May 17, 2012
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 (NYSE: 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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