Gold Just Dropped: Should TFSA Investors Buy the Dip?

Gold’s dip can create a TFSA opportunity, but only if you pick a miner built to survive the ugly swings.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 5, 9:30 pm EST

Key Points

Agnico Eagle offers scale in stable jurisdictions, with strong cash generation and disciplined spending.
Its balance sheet is a key cushion, with roughly US$2.16 billion net cash as of Sept. 30, 2025.
Rising costs and ongoing gold volatility can still punish miners, so position size and patience matter.

Gold does not drop in a straight line, and a Tax-Free Savings Account (TFSA) does not forgive bad timing. When gold slides, ask why it fell and what could reverse it. A U.S. dollar pop, forced selling, and broad market stress can push bullion down even when the story stays intact. You also need to respect how gold miners behave. A miner can fall harder than gold because investors price in costs, taxes, and operational risk. In a TFSA, that volatility can work for you, but only if you can hold through ugly weeks without blowing up your TFSA plan today.

investor looks at volatility chart — Source: Getty Images

Consider AEM

Agnico Eagle Mines (TSX: AEM) gives Canadians a solid way to play gold without chasing tiny explorers. It runs mines in Canada and Mexico, and it focuses on long-life assets in stable jurisdictions. Over the last year, it benefited from higher realized gold prices, but it also tightened the business. It leaned into cash generation, balance sheet strength, and disciplined spending.

Recent news also leaned toward cleaning up the toolbox. In the third quarter of 2025, it sold about 38 million shares of Orla Mining for total proceeds of about $560 million. It took an accounting hit tied to the discount and transaction costs, but the move still showed a practical goal: turn investments into cash when prices look right. That kind of decision matters when gold turns jumpy.

The balance sheet story looked even louder. By Sept. 30, 2025, it held cash and cash equivalents of about US$2.4 billion and it carried long-term debt of about US$196 million, which left it with a net cash position of roughly US$2.2 billion. The gold producer entered 2026 with room to fund projects, buy back shares, or wait out volatility. It also set a catalyst, with fourth-quarter and full-year 2025 results scheduled for Feb. 12, 2026.

Earnings support

Those earnings numbers show why investors treat it like a leader. In the third quarter of 2025, Agnico reported net income of US$1.055 billion, or US$2.10 per share. It reported adjusted net income of US$1.085 billion, or US$2.16 per share. It also produced 866,936 ounces of gold in the quarter.

Costs still matter after a gold dip. In that same quarter, management reported all-in sustaining costs of US$1,373 per ounce, up from US$1,286 a year earlier. It also generated free cash flow of about US$1.19 billion for the quarter. That mix tells a simple story. It prints cash at strong gold prices, but it still faces inflation, labour pressure, and energy swings that can pinch margins when bullion cools.

The outlook now depends on whether gold’s drop marks a reset or a trend. At writing, spot gold fell about 2% amid a firmer U.S. dollar and liquidation pressure. If that move fades, a miner with net cash and free cash flow can look attractive on a rebound. If the slide continues, miners can keep dropping even when operations run well, because sentiment turns fast in this sector.

Bottom line

So should TFSA investors buy the dip in this one? It can work if you want exposure to gold and you can handle the roller coaster, and you can size it modestly first. It offers scale, cash generation, and a net cash balance that reduces stress when prices swing. The risk stays real, because costs can rise, mines can surprise, and gold can keep falling when markets de-risk. If you want a miner you can hold through chaos, this gold stock fits better than most, but you still need a steady stomach.