Gold Holds Steady Amid Market Rout. Is it a Top Safety Play for December?

Quick Read

• Barrick Mining (B) shares rose 130% this year but still trade below all-time highs.

• Elliott Management took a significant stake in Barrick Mining.

• Barrick Mining trades at 11.9 times forward P/E with a potential corporate split ahead.

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After an initial upset, gold prices seem to be holding steady and trending higher amid what appears to be the worst of the tech-driven AI decline. Undoubtedly, it's hard to tell what's next for markets as the AI trade pulls the brakes by a bit, but with the crypto markets also nosediving alongside some of the more speculative tech plays in the market, one has to think that crypto investors are ready to rotate into something else, something safer, like gold.

Undoubtedly, cryptocurrencies, such as Bitcoin (CRYPTO:BTC), might be a great alternative store of value when all is well and the markets are in full-on bull mode. In a way, it's like gold on steroids when the market is going up. That said, when markets retreat, Bitcoin has also faced significant selling pressure, and this November nosedive in the stock and crypto markets has proven no different.

As we look into December, the end of the year, and the start of the festive season, many investors might be wondering if it's a good time to buy gold miners, physical gold ETFs, actual bullion (coins and bars), or maybe even shares of a gold streaming company. There are many ways to play gold, and they all seem tempting at a time like this, when there's so much fear in the markets.

Fear is soaring, and gold might have enough drivers to power another leg higher

With the CNN Fear & Greed Index recently plunging to six (in a scale out of 100), the lowest I've seen it since the depths of April and the worst of the spring selling season on the back of tariff tremors, perhaps rotating towards safety isn't such a bad idea. Arguably, the price of admission into gold is in a good spot after spot prices took a tumble back in October. And while it's difficult to tell if the selling is over with quite yet, I do think that fear, macro headwinds, and other worries make gold an absolute asset for any portfolio that's hoping to weather a storm to come.

At this juncture, the big banks are still standing by their upbeat price targets for 2026, with some calling for $4,500 per ounce, while others see the metal topping $5,000. Either way, the price target bar seems to be rising, and that's a positive sign for the gold bugs. With a smart money activist investor, like Elliott Management, taking a significant stake in shares of Canadian gold miner Barrick Mining (NYSE:B), I think there's reason to think the big run in gold is still in its middle innings.

At the very least, buying into gold or any one of its top miners won't entail you buying at the very peak!

Given Elliott Management's knack for spotting deep value, I'd not look to shy away from the gold trade, especially when it comes to the low-cost leveraged miners, which might outgain spot prices on the way up.

Now, Barrick Mining shares have had quite a run, rising just shy of 130% so far this year. Despite the parabolic pop, the stock is nowhere near its all-time highs, and with a big management change as well as a potential corporate split, which could transform Barrick Mining from a relative underperformer to a relative overperformer, there's ample reason to think about initiating a position at around 11.9 times forward price-to-earnings (P/E).

That's cheap, especially for a firm that has the confidence and investment of a big-name activist. Add the potential breakup (into two firms) into the equation, and I think there's a ton of value to be had with the name.

Could the sum of the parts be worth way more than the current price of admission? It looks likely, at least in my view, as the two new entities look to narrow their focus on their specific regions of interest. In any case, there are many ways to play gold, and I view all of them as interesting going into December.

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