Gold prices and gold stocks have been on a parabolic rise, with the
metal hitting record highs almost every day. I expect the
long-term bull market in precious metals to continue, because
commodities represent one of the best investments in a weak U.S.
And one of the best ways for aggressive traders to leverage this
could be with penny stocks. Now, the stocks on this list might not
be what you would consider "true penny stocks." But micro-cap pink
sheet or OTC stocks that cost only a few cents per share are
incredibly risky investments, which we do not advocate.
That said, I've put together a list of exploration-stage
companies and junior miners that offer the best opportunities. Here
are four gold penny stocks to buy now:
Midway Gold Corp. (MDW)
Midway Gold Corp.
) acquires, explores and develops gold and silver mineral projects
in North America. In the past 12 months, MDW has posted
extraordinary gains of 197%, compared to gains of about 10% for the
broader market indices. Year to date, MDW has watched its stock
value increase 118%. This penny stock is trading fairly close to
its 52-week high of $2.39, and is a very affordable addition to
Gold Reserve Inc. (GRZ)
Another exploration-stage company making our penny stock list is
Gold Reserve Inc.
). GRZ acquires, explores and develops mining projects in South
America. Over the past six months, GRZ has increased its stock
value 28%. Looking longer term, GRZ has gained 53% in the past
year. This penny stock has a 52-week range of 68 cents to $1.92,
and is currently trading at the higher end of that range.
Kimber Resources Inc. (KBX)
Based in Canada, junior mineral resource company
Kimber Resources Inc.
) engages in the acquisition, exploration and development of
mineral resource properties, primarily gold and silver deposits in
Mexico. Currently, this exploration-stage company is trading on the
higher end of its 52-week range of 60 cents to $2.17. Even after
pulling back over the last few days, this penny stock is up almost
17% year to date, and 59% in the past 12 months. If you're looking
to add a penny stock to your portfolio, this little mining stock
has the ability to bring quick gains your way.
Great Basin Gold Ltd. (GBG)
The last penny stock on our list,
Great Basin Gold Ltd.
), focuses on the acquisition, exploration, development and trial
mining of precious metal deposits. In the past three months, this
stock has climbed 5%, and it is up 46% in the last 12 months. GBG
is now trading right in the middle of its 52-week range of $1.56 to
$3.32. Buy this penny stock now before it heads back up.