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Barrick Gold: The Best Deal In Over 30 Years

Sep. 01, 2022 7:29 AM ETBarrick Gold Corporation (ABX:CA), GOLD24 Comments
DT Analysis profile picture
DT Analysis


  • Despite Barrick Gold doubling their dividends earlier in 2022, their share price still endured a sell-off along with gold prices.
  • This dynamic is nothing new, as their commodity prices fluctuate in the short term but importantly, their lower share price saw their dividend yield surge higher.
  • It is now back around its highest point in 30 years but unlike the last time it reached this point in 2013, they are not burdened by debt.
  • Despite the potential for short-term bumps, they appear capable of funding their dividends on average.
  • Since this offers the most compelling income their shares have ever offered, I believe that upgrading my rating to a strong buy is now appropriate.
Golden dollar signs raining with white background

SergZSV/iStock via Getty Images


Barrick Gold (NYSE:GOLD) entered 2022 ready to mark a change for the better after years of sporadic shareholder returns and thankfully, they wasted no time with the first quarter already seeing their dividends doubled with the potential that more

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DT Analysis profile picture
I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GOLD over the next 72 hours. 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.

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Comments (24)

Gold is god’s money, and in God we trust. Don’t trust in US$ or € stored in a computer. Long physical GOLD
Jack Lea Mason profile picture
Gold/Silver may return as a currency and medium of exchange. I envision the current Troy ounce denomination to someday split down to grams, gAu and gAg. GOLD is certainly a good option in any long portfolio.
02 Sep. 2022
When the "Moscow World standard" finally opens up, and all the worlds top gold producing nations join, they will control over 60% of the worlds gold market. Word is that the opening price of gold will be somewhere around $2250 and silver $35, this will completely destroy the multi-trillion dollar paper derivative market, collapsing major western banks, and the US dollar, as Saudia Arabia, will also be joining, destroying the petro dollar...
Beartooth profile picture
@Rex20 Lol. Word is from who??
JF1970 profile picture
I hold, and will be adding if weakness persists. This management team has to be able to navigate this kind of environment. Maybe even some M&A?
Wait till copper rockets higher.
JF1970 profile picture
@cashewking I will hope so, as they announced this morning a significant commitment on that front - a joint venture with TECK in Mexico.
JF1970 profile picture
@cashewking my previous comment was confused, and this is being polite... it looks like AEM (another of my holdings) is also moving into copper - this is the announcement I was referring to. So, I have another reason to hope you are right!
funny money monkey profile picture
I keep buying and will continue doing so with further declines. It might be the best macro investment in thirty years, period. The market is absolutely asleep at the wheel when it comes to gold in general, but especially Barrick.
@funny money monkey agreed - if there is one stock which will rebound in the short term , it’s GOLD!
Road-runner profile picture
Other than jewelry, what are some of the primary uses for gold? Looking for something more specific than "electronics". Appreciate any insight. I have a better grasp on coppers' uses.
@tylerwallace in summary, a little bit of gold is used in every device containing chips because they cannot take a large amount of voltage. Cars, cellphone, refrigerators, houses, ac/hvac, planes, hell even doors that open and close by itself requires gold
Beartooth profile picture
@tylerwallace It's a store of VALUE. It has been for thousands of years
I'm not currently holding but am watching Barrick closely. I like the exposure to gold and copper, it's strong b/s and yield, plus it's likely to be an early beneficiary if/when the generalist investors switch to commodities.
DarienL profile picture
Gold is headed lower as long as Jay keeps raising rates. Now is not the time to buy ANYTHING gold or silver
@DarienL I agree. The "bargains" we are seeing now are going to get much cheaper. Whether you agree or not, please consider keeping some cash reserves for that possibility (FWIW, my initial buy order for GOLD is ~ $12.50 but I may lower that if Powell keeps raising interest rates and the dollar keeps going up).
DarienL profile picture
@bsmith248 I have ample amount of (physical) gold and silver that I bought in 2000 that I will never sell.
Thanks for the work. This is a very Capital Intense and complex business due to the Global Nature. Could be a nice entry price for speculators though.
It has been tough watching GOLD and gold drop, but that creates buying opportunities.
Very sneaking smart write-up. I agree.
Xav Welsh profile picture
Thanks for the article. I’m newly long GOLD and am adding on further weakness. One of the criticisms of actually owning physical gold is that it doesn’t pay you to hold it. But with GOLD you’re getting >5% yield to hold shares of one of the worlds premiere producers.
2bears profile picture
@Xav Welsh Once again SA shows the wrong dividend with their chart. How hard can it be to get the dividends right?
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