Gold prices are soaring and these picks may too
Today (and every day, it seems) spot gold prices per ounce are on a tear. Gold investment and precious metal mining stocks have been surging in kind. This includes gold miners like Goldcorp (NYSE: GG) and Rangold (NASDAQ: GOLD) to physical gold or silver investments like the SPDR Gold Trust ETF (NYSE: GLD) or the iShares Silver Trust ETF (NYSE: SLV).
But when you look at the best investments amid this surge in the price per ounce of gold, dont overlook small-cap mining stocks trading for rock-bottom prices. This could be one of the most affordable ways for investors to play the surge in gold prices.
To help you cash in, here are eight super-cheap gold penny stocks to consider:
Gold Reserve Inc: Over the past 12 months, Gold Reserve Inc. (AMEX: GRZ) has experienced stock growth of +73%, compared to a gain of +14% for the Dow Jones. Importantly, most of those gains have come recently, as GRZ is up +64% in the last six months. This penny stock has great potential.
Minco Gold Corp: Operating in China, Minco Gold Corp. (AMEX: MGH) has seen an impressive gain of +160% in the last year, compared to much smaller gains by the broader markets. In January, MGH announced it had acquired 51% equity interest of the Tugurige Gold Project near Mongolia. Impressive stock numbers and the addition of new properties add to this stocks value.
Cardero Resource Corp: In the last six months Cardero Resource Corp.s (AMEX: CDY) stock has jumped +68%. Gold investors should note that CDY has the ability to grow your portfolio very quickly as it posted a +35% increase in just four days at the end of 2010. There is high risk but also potential for a very high reward with Cardeo stock.
Kimber Resources Inc: Canada-based Kimber Resources Inc. (AMEX: KBX) has watched its stock jump +100% in the last six months. More recently, KBX stock has grown +19% in the last months as well. You may want to consider KBX stock now as it approaches its 52-week high of $1.83.
Metalline Mining Co: Mineral Exploration company Metalline Mining Co. (AMEX: MMG) has posted gains of +85% over the past six months, and +21% in the last month alone. This week, Zacks Investment Research reported a spike in MMG trading as Over 600,000 shares traded hands in one day, compared to an average of 450,000 per month normally. Keep an eye on MMG as this uptick in trading might lead to a boom in stock price.
Midway Gold Corp: The best performer on this list is Midway Gold Corp. (AMEX: MDW) which is up an incredible +335% in the last six months! More recently, this stock has skyrocketed +88% in the last 30 days. MDW may have a market cap of just $214 million, but if you buy it at the right time, you have the potential to see some real profits.
Claude Resources Inc: Next on the list is Claude Resources Inc. (AMEX: CGR) whose stock has climbed +123% in the last six months, compared to much smaller gains by the broader markets. CGR is up another +22% since the start of the New Year as well. A quarterly revenue growth of +23%, year-over-year, is another good sign for CGR shareholders.
Great Basin Gold Ltd: Rounding out my list of top metal and mining penny stocks to buy is Great Basin Gold Ltd. (AMEX: GBG) which has watched its stock price grow +52% in the last calendar year. Earnings wise, experts are projecting EPS of 2 cents this quarter, which looks strong compared to the companys earnings of -2 cents this quarter last year. This penny stock might be a good addition to your portfolio.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
