As you know there is a large variety of reasons that mining stocks will go up and down in the market. The primary movers for mining stocks trending upwards has been the pandemic and the fall of the economy. But it is clear now in December that things are changing. We first heard news of an effective vaccine for COVID-19 just a few weeks ago. We also learned of a new stimulus bill that could fall into place very soon as well. There are also unemployment numbers being released all the time that impact the price of mining stocks too. For certain minerals like silver, price is impacted by industrial usage. Such as with lithium, where prices have gone up due to the increased usage in electric vehicles and electronic products.
There are plenty of mining stocks to watch even when things are volatile. Things can change rapidly in a matter of days in the sector so it is important to be up to date on the most recent advancements. Plenty of current events have an effect on the price of mining stocks. It can get confusing for new investors to the sector as to what is actively impacting the price of precious metals. Let’s look at the details for some of the reasons that mining stocks have been increasing in price.
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Vaccine Approved, Mining Stocks Fall
On December 12th, the COVID-19 vaccine from Pfizer was approved for launch in the United States. This comes just about two weeks after this candidate was announced to be 95% effective. Now on December 14th, the vaccine is being shipped already. FedEx and UPS are both shipping out 2.9 million initial doses of the vaccine from Pfizer plants to various hospitals, clinics, and more.
Vaccine shipments have priority access at airports among other special treatment in order to arrive as quick as possible. On December 14th, the first dose of the vaccine was given in the United States in New York. On the day of this, the price of gold has fallen, as well as silver. This is not a surprise because if the vaccine continues to propel at this rate it can result in a faster recovering economy. But there is one thing that is in the way of that happening. Let’s look at the other primary factor that is impacting the price of mining stocks.
Latest Stimulus Update Could Affect Mining Stocks
The next factor that is impacting mining stocks is government stimulus. There has been a bipartisan government stimulus bill in talks with Senate negotiators. Now the deal will likely include enhanced federal unemployment benefits among other things. But it will not distribute additional $1,200 stimulus checks. The new $908 billion bipartisan proposal essentially needs to get support from both parties. This bill would also put $6 billion into vaccine distribution.
While it seems like progress is being made, there is still nothing that has been approved. So as this bill continues to not go through and the vaccine gets distributed, it has caused some pull back from precious metal investors. Now Chuck Schumer, Senate Minority Leader, D-N.Y. has stated that his party is “100% committed” to approving more relief this week with the bill. So we will see when this comes into effect and how it changes the price of precious metals which could create some interesting mining stocks to watch.
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So where will the price of mining stocks and related assets go from here? Well, only time will tell where prices move from here. If a stimulus bill is passed, it could cause an uptick in the price of mining stocks. At the same time if vaccine distribution becomes rapid enough for the economy to recover a lot, it will drop the price of precious metals. That is why you must stay up to date on the most recent advancements if you are going to invest in mining stocks. It will be interesting to see what happens next in the sector after these two big news pieces are progressed.
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