Recent Metals and Mining Stocks News

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Metals and Mining Stocks

Inflation Is Hot This Year: Why Isn’t Gold Rising?

Gold isn't rising much this year. Neither are gold stocks like Barrick Gold (TSX:GOLD)(NYSE:ABX).

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Metals and Mining Stocks

3 TSX Commodity Stocks to Buy in July

Canadian investors can look to buy commodity stocks such as Barrick Gold and Nutrien to derive outsized gains in the…

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Metals and Mining Stocks

Can Gold Protect Your Portfolio From Stagflation?

Aggressive interest rate hikes have put the U.S. at risk of stagflation. Your stock portfolio is losing money. Can gold…

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Metals and Mining Stocks

1 of the Best High-Yield Stocks to Buy Now

Labrador Iron Ore Royalty provides investors with a regular dividend plus a special dividend, which translated into a 15% yield…

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Diggers and trucks in a coal mine
Metals and Mining Stocks

Teck Resources (TSX:TECK.B): Has the Stock Price Peaked?

Teck Resources stock looks cheap, but investors need to be careful. Here's why.

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Metals and Mining Stocks

Gold Stocks: Is the Gold Pullback Over?

Gold stocks look cheap today. Are gains on the way?

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Metals and Mining Stocks

Are Gold Stocks the Best Investments to Buy Now?

Gold is considered a safe-haven asset. Therefore, with so many gold stocks trading undervalued, are they the best investments to…

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Metals and Mining Stocks

Major Drilling Group (TSX:MDI) Gains 12.85% in 1 Day

The nearly 13% one-day gain of a growth stock is only the prelude to the outsized gains it could deliver…

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Frequently Asked Questions

Mining and mineral stocks do pose some risks investors should be aware of. 

First off, the industry is highly cyclical, meaning it rises and falls with the overall economy. When the economy is doing fairly well, the market demands more minerals: buildings are going up, consumers are buying more gold, construction is consistent. When the economy falls, however, demand for minerals tends to fall with it. The cyclical nature of energy stocks makes them more volatile than, say, utilities and consumer staples. 

Another risk investors should take note of is expansion. Building mines is very expensive, much more expensive than building a new corporate headquarters. In the past, mines have expanded their enterprises during strong periods of economic growth, only to launch when the economy begins to sink. 

For both these reasons, it’s vital to analyze a mining company’s finances. If the company is saddled with debt, that could be an indicator it’s overextending itself, despite supposed growth. 

Mining stocks can be a great investment, however, there are some things to keep in mind before investing.

Mining stocks can be very volatile depending on economic conditions. That being said, the best Canadian mining companies have been able to generate good profit regardless of economic conditions.