How to Read The Upstream and Downstream Correlations of Mining Stocks
Precious metals were doing well at the beginning of 2016. But it’s also important to know which mining stocks overperformed and which ones underperformed precious metals.
Precious metal prices have been falling since Donald Trump won the US presidential election on November 8, 2016. As a result, mining stocks have also been falling.
Mining companies that have high correlations with gold include Primero Mining (PPP), Silver Wheaton (SLW), Franco-Nevada (FNV), and Randgold Resources (GOLD). These companies have risen significantly year-to-date (or YTD).
Mining companies often amplify the returns of precious metals. However, the past few weeks have been choppy for these mining companies. Mining companies often amplify the returns of precious metals.