Recent Metals and Mining Stocks News

The Motley Fool
Metals and Mining Stocks

3 Reasons to Avoid Potash Corp./Saskatchewan Inc. and 1 Stock to Buy Instead

It could be tough going for Potash Corp./Saskatchewan Inc. (TSX:POT)(NYSE:POT) for the next little while.

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The Motley Fool
Metals and Mining Stocks

2 Reasons Gold’s Sell-Off Will Continue and How 3 Miners Will Profit Anyway

Goldcorp Inc. (TSX:G)(NYSE:GG), Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) and Eldorado Gold Corp. (TSX:ELD)(NYSE:EGO) are positioned to profit even with low gold…

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The Motley Fool
Metals and Mining Stocks

3 Reasons Cameco Corporation Could Be the Breakout Stock of 2015  

Uranium is positioned for a quick revival. Here is why Cameco Corporation (TSX:CCO)(NYSE:CCJ) could see a dramatic swing in its stock…

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The Motley Fool
Metals and Mining Stocks

3 Reasons Why Barrick Gold Corp. Shares Could Keep Plummeting

Barrick Gold Corp. (TSX:ABX)(NYSE:ABX) shares have fallen by 68% over the past three years. But more bad news could be…

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The Motley Fool
Metals and Mining Stocks

3 Reasons to Buy Yamana Gold Inc.

Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) has a lot of room to run.

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The Motley Fool
Metals and Mining Stocks

Is the Gold Rush Over?

The good days may be over for Kinross Gold Corporation (TSX:K)(NYSE:KGC) and Eldorado Gold Corp (TSX:ELD)(NYSE:EGO).

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The Motley Fool
Metals and Mining Stocks

3 Reasons to Buy and Hold Silver Wheaton Corp.

Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) is the top pick in the mining industry.

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The Motley Fool
Metals and Mining Stocks

Is Goldcorp Inc. About to Launch a Takeover Bid?

Goldcorp Inc. (TSX:G)(NYSE:GG) is well positioned to survive low gold prices, so is the company using this fact to launch…

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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.