Gold Penny Stocks Are Presenting Immediate Opportunity Right Now
Making money with penny stocks appears easy. But if you talk to professional traders, they’ll paint a much different picture. Becoming consistently profitable means doing your research, looking for irregularities, and identifying early trends.
Those who saw the potential of coronavirus penny stocks early on, for instance, hit it big with windfalls in the thousands of percentage points. For example, what if you saw Allied Health Products (AHPI) back at $1.50 seeing the opportunity that could present itself with a potential issue from the “Wuhan Flu”- at the time in late January?
[Special Report] Junior Gold Stocks Creating Massive Opportunity for Investors
Shares of that stock skyrocketed and early investors who saw this trend emerge had a chance to score 29 times their money. That’s just one example of hundreds that have emerged with this latest coronavirus stock trend. But the smart money may have identified a new trend starting to emerge. What’s the new trend? Gold and here’s why:
“There is an 80% correlation between the Fed’s balance sheet and the price of gold bullion. Similar to what occurred during the [financial crisis], gold bullion should move first followed by gold equities.”
Jason Mayer, Sprott Asset Management
Plunging interest rates and a new batch of central bank liquidity heading to a stock market near you could present the perfect opportunity for gold stocks right now. It’s typically the junior or gold penny stocks that breakout the fastest during gold bull markets.
Now Is The Time To Buy Junior Gold Stocks
The current landscape has been compared to that of 2008. But based on the historic figures being thrown around (multi-trillions), analysts like Mayer expect gold to dwarf that of 2008. Keep in mind that this is a time when gold hit a home run while broader equities couldn’t even get on base. You had companies like Barrick Gold (GOLD) and Franco-Nevado Corp (FNV) hitting historic highs for that time. Meanwhile, we’re seeing the early signs of a similar trend emerge with investors slowing building positions in gold. But it isn’t just any gold stock, we’re seeing interest build in gold penny stocks.
Does this make sense? Well, if you traded the 2008-2012 boom, it does. That’s when countless gold penny stocks managed to soar thousands of percentage points. Take New Gold (NGD) for instance. Shares were trading under $2 at the start of the last gold boom. The gold stock ended up reaching highs of $14. While Barrick gold stock jumped hundreds of percentage points, gold penny stock New Gold soared over 1,000%.
While some investors are still trying to grasp at straws of fly-by-night COVID stocks, the smart money has started to move into junior gold companies. PennyStocks.com has identified its latest gold stock pick for our readers:
Your Gold Stock Opportunity is Here. Click Here To Access This Gold Stock Alert Now!
