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Barrick Gold Corp
Symbol ABX
Shares Issued 1,165,215,209
Close 2016-05-02 C$ 23.96
Market Cap C$ 27,918,556,408
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Globe says Barrick's Thornton plays gold's chaos card

2016-05-02 07:15 ET - In the News

The Globe and Mail reports in its Saturday edition that gold is suddenly golden once more. The Globe's Ian McGugan writes that after four years of declines, gold has suddenly reversed direction and gold bugs are once again congratulating themselves. One belief that unites many gold enthusiasts is a conviction that the global economy is on the verge of chaos. "Central banks are printing money to buy time for governments to get their fiscal houses in order, which most have not done," Barrick executive chairman John Thornton told the company's annual meeting this week. "The result: Today, we have negative interest rates, while tomorrow we could well have inflation. Either way, if you hold cash, you lose money. In such a world, gold's function as a store and unit of value is obvious." It is a fine-sounding argument, but one that The Globe thinks lacks coherence. If central banks are recklessly printing money, as Mr. Thornton suggests, inflation should be running rampant as the flood of new cash bids prices higher. The doomsayers' argument for gold will always be there, but the metal's reputation as a rock-solid anchor of stability in an uncertain world is more a matter of faith than hard fact.

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