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3 Gold Stocks That Could Be Inflation Busters | The Mesh Report

3 Gold Stocks That Could Be Inflation Busters

The Gold Enthusiast July 11, 2022 Comments Off on 3 Gold Stocks That Could Be Inflation Busters

Investors looking for safety nets can’t avoid scanning the mining sector for gold stocks. The price of the world’s most precious metal climbed above US$2,000/oz in early March 2022. As of this writing, the quoted price is $US1,770/oz or 13% lower from its peak.

Still, the recent Commodity Briefing Service: Gold report from the S&P Global Market Intelligence said the sentiment for gold investment has risen over the past two months. The reasons are higher inflation and increasing geopolitical risks.

Moreover, the global mined supply of gold and physical demand is likely to remain robust through year-end 2022 until 2026, notwithstanding the macroeconomic and inflationary pressures. Today, three TSX gold stocks could be your inflation busters.

Top-of-mind choice

On the TSX, Barrick Gold (TSX:ABX)(NYSE:GOLD) is the top-of-mind choice. It’s the largest in Canada and one of the leading gold producers globally. The large-cap gold stock ($40.37 billion market capitalization) also pays a decent 2.28%. While ABX is down 4.33% ($22.69 per share) year to date, you’d still have an ideal hedge against inflation.

According to Mark Bristow, Barrick Gold’s president and CEO, the current share price isn’t reflective of the stock’s inherent value. He enumerates the compelling reasons to invest in Barrick. Apart from the strength of the balance sheet, the asset base boasts peerless quality.

Furthermore, management’s long-term strategy has been successful because its implementation plans are reality based. More importantly, Barrick Gold’s six tier-one gold mines have unparalleled leverage if gold prices remain elevated due to geopolitical and economic fears.

Because of the robust operating, free cash flows and strong net cash position, Barrick declared a new performance dividend policy. The inaugural move doubled the base dividend. Management expects to meet its production guidance for 2022 on account of the steadily increasing gold and copper production.

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