mining stocks to buy today

It is a surprise to nobody that the horrible state of the economy resulted in the rise in mining stocks. With the price of precious metals like gold and silver seeing huge bull runs in 2020, investors are interested.  Investors that got in early were able to make big profits this year. In December, the market is still in a very volatile place. There are a lot of factors that contribute to the rise and fall of mining stocks. Even for seasoned investors, things could get confusing in the market at the moment. Which mining stocks should you keep your eye on? In 2020 some people have invested in gold as a physical asset instead of the dollar. Often when the dollar slips, the pricing of gold and silver will go up in price. So what is making these stocks move?

Vaccine News Hurts Mining Stocks 

Let’s talk about the first thing affecting mining stocks at the moment. Pfizer and BioNTech, two large pharmaceutical companies, released a collaboration vaccine in the United Kingdom. This vaccine has only been given to a few people as of December 9th. Other places like New York already have plans on starting vaccinations this year. This could result in the rise of metal prices once again in 2021. Only time will tell though as the market can go anywhere at this point. The Mayor of NYC stated its first batch of vaccines will come in next week, pending FDA approval. It expects to get 480,000 doses of the vaccine delivered. That is just coming from one state, who knows how much this vaccine could be distributed in 2020 alone. Now let’s look at what else is impacting the price of mining stocks.

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Stimulus Impact On Mining Stocks

The next thing that is impacting the price of mining stocks is government stimulus. News broke that President-elect Joe Biden has a bi-partisan financial aid package valued at nearly one trillion dollars. On December 8th, the Trump administration offered a $916 billion package that would send $600 to most Americans. The package would eliminate a $300 a week unemployment benefit, which is favored by a bipartisan group of negotiators in the Senate.

If a bill ends up being passed, it will likely make mining stocks rise in price. This is due to the fact that government stimulus worsens the economy, which helps precious metal prices. The proposed plan is aimed at small businesses, federal unemployment benefits, vaccine distribution, schools, struggling families, and more. The price of gold went back above $1,800 after it fell under because of this.

Gold and Silver Are Not The Only Mining Stocks

Some people who are looking into mining stocks will only focus on silver and gold. How are other mining stocks performing though? One group of high performing mining stocks are companies that search for lithium and platinum group metals. Lithium is used in plenty of electronics, and the tech industry is at new heights this year. Lithium is commonly being used in electric vehicles, such as Tesla’s. Companies that mine platinum group metals are performing well too. As you know, electric vehicles have taken the automotive market by storm. This has resulted in the increase of lithium related mining stocks throughout 2020.

[Read More] How Are Mining Stocks Performing Amid Boom In Electric Vehicle Stocks?

The Future Of Mining Stocks

As you know now, there are a variety of reasons that mining stocks can go up and down. From vaccine news to stimulus news to jobless reports, things can get confusing in the market. It is important to stay up to date on the latest information if you are seeking to legitimately invest in mining stocks. This sector can change completely on a day to day basis.

The best thing to do is to check the price of different precious metals you are looking to invest in every morning. You can also look at the news coming from companies on your list of mining stocks. It will be interesting to see what comes from this sector throughout the rest of December and to 2021. Soon the public will be informed of if vaccines will be widely distributed and if the economy recovers more. We will also find out soon about that stimulus bill that was proposed.

top gold stocks to trade right now

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