Here Are 2 Mining Stocks to Buy on the Dip

The shine has come off gold stocks. After starting the year on a tear, they plummeted in recent weeks, along with the price of the precious metal. The primary reason is the concern that inflation is rising along with the costs of oil and this could lead the U.S. Treasury to raise interest rates in an effort to curb that inflation.The price of gold tends to decline during periods of inflation. Gold doesn't pay dividends or earn interest, so when inflation stays high, central banks, such as the U.S. Federal Reserve, often raise interest rates to slow the economy. Conversely, as interest rates increase, Treasury bonds and high-yield saving accounts, with their guaranteed returns, can become more attractive than gold.Newmont (NYSE: NEM) is down more than 4% so far this year and more than 21% in the past month. Shares of Barrick Mining (NYSE: B) have been hit even harder, dropping more than 22% this month and more than 14% so far this year. The downward swing presents patient investors with an opportunity to buy two quality gold stocks on the dip.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool