Have you considered buying Barrick Gold (TSX: ABX) recently? Barrick is one of the largest precious metal miners on the planet. The stock is also frequently on the minds of investors contemplating whether to buy, sell, or hold.
Here’s a look at the case for each in 2025.
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The case to buy
There are plenty of reasons to consider buying Barrick Gold right now. The first reason has to do with gold prices. Gold prices are an indicator of how the market is faring. When uncertainty hits, investors turn to the perceived safety in gold and, by extension, gold stocks.
That, in turn, leads to gold prices rising. By way of example, let’s look at current gold prices. Given the volatility we’ve seen in the markets over the past several months, it comes as no surprise that gold prices are now trading just over US$2,900 per ounce.
As a miner of those precious metals, when the price of gold goes up, it directly impacts Barrick in a few ways. The more obvious of these is when the miner sells the metals produced from its mines. Given the rising price of precious metals, that increase goes directly to Barrick.
Speaking of increases, Barrick also pays out a quarterly dividend to investors, which currently works out to a yield of 2.13%.
Another key reason to consider is Barrick’s financials and, by extension, its valuation. As of the time of writing, Barrick trades at favourable levels, with a price-to-earnings ratio of 15.46. The company also boasts just over US$5.2 billion in debt, which is considerably lower than some of its peers.
In short, with precious metals rising, Barrick gold remains a well-run, profitable option to consider buying right now.
The case to sell
Despite rising gold prices and the lower level of debt that Barrick gold boasts, there are some reasons investors may want to sell. That includes the overall risk of Barrick’s operations, which includes markets that are less stable such as Africa and parts of Latin America.
A key example of this was the shutdown of the Loulo-Gounkoto mine in Mali. That incident led to Barrick needing to revise its gold forecast to a lower 3.2 and 3.5 million ounces.
Adding to that risk is Barrick’s dividend. While the company does offer a quarterly yield, income-seeking investors may be better suited to turning to a higher yield given current interest rates.
How about holding Barrick gold for now?
Another option for existing Barrick gold investors to consider is holding the stock. The market is volatile right now and is likely to remain that way for some time. In times of volatility, investors often turn to defensive stocks and traditional stores of wealth, such as precious metals.
That shift is already evident in Barrick’s stock price. As of the time of writing, the stock is trading up over 20% year to date. This fact alone makes it a compelling case for current investors to sit back and wait.
Final thoughts on Barrick Gold
No stock is without some risk, and that includes Barrick. Despite its appeal as a precious metals miner, the company does have its challenges and risks for investors to consider.
That said, I believe there is a compelling case for adding a small position in Barrick to any well-diversified portfolio.
Buy it, hold it, and watch your investment grow.
