How hedge funds are now betting on gold: Amazon, Barrick Gold, and Golden Cariboo Resources

Amazon: Tariffs turn hot stocks into shelf warmers

For stock investors, the world was easy to navigate for years: just one ETF with tech stocks was enough to make a good return on the market. But as AI has driven valuations to dizzying heights and the number of global crisis hotspots continues to grow, even supposedly safe bets like Amazon are coming under pressure. The world's largest trading platform's stock has long been considered a tech play with a "bread-and-butter" business model – after all, people will always shop. But Amazon is now under pressure: Many goods come from China, especially from third-party sellers, who account for around 60% of the retail giant's business.

Amazon CEO Andy Jassy has publicly stated that some sellers will have to pass on the additional costs resulting from the US tariffs of 145% on Chinese goods to buyers - the result: rising prices at a time of already high consumer uncertainty. If the tariffs remain in place, even Amazon is likely to struggle with declining sales in its retail business.

Gold multinationals are investing – Will junior companies benefit?

Signals from asset managers and hedge funds indicate that investment professionals are already looking for alternatives to formerly solid investment targets such as Amazon. One of the first thoughts of equity investors these days is likely to be the shares of Barrick Gold again. The Company generated pre-tax revenue of USD 12.92 billion in 2024, primarily through gold mining. The Company operates numerous mines and projects in at least 18 countries across five continents and has deliberately diversified its portfolio. Barrick aims to increase its production by 30% by 2030 and plans to make targeted investments to achieve this – which could present an opportunity for smaller companies in the industry in particular.

Even Barrick Gold is not free of risks

Although gold is expressly exempt from US tariffs, trade barriers could still affect Barrick during its expansion phase: Processing plants and heavy equipment are industrial products and are subject to the developing trade conflict. Barrick Gold's global presence spreads risk but, in return, makes it difficult for management to act decisively. In comparison, the team at the young gold explorer Golden Cariboo Resources has it easier. The Company operates in Canada, in a region that has historically been known for gold mining.

The Quesnelle Gold Quartz Mine project is located in British Columbia near the town of Hixon and boasts a historic gold system and several parallel trends. The property has year-round access and is connected to existing infrastructure, including roads and utility lines. In 2024, the Golden Cariboo Resources team encountered the "Halo Zone" and confirmed 1.77 g/t gold over a distance of 136.51 m. In the immediate vicinity of the Quesnelle Gold Quartz Mine project is the Cariboo Gold Project of Osisko Development, which is nearing production and is therefore valued significantly higher. Behind closed doors, the Golden Cariboo Resources team is hoping for synergies from its neighbor. Cooperation on machinery or the shared use of processing facilities is conceivable. It is also conceivable that Golden Cariboo Resources could be swallowed up by Osisko Development, provided that further drilling results are positive.

Golden Cariboo Resources with three good arguments

While Barrick Gold's share price has lost around 3.3% in the past six months, Golden Cariboo Resources has been much more volatile, with a net loss of over 40%. The Company is currently carrying out a capital increase, which is putting pressure on the share price. If the experienced management team led by CEO Frank Callaghan completes the measure, the market will likely refocus its attention on the fundamental data. Callaghan was instrumental in the development of the Bonanza Ledge project in British Columbia, leading the project from initial rock sampling through exploration drilling and feasibility studies to production. Today, the Bonanza Ledge project is owned by Osisko Development, a direct neighbor of Golden Cariboo Resources.

While stocks like Amazon have been losing favor with investors for months, more and more professionals are turning their attention to precious metals. Since physical gold involves storage and insurance costs, professionals are always looking at gold stocks. In addition to stable investments such as Barrick Gold, shares in smaller companies can also be exciting. The key figures are particularly important here. Golden Cariboo Resources could be an interesting option for portfolio diversification thanks to its good drilling results, its proximity to Osisko Development, and its management team led by Frank Callaghan. Although junior exploration companies must be considered highly speculative, this asset class seems to have received little attention from the market so far compared to the gold price and the shares of large producers.