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Barrick Gold ( ABX) is the world's largest gold miner with a $50 billion market value.

It has a forward P/E of 8.3, which fits in the Auer fund's criteria allowing it to buy a gold stock "for the first time in 25 years."

Auer said the company is unhedged, that is it hasn't locked in a floor price bet, so it's taking gold out of the ground for about $428 an ounce and the current market price is about $1,745 an ounce, which gives it a huge profit margin.

Barrick executives recently said at a conference that each $100 increase in gold prices adds $500 million in earnings to their company's profit potential and that is not being recognized by the market.

Its shares are down 2.8% this year, but up 28% annually over three years.

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