Recent Metals and Mining Stocks News

The Motley Fool
Metals and Mining Stocks

2 Big Reasons to Buy Goldcorp Inc. Instead of Barrick Gold Corp.

Barrick Gold Corp. (TSX:ABX)(NYSE:ABX) may seem cheap, but Goldcorp Inc. (TSX:G)(NYSE:GG) is still the better option.

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The Motley Fool
Metals and Mining Stocks

Could Teck Resources Ltd. Hit $35?

Here's why Teck Resources Ltd. (TSX:TCK.B) (NYSE:TCK) might be setting up for a big bounce.

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The Motley Fool
Metals and Mining Stocks

Is Kinross Gold Corporation a Safe Investment?

Kinross Gold Corporation’s (TSX:K)(NYSE:KGC) stock is trading near a 10-year low, is this a buying opportunity?

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The Motley Fool
Metals and Mining Stocks

Why Silver Wheaton Corp Is Poised to Hit $35

Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) deserves a permanent place in your portfolio.

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The Motley Fool
Metals and Mining Stocks

Is Goldcorp Inc. a Safe Investment?

Goldcorp Inc. (TSX:G)(NYSE:GG) is the favoured gold miner among analysts and investors alike but has all the interest made it…

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Metals and Mining Stocks

Marc Faber Predicts Markets Will Fall Over 30%: Which Stocks Should You Buy?

“Dr. Doom” expects equity markets to tumble more than 30%. Here’s why you should own Eldorado Gold Corp. (TSX:ELD)(NYSE:EGO).

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The Motley Fool
Metals and Mining Stocks

Could Cameco Corporation Hit $40?

Is Cameco Corporation (TSX:CCO)(NYSE:CCJ) in big trouble or headed much higher?

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The Motley Fool
Metals and Mining Stocks

George Soros Owns $17.1 Million of Agnico Eagle Mines Ltd.; Should You Buy, Too?

Why is George Soros buying Agnico Eagle Mines Ltd. (TSX:AEM)(NYSE:AEM)?

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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.