Canadians have had it tough the previous couple of years, and maybe the most important headline continues to be the inflation price. Whereas we’ve actually come down from that 4.75% we noticed some time again now, evidently cuts to our inflation price have slowed. As of writing, annual inflation got here right down to 1.7% in July 2025, down from 1.9% in June. That’s the excellent news.
The unhealthy information? Tariffs and ongoing financial uncertainty haven’t introduced the coverage curiosity price again to the place the Financial institution of Canada needs it. As a substitute, Canadians have seen inflation stall at 2.75% after a collection of cuts in 2024. Nevertheless, these figures are nonetheless a methods off from the two% goal, whereas nonetheless inside the 1% to three% vary. So, throughout these instances of volatility, the place can Canadians make up the distinction?
Go along with gold
Probably the greatest choices traders around the globe proceed to deal with is gold. At writing, the value of gold stood at a whopping US$3,565.51 per ounce, an unimaginable 36% rise year-to-date. Not solely is the value excessive, it has damaged previous information. And that’s peaking the curiosity of mining traders.
The primary they’re doubtless to take a look at? Barrick (TSX:ABX). Barrick is a world mining firm specializing in gold and copper with Tier One property. The aim for the gold inventory is long-term worth. The corporate, based in 1983, has operations around the globe, from Canada and the USA to Peru and Tanzania. So let’s dig into why traders may need to contemplate this gold mining behemoth.
Into earnings
First, there’s earnings. Barrick reported strong earnings throughout its second quarter for 2025. The gold inventory highlighted a major improve in manufacturing of each gold and copper, with the previous up 5% and latter up 34%. This contributed to sturdy money movement, supporting its monetary place.
Moreover, the gold inventory reported web earnings per share (EPS) of $0.47. This marked an enormous 124% improve year-over-year, with free money movement (FCF) of $770 million, up 107%. In fact, a number of this was because of commodity costs, however not all of it. Barrick’s initiatives similar to Reko Diq and Lumwana additionally progressed properly, with drilling at Fourmile probably doubling estimates.
Wanting forward
Canadian traders cannot solely stay up for progress now, however much more long run. Barrick’s key operations such because the Nevada Gold Mines and Pueblo Viejo confirmed notable manufacturing will increase. Moreover, even with current sturdy efficiency, the market nonetheless might not have absolutely acknowledged the corporate’s worth.
That’s particularly contemplating that the gold inventory just lately declared a quarterly dividend of $0.15 per share, plus $268 million in share buybacks for the quarter. And with Barrick on observe to develop even additional in a steady and sustainable method, traders have rather a lot to stay up for.
Backside line
In instances of hassle, gold is a good purchase. However of gold shares, Barrick may very well be one of the best. The corporate stands out as a robust funding alternative, particularly for brand new traders. Its strong efficiency, venture developments, and ongoing returns make it notably enticing. So for those who’re a Canadian investor seeking to create long-term revenue throughout these durations of excessive curiosity and inflation, Barrick may very well be your best choice.
