Oversold shares of Barrick Gold (GOLD) look interesting.
The company has more than a dozen gold and copper mining operations, stretching from Nevada to Africa. It’s also the world’s second largest gold mining company that’s had to watch its stock sink as the price of gold plummeted.
While gold isn’t the safest investment just yet, that could change.
For one, fear makes gold attractive to us.
That’s because, as we learned from investors like Baron Rothschild, the time to buy is when the blood is flowing in the streets. Or as Warren Buffett would tell you – buy when others are fearful.
Two, the Federal Reserve is aggressively hiking interest rates to fight inflation. Doing so, strengthened the U.S. dollar and put pressure on gold. However, that could change, as financial institutions, the International Monetary Fund, and the United Nations pressure the Federal Reserve to cool off with the hikes.
Also, according to Forex.com: “A long list of Wall Street banks from Goldman Sachs, JPMorgan to Bank of America have warned that an overly aggressive Fed tightening policy, combined with a surging U.S dollar, risks breaking the global financial markets and causing dangerous instability in other currencies.” If the Fed listens, gold prices and related stocks could push higher.
Helping, analysts over at Citi just said, “Gold stocks have been hit hard by the selloff, creating an opportunity for investors to accumulate.” The analyst says Citi is mid-term bullish on gold, seeing prices rebounding to $1,900 per ounce in the second half of 2023,” as quoted by TheFly.com. Also, while we wait for GOLD to recover, we can collect a dividend yield of 5.48%.