Barrick Gold: Trading At A Deep Discount To Fair Value

Jul. 16, 2022 12:57 AM ETBarrick Gold Corporation (GOLD), ABX:CA81 Comments
Taylor Dart profile picture
Taylor Dart


  • Barrick Gold is down 50% from its Q3 2020 highs, and has slightly underperformed the Gold Miners Index with a 50% decline.
  • This can be attributed to the stock getting ahead of itself following a rush into the stock after Warren Buffett disclosed a position.
  • While we had temporary euphoria at $31.00 per share with experts calling for $2,500/oz gold, we now have complete despondency, and Barrick trades at its most attractive valuation in years.
  • Bottom-fishing can be a tricky strategy, especially in a volatile sector, but for investors looking to own a high-quality business with strong management at a reasonable price, Barrick checks all the boxes at $15.50 per share.

Mining in Northern Nevada


While there might be some blood in the water for S&P-500 (SPY) names with moderate fear and worried investors, the producers in the Gold Miners Index (GDX) have been torn to shreds, and it's a feeding frenzy with

This article was written by

Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Disclosure: I/we have a beneficial long position in the shares of GOLD, GLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying small-cap precious metals stocks, position sizes should be limited to 5% or less of one's portfolio.

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