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Wednesday, June 9, 2010

Barrick Gold (NYSE:ABX) Falls on Perceived EU Stability

Barrick Gold (NYSE:ABX) dropped in New York today as the perception or temporary response to the possibility the European Central Bank is about to announce plans which will supposedly stabilize the debt markets in the region.

In other words, they're going to throw money at the problem and that will create the illusion for some that everything is okay.

These types of announcements will always temporarily affect gold futures and gold mining companies, but they will always come back once the market digests the irrelevancy of it, and realize throwing trillions at the recession and giant financial companies has done nothing to stimulate the economy, but rather has done far more harm in the long term than otherwise would have been experienced.

These types of actions will only increase the value of gold as a safe haven and protection against inflation, and solid gold mining companies like Barrick Gold will benefit in the long run.

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