Gold prices have been soaring in 2019 as investors place their faith in safe-haven assets as markets fluctuate wildly due to increased geopolitical tensions arising from the uncertainty of Brexit and Trump’s presidency, prompting fears that a global recession is imminent. With gold prices trading just below the $1,500 per ounce mark, there has rarely been a better time to invest in gold penny stocks.
Penny stocks are one of the most divisive topics of conversation in the world of trading. Some investors avoid them like the plague, while others thrive off the risk involved in potentially flipping a tiny investment for a huge return. If you fall into the category of the former, then look no further than these gold penny stocks for your next trading venture.
Earlier this month, we looked at why small-cap gold stocks are a sound investment, so let’s take a look at which penny stocks look the soundest.
Coeur Mining (NYSE:CDE) is a Chicago-based mining firm that operates five major mines in North America. With 90 years of mining experience and over 2,000 employees in its book, Coeur’s operations are quite sizeable for a penny stock firm. The company is due to report its third-quarter results next month, and early indications paint a pretty rosy picture for investors. Coeur Mining produced 99,782 ounces of gold in Q3, which should lead to revenues of approximately $199.5 million USD, a figure likely to be very well received by the market.
CDE shares are currently trading at $4.81, up 5% in intraday trading ahead of the release of those results next month. CDE stock should make further gains when the results are released and may not consider itself a penny stock for much longer.
B2Gold Corporation (TSX:BTO) (NYSE:BTG) is a Vancouver-based mining firm with five operations in Nicaragua, Namibia, Mali, and the Philippines. Its Masbate mine in the Philippines is the largest mine in the country and accounts for approximately 30% of BTO’s 631,000 ounces of total production. BTO stock has been a strong performer in 2019, and the company’s estimated earnings growth rate for this year is 25% versus the gold mining industry’s expected increase of 19.4%.
BTO stock is currently valued at $3.25 and has gained 33% since hitting a year-low back in May. Like any other penny stock, BTO has been prone to fluctuate, but with an earnings growth rate that is considerably outpacing most of its peers, it might just be worth the ride.
Minco Capital Corp (TSXV:MMM) (OTCQB:MGHCF) represents the cheapest stock on this list, trading at just $0.08, but that by no means makes it the least importance. The Canadian company has 13 exploration licenses in China, the world’s biggest producer of gold, giving this penny stock considerable upside potential. The interesting thing about Minco is its extensive investment portfolio. The company invests primarily in publicly traded and privately held corporations as well as taking indirect and direct ownership stakes in resource projects.
One of its most promising investments is Continental Gold, which is the most advanced large-scale mining firms in Colombia. Its wholly-owned Buriticá project will be one of the largest gold mines in the world when it begins production next year, estimated to produce over 5 million ounces of gold by completion.
As is always the case with penny stocks, volatility is implied, and investors should always do their due diligence before getting involved. However, if penny stocks are the type of investment for you, then the gold market currently looks like your best bet. Do you think these penny stocks have potential?
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