Newmont Mining (NYSE: NEM) shares fell 6.9% as of 10:35 a.m. ET Monday on a major setback in precious metals trading.
Silver reached an all-time high above $80 an ounce overnight, but fell sharply this morning as traders took profits, falling as low as $70.25 an ounce. As of the latest report, silver prices were down about 7.6% to $71.32 an ounce, and gold prices were down 4.3% to $4,354.20.
2025 has been a fantastic year for silver investors. The shiny metal started the year near $20 an ounce, and its price had more than tripled as of last night. (Gold prices are up 65%). For base metals whose value derives primarily from investors seeking to use them as a hedge against inflation — unlike a company’s stock, which can actually build value by producing goods and services over time — those are tempting gains.
The kind of gains that can convince investors to sell and lock in profits.
That’s what seems to be happening today, as there is no real reason for silver and gold prices to be falling, other than investors simply dumping them and taking profits. There’s also no real reason for Newmont stock to be selling off. By contrast, just this morning, investment banker Raymond James raised his price target on Newmont to $111, with an “outperform” rating, based on updated forecasts for gold prices in the fourth quarter.
All of which is to say there’s probably no need for Newmont investors to panic today. While the stock is down today, it’s up 185% so far this year, but it still costs just 16 times earnings and pays a modest 1% dividend yield.
It is not expensive and does not need to be sold.
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