Recent Metals and Mining Stocks News
Metals and Mining Stocks
1 Simple Reason Why Silver Has 161% Upside
Metals and Mining Stocks
Barrick Gold Corporation vs. Goldcorp Inc.: Which Should You Buy?
Metals and Mining Stocks
Could Silver Wheaton Corp. Hit $40?
Metals and Mining Stocks
Buy Silver Wheaton Now to Cash In on the Silver Rally or Regret It Later
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2 Reasons to Avoid Barrick Gold Corp., and 1 Stock to Buy Instead
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What Is the Best Way for Investors to Cash In on the Impending Gold Rally?
Metals and Mining Stocks
One Long-Term Gold Stock to Buy: Eldorado Gold Corp.
Metals and Mining Stocks
Two Under-$5 Gold Stocks to Launch a Portfolio: IAMGOLD Corp. and Kinross Gold Corporation
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.