Did Barrick Just Jinx Gold Again?

Long-term readers of Think B.I.G. might remember this post we did back in March 2008:

As shown in the chart below, Barrick's CEO top-ticked the gold market at $1,000/ounce with his "there's lots of room to go in the gold price" in early March 2008. Unfortunately for gold bulls, Barrick (ABX) made another huge bullish bet on gold yesterday when the company announced that it was eliminating all of its hedges on the metal. This came just as the price ticked above $1,000/ounce for the first time since February. Will Barrick get it right this time, or is this an ominous sign for investors who are long gold?

Comments

[NUCLEAR1929:]

at the moment gc cant break 1000

Sep 09 02:46 PM

[Macro_Man:]

It would seem so. Of all the people to be buying gold, these are likely to be the last. Who is left to buy gold now. Not buying GLD unless it breaks 100 convincingly. Else, might consider shorting gold again, but gotta be patient

Sep 09 03:26 PM

[justin_3d:]

Sounds interesting too. I will also be careful, as there was big selling volume today!

Most likely it might have been insider selling! If gold is going down, then here at the top, is the best time to sell their positions.

If this is to continue to go up, we need to see gold clearly break above 1,000, And stay there, not just a had fake!!!

Sep 09 03:59 PM

[Reserved Fo...:]

Isn't amazing that gold is at $1000, up every year since 2001, and 400% during that period yet almost all of the commentators that I see are warning that owning gold, like cigarettes, is injurious to one's health.

Am I missing something or is Goldcorp not up 1600% in that time and almost 22 times better than owning the Dow? Maybe it's time to should shift to stocks which at this date have the highest sentiment readings since the tops in 2007 and 2008.

And on Wall Street's tombstone will be engraved, "How did we miss it?"

Sep 09 04:04 PM

[The Recusant:]

justin_3d, you might want to consider the central banks in bringing the POG back down.

Sep 09 07:03 PM

[Michael Clark:]

Still plenty of room up for gold.

Sep 10 11:30 AM

[Laurence Hunt:]

Long gold. Not losing sleep over Barrick dehedging. Obviously they have to get out of their massive losing hedged position. With the Chinese promoting gold investing in television ads, I hardly think that Barrick is in a position to control the market - or even to signal its direction (apart from up).

Techinically, $1000 gold was toppy in March 2008. That is hardly the case today, where $1000 gold is now "dirt cheap," to quote Richard Russell, from back in 2003 (when gold was in the $300-400 range).

www.gold-eagle.com/gol...

We'll soon be reading, "$1000 gold - no longer available."

laurencehunt.blogspot....

Sep 10 03:28 PM

[Michael Clark:]

Gold is the only real asset to own during economic Night Cycles.

Night Cycles
2001-2019
1965-1973
1929-1947
1893-1911
1857-1875....

Sep 11 08:10 AM