We hear about these types of stocks all the time. Gold stocks to buy, silver stocks to buy, and mining stocks to buy are all buzz-worthy terms. This is especially true lately as markets continue to waiver amidst global trade worries. The upcoming presidential election in the US also has raised the bar for gold stocks. Regardless, if you’re just getting started with investing in mining stocks, in general, you may want to know what the mining industry actually is.
The mining sector itself is broken up into a few different groups. The first group we can go over is the precious metals group. The metals herein are considered rare. They occur naturally and hold higher levels of value based on economic metrics. Based on this, people will use them for things like jewelry and even corms of currency.
Other than that, there are other precious metals used for certain components as well. When it comes to precious metals, you’ll see things like gold, silver, palladium and even platinum among the group.
Other Types Of Mining Stocks To Watch
Another group in the mining industry is base metals. These are the cheap metals that are utilized for industry needs. Many of these metals can be found in building materials, electronics, and much of the automotive processes too. When looking for mining stocks related to base metals, look for things like zinc, nickel, lead, copper, aluminum, and cobalt.
Don’t confuse some of these with the other group known as “Energy materials.” These are things that can be burned to create energy. Coal is the most common. You’ll also come across uranium and another material called bitumen.
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This is mainly used in the oil refining process. Are there other groups? Yes, look at minerals and even construction materials. Minerals include potash, talc, quartz, diamonds, salt, and calcite. Construction is the basic of basics and you’ll come across mining stocks focused on limestone, sand, granite, etc.
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