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Barrick Gold Can Be a Hedge If Inflation Isn’t the Worst Case Scenario

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It’s been a week since Barrick Gold (NYSE:GOLD) reported earnings and GOLD stock has barely moved. In fact, GOLD stock is down 17.5% in 2021 despite turning positive briefly in May.

I suppose investors could be concerned about a year-over-year revenue decline. But that would seem to be offset by a corresponding increase in profits. So what’s really going on? I don’t know if there’s a simple answer.

Is Gold No Longer an Inflation Hedge?

If you’re an investor of a certain age, you would expect gold to be soaring with inflation (transitory or not) on the rise. On the other hand, the notion that gold is a hedge against inflation is being tossed to the side by many investors who believe that equities are the way to go.

And if you buy into that theory then it makes sense that mining stocks would be struggling even as the major indexes reach all-time highs.

But you don’t have to be a permabear to look at the markets with just a little bit of skepticism.........

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