There are so many mining stocks that have been trending in the market in the last year. The sudden increase in prices in gold and silver, and other precious minerals last year was unexpected. That was a result of the pandemic and the resulting economic crash that followed. This created a ton of mining stocks to watch that otherwise may have stayed the same.
We are in the middle of the first month in 2021, so where do mining stocks stand? Well, there are actually a few factors that are affecting mining stocks at the current moment. The first of which is the election. In a few days, President-elect Joe Biden will be taking office and is likely to make many changes to counter things that President Trump has done. This could adversely affect the economy.
Biden has already announced a $1.9 trillion emergency coronavirus and stimulus plan. This includes an additional $1400 stimulus checks to add to the recent $600 stimulus checks that were distributed. Stimulus hurts the economy, so mining stocks could increase when this bill is signed into place. At the moment, gold stock prices have held above $1800 per share on average. The same goes for silver, which has held above $25 a share on average. The US dollar has been higher recently, but gold prices are up despite that. It will be interesting to see how the things in the news at the moment affect mining stocks. There are plenty of mining stocks to watch despite what some may think. So let’s have a look at four mining stocks that could rise in 2021 if things go right.Top Mining Stocks To Buy or Sell
- Fortuna Silver Mines Inc. (NYSE: FSM)
- Vale S.A. (NYSE: VALE)
- Coeur Mining Inc. (NYSE: CDE)
- Harmony Gold Mining Company Limited (NYSE: HMY)
First, let’s discuss Fortuna Silver Mines Inc.’s recent history in the market. Fortuna Silver Mines is a mining company that explores, extracts, and processes different minerals, but primarily silver. Fortuna’s operations are mostly in Peru and Argentina. The company operates the Caylloma mine, San Jose mine, Lindero project, and more. Now let’s see how FSM stock and Fortuna are performing in mid-January.
FSM stock price experienced an uptick to $9.55 a share when the first week of 2021 arrived. This was because of a sudden push of precious metals moving higher after the new year. FSM stock price has settled down at $7.55 a share on average amid precious metals moving lower. But in the last 6 months, this silver stock has increased from as low as $5 a share. Minarurum Gold Inc. recently announced that it and Fortuna Silver Mines have entered into an option agreement to earn up to an 80% interest in MGG’s Taviche silver project. The project is located in Oaxaca, Mexico. That is the most recent update that has come out related to Fortuna.Vale S.A.
The next mining stock on this list is Vale S.A. Vale produces iron ore and iron ore pellets to be used as raw materials in steel making. Vale operates in 3 sections, being Ferrous Minerals, Base Metals, and Coal. Vale produces gold, silver, copper, cobalt, manganese, and more. Vale also produces platinum group metals too. So how is VALE stock performing this year so far?
VALE stock is performing similarly to other mining stocks at the moment. It rose in the first week of 2021 and then fell back down in the second week. On January 15th, VALE stock closed at $17.64 after starting the day above $18 a share. Vale has not released any recent company updates, so that is definitely something to look forward to. It will be interesting to see how the company can perform in the future.Coeur Mining Inc.
Now let’s talk about Coeur Mining Inc., which was trending throughout 2020. Coeur Mining is a company that explores for, develops, and produces various mineral resources. Primarily, these consist of gold, silver, zinc, and lead. It has interest 100% in the Palmarejo mine, among many others like the Rochester mine. In the last year, this mining stock has experienced a lot of positive momentum.
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CDE stock price has performed just like every other mining stock in early 2021. CDE stock is at $8.39 a share as of the market close on January 15th. This mining stock did increase quite a bit and recovered last year. The company has announced that its fourth-quarter and full-year 2020 operational and financial results will be released after market close on February 17th, 2021.Harmony Gold Mining Company Limited
Now let’s discuss Harmony Gold Mining Company. Harmony is a mining business that explores, extracts metals, and processes said metals. Harmony will mostly search for gold, silver, copper, and uranium. Additionally, it will also look for deposits in South Africa and Papua New Guinea. The company has had some interesting performance in 2021 so far, so let’s dive into its financials.
So Harmony Gold Mining has not released any very recent company updates. This means that HMY stock has been driven by the prices of materials like gold and silver. As you know, gold and silver prices shot up in the first week of the year before falling again. The market for mining stocks is here to stay, whether people like it or not. The sector showed its potential last year, and it seems to be holding its own in 2021 so far. The pandemic is still roaring in numbers, with no end in near sight. So mining stocks could potentially stay at this price point or move higher as this continues.