Key Points
Gold and silver prices took another turn lower on Tuesday.
Coeur Mining will give an update at a BMO mining conference next week.
- 10 stocks we like better than Coeur Mining ›
Up one day and down the next, Coeur Mining (NYSE: CDE) stock must be driving investors bonkers -- but it's pretty easy to explain.
Coeur mines gold after all (Coeur also mines silver, zinc, and lead). When the price of gold rises, Coeur stock tends to rise; when the price of gold falls, Coeur stock tends to fall. Today, gold prices are falling, and Coeur stock is following them down: 8% as of 10:10 a.m. ET Tuesday.
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Gold and silver prices decline
After hitting an all-time high of $5,419.80 per ounce on Jan. 28, gold prices tumbled toward $4,500 in early February, according to data from TradingEconomics.com. Gold moved back above $5,000 on Feb. 8, slipped below it Feb. 12, then up again, then down again. Today, gold sits at $4,855.
Coeur's silver holdings aren't helping with the volatility. Like gold, silver prices peaked on Jan. 28 at $116.58 per ounce. Silver fell to $66, then bounced back above $80 -- which appears to be some kind of magic number for silver. Again, prices passed above $80 Feb. 8 and below $80 Feb. 12. What's different here is that silver prices haven't recovered since, remaining well below $80.
Today, silver costs $72.69.
Is Coeur Mining stock a buy?
What's next for Coeur? We should get a clue next week. Coeur just announced it will present at the BMO Global Metals, Mining & Critical Minerals conference in Florida on Tuesday, Feb. 24.
No word on what exactly Coeur will say at that conference, but with Coeur stock costing less than 12 times forward earnings, investors could take almost any "good" news Coeur has to report as an excuse to buy the stock.
If I were a betting man, I'd bet on Coeur stock to rise.
Should you buy stock in Coeur Mining right now?
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.