5 Safe-Haven Gold Penny Stocks to Buy This Week

Gold continues to regain its safe-haven status amid COVID-19 fears. There are several hot gold penny stocks to buy this week that could offer major upside.

Gold prices have consistently surpassed the US$1,700 mark in recent weeks, and according to analysts, a fresh wave of the global risk-aversion trade is a key factor that underpins gold’s safe-haven demand.

This, along with recent US dollar weakness, puts gold in the spotlight and creates ample opportunities for investors to get in on gold penny stocks at a discount.

With that in mind, we’ve put together a list of 5 safe-haven gold penny stocks to buy this week.

Safe-Haven Gold Penny Stocks to Buy: BTU Metals Corp. (TSXV:BTU)

It isn’t surprising to see BTU Metals Corp. at the top of the list of safe-haven gold penny stocks to buy this week when you look at the promising results coming out of its Dixie Creek project.

The project consists of 19,723 hectares of highly-prospective land in Red Lake, which is among the richest gold mining camps in the world and borders Great Bear Resources Ltd.’s (TSXV:GBR) Dixie project.

On April 7, BTU Metals provided an update on the uninterrupted exploration program at the property, which revealed the highest recorded regional till sample, containing 120 gold grains (99 pristine).

The high count of 99 pristine gold grains indicates that there may be significant gold in bedrock not far up from the sample location, which is very encouraging.

Unlike several other mining companies, BTU Metals’ exploration work remains on schedule with no disruption due to the COVID-19 crisis.

On Monday, BTU stock increased by 30.56% from C$0.19 to C$0.23, with a trading volume of 1,628,048. The rise in share price is welcoming after seeing lows of C$0.10 last month.

BTU Metals has a market cap of C$19.28 million, with 82,050,000 shares outstanding.

Safe-Haven Gold Penny Stocks to Buy: DRDGOLD Limited (NYSE:DRD)

South African gold producer DRDGOLD Limited has continued to increase in value over the last few months and is shaping up to be one of the top gold penny stocks to buy this week.

Despite its decision to temporarily halting production last month to support the national lockdown in the region, DRDGOLD stock is up 63.7% since the beginning of 2020.

Last week, the company announced that it is consulting with the government and organized labor in regards to re-starting operations at its Far West Gold Recoveries surface retreatment operation at Carletonville to soften the impact of the stoppage without exposing employees to increased risk.

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At the same time, DRDGOLD announced its efforts to help the local community, which includes an initial seed investment of R200,000 ($11,046) and an additional private funding of R100,000 ($5,523) to provide much-needed supplies to locals.

On Monday, DRD stock increased by 21.95% from $7.38 up to $9, with a trading volume of 1,989,151.

Safe-Haven Gold Penny Stocks to Buy: Rubicon Minerals Corp. (TSX:RMX) (OTCQX:RBYCF)

Third on the list of safe-haven gold penny stocks to buy this week is Rubicon Minerals Corp., another gold exploration company working in the Red Lake district.

Rubicon has had a rollercoaster year in the markets, reaching a high of C$1.18 and a low of C$0.57 since the start of 2020. On Monday, RMX stock increased by 23.38% to C$0.95, with a modest trading volume of 197,452.

Although there was no immediate news to attribute to the price increase, Rubicon Minerals has continued to advance its promising project, which offers a Measured and Indicated Resource estimate that totals 589,000 ounces of gold.

Despite the global slowdown caused by the coronavirus, Rubicon Minerals has continued drilling activity at its Red Lake project and is on track to deliver the feasibility study in the second half of 2020.

At market close on Monday, RMX stock closed at C$0.95, but several analysts expect it to go much higher in the coming months. Two Wall Street analysts have issued ratings for Rubicon Minerals, with one “buy” and one “hold.”

The company has also been offered an average 12-month price target of C$2.15, which suggests a potential upside of 126.32%.

Safe-Haven Gold Penny Stocks to Buy: Mandalay Resources Corp. (TSX:MND) (OTCQB:MNDJF)

It’s clear why gold producer Mandalay Resources Corp. is on the list of safe-haven gold penny stocks to buy this week—the company just released very promising Q1 2020 gold production and sales results.

On Monday, Mandalay Resources reported a significant increase in both gold and antimony production thanks to the ramp-up of production at the high-grade Youle vein at Costerfield.

According to the results, gold and antimony production increased 36% and 62%, respectively, compared to Q4 2019.

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Mandalay sold a total of 20,932 ounces of gold and 860 tonnes of antimony, representing a total of 24,276 ounces of gold equivalent sold in Q1 2020. The increase in gold price is obviously working in the company’s favor, with average gold price reaching $1,582 per ounce in Q1 2020, which represents an increase of $279 from Q1 2019.

The company expects to boost production to over 99,000 ounces in 2020 and 125,000 ounces in 2021, with its production at Costerfield expected to double by 2021.

On Monday, Mandalay stock increased by 16.88% to C$0.90, but analysts see it going much higher. According to Mackie Research Corporation, MND stock could reach C$2.15 thanks to its “outstanding potential” for growth.

Safe-Haven Gold Penny Stocks to Buy: Gran Colombia Gold Corp. (TSX:GCM) (OTCQX:TPRFF)

Last but not least on the safe-haven gold penny stocks to buy this month is Gran Colombia Gold Corp., a mid-tier gold producer with several projects in Colombia.

GCM stock increased by 18.39% on Monday, from C$4.73 up to C$5.60, bringing the company’s market cap up to C$340.55 million.

Gran Columbia announced Monday that it has partnered with local community leaders to provide much-needed support to vulnerable low-income families in its local mining communities of Segovia, Remedios, Marmato, Supia, and Riosucio during the COVID-19 pandemic.

The support includes food for 7,000 families in Segovia, Remedios, and the Antioquia communities, and 5,000 families in Marmato, Supia and Riosucio; provision of medical and hospital supplies, beds, and biomedical equipment for the implementation of six intensive care units; over 200,000 liters of water; and 3,000 kits that include face masks, liquid soap, and antibacterial gel.

Gran Colombia’s recent release of its Q4 and full-year 2019 results are also very encouraging.

On March 30, the company revealed new quarterly and annual records for gold production in 2019, with 65,237 ounces produced in Q4 2019, up 18% over Q4 2018, and total annual production for 2019 of 239,991 ounces, up 10% over last year.

Increasing gold prices allowed Gran Colombia to grow its revenue by 30% quarter-over-quarter to $88.5 million. What’s more, production growth, the higher spot gold prices, and the reduction in refining charges all helped annual revenue reach $326.5 million, an increase of 22% from 2018.

At end of day Monday, GCM stock closed at C$5.60, but one Wall Street analyst from Fundamental Research has offered the company a 12-month price target of C$6.49, which suggests a 15.89% upside.

Takeaway

It’s clear that during times of economic uncertainty, investors flock to gold. Since the beginning of the COVID-19 pandemic, gold prices have reached eight-year highs, and many expect it to continue upwards.

According to Sprott CEO Peter Grosskopf, the gold market’s future looks bright as the global economy deals with unprecedented stimulus packages during a time of unprecedented uncertainty.

Grosskopf suggests that investors keep an eye on gold’s long-term outlook, and according to all of the technicals, its uptrend will be maintained in the short-, medium-, and long-term to over $2,000 by sometime early next year.

If you want to get in on the expected gold rush, the aforementioned safe-haven gold penny stocks to buy are a great place to start.