How To Buy Barrick Gold Stock
Welcome to Trading Brokers step by step guide to buying Barrick Gold stock. Here you will find an easy to understand explanation of trading Barrick Gold stock. This includes how to buy Barrick Gold shares online, what you need to trade Barrick Gold stock and how to open a trading account with a stock broker so that you can buy Barrick Gold stock online today.
Maybe you have heard of buying Barrick Gold stock online or through a friend. Perhaps you are looking to trade and are curious about the different options available to you. Whether you are looking to speculate, invest or just learn more, this guide on how to buy Barrick Gold stock can help you along your journey.
Overview of Barrick Gold
Barrick Gold is one of the world’s largest mining firms. Founded in 1983, through a combination of organic growth and acquisitions (including some hostile takeovers), the company has quickly risen to become the world’s second-largest producer of gold. It also has a significant market share in the production of other minerals such as copper and silver.
Headquartered in Toronto, Canada, with over 18,000 employees, it currently operates in 16 mining sites spread across 13 countries. These include the Nevada Gold Mines, the largest gold mining complex, which it co-launched with its rival, Newmont Corporation.
Barrick Gold stock
Barrick Gold is listed on the Toronto Stock Exchange (TSE) and trades under the ticker GOLD. However, there are plans to move its primary listing to the NYSE in a bid to broaden its exposure to more investors. Berkshire Hathaway, the conglomerate run by the investing genius, Warren Buffett, is one of the company’s prominent investors.
While that looks like approval on Barrick Gold’s stock, caution must be exercised. Many other factors can still have varying degrees of impact on the company’s stock price in the mid-to-long term – and particular attention must be paid to them.
What moves Barrick Gold stock?
Whether you are in for the short, mid or long-term, it is vital you know those factors that can affect the Barrick Gold stock price. We will look at some of the important factors that you need to consider if you are looking to invest in Barrick Gold stock.
Debt isn’t always a bad thing. It is needed for capital expenditure. However, problems arise when it starts becoming unsustainable. That is why if you want to judge how risky investing in a company is, you only need to look at its use of debt since a considerable debt burden can lead to ruin.
Barrick Gold has a relatively high amount of debt. Although things have considerably improved in the last few years, the problem persists. While the situation isn’t so bad, it is still a factor that investors should pay attention to.
A way to bet on Gold
Gold investing could involve needing to purchase and store quantities of gold. However, rather than having to deal with the attendant issues of purchasing the metal itself, investors can go for a gold stock, one of which is Barrick Gold. Barrick Gold stock is no ordinary stock. This may explain why veteran investor Warren Buffet took a position in the company despite his aversion for gold. The indirect demand for gold – through gold stocks – could have a significant effect on their prices in the mid-to-long term.
Barrick Gold has been involved in several corporate governance skirmishes. For one, one of its majority-owned subsidiaries, Acacia Mining PLC, has been linked to corruption allegations and serious human rights abuses in Africa. This has attracted the attention of regulators both in Africa, UK and the US.
Investing in Barrick Gold
Investing in Barrick Gold stock is when you buy Barrick Gold shares to own them outright, usually with a view to holding them for the long term. Investors would usually look to buy Barrick Gold stock in order to try and make a profit when the Barrick Gold stock price increases in value.
Trading Barrick Gold stock
Trading Barrick Gold stock is when a trader speculates on the movement in the Barrick Gold stock price without actually owning the shares in Barrick Gold. Traders tend to buy and sell Barrick Gold stock on a more frequent basis, usually speculating on daily, weekly or monthly price fluctuations.
You can buy and sell Barrick Gold stock online through various methods including spot markets, futures contracts, options contracts, spread bets, CFDs (contracts for differences) and ETFs (exchange-traded funds).
Barrick Gold CFDs
One of the most popular ways to trade Barrick Gold stock is via CFDs (contracts for differences). When trading Barrick Gold CFDs, you do not actually invest in Barrick Gold shares, meaning you are not tied to them. You are only speculating on the rise or fall of the Barrick Gold stock price. A CFD is a financial contract, typically between a broker and a trader, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
A CFD trader can go short or long, set stop and limit losses and apply trading scenarios that align with their own personal objectives. Traders would open long (buy) positions, if they think the stock price of Barrick Gold will rise or short (sell) positions if they thought that the Barrick Gold stock price will fall. The difference in price between the entry and exit price is the traders realised profit or loss, excluding any broker commission and fees.
For example, if you think Barrick Gold shares are going to increase in price, you could buy a share CFD on the company. You will exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares increase in price and making a loss if they decrease in price.
On the contrary, if you think Barrick Gold shares are going to decrease in price, you could sell a share CFD on the company. You will still exchange the difference in price between when your position is opened and when it is closed, earning a profit if the shares decrease in price and making a loss if they increase in price.
Barrick Gold futures
Futures contracts are an agreement to buy or sell a specified asset at a certain date and price. Barrick Gold investors can use futures trading to speculate on the price movement of Barrick Gold stock in order to try and make a profit. Traders would look to go long (buy) a futures contract if they believe the price will rise or short (sell) a futures contract if they believe the price will fall. The difference in price between the price at the start and expiry date of the futures contract is the profit or loss from the contract.
Barrick Gold spread betting
Spread betting is a financial derivative that enables traders to speculate on Barrick Gold stock falling or rising without taking ownership of the underlying asset. If the trader makes a correct prediction and the asset does move in that direction, they could make a profit, minus any broker fees. On the other hand, if the price moves against their prediction, they would incur a loss.
Financial spread betting is similar in ways to CFD trading except that you are betting a fixed amount per point on the Barrick Gold stock price movement (either up or down) and then pay or receive the difference between the opening and closing price of the bet.
Barrick Gold options
Barrick Gold options are financial instruments that are derivatives based on the value of Barrick Gold’s stock. Traders usually enter into calls when they expect the price of the underlying asset to increase, and puts when they expect the price to decrease. Option contracts come with an expiration date before which the holder needs to exercise their option to buy or sell an underlying asset at an agreed-upon price. The stated price on an option is known as the strike price.
Buyers can choose to exercise their calls and puts or not whereas sellers are obligated according to the buyer decision. Therefore, the sellers (writers) can be exposed to more risk than buyers whose losses can be limited to the premium paid for the contract in the instance they do not exercise the contract. On the other hand, sellers could lose more depending on the Barrick Gold market price.
Barrick Gold ETFs
Exchange Traded Funds (ETFs) enable traders to invest in a basket of securities that trade intraday like individual stocks on an exchange, and are typically designed to track the performance of an existing market or group of markets.
Each ETF is usually focused on a specific sector, asset class, or category. ETFs can be commonly used to help diversify an investment portfolio and create a mini-portfolio, or, for the active trader, they can be used to try and take advantage of price movements.
Barrick Gold is included in various ETF’s with shares in the U.S. ETF market. Traders who are interested in trading other companies alongside Barrick Gold, may consider ETFs.
Where to buy Barrick Gold stock?
Stock trades are processed via a stock exchange, where a stock broker represents each investor. The majority of investors will nowadays use an online stock broker to buy and sell stocks through a stock trading platform which will enable them to connect to the stock exchange. You can see a selection of our best stock brokers below with whom you can open an account to trade stocks online.
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF
Min $250 Deposit
ASIC, FCA, DFSA, SCB, CySEC, BaFin, CMA
Min $200 Deposit
ASIC, CySEC, IFSC, DFSA
Min $5 Deposit
Why trade Barrick Gold stock?
Trading the stock market has become a popular investment activity for many people, especially with the technology that we have these days making it more accessible than ever. There are a vast number of trading brokers, trading platforms and trading apps available for buying and selling Barrick Gold stock with relative ease. The cost involved to get started makes trading Barrick Gold stock accessible to traders of all experience levels from across the globe.
The availability of leverage has also contributed towards the increase in aspiring traders. Leverage allows traders to hold a position size greater than they would have been able to without it. E.g. An account balance of $1,000, could take a position size of $5,000 with 1:5 leverage. Whilst this can increase potential profits, it also greatly increases risk. It is therefore of the upmost importance that you have a clear understanding of the significant risks involved with online trading, especially when using leveraged positions.
The majority of traders would look to buy and sell Barrick Gold stock to try and earn profit from the variation in Barrick Gold’s stock price. When trading Barrick Gold CFDs you can speculate long and short on prices rising or falling without actually needing to invest in Barrick Gold shares. This can make it a more convenient trading method for anyone who has a trading account with an online broker. Alternatively, long term investors may purchase traditional shares in Barrick Gold’s stock for a more long-term hold.
Buying Barrick Gold stock can also be a way to diversify a trading portfolio and to hedge against shares in other stocks or investments in other asset classes such as forex, commodities, precious metals and cryptocurrencies.
However, before investing in Barrick Gold, it is important you understand the dynamics that affect the Barrick Gold stock price.
How to trade Barrick Gold stock online?
If you have taken the time to read through the above, you should hopefully have an understanding of how to trade Barrick Gold stock online. Here is a summary of the key steps:
1. Decide if trading Barrick Gold stock is for you
Trading Barrick Gold stock online carries an element of risk and can take more time than other forms of investing. You will need to research the company, manage your positions, follow market news and decide how to react to it. It is important to understand the risks and dedication that comes with trading Barrick Gold stock online.
2. Educate yourself
Before trading Barrick Gold stock, it is imperative to learn as much as possible about investing and trading online. Any mistake could prove to be costly. There is an abundance of free educational materials provided by many online brokers that can help you to improve your trading skills and knowledge.
Most brokerages will also provide a free demo trading account so that you can practice trading Barrick Gold stock online with virtual funds in order to familiarise yourself with the trading platforms and practice your trading strategies until you feel confident enough to open a real trading account.
3. Choose a Barrick Gold stock broker
In order to trade Barrick Gold stock online, you will need a broker account and trading platform to execute your trade positions through to the market. When choosing a broker, there are a few important things to consider such as regulation, commission fees, platforms, tools, education, funding options and customer support.
If you do not have the time to research brokers, you can see a list of our best brokers that we have already prepared to help traders. If you would like to know more, you can also view our detailed guide on how to choose a trading broker.
4. Research Barrick Gold
If you have made it this far then you may be ready to start trading Barrick Gold stock online! The next step is to research Barrick Gold to help increase your knowledge in the company. The best brokers should have this information conveniently displayed for you within their trading platform.
5. Have a trading plan
Some of the most important factors that can help determine Barrick Gold stock trading performance can be the trading plan and discipline. It is important to have a solid trading plan personalised to your own needs that includes the money management and trading strategy that you will use. Most experts and professional traders would try to not let negative emotions such as fear, anger and greed affect their trading strategy.
6. Buy and sell Barrick Gold stock
Once you feel ready to trade Barrick Gold stock online, you can analyse the market to help decide if and when you will place your trades. After placing a trade on Barrick Gold, you will need to keep track of how it performs and manage it according to your trading plan. Some investors will keep hold of Barrick Gold trades for the long-term, whereas traders may buy and sell Barrick Gold stock on a daily basis.
Is trading Barrick Gold stock right for me?
Trading Barrick Gold stock is a popular choice for long-term investors and active traders. It can be suitable for scalping, day trading and swing trading. Traders who would usually trade forex, trade indices, trade commodities, trade cryptocurrency, may look to diversify their portfolio.
However, it is important to understand the significant risks involved with trading Barrick Gold stock online, especially when using leveraged positions. Most experts would suggest trading on a demo account with virtual funds to begin with.
This can be a useful way to familiarise yourself with how to trade Barrick Gold stock and using trading platforms whilst allowing you to practice your trading strategies until you feel confident and produce consistent results. Most stock brokers provide unlimited demo accounts free of charge.
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