Why SSR Mining Stock Got Knocked Today
Key Points
Like numerous peers, the company is a pure-play precious and base metals producer.
It's not going to escape the fallout from a sustained rout in the prices for such goods.
- 10 stocks we like better than SSR Mining ›
Gold and silver are eternally attractive metals, but lately they haven't been ideal investments. On recent declines in the prices of the two, SSR Mining (NASDAQ: SSRM) -- which mines both metals -- saw its stock price decrease by more than 3% on Tuesday.
The yield problem
The rout in precious metals started last Friday, just after the federal government's Bureau of Labor Statistics released its latest monthly employment report. The striking feature of this digest was the 172,000 new jobs created in May, far higher than the consensus estimate of 80,000. Immediately, and understandably, this led to widespread speculation that the Federal Reserve is more likely to raise than cut interest rates in the near future.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
This triggered a sell-off in bonds, since higher rates mean higher interest paid on future issues. When a bond's price falls, its yield rises. That makes these yield-bearing investments especially attractive when compared to non-yielding investments -- gold and silver don't pay coupons, after all. Subjected to that dynamic, precious metals have generally been on the downswing since Friday.
Broadly speaking, companies that mine precious and base metals are pure plays. What's more, mining is a capital-intensive activity with many fixed costs. Therefore, movements in gold/silver/etc. prices can and will disproportionately affect the performance of the SSR Minings of this world.
Diminished shine
Many might consider these latest price movements corrections, as both gold and silver had sustained bull runs that culminated in all-time highs at the beginning of this year. SSR Mining was indisputably a beneficiary of this, to the point where it has sufficient financial "padding" to withstand a downturn. Still, I think the possibility of rate hikes will rise, if anything, so now might be a good time for current stockholders to sell out of their positions.
Should you buy stock in SSR Mining right now?
Before you buy stock in SSR Mining, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SSR Mining wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
Now, it’s worth noting Stock Advisor’s total average return is 948% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2026.
Eric Volkman 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.
Recommended Articles
