Anglogold Ashanti (NYSE: AU) stock tumbled 6.5% through noon ET Monday on a big reversal of the precious metals trade.
As CNBC reports, silver hit an all-time high price north of $80 an ounce last night, but dropped dramatically this morning as traders took profits, falling as low as $70.25 per ounce. At last report, silver prices were still down approximately 7.1% at $71.70 per ounce, and gold prices were down 4.3% at $4,357.60.
Image source: Getty Images.
What's ailing Anglogold Ashanti today?
2025 has rewarded silver and gold investors richly. Silver started the year near $20 an ounce, but more than tripled in price through last night. (Gold prices are up 65% year-to-date.) For commodities that derive their value mostly from investors seeking hedges against inflation -- unlike stock in a business, which creates value by producing goods and services over time -- these are enticing gains.
The kind that makes investors think about selling and locking in profits.
This may be what's happening today. Moreover, pundits suggest what began as a mild bout of profit-taking this morning may be building into a "flash crash" as investors, who bought silver and gold on margin, start facing margin calls, increasing the pressure to sell before gains evaporate.
NYSE: AU
Key Data Points
Is Anglogold Ashanti stock a sell?
Anglogold Ashanti investors, though, should do their best to resist the pressure to sell.
Consider: At just 20.5 times trailing earnings, Anglogold shares rank among the cheapest publicly traded silver and gold stocks. The company's 2.2% dividend yield, moreover, is among the sector's richest. Perhaps best of all, analysts who follow this sector expect Anglogold to grow its earnings by a staggering 73% next year as gold prices continue to rise.
If they're right about that, today could be precisely the wrong time to sell Anglogold stock.
