While some seasoned investors love investing in penny stocks, others avoid them like the plague. But regardless of the position investors take, it can be argued that new traders benefit the most from investing in the mining industry; particularly in gold companies or gold penny stocks.
With gold prices surging since the start of 2019, and predictions that prices will continue to expand as global markets tumble, investors might want to consider investing in, or at the very least, keeping an eye on, gold stocks. And if you’re a new trader, what you might want to consider is gold penny stocks.
In this article, we will look at four gold penny stocks that investors should watch in 2019. Each company behind the stock has a solid track record and trades at major exchange rates.
Four Gold Penny Stocks to Watch in 2019
1. Golden Star Resources (NYSE:GSS)
Based in Toronto, Canada, Golden Star Resources is a mid-tier gold mining company, trading on the New York Stock Exchange. In addition to GSS stock’s standings with businesses, the company has various gold exploratory and mining ventures in West Africa and South America.
Over the past year, Golden Resources has completed various strategic investments (it completed the La Mancha investment in 2018); and it extended its gold mining operations to Burkina Faso, Niger, and Ghana.
2. Minco Capital Corp (OTCQX:MGHCF)
Minco Gold is a Canadian company that focuses on using its strong working capital position. With 13 exploration licenses in China, the biggest gold producer in the world, Minco Gold’s share price has considerable upside potential. In 2019, shares of the penny stock company have increased by just over 3%.
Moving forward, Minco Gold Corporation is working on a strategy that will see the company lower its cost structure in order to reduce its break-even point.
3. Timmins Gold Corporation (TSXV:CTEC)
Based in Canada, Timmins Gold Corporation is a mining company with gold operations in Mexico. The company also has positions in the Sonora open-pit heap leach gold mine; it also acquired Ana Paula mine back in 2015.
After Minco’s share price increased by almost 200% after the company said it was trying to decrease general expenses, in addition to the company looking to expand operations, it’s clear this penny stock has substantial upside. Even if Minco Gold doesn’t expand to other mines, it already has positions in lucrative mines during a time when gold prices are forecasted to increase. That has to count for something, right?
4. New Gold, Inc. (NYSE:NGD)
Another Toronto-area company, New Gold, Inc. is a gold penny stock recommended for new investors. This is because New Gold has a diverse asset portfolio, in addition to a strong liquidity position.
With gold operations in several countries (Australia, South and North America) and the potential to produce almost 18 million troy ounces of gold, New Gold has proven itself to be a contender in the mining industry.
Takeaway
It’s universally recognized that penny stocks fluctuate, and so, investing in these stocks doesn’t guarantee a profit. But, if you’re looking at getting into penny stocks, investing in gold stocks might be the way to do it. After all, the price of gold penny stocks can change rapidly if a company strikes gold or is bought by a larger company.
Featured image: DepositPhotos
