After three days of gains, Hycroft Mining Holding Corporation (HYMC 5.75%) stock took a tumble this week, slipping 2% Wednesday, then 8% Thursday!
As of 11 a.m. ET Friday, though, shares of the gold miner (which also mines silver) are up 12.7%, and almost back to where they began the week.
Image source: Getty Images.
Gold and silver prices rise
Why? No mystery here -- the price of gold is rising. After hitting an all-time high of $5,419.80 per ounce on Jan. 28, gold prices tumbled to almost $4,500 in early February, according to data from TradingEconomics.com. Gold moved back above the $5,000 threshold last week, slipped below it yesterday, and is back above $5,000 today -- $5,030 per ounce, to be precise.
The story on silver is similar. Silver prices peaked on Jan. 28 at $116.58 per ounce. Silver prices fell to $66, then bounced back above $80, only to fall nearly 10% yesterday. At last report, silver is up about 1.6% today, passing $78 and heading toward $79.
It makes sense that with gold and silver up today, Hycroft Mining stock is up, too.
NASDAQ: HYMC
Key Data Points
Is Hycroft Mining stock a buy?
Will Hycroft Mining stock keep rising? That's hard to say. While gold and silver prices are up, Hycroft hasn't been able to capitalize on the gains. Hycroft hasn't earned a profit since 2013, and hasn't even generated revenue the past three years.
Most analysts who cover the company forecast continued losses through at least next year as the company gears back up to resume mining activity. By the time that happens, who knows how much (or how little) gold and silver may be worth?
Investing in Hycroft today, I fear, is like trying to board a gold train that's already miles down the track.
