Barrick Mining (B 4.42%) stock tumbled 4.1% through 11:50 a.m. ET Monday on a big reversal of the precious metals trade.
As CNBC reports, silver hit an all-time high price north of $80 an ounce last night, but dropped dramatically this morning as traders took profits, falling as low as $70.25 per ounce. At last report, silver prices were still down approximately 7.6% at $71.30 per ounce, and gold prices were down 4.3% at $4,358.50.
Image source: Getty Images.
What's bothering Barrick today?
2025 has been tremendous for investors in both silver and gold. Silver started the year near $20 an ounce, but more than tripled in price through last night. (Gold prices are up 65% year-to-date.) For commodities that derive their value mostly from investors seeking hedges against inflation -- unlike stock in a business, which creates value by producing goods and services over time -- these gains can entice.
They're the kind of gains that get investors thinking about selling and locking in profits.
This appears to be what's happening today. Adding to the dynamic, pundits suggest what began as a mild bout of profit-taking may be building into a "flash crash" as investors, who bought silver and gold on margin, begin facing margin calls, thereby increasing the selling pressure.
NYSE: B
Key Data Points
Is Barrick stock a sell?
And yet, while others panic, Barrick investors might actually consider buying more stock into this sell-off.
Consider: At a share price just 21 times trailing earnings, Barrick costs a lot less than the average S&P 500 stock. It pays a decent dividend yield -- 1.5%. And according to analysts who track it, Barrick's on course to grow its earnings 50% annually over the next five years.
If those analysts are anywhere near correct, Barrick stock should still be an incredible buy.
