I am assigning Barrick Gold (NYSE:GOLD) a positive risk/reward rating based on the bullish fundamental and technical backdrop for copper and gold, and Barrick’s leadership position within the mining sector. Additionally, the portfolio diversification benefits of adding copper and especially gold to one’s investment portfolio are well documented and point toward investors having a sizeable weighting to lower portfolio volatility and increase expected returns. Barrick’s position as an industry consolidator with many attractive investment opportunities combined with the company’s strong balance sheet, free cash flow generation, and attractive valuation complete the picture.
Continue reading this report with a stoxdox membership.