{"id":66360,"date":"2009-12-06T09:25:00","date_gmt":"2009-12-06T14:25:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/did-barricks-de-hedging-call-the-top-in-gold-2009-12"},"modified":"2009-12-06T09:25:00","modified_gmt":"2009-12-06T14:25:00","slug":"did-barricks-de-hedging-call-the-top-in-gold","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/66360","title":{"rendered":"Did Barrick’s De-Hedging Call The Top In Gold?"},"content":{"rendered":"

The price of gold plunged around 5% on Friday, though more significantly the volume was insanely huge. Combined with the fact that the stock market was up (mildly), there’s a sense among many that the action was some kind of a sign of a top.<\/p>\n

If you’re an investor in big-time miner Barrick Gold (ABX) — which fell 8.88% on Friday — you have to be wondering whether they might have mis-timed their dehedging.<\/p>\n

It was on Tuesday that the company announced it had fully eliminated its hedge book<\/a>, and that its earnings would be nakedly exposed to the price of gold. The stock initially popped on the news — yay, leveraging up against a bubblicious asset! — but if Friday’s selloff is the start of a real move, the timing of Barrick’s decision could not have been worse.<\/p>\n

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