Mining Stocks Offer A Less Volatile Option When Markets Get Shaky
The global economy depends a lot on precious metals and other minerals. As a result mining companies and mining stocks are of interest to many investors. The industry itself is immense. Last year alone, the top public mining companies brought in more than $680 billion in revenue.
This came from anything from digging and processing to selling a number of minerals or metals. Believe it or not, one of the largest moneymakers was coal. Likely as a result of US President Trump’s initiatives, coal accounted for nearly 40% of the global electricity produced.
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Needless to say, coal’s dominance has leveled off. Furthermore, by 2023, it’s expected to plateau entirely in light of the increased focus on renewable energy. With this fade, other commodities will likely take its place, which could boost the sector for metals mining.
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Take copper as an example. It’s a big component for things like solar power generation, wind components, and even electric vehicle applications. Another big metal that is being put in the spotlight is lithium.
We’ve all heard of lithium-ion batteries and though lithium is the main word, other elements also go into its battery make-up. Graphite, copper, and others contribute to EV and the potential boom could bring more opportunities for mining of these metals.
Iron ore, aluminum, gold, silver, and other metals remain in high demand. Even as these other metals and minerals take a space in the news, the base precious metals hold a place. What’s more, is that metals like gold and silver hold a special place in the hearts of investors. This is especially true during times of market uncertainty. Gold stocks, gold mining stocks, silver stocks, silver mining stocks, etc. are seen as safe havens. This and increased demand make this a top sector to watch for all investors.
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