In a recent Penny Stock Detectives article, co-editor Sasha Cekerevac states his belief that the move in gold has significant strength behind it, but also says that the gold mining stocks arent given enough credit and investors arent pricing in gold at current levels. Cekerevac argues that this discrepancy wont last forever; either gold prices will come down or these mining stocks will move up. With the huge amount of money being pumped into the financial system, it seems reasonable to assume that gold will stay at lofty levels; this means that junior gold mining stocks offer a lot of potential.
One name Cekerevac likes is Almaden Minerals. This company has several properties that might yield large levels of gold in Nevada and Mexico. Almaden is in the very early stages of development and exploration. This is one of those penny stocks in gold that is at the beginning stages of its exploration phase, but could prove to be quite successful over the long term, according to Cekerevac.
Some gold penny stocks offer value when short-term bad news hits the price of the shares. In mining stocks, this can come in many forms, but, for penny stocks, raising money for exploration and development can be challenging, states Cekerevac.
One example is Brigus Gold Corp. The stock is now trading below $ 1.00 since the company has issued an offering of stock at $ 0.95 Canadian per share to raise $ 15.0 million to $ 17.5 million in financing for further development of its properties. While existing shareholders are disheartened by the dilution, Cekerevac sees how a long-term investor might view this as an opportunity to get in on a gold exploration company with significant potential.
When investigating penny stocks, gold mining stocks especially, you must know what the reason is that youre buying the shares, comments Cekerevac. Yes, we all want to make money, but Ive listed two gold penny stocks that offer value for very different reasons. You must understand your risk profile and investing goals to see if they might be a fit with your portfolio.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $ 10, and the stock market in general.