Newmont Mining (NYSE: NEM) stock tumbled 6.9% through 10:35 a.m. ET Monday on a big reversal of the precious metals trade.
Silver hit an all-time high north of $80 an ounce overnight, but dropped dramatically this morning as traders took profits, falling as low as $70.25 per ounce. At last report, silver prices were down about 7.6% at $71.32 per ounce, and gold prices were down 4.3% at $4,354.20.
Image source: Getty Images.
What's up (or down) with silver today?
2025 has been a tremendous year for silver investors. The shiny metal started the year closer to $20 an ounce, and had more than tripled in price through last night. (Gold prices are up 65%.) For commodity metals that derive their value mostly from investors seeking to use them as hedges against inflation -- unlike stock in a business, which can actually generate value by producing goods and services over time -- those are enticing gains.
The kind of gains that may convince investors to sell and lock in profits.
That's what appears to be happening today, as there's no real reason for silver and gold prices to be falling other than investors just unloading the stuff and cashing in gains. There's no real reason for Newmont stock to be selling off, either. To the contrary, just this morning, investment banker Raymond James raised its price target on Newmont to $111, with an "outperform" rating, based on updated forecasts for Q4 gold prices.
NYSE: NEM
Key Data Points
Is Newmont stock a sell?
All of which is to say, there's probably no need for Newmont investors to panic today. While the stock is down today, it's up 185% year-to-date -- but still costs only 16 times earnings and pays a modest 1% dividend yield.
It's not expensive, and there's no need to sell.
