Dave G

Barrick Gold: Higher Cash Costs Weaken Upside

While $40/oz is a higher cost, how significant is that in a market that moved up $20 in three hours - as it just has today. Predicting the price is all but impossible, as anyone following the experts recently has found out . The price of ABX is cheap as insurance against a systemic financial collapse.

Once again, the experts one year ago scoffed at this outcome- and now after one $trillion in interventions, there is no evidence that the over-leveraged banking/ government funding system can survive in its present form.

This stock - and the other high quality gold miners - should be trading at a premium, rather than a discount, to reflect the uncertainty of financial conditions around the world. My opinion is that investors are more a victim of de-leveraging across the board and official attempts that so far have been successful at suppressing the price of gold.

ABX remains the cheapest of all insurance policies against a collapsing $US dollar.