Mining stocks?

I put some of my IRA cash in a MF that includes a mining stock. Reading more about mining right now and people say this is a time to buy. Anybody following this sector?

Find more posts tagged with

Comments

Sources

Loosely - main players are RIOT and MARA. SOS is a big meme stock, but keeps getting shelled by shorts and bad press.

EwaDawg

My XME (Metals and mining ETF) is up 57 % since I first bought in October of 2020. The shares I bought in March 2021 are up 9 %.

Top ten holdings of this fund are NUE CLF X CMC STLD AA NEM RS RGLD and CDE.

Thanks for the question. I will take a look at these stocks and buy those I like instead of buying more XME.

Analysts seem to prefer NUE STLD RS and RGLD.

C'mon. Any input is appreciated.

Sources

Guess I should have clarified - what kind of mining? Rocks or crypto?

BleachedAnusDawg

Rocks

GDS

I think with stimulus being pushed all over the world including here there's talk of another commodity super cycle ala 2006-8. I've been buying since the fall and still am.

EwaDawg

Metals/Mining are my go to safe haven when the market gets pricey. Add stimulus spending, and yes, I started buying in the fall as well. Also, alcohol and tobacco. They seem to do well in stagnant times.

I stay away from Gold, though. Like others have said, it has little use.

GDS

I work in commodities and the last few weeks have been pretty quiet. Talk was the rally got too toppy and we were going to see things stagnate. Last 12 hours have been nuts and the bulls are now out in force. It was probably just a reset over the long Easter holiday. I'm going to keep buying through the spring as I think we are in for a very strong summer in metals and other commodities. The semiconductor shortage is a concern but I think there's more than enough headwind to overcome that.

greenblood

I really like the silver mining play. There is a silver shortage currently, so as demand increases so will the price.

PurpleThrobber

Silver is important in the production of electric vehicles. Best conductor of electricity out there. Lot of other commercial uses. It's a relatively small market so getting a little exposure there/either way it may be interesting if the reddit bros decide to make a practice run at it.

It takes forever to get a gold/silver mine into production - and given where prices were 5 or 6 years ago, there's not a ton of new mines coming online any time soon, particularly in relatively safe political countries like the US. Some crazy shit goes on in Africa where all of a sudden, the mine owner isn't any longer when the government in power decides they want it.

BennyBeaver

You mean tailwind, not headwind.

PurpleThrobber

Gold is used extensively in aerospace, medical, electronics, jewelry and when Stalin want to buy a Indian bride, he's going to need some gold to close the deal.

What you mean to say is, that as a means of exchange, gold has little use since the Rothschilds took the US off the gold standard..

But there are countless uses of gold which is why there is a physical shortage of the metal.

EwaDawg

Yes, there are other uses.

Supply exceeds demand. Price of gold is dropping.

Tell me more about this shortage?

Or, if you are trying to actually add value and refute my point, when will gold stop freefalling?

PurpleThrobber

https://www.usmoneyreserve.com/knowledge-center/charts-prices/gold-price-chart/

Freefalling? Over what time frame?

Miners can make good money down to about $1350. The smart ones can go below that. You'd be fairly surprised at how much activity there is in the mining space on majors trying to acquire juniors. Silver is driving a lot of the activity as most every gold property will throw off silver as well.

Buy the miners, not the commodity. it's not like oil where all the junior producers are hedged against WTI. Much more of an 'open' market for the sales of physical gold -the demand of which is going through the roof for the products mentioned above.

89ute

Check out MP Materials. The price has fallen back to hopefully a bottom. It took a hit end of March with news of a secondary offering and some other thing about some kind of insider selling 8 million shares putting downward pressure on the stock. Amway, looks like a great price point, might even fall a little more. Rare earth magnet miner. Went public via spac in November. All things spac right now are out of vogue which isn't helping either. With the impending rise of all things electric it could be a good play. I got in at 30 about 4 month ago, looking at maybe picking up some more. Closed Friday 30.64.

PurpleThrobber

Buying the SPACS are shit right this second. For those that have deals in the pipeline/set to close, it should turn out fine - cheap way of going public and most of them will hit the ground running with capital to expand their business. I'm in on THCB which has been shit shit shit if you're trading the ticker like a stock. If you're waiting for the actual acquisition company to hit the ground running and zoom zoom, it will be a winner. There's several like this out there.

With regards to mining stocks, stay the fuck away from anything that sniffs of Vancouver, BC/junior mining. It's been a while since the BC/Toronto paper traders have been running their pump and dump scams (mining has been in the toilet) - there's lots of projects out there with big ounces touted. But getting into production is an entirely different beast. Super expensive CAPEX and a lot of governmental red tape, particularly in the US and Canada. Good to go along for the ride on the way up, but rest assure you're being played unless they are well into permitting and environment/archeological studies. Better still if you can catch them right before they actually get a construction/mining permit in hand. Then the big boys like Rio Tinto or Kinross or Barrick are coming in for an acquisition.

Otherwise, the scam is to pump up the project, run the stock up and then 'sell' the project to another Canadian junior mining company (usually in stock) and watch them run it up again while the first company exits out via trades where they have limited cash invested.

US projects are relatively safe but do your due diligence as to who is behind it and what phase they are in the development cycle.

GDS

Copper has busted through the decades old 10k a ton barrier and it's gonna keep going. Chicoms just zeroed out import duties on raw materials and iron ore exports from Brazil already up 20% y-o-y. commodities going to keep on going, jump onboard the train.

GDS

Copper having another good day (broken record). Finished steel is popping as China rolls back import tariffs on raw materials. Both container and bulk freight companies have essentially doubled since Jan 1 and are up another 8-10% today and there's no end in sight through at least the summer. Still a lot of money to be made in this sector!

greenblood

So are we back to tweakers stealing copper wires?