It has been clear that mining stocks are in a volatile state this year. Plenty of investors saw gains from the mining sector after the economy tanked around Mid-March of 2020. In times where the economy is horrible, the price of precious metals and minerals will rise up. Gold and silver have been consistently rising month over month that is until now. Recent news has come out that brought the price of precious metals like gold and silver down. For example, last week the price of gold dipped below $1,800 per ounce. On the week of December 9th though, gold prices are seeing recovery. Investors in the sector that know what they are doing have been able to make profit this year.
On December 9th, gold futures fell in their lowest finish in a week. This is due to some strength in the U.S. dollar. Currently investors are focused on a few target things that we will get into. But it is a perfect example of how the price of precious metals can change throughout a week and drastically rise or fall. We are looking at a variety of issues that mining stocks face, as well as some things that are helping the metals strive. So let’s take a look at some things that are of impact for mining stocks and all precious metal related assets.
Read More
Stimulus Bill May Not Pass, Hurting Mining Stocks
Gold futures dropped in price on Wednesday, as Mitch McConnell claims that democratic leaders are “uncooperative” about an aid plan. This is based on the $916 billion stimulus package that the Trump administration that would send a $600 payment to most American people. At the same time it would eliminate the $300 per week unemployment benefit that is favored by a bipartisan group of Senate negotiators.
That is what is potentially stalling this deal. The longer this takes to come into effect, it will actually hurt the price of mining stocks. This is simply due to the fact that stimulus hurts the economy and price of the dollar, which helps mining stocks. So mining stock investors want this deal to happen sooner than later, if even so. That is the first thing that is impacting mining stocks, and why the price of gold is down on the day of December 9th
Late December and January Will Decide The Future Of Mining Stocks
There are so many things awaited at the moment that could fall into place in late December and January 2021. Let’s start with the mentioned above stimulus bill. This could be completed or cancelled in the next month or so. Vaccines are also being distributed in the United Kingdom right now to select citizens, but many places are expecting to receive and start giving them out. New York City has already requested nearly 500,000 vaccine doses that are pending approval by the Federal Drug Administration (FDA). By the end of January we will likely have our best knowledge on the distribution and usage of the vaccine in various places, if approved by other countries than the United Kingdom. All of these things will directly affect mining stocks.
[Read More] These Mining Stocks Are Showing Great Momentum But Are They A Buy?What To Look For With Mining Stocks Now
COVID-19 cases are still on the rise in December. Despite the vaccine news that was released, there is still no widespread distribution at the moment. Just like the stimulus bill, which could really go in any direction. It could also be delayed until President-elect Joe Biden is put into office, and could be changed drastically too. These are all of the factors affecting mining stocks that you should be looking for. 2021 could be an interesting year for precious metals depending on which way things go. Which companies will you add to your list of mining stocks? This can be decided based on the research that you put in. There are many great mining stocks to watch this year. So it will be great to see what the next big gainer will be in the sector.
Midam Ventures, LLC | (305) 928-8939 | 1501 Venera Ave, Coral Gables, FL 33146 | news@goldstocks.com
