News today that Barrick & Randgold came to an agreement allowing Barrick to purchase Randgold, creating the biggest gold mining company in the world. So the biggest miner in the world will be in Canada, a country who holds less gold reserves than Mr. T’s neck.
I’m always interested in what’s going on with gold so this merger definitely caught my attention. Does this signal a shift in the price manipulation of gold? Or just a symptom of the system in general, big bank buy little bank.
Either way, it’s an interesting time to look at some charts. I prefer long term as they become harder to find the later in the cycle we get.
Here is Barrick on the 10 year chart. Down 50% from just a few years ago & 80% from the peak of the rally around 2012.
Randgold’s price has been much more consistent over the last ten years. They’re down 50% from the 2012 peak, but managed to avoid a big dip to much lower valuations.
Let’s see how spot gold looked the last 10 years to compare
& the Market cap comparison (according to yahoo)
Barrick at 12.767B
Randgold at 6.397B
Let’s look at the prices on a longer timeline
Barrick has been around longer than Rangold, but Rangold sure looks like the more consistent company over time based on price action alone.
& a long term spot gold price looking like an inverse to the value bleeding out of the dollar.
How about gold in terms of other currencies? Goldprice.org has a great tool to compare gold prices in different currencies.
Starting with the US dollar
Canadian Dollar
Chinese Yuan
Euro
Russian Ruble
Iran Rial
Turkish Lira
South African Rand
& the winner of the most absurd inflation award goes to the
Venezuelan Bolivar
It’s nice to get some gold perspective outside of the USD. Looks like a lot of centrally planned global inflation to me. They have been creating currency all over the world recklessly for far too long. All that baggage in the system will result in devaluation of currencies & loss of purchasing power.
Don’t believe me? Ask Uncle Sam
Gold does a great job of storing purchasing power. In future times of crisis the price will skyrocket as it has in the past. Looking at what is happening in terms of failing currencies around the world should make the math obvious.
Eventually gold will have its day again, hopefully that does not mean the entire system & economy fails, but the central bankers of the world seem dead set on increasing debt, devaluing currencies & growing the wealth inequality gap.
That’s all for now, time for me to light up a joint, enjoy this view & think about current economics
Stay Shiny Steemit 👋