Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Investing in mining stocks

From gold to gravel, there’s room for profit — but geopolitical shifts are a major risk.

There’s no shortage of options for those who want to invest in mining companies. But investors will need to pay close attention to the price history and location of the material being mined before they buy in, as shifting political tides have the potential to sideline operations.

What are mining stocks?

Mining stocks are stocks from companies that extract minerals and materials from the earth. Mined materials vary in composition and can be divided into the following major categories:

  • Energy materials. Bitumen, coal and uranium.
  • Fertilizers. Boron, rock phosphate, potash and sulfur.
  • Industrial metals. Aluminum, cobalt, copper, iron ore, lithium, nickel and zinc.
  • Industrial minerals. Asbestos, bentonite, graphite, gravel, gypsum, limestone, mica, potash, pumice, salt, sand, silica and talc.
  • Precious metals. Diamond, gold, iridium, mercury, osmium, palladium, platinum and silver.

There are two major categories of mining stocks: majors and juniors. Majors refer to well-established companies with international operations and a history of steady profits — they share the same status as blue-chip stocks in the general stock market.
Juniors are small mining companies with less working capital and shorter histories than their major counterparts — think of them as a type of growth stock specific to the mining industry.

Why invest in mining stocks?

Thanks to its long history, economic viability and global demand, the mining industry holds great potential for profit.
Many industries rely on mining efforts to produce the materials needed to manufacture their wares and services. Without cobalt, electric vehicle manufacturers would flounder. Without uranium, we wouldn’t have nuclear energy.
Mining is a time- and energy-intensive process. But mining companies continue to expand their reach thanks to the international demand for what they source and produce. This type of global reliance on mined materials makes this industry among the more powerful and viable investment categories.
Major mining companies offer the opportunity for steady returns and dividends. Junior mining companies hold the potential for rapid growth. Investors should research the mining company of interest to them and what materials it yields to determine potential benefits specific to the product.

Risks of investing in mining stocks

The mining industry isn’t immune to risk and faces several unique challenges — chief among them: economic and geopolitical shifts.
The mining industry tends to do well in an up market because the profitability of this sector is largely tied to the health of the global economy. When demand for mined metals and materials is high, mining companies are well-positioned for strong and consistent cash flow. But when demand is low in response to a down market, mining companies may suffer.
Mining companies are also vulnerable to political regulations depending on where their mines are located. Many mining stocks on the market are international companies with mine locations across the globe. A mine’s location can have a big impact on a mining company’s profitability, as the political environment of the country the mine is located in can impact mining processes and material prices.

Mining market projections

In 2019, the combined revenue of the top 40 mining companies worldwide amounted to $692 billion. But 2019 wasn’t a good year for net profit margins — a figure that’s been on the decline for the past decade. Net profits for the industry dropped from 35% in 2010 to 9% in 2019, according to Statista.
That said, employment and total mining gross output for the US have been steadily growing. In the year 2000, gross output sat at $218 billion and approximately 521,000 people were employed within the industry. By 2019, Statista reports that gross output for the US mining industry had more than doubled to $579 billion and employment had increased to 672,000.

Mining stocks

Mining stocks include both domestic and international companies that produce all sorts of minerals and precious metals. If you’re interested in a specific material or commodity, take some time to research the company, its history and its financials before you buy in. See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

What ETFs track the mining category?

Mining ETFs invest in companies that generate revenue from mining natural resources. The following ETFs track companies in the mining sector:

  • Amplify Advanced Battery Metals and Materials ETF (BATT)
  • iShares Global Energy ETF (IXC)
  • iShares MSCI Global Select Metals & Mining Producers ETF (PICK)
  • SPDR S&P Metals & Mining ETF (XME)
  • VanEck Vectors Rare Earth/Strategic Metals ETF (REMX)

Compare trading platforms

You’ll need a brokerage account to invest in mining stocks. Compare options by features and fees to find the account that best meets your needs.

1 - 9 of 9
Name Product USFST Ratings Available asset types Stock trade fee Minimum deposit Cash sweep APY Signup bonus
Tastytrade
Finder Score: 4.4 / 5: ★★★★★
Tastytrade
★★★★★
Stocks, Options, ETFs, Cryptocurrency, Futures, Treasury Bills
$0
$0
N/A
Get $50-$5,000
Competitive, capped options commissions, with a reliable trading platform designed for serious traders.
SoFi Invest®
Finder Score: 4.2 / 5: ★★★★★
SoFi Invest®
★★★★★
Stocks, Options, Mutual funds, ETFs, Alternatives
$0
$0
0.02%
Get up to $1,000 in stock
Zero-commission stocks, ETFs and options, with no options per-contract fees. Plus, a no-advisory-fee robo-advisor and complimentary access to financial planners.
OPTO
Finder Score: 3.1 / 5: ★★★★★
OPTO
★★★★★
Stocks, ETFs
$0
$0
N/A
Earn up to $300
AI-driven thematic investing, with proprietary research, fractional shares and commission-free stocks and ETFs.
eToro
Finder Score: 4 / 5: ★★★★★
EXCLUSIVE
eToro
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
4.9%
FINDER EXCLUSIVE: Get a guaranteed $15 bonus
No commission stock, ETF and options trades, with 4.9% interest on your options account balance and no options contract fees.
Robinhood
Finder Score: 4.4 / 5: ★★★★★
Robinhood
★★★★★
Stocks, Options, ETFs, Cryptocurrency
$0
$0
4.5%
Get a free stock
Trade stocks, options, ETFs and crypto without commissions and on a user-friendly platform. Plus, a 1% IRA match and no options contract fees.
Public.com
Finder Score: 4.2 / 5: ★★★★★
Public.com
★★★★★
Stocks, Bonds, Options, ETFs, Cryptocurrency, Alternatives, Treasury Bills, High-yield cash account
$0
$0
4.6%
Get up to $10,000 and transfer fees covered
Build a diversified portfolio of stocks, bonds, options, ETFs, crypto and alternative assets, with a high-yield cash account and options contract rebates.
Stash
Finder Score: 3.7 / 5: ★★★★★
Stash
★★★★★
Stocks, ETFs
$0
$0
0.1%
Get $10 when you sign up and deposit $5
Automated investing, individual stock and ETF investing and banking services for as low as $3 per month.
Wealthfront
Finder Score: 4.5 / 5: ★★★★★
Wealthfront
★★★★★
Stocks, ETFs
$0
$500
5%
Get $50
Automated stock and bond ETF investing with the ability to trade individual stocks for as little as $1 apiece.
Zacks Trade
Finder Score: 3.8 / 5: ★★★★★
Zacks Trade
★★★★★
Stocks, Bonds, Mutual funds, ETFs, CDs
$0.01
$250
2.83%
Get up to $500
Trade stocks, options, ETFs, mutual funds and bonds, with powerful trading tools and low margin rates.
loading

Bottom line

Major mining stocks represent a potential long-term investment with the opportunity for steady gains. Junior mining stocks may have more growth potential but are typically riskier investments. Before you purchase either, review your platform options to find the brokerage account that’s ideal for your investment goals.

Frequently asked questions

Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.

Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Shannon Terrell's headshot
Editor

Shannon Terrell is a lead writer and spokesperson at NerdWallet and a former editor at Finder, specializing in personal finance. Her writing and analysis on investing and banking has been featured in Bloomberg, Global News, Yahoo Finance, GoBankingRates and Black Enterprise. She holds a bachelor’s degree in communications and English literature from the University of Toronto Mississauga. See full bio

's expertise
has written 171 Finder guides across topics including:
  • Share trading
  • Robo-advisors
  • Merchant services

Read more on this topic

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site