The Fortescue Metals Group Limited (ASX: FMG) share price is leading the S&P/ASX 200 Index (ASX: XJO) in today's trade. Shares in the Aussie miner are up 8.60% today and trading at $11.24 per share right now.
Markets are volatile right now and Fortescue is doing well to hold its value, so should you buy?
Why the Fortescue share price is up 8.60% today
The Fortescue share price is one of the top-performing ASX 200 shares right now. The Aussie miner hasn't made any market-moving announcements since its half-year results but that hasn't stopped investors from buying in. In the last month, its shares are up 1.53% while the ASX 200 is down 30.70% over the same period.
Fortescue is one of the largest iron ore producers in the world. That isn't particularly helpful when China's demand has dropped off as a result of COVID-19 and the Fortescue share price has been under pressure as a result. However, we're starting to see signs that China's economy is picking back up. That could be good news for Fortescue, while its gold business could help in the short-term.
Investors are flocking to ASX 200 gold mining shares like Fortescue to escape the market volatility. Gold has historically been seen as a safe-haven asset and it could be a "panic buying" of sorts on the ASX.
Fortescue has quite a strong balance sheet and should be able to weather a prolonged period of uncertainty relatively well. If China's demand picks up quickly, the current Fortescue share price could be an absolute bargain.
Is now the time to buy?
The Fortescue share price could be one of the better ASX 200 buys right now. Mining is inherently cyclical, however, so I would be wary if you're quite risk-averse. The mining group's shares are yielding a tidy 8.90% right now but dividend yields can be misleading in times like this.
The main thing to remember is to stay calm. Trust your strategy for the long-term rather than panicking in March. Crystallising your losses at steep discounts is rarely a profitable investing strategy.
