Silver and gold miner stocks Strive for money (NYSE: EXK) were about 10.5% higher as of 1 p.m. EDT Monday. There was no specific news from the company today; however, there has been a noticeable movement in the precious metals markets.
Gold prices rose around 1.5% which is a big move for the barbarian metal. However, as is often the norm, the price of silver has moved even more dramatically, up around 4.5%. Since Endeavor Silver’s results are tied to the commodities it produces, its shares have risen along with metals. In fact, miners tend to be influenced by fluctuations in commodity prices given the nature of mining activity.
Endeavor, on the other hand, is generally considered a silver miner, although it produces both gold and silver, like most precious metal miners. Having the word “silver” in her name, of course, helps in this regard, but silver made up almost 55% of her income in 2020 (gold was the rest). This is an important number which helps explain why the stock is so sensitive to the movement of the price of silver.
Long-term investors probably shouldn’t view Endeavor Silver as a way to play silver or gold price movements. It would make much more sense to view a miner like Endeavor as a tool for diversification. And, in that regard, one-day highs or lows shouldn’t be the driving force behind a buy or sell decision here.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.