
Recent Metals and Mining Stocks News

Metals and Mining Stocks
Inflation Is Hot This Year: Why Isn’t Gold Rising?

Metals and Mining Stocks
3 TSX Commodity Stocks to Buy in July

Metals and Mining Stocks
Can Gold Protect Your Portfolio From Stagflation?

Metals and Mining Stocks
1 of the Best High-Yield Stocks to Buy Now

Metals and Mining Stocks
Teck Resources (TSX:TECK.B): Has the Stock Price Peaked?

Metals and Mining Stocks
Gold Stocks: Is the Gold Pullback Over?

Metals and Mining Stocks
Are Gold Stocks the Best Investments to Buy Now?

Metals and Mining Stocks
Major Drilling Group (TSX:MDI) Gains 12.85% in 1 Day
Frequently Asked Questions
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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.
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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.