As the S & P / TSX Composite Index Continuing to maintain momentum near new all-time highs, high market valuations also present the worrying potential of a major stock market pullback.

If you are fear of a market downturn, it would be a good idea to prepare your portfolio by looking at the hedges that you can add to your portfolio and protect your wealth. Precious metals have always been viewed as safe havens in volatile market environments. Assets like gold tend to appreciate when the economy as a whole declines.

Whenever there is the slightest sign of volatility in the market suggesting a significant downturn, investors flock to gold or gold-linked stocks.

Barrel gold (TSX: ABX) (NYSE: GOLD) is one of those stocks you could buy right now if you’re worried about a downturn on the horizon. Being one of the largest gold mining companies in the world, seeking exposure to a company that depends on the production of the precious yellow metal to generate most of its revenue makes sense.

Today I am going to explain why the best gold miner is a ideal stock to consider for your wallet.

Improve the fundamentals

Gold prices hover around the US $ 1,800 mark. Rising gold prices have benefited gold mining companies by providing them with higher profit margins. Barrick Gold has had a fantastic year in 2021 so far. The company’s second quarter of fiscal 2021 recorded profits exceeding US $ 411 million, a significant improvement over its earnings for the same quarter of the year. last year to 357 million US dollars, although gold prices were higher during this period.

Barrick Gold has increased production and the company continues to streamline spending. Despite a decline in the company’s revenue year-over-year, Barrick Gold’s higher earnings in the second quarter of 2021 indicate that the gold producer’s cost-cutting strategies are paying off. If gold prices begin to trend upward, Barrick Gold’s higher profit margins could give further impetus to its outlook for the future.

The next quarter could be a huge time for the company. Gold prices are expected to stay higher due to increasing volatility and inflation rates. At the time of writing, Barrick Gold stock is trading at $ 24.98 per share and the stock has a dividend yield of 1.81%. With its stock price down 20% year-to-date, this could be the perfect time to buy Barrick Gold stock before its price begins to appreciate.

Stupid takeaways

Barrick Gold is a huge gold mining company with geographically diverse mines, impressive revenues and remarkable production capacity. The company’s management team has done a great job of improving its balance sheet as it has a cash balance of over $ 5 billion after being weighed down by billions in debt just a few years ago. .

Given its current position, Barrick Gold stock could be an ideal investment to have in your portfolio. if market volatility increases further and drive up gold prices.