Learn Mining News

Penny stocks are those that sell for less than $5 per share on the public stock markets. These seem like an attractive investment because they are so cheap, but they are not always a wise purchase. Some of the companies they represent are in a poor financial position, thus the low share price. Penny stocks are also notoriously volatile, so it may not be smart for an investor to sink a lot of money into them.

Some publicly traded gold mining companies offer penny stocks for purchase by the public. When the price of gold skyrocketed during the late 1970s, some investors that held these stocks made a fortune. However, for every success story, there is a tale of a penny stock that bit the big one because the company went under.

Individuals who want to invest in penny stocks offered by gold mining companies should do a lot of research regarding a company’s financial standing and the past performance of the stock. There are stocks in exploration stage companies like U.S. Precious Metals, Inc. that trade for less than 25 cents per share. These will not require a large monetary investment and the companies may have some viable projects in the works.

Shares of Global Gold Corporation, and international gold mining and exploration company, currently trade at 11 cents per share. This company acquires properties that have low production costs and substantial upsides. Its portfolio includes both gold and silver projects that are in the early and advanced stages of exploration and development.
U.S. Precious Metals, Inc. and Global Gold Corporation are just two of the gold mining penny stocks traded on the major markets. Prior to making an investment in these or any other gold penny stocks, an individual should do some research and budget how much to invest. Since penny stocks are volatile, a cautious investment approach should be taken.