Why McEwen Mining's Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold and silver miner McEwen Mining (NYS: MUX) rose as much as 18% today after gold and silver climbed higher.
So what: As I am writing gold, has climbed 2.4% on the day and silver is up 3%. The rise in either asset would be a positive for the company's operations, because it could squeeze more revenue from gold and silver sales.
Now what: I don't think a single day's jump in gold and silver alone is a good reason to buy shares of any mining stock, so I'll stay away today. Both assets have struggled since reaching highs in August of last year, and I'm not going to bet that the momentum will last. Gold, in particular, has been very volatile, and if you're looking to get into mining stocks I would pick a day that it's lower to buy in.
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At the time this article was published Fool contributor Travis Hoium has no position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings, or follow his CAPS picks at TMFFlushDraw. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.