Junior Gold Stocks Are Some Of The Most Popular Penny Stocks
Today we will be discussing trading cheap gold stocks. First off, you need to know what is considered a penny stock. The Securities and Exchange Commission defines penny stocks as equities that trade below $5.
Most people know the risks surrounding penny stocks, but I am here to say that you may want to reevaluate your initial thoughts on penny stocks. A critical thing that people do not understand is that many investments can turn out profitable if you perform adequate research. Sound research coupled with the inherent volatility of penny stocks can lead to massive profits for intelligent investors.
What Should You Be Looking For With Low Priced Gold Stocks?
When looking for a gold mining penny stock to invest in, you should understand things that impact the industry. A gold mining company’s profits rely on the commodity price of gold which fluctuates frequently. In addition, mining gold can prove to be quite costly because it requires heavy equipment and a large number of employees.
Kenneth Gerbino is a gold mining stock expert, and he recommends you look into a few things. First, look into mining companies that have verified reserves; these reserves should be a minimum of 2 to 3 million ounces large. It should have rich ore that produces at least 2 grams of gold per ton of rock.
Another essential factor to consider is the company’s management. This management should have a decade or more of experience mining gold that can back up the vision of the mining company.
When It Comes to Gold Stocks, Always Be Informed
Whenever we discuss investing in penny stocks, we like to reiterate one point constantly. That point is that you should always do strong research for any investment you plan on making. This includes keeping up with precious metal prices, gold stocks news, and individual company news.
Midam Ventures, LLC | (305) 928-8939 | 1501 Venera Ave, Coral Gables, FL 33146 | email@example.com