Ukraine Effects Or Something Else?

The big NYSE gold miner, closely watched (apparently) by Berkshire Hathaway, is hitting a 5-month price high this week. The Warren Buffett/Charlie Munger fund bought and then sold Barrick Gold in 2020. It’s likely that this week’s move higher by the stock is being noticed in Omaha.

It’s not just global fear of whatever Russia might be trying to accomplish by surrounding Ukraine with troops and tanks. Some of that tension eased Tuesday morning on reports some of those soldiers had been withdrawn. It’s hard to say how much of this is in the realm of mind games designed to confuse.

Whatever the case, Barrick Gold today managed to blast higher than its November high and thus showed a type of strength that might be unrelated to Eastern European situations. Or it may be that precious metals investors generally have a better take on geopolitical fear and its effects.

Here’s the daily price chart for Barrick Gold:

You don’t have to look too closely to see the price break-out well above the November high. It’s now above both the up trending 50-day moving average (the blue line) and the 200-day moving average (the red line). Note the relatively high level of buying volume seen on this graph at the bottom of the price chart.

The weekly chart for the price of Barrick Gold looks like this:

The first item to notice is this: for the first time in months, the price is above the 50-week moving average for 2 weeks in a row. See how that 200-week moving average continues to trend upward, week after week. Note the positive divergence versus price on the moving average convergence/divergence indicator below the price chart.

Barrick Gold has a market capitalization of $38.81 billion with an enterprise value of $36.91 billion. It trades with a price-earnings ratio of 19.69 and at 1.66 times price to book value. Earnings this year are in the red by 42.10% — the past 5-year EPS growth rate is a positive 20.50%.

The company is paying investors a $.36/share quarterly dividend for an annualized yield of 1.74%.

Average daily volume of this NYSE-listed security comes to 17.95 million shares, making it accessible to large institutional investors who might be looking for generous liquidity.

It’s likely that the folks running Berkshire Hathaway are keeping track of this gold miner they were so interested in not too long ago.

Not investment advice. For educational purposes only. More words and charts at m website:

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