US Gold Bureau: What Does the Barrick-Randgold Merger Mean for Gold
Last week, I was mentioned in the US Gold Bureau on the Barrick-Randgold merger. These days, it seems that a lot of companies have made moves to increase their company reach and services by mergers and acquisitions. The latest in these mergers to affect the commodities and natural resource sector is Barrick Gold Corporation merging with Randgold.
Barrick Gold Corporation is the largest gold mining company in the world, headquartered in Toronto, Ontario, Canada. Randgold is an Africa-focused gold mining company.
In a share-for-share deal, the merger is valued at $6.5 billion.
The merger will form a new company called “new Barrick.”
This is going to be huge for the gold market, but gold hasn’t had a pretty picture this year.
As the price of gold has declined, it can take some time to gain back momentum, even with a merger the scale of this one. It will take some time to see investors want to come back to a sector that has been beaten down as much as mining has.
However, while there may be inconsistencies between the share prices of mining companies and the spot prices of gold itself, gold and precious metals have maintained healthy values over the past couple years. Barrick and Randgold have plenty of room to pick up the pieces and gain investor momentum back into the precious metals market, but it will take some time.
For the full story, read Barrick-Rangold Merger. What Does It Mean for Gold?
I’ve studied natural resources for over two decades. In fact, I’m considered a commodity investing expert in three industries: Mining, Energy And agriculture I’ve worked on drill rigs, owned oil wells, explored abandoned mines — all to make profitable investments in natural resources.