Barrick Gold Stock ( TSX:ABX )( NYSE:GOLD ) has done very well over the last ten years. Even though free cash flow is still a bit lumpy, as it always is in the mining industry, it has gotten much better. The variable quarterly dividend payout has increased significantly, and the company has paid off almost all of its huge debt in the last nine years. Still, the stock price has mostly stayed the same despite these fundamental improvements. For example, the company has improved its world-class asset portfolio, hired one of the best leaders in the industry as CEO, bought back cheap shares, and built up an impressive production pipeline of high-quality gold and copper mines that will produce for at least a decade.
This is even more surprising when you consider that the gold price has increased by 50% over the same period.
Was the price of GOLD stock too high when 2014 began? I think the valuation pendulum has swung too far in the other direction and that Barrick is currently undervalued and set to rise, especially given the macroeconomic fundamentals and trends. In this article, I’ll talk about three reasons why 2023 will be the year of GOLD.
Reason #1: The Price of Gold Is Expected to Go Up in 2023
As 2023 starts, several things are going for gold prices . First, central banks are buying gold, which is a decisive vote of confidence. Central banks bought more gold in 2022 than they had in the 55 years before. This means that people will still want the yellow metal in 2023.
Gold also stands out as a good place for investors to put their money during a recession. CDs have good interest rates right now, but if/when the Federal Reserve changes its mind about interes...
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