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The mining industry involves different exploration, extraction and processing of valuable minerals and materials. Mining stocks can be a great investment. Minerals are divided into two main categories: metallic and nonmetallic, including:
- Precious metals (silver, gold, palladium, diamond and platinum)
- Industrial metals (copper, aluminum, iron ore, nickel, cobalt, zinc and lithium)
- Construction materials (sand, limestone and crushed stones)
- Fertilizers (phosphate, potash and boron)
- Energy materials (uranium, coal and bitumen)
Many minerals play an essential role in running the global economy. During periods of expansion, minerals are in high demand. Economic recessions may plunge mining stocks into the stocks under $5 category.
As an investor, you need to carefully observe and analyze the global market before you invest in these stocks. Some minerals have a higher value and higher demand compared to others. These are premarket movers in the mining industry. Mining stocks offer a viable long-term investment option as long as you pick the right mining stocks.
Here’s a list of the best mining stocks you may want to add to your portfolio.
Quick Look at the Best Mining Stocks:
- B2Gold Corp
- Sibanye Stillwater Ltd
- Barrick Gold
- Freeport-McMoRan Inc
- Alexco Resource Corp
Contents
- Quick Look at the Best Mining Stocks:
- Overview
- Best Online Brokers for Mining Stock
- Features to Look for in Mining Stock
- Mining Stocks for Your Portfolio
- Frequently Asked Questions
Overview
The demand for safe-haven investment options is rising and the mining industry offers tax revenue for global governments. A reliable investment vehicle for most investors are mining stocks. These stocks are made of specialty metals and non-metals are always in demand.
Over the years, investors have been able to gain a lot of exposure to the wide variety of precious metals. Investors have invested in mining stocks of companies that deal in mining and exploration of precious metals. Some of the companies in the mining industry have outperformed many companies despite the COVID-19 economic fallout.
Gold can be found above the under $10 category. Gold has outperformed many commodities in the economy and investors are investing more in gold.
Best Online Brokers for Mining Stock
Here’s a list of online brokers to guide and help you invest in the best mining stocks.
Claim Exclusive Offers
get started
securely through CenterPoint Securities’s
website
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
Best For
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
Get 10 Free Shares
securely through Magnifi’s
website
Magnifi is an intelligently designed marketplace that allows investors to access data-backed information about various investment opportunities. The company combines standard brokerage tools with artificial intelligence (AI) to promote financial competence. Magnifi distinguishes itself from the crowd by offering an AI-powered search feature and an AI-powered investment assistant. Magnifi offers a technology-forward platform that aims to promote confident and capable long-term financial investments.
Best For
- Long-term investors
- Individuals interested in personalized assistance
- New investors that are eager to learn how to start investing
- Access to an AI-powered investing assistant with a Magnifi Personal account
- Commission-free investing
- Over 15,000 possible investments
- Available mobile application
- Limited methods of communication with customer service
get started
securely through Robinhood’s
website
Robinhood is a broker designed for traders who want a simple and easy-to-use platform. It takes out all the bells and whistles that can be confusing to the modern day trader, serving as the perfect place for beginners to learn the markets. The interface is intuitive and easy to master, streamlined to ensure you don’t get distracted as you build a portfolio. Though advanced traders might like more thorough analysis tools, Robinhood gives you everything you need to start trading and learn the ropes.
Best For
- Beginner traders
- Mobile traders
- Streamlined, easy-to-understand interface
- Mobile app with full capabilities
- Can buy and sell cryptocurrency
- Fewer analysis tools than most
get started
securely through Interactive Broker’s
website
Interactive Brokers is a comprehensive trading platform that gives you access to a massive range of securities at affordable prices. You can buy assets from all around the world from the comfort of your home or office with access to over 135 global markets. Options, futures, forex and fund trading are also available, and most traders won’t pay a commission on any purchase or sale.
IBKR is geared primarily toward experienced traders and investors but now with the availability of free trades with IBKR Lite, casual traders can also acclimate to IBKR’s offerings.
Best For
- Access to international markets
- Active traders
- Detailed mobile app that makes trading simple
- Wide range of available account types and tradeable assets
- IB SmartRouting provides significant price improvement vs. industry
- Fractional trading allows investing regardless of share price
- Industry’s lowest margin rates
- Earn more by lending your fuly-paid shares
- Beginner investors might prefer a broker that offers a bit more hand-holding and educational resources
get started
securely through Webull’s
website
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
Best For
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
get started
securely through Charles Schwab’s
website
Charles Schwab is a solid choice for traders of all skill levels. It offers full access to the U.S. equity and options markets as well as 30 international markets. Traders can create a diverse portfolio with $0 commissions and no account minimums. Schwab’s margin trading is expensive but Schwab makes up for it with affordable futures and options trades, along with a comprehensive mobile offering.
Best For
- 3 trading platforms perfectly in sync makes matching your platform to your skill level a snap
- Excellent futures trading education for new traders
- $0 account minimum means anyone can start trading
- Wide range of available assets to trade, including futures and 30 global markets
- SmartStreet Edge platform is powerful enough for advanced traders, yet easy enough for new traders to utilize
- Unique educational resources (like infographics and podcasts) make learning fun
- Margin rates are more expensive than competitors
- More limitations on available margin than competitors
- Expensive mutual funds
get started
securely through TD Ameritrade’s
website
This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.
Best For
- Novice investors
- Retirement savers
- Day traders
- World-class trading platforms
- Detailed research reports and Education Center
- Assets ranging from stocks and ETFs to derivatives like futures and options
- Thinkorswim can be overwhelming to inexperienced traders
- Derivatives trading more costly than some competitors
- Expensive margin rates
Features to Look for in Mining Stock
The mining industry is capital intensive and highly cyclical. The industry is profoundly affected by the economy and mines are costly to construct — the mining industry has suffered in the past due to its need for lots of capital when building mines and ended with meager profits.
As a result, a majority of mining stocks have ended up underperforming in the market, with stocks under $20. To find the best mining stocks, you need to look at the following features:
- Low production cost: A mining company with low production costs will remain profitable even during weak periods. Mining companies can reduce production costs by using the latest mining technologies, which also improves the efficiency of the mining process.
- Strong balance sheet: A company’s balance sheet should include an investment-grade bond rating, borrowing capacity, manageable debt and lots of capital. Financial flexibility means a company can survive an economic storm and still offer its shareholders competitive earnings per share.
Mining Stocks for Your Portfolio
Mining is indeed a tough business. As an investor, you need to focus on miners, which can remain productive even during tough economic times. A strong balance sheet and low production costs are critical. These 2 factors play an essential role in guaranteeing investors returns for their capital through buybacks and dividends. Investors are also positioned to increase the value of their shares during successful economic times.
Frequently Asked Questions
What are mining stocks?
Mining stocks are shares in companies that mine for mateirals and minerals.
Answer Link
Are mining stocks a good investment?
Mining stocks are a good investment because the materials and minerals that are mined are important for many sectors.
Answer Link
What are the best mining stocks?
Benzinga lists the best mining stocks on the list above.
Answer Link
Continue reading:
- BEST DIAMOND STOCKS RIGHT NOW
- BEST PALLADIUM STOCKS
- BEST URANIUM STOCKS
The post Best Mining Stocks by Edward Odongo appeared first on Benzinga. Visit Benzinga to get more great content like this.
