Barrick Gold Corp, going into next week trading session.
To a degree, we all understand the basic concepts of investing. Very likely, we know more than we apply. Isn't that the way life is?
We seldom perform to the level of our knowledge minus our God given talents.
Regardless of our past performance, self-improvement starts with the desire to be our best.
I always resolved to expand my intellectual horizons, to increase in wisdom.
Currently, Barrick outstanding share total is at 1,164,652,000 billion shares.
WOW! Over billion shares priced at $18.15
Which gives it $22.49 billion market cap!
Barrick loses $10.75 per share each year.
Yield at 1.10%
Short interest at 14,917,008 shares or 1.28% of the total float.
Cost of production + 1,164,652,000 billion share print machine madness.
Future of Spot gold and future of demand for Gold as industry product.
Really leaves anyone on state of not very interested in the prospects of long term investment.
Barrick on its way to 2 billion shares.
Common share holder most likely will lose value as the company loses money.
$10.75 per share loss!
Only ones making money here is the insiders, stock options, cashing out as the retail investors and inst money managers keep pumping more and more dollars into fiat common share print print until the bull market comes to a sudden end.
Sorry, I can't observe any sound wisdom holding such an investment more than few hours.
Conclusion: Barrick just day trade investment.
Gold closed at the upper levels on the daily bars, GDX which tracks gold miners closed at the lower end of the daily trading range, along with ABX.
So, even when spot gold was strong, gold miners were weak in trading action!
1. Fiat common share structure to blame?
2. Short covering maybe
3. Little of both maybe.
Fiat common share system; they just print up more and more shares.
Crazy to be long term investor under such conditions.
Just day trade it....
Safer... And odds favor you will win!
