4 Gold And Silver Mining Stocks To Buy Right Now

Another reason to expect more inflation is that countries all over the world are aggressively deploying fiscal stimulus to boost their economies. On top of this, there’s going to be significant pent-up demand unleashed next year as the world gets vaccinated. Usually, the counterweight to increasing inflation is that the Fed tightens policy. However, this time is different. 

The Fed has revised its inflation framework to hike only when rates are “symmetrically” above its 2% target. Therefore, monetary policy will get “looser” as the economy improves. At the depths of the recession in March, the difference between the 10-year and the Fed Funds rate was 0.55%. Recently, it has been at 0.92%. As economic activity continues improving, and the pandemic nears an end, the curve will only get steeper which means that real interest rates will move lower. 

All of these developments are positive for precious metals. During precious metal bull markets, the mining stocks are usually the best performers. These companies’ equity prices can see big gains, as rising prices mean increased earnings in addition to the value of their assets increasing.

Four gold and silver miners that investors should consider buying are New Gold (NGD), Fortuna Silver Mines (FSM), Newmont Gold (NEM), and Endeavour Silver (EXK).

New Gold Mining (NGD)

NGD has operations in the United States, Canada, Chile, Mexico, and Australia. YTD, the stock is up 222%. It’s also unusual among gold and silver mining stocks in that it made a new, 52-week high this year. This relative strength is mainly due to the company’s turnaround efforts to increase production and sell off some assets.

It recently sold its operations in the Blackwater project to Artemis Gold (ARGTF) for $190 million along with a gold stream of 8% and $34 million in stock. The company has also closed a strategic partnership deal with the Ontario Teachers’ Pension Plan for a 46% free cash flow interest in the New Afton mine.

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