Mining is as old as civilization itself, and the hidden treasures beneath our feet have long been the life force of our technological advancements.
This ancient craft is poised to become even more pivotal, considering the multitude of metals required for producing semiconductors and rechargeable batteries. We’re going to unearth some rock-solid mining stocks that are like magnets for market attention and may be worth considering for your portfolio.
This sector is in constant flux and finding the best mining stocks can feel like trying to navigate a labyrinthine network of tunnels in complete darkness. To give you some starting inspiration, we’re shining our headlamp on these top stocks from the S&P Global Mining Reduced Coal Index.
| Stock | Icon | 1-year performance (to Aug. ’24) | 5-year performance (to Aug. ’24) | Link to invest |
|---|---|---|---|---|
| Agnico Eagle Mines (AEM) |  | 50.96% | 23.51% | Invest with XTBCapital at risk |
| Newmont (NEM) |  | 16.18% | 20.50% | Invest with XTBCapital at risk |
| Barrick Gold (ABX) |  | 12.72% | 3.59% | Invest with XTBCapital at risk |
| Rio Tinto AU (RIO) |  | 3.82% | 34.90% | Invest with InvestEngineCapital at risk |
| Anglo American (AAL) |  | -0.09% | 19.96% | Invest with XTBCapital at risk |
| Rio Tinto (RIO) | | -1.31% | 20.85% | Invest with XTBCapital at risk |
| Freeport-McMoRan (FCX) |  | -3.36% | 319.18% | Invest with XTBCapital at risk |
| BHP Group (BHP) |  | -11.51% | 19.98% | Invest with InvestEngineCapital at risk |
| Glencore (GLEN) |  | -14.21% | 69.50% | Invest with XTBCapital at risk |
| Vale (VALE3) |  | -16.02% | 25.35% | Invest with InvestEngineCapital at risk |
Mining stocks represent equity in companies involved in the extraction and processing of minerals and other geological materials from the earth. These firms unearth valuable resources like gold, silver, copper, and coal, supplying raw materials for various industries worldwide.
The mining sector is multifaceted, offering investors a wide range of stocks that cater to different market demands and resources. Here are some of the main categories:
Investors are increasingly sitting up and paying attention to mining stocks due to the sector’s critical role in supplying materials for the global energy transition. As more and more industries shift towards electrification and renewable sources of power, metals used in these technologies like copper, lithium, and nickel are predicted to experience a spike in demand.
Forecasts suggest that by 2050, we could see nickel demand triple, copper demand more than double, and demand for lithium chemicals increase sevenfold. At the same time, many critical metals are facing supply constraints. All of this could lead to higher commodity prices, and in turn, higher share prices for the best mining stocks.
44% of people we surveyed said they already invest in mining stocks or would consider investing in mining stocks.
| Response | |
|---|---|
| I would consider it | 37.45% |
| I wouldn't consider it | 28.41% |
| Not sure | 28.04% |
| I already invest in this | 6.09% |
Investing in mining stocks can be a glittering opportunity. There are a trove of benefits that may catch your eye:
We’re not saying the groundwater’s poisoned, but it’s important not to gulp down all the hype around mining stocks; make sure to do some due diligence before venturing into the sector because there are some key risks to be aware of:
"Junior mining stocks are miners in the early stages of exploration and production. These companies are a lot smaller than the big players and this gives them the advantage of agility and adaptability. This leaves potential for massive growth but also the possibility of never striking gold.
Junior gold miners are the most popular stocks in this sub-sector, and because it’s such a fast-paced environment, it can be worth using an exchange-traded fund (ETF) like the VanEck Junior Gold Miners ETF (GDXJ), for example. This way you can access a selection of junior miners, making sure you’re not overexposed to a single miner."
Aside from directly investing in individual mining stocks, there are other options giving you exposure to this sector:
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Mining stocks offer a golden opportunity to tap into the veins of our planet’s rich resources. There’s a long list of metals that, despite conjuring only dull memories of GCSE chemistry classes, are in fact crucial for powering our modern world.
However, investing in this sector and finding the best mining stocks requires a keen eye for potential pitfalls, from volatile commodity prices to geopolitical tremors. With the right map and a sturdy helmet – in the form of thorough research and a balanced approach – the journey into the world of mining stocks can lead to a treasure trove of opportunities for the savvy investor.
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