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Barrick Gold Corporation Message Board

  • gm60s gm60s Feb 11, 2013 11:09 AM Flag

    Out of whack Ratio

    XAU vs Gold: Gold Miners are very oversold. Back 1983-97 the ratio was about 3X. Then GLD became an alternative investment and people switched out of miners into GLD and the ratio rose to 6X. Today it's 11X. It would be wise to switch out of GLD and into XAU or just buy ABX the leader, beaten down as much as any miner. Gold should end higher this year. I think miners would advance even in the unlikey event that gold dropped 10% this year. They're that beaten down.

    Sentiment: Strong Buy

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    • The market can stay illogical longer than you can remain solvent. Remember that. The miners (not just gold miners) can continue to suck for awhile longer. At least in the case of Barrick, there *should* be a turnaround in share price once Pascua Lama starts producing, that's what I'm counting on - but it does mean I have to hold this POS for another year at least. I do not like holding for such a long time (I'd much prefer to get in and out of the market quickly, i.e. book a 10% gain after holding a stock a couple of months at the max), but I'm stuck in this POS and refuse to sell. GLTA

      Sentiment: Hold

    • Need to be careful, all miners stocks are suffering because of the flatline in precious metals. this leverages the miners because the earnings are missing the calls. You are correct - if the metals go up, miners will make their earnings calls and the stock should rise and probably in a leveraged fashion. Need to note ABX has missed 4 straight earnings call, if it comes in at 1.00, it will still miss the call at 1.06 and likely not do squat.

      Sentiment: Hold

    • earnings thursday. if abx comes near 1.00 in profit, we should rise to upper 33's to 34's at least.

13.35+0.55(+4.30%)3:21 PMEDT