• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
  • 3 hours ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 min Boring! See Ya Clowns, And Have Fun In Germany
  • 3 hours Crazy Stories From Round The World
  • 5 hours USA Carried Out Secret Cyber Strike On Iran In Wake Of Saudi Oil Attack
  • 6 hours Shale Magic: SABIC, ExxonMobil break ground on US Gulf Coast petrochemical project
  • 4 hours 5 Tweets That Change The World?
  • 1 hour the future
  • 41 mins China's Blueprint For Global Power
  • 7 hours PETROLEUM for humanity 
  • 7 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 3 hours Climate Protesters Blocking Roads etc...
  • 8 hours How The US Quietly Lost The 1st Amendment
Mad Hedge Fund Trader

Mad Hedge Fund Trader

John Thomas, The Mad Hedge Fund Trader is one of today's most successful Hedge Fund Managers and a 40 year veteran of the financial markets.…

More Info

Premium Content

Barrick Gold’s Big Copper Buy Speaks to the Future

“Watch where the big companies make their direct investments and that is where the markets will follow.” That golden rule is what the head of investments at JP Morgan, Carl Van Horn, taught me some three decades ago. So I take Barrick Gold’s (ABX) purchase of Canada’s Equinox Minerals for $7.6 billion, one of the world’s largest copper producers, a complete reaffirmation of my long term focus on hard assets of all descriptions.

The deal tells us much about the future of the world economy. For a start, it shows how much Barrick believes in the future price appreciation of not only gold, but the red metal as well. He obviously spoke to some hedge fund friends of mine who have been warehousing 100 pound copper ingots around the country at undisclosed locations since 2002, unwilling to liquidate until it hits $6 a pound. Barrick beat out a competing hostile bid from China’s Minmetals, which has been scouring the world to lock in its own long term sources of raw materials.

The deal also tells us something about Barrick. Peter Munk built this company up from a few depleted Canadian mines to the world’s largest gold producer, virtually overnight. His move to take off all his hedges in the futures market 18 months ago, when the barbarous relic was nudging through $1,050 an ounce, was one of the greatest management decisions in corporate history. But Barrick is now developing marginal mines in Africa and Chile, and it has clearly reached limits on its growth. The Equinox deal provides a strategic expansion of its existing copper production, which is often found alongside gold deposits.

Barrick Gold

By. Mad Hedge Fund Trader




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play