I can think of two reasons to buy shares of Barrick Gold (GOLD) now. Either one alone would be enough to justify a “buy.”
First, sentiment is shifting among investors toward the idea of buying gold as protraction against currency depreciation. The U.S. government is selling dollars (in the form of Treasury bills, notes, and bonds) as fast as the printing presses allow. At some point, those investors buying gold argue, all those dollars lead to a weaker U.S. dollar. And at that point you want to know a steady measure of value–like gold–rather than the paper currency of a country (or countries) that clearly has no intention (currently at least) of ever paying off that debt. When central banks start to monetize their debts–the U.S., Japan, the European Union, and China–it’s time to own gold.
Second, Barrick Gold has been a very predictable trading vehicle recently. The price of gold itself rises when investors get a more fearful (although not if they get two fearful because then traders sell gold to raise cash for margin calls on other holdings) and it sinks when optimism breaks out. Recently shares of Barrick Gold have traded between a low of $26 or so and a high of $28 and change.
$25.72 on April 30 and $28.19 on May 5.
$26.02 on May 11 and $$28.10 on May 19.
The shares closed today, May 21, back at $26.26, down 3.63%.
Seems a decent entry point for investors or traders.
Barrick Gold is a member of my 12-18 month Jubak Picks Portfolio (up 68.33% since June 21, 2019) and my long term 50 Stocks Portfolio (up 94.81% since May 14, 2018.) You can see the full portfolios on JubakPicks.com for free if you register on the site by giving us your email. That will also get you the regular 8 p.m. daily alerts straight to your email box. We never sell or trade your email.
Full disclosure: I own Call Options (September 18, 2020 with a strike of $29) on Barrick Gold in my personal portfolios.
Please note: In this case my pick of Barrick Gold is a recommendation for a current buy. That’s not always the case. A Stock Pick of the Day is not always a recommendation to buy on the day of the pick. Check market conditions and your assessment of market trends. The Pick of the Day is a stock that I find attractive on the fundamentals, but not one that I would buy at any price. In other words, if you agree with my assessment of the day’s stock, use your judgement on when to buy. I will give you my best assessment of timing for a buy at the end of each post.