turmoil and inflation a good gold mining company should be a good defensive move.