On Monday, The New York Times reported that the German government collapsed, coming at a particularly challenging time. The news follows political chaos in France, which has compounded regional concerns of tepid growth and security risks. Cynically, though, investors may turn to the historical safe haven of precious metals.
Of course, the problem with this approach is the lack of leverage. At the moment, the spot gold price stands roughly around the $2,700 level. Thanks to the law of large numbers, it’s going to be difficult to see significant price movements from here on out. For those seeking big returns over a short period of time, a proxy play may be more appropriate and that’s where First Majestic (AG) comes into view.
