Mining Stocks Dip Along With Gold and Silver

With low prices, scarce supplies and high demand – what lies ahead?

Bullion.Directory precious metals guest post 15 January, 2016
By Nick Adamo
President at Bullion Shark LLC

As the market finished up on Thursday, gold futures for February were down almost $26 an ounce which is roughly a 2% loss. Silver fared a little better with only a 0.1% loss for March futures.
Let’s highlight a few mining stocks that dipped this week:

Freeport-McMoRan Inc.
Known as FCX on the New York Stock Exchange. Freeport-McMoRan is a big commodities producer, whose production spans from energy to the precious metals. This company fell a tremendous 22%. This is undoubtedly a reaction to the tremendous pressure the commodities have been under over the past few months.

Eldorado Gold Corp
This mining company is finding some trouble lately as Greece’s problems are not subsiding. The company’s stock lost 26% of its value. Conflicts with the Greek government are causing the loss of hundreds of jobs and mining setbacks for this company. If they don’t work something out with the Greek government soon, big trouble will be waiting for this company.

Royal Gold Inc.
Designated as RGLD, this company also took huge loses. With the company’s stock down 22%, this company is not in good shape. A big deal with another metals company is underway, which should help bring Royal Gold Inc. into better shape.

These are just a few of the many mining stocks that are finding trouble in the market as of late.  Some South African based gold mining companies have seen some gains due to inflation of the local currency.

This allows them to get more money for the gold they are selling. Although weakness in the prices of the metals are evident as of late, this may simply be more beneficial than not. If thought of as a long term investment, the precious metals such as gold and silver should show large price jumps due to the very nature of the metals as discussed in many other of my articles.

But in short: prices are low, supply is getting more and more scarce, many investors are taking positions in gold and silver bullion and overall demand is higher than ever.

Let’s hope next week treats the precious metals better, so the mining companies can see some light at the end of the tunnel.

Silver and gold or holdings in ETFs seem like a good way to add value to your portfolio.

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