Although precious metals attempted to bounce back from Friday’s sell-offs on Monday, they resumed their downward path with a vengeance this morning. Tripped up by a significantly stronger US dollar, spot gold prices fell to a fresh six-week low.
Freeport-McMoRan Copper & Gold (NYSE: FCX) has endured a choppy stock market ride since May. And not surprisingly, its performance tracks price volatility of the red and yellow metals, its primary products.
A way investors can protect themselves is to stick to large, geographically diversified resource producers. Or focus on companies that get the majority of output from more politically stable countries where the odds of resource nationalism taking hold are lower.