Sunday, July 25, 2010

Barrick Gold - Question of "When?"

Barrick Gold is the world's top gold producer. They are simply the best:

  • #1 gold reserves
  • #1 gold producer - and finally unhedged
  • tremendous project pipeline
  • provides global diversification in geopolitically stable regions
  • strong balance sheet
  • strong management
  • etc, etc, etc
Gold is currently in a correction, and this presents an opportunity to "invest" in Barrick Gold. "Invest" is intentionally quoted, because don't consider this a trade. This is both a value and growth investment opportunity. The charts are indicating the downtrend to continue, but what's interesting is that the Gold miners earnings are coming out this week. Barrick reports on Thursday. Early in the week may be a buy opportunity.

1 comment:

  1. Have you ever heard of the 'Beijing Put'? Every time gold dips, the Chinese buy. The invisible hand this time is yellow and it is scooping up something else that is yellow as well, every time that there is a chance. This is coming straight through government channels. The Chinese are trying to diversify out of dollars into a global currency and commodity basket. Guess what? Gold is in that basket in a big way. The Chinese have not announced how much gold bullion they have accumulated since April 2009. There's a reason for that, and that reason is that the 'Beijing Put' has been in effect and has resulted in the Chinese moving their gold reserves up by as much as 50 % to 1500 tons.
    As is mentioned above, Barrick is hands down number 1 in the gold industry. When I look at the other companies I get sick. Losing money because of rising Pesos?? No growth opportunities (Newmont). It's ridiculous!!