What happened

Shares of silver and gold miner Endeavour Silver (EXK -1.29%) were higher by roughly 10.5% at 1 p.m. EDT on Monday. There wasn't any particular news out of the company today; however, there was some notable movement in the precious metals markets.

So what

Gold prices were up by roughly 1.5%, which is a material move for the barbarous metal. However, as is often the norm, the price of silver moved even more dramatically, up 4.5% or so. Given that Endeavour Silver's top and bottom lines are tied to the commodities it produces, its stock rose along with the metals. In fact, miners tend to be leveraged to commodity price moves given the nature of the mining business.

A miner holding up a silver nugget

Image source: Getty Images.

Endeavour, meanwhile, is generally considered a silver miner, though it produces both gold and silver, like most precious metals miners. Having the word "silver" in its name, of course, helps in this regard, but silver did make up nearly 55% of its revenue in 2020 (gold was the remainder). That's a material number and helps explain why the stock is so sensitive to the movement of silver prices.   

Now what

Long-term investors probably shouldn't look at Endeavour Silver as a way to play the price moves of silver or gold. It would be much more advisable to look at a miner like Endeavour as a diversification tool. And, in that regard, one day's ups or downs shouldn't be the driving force behind a buy or sell decision here.