Gold penny stocks could be a great way to provide gold exposure to your portfolio for less than $5. Keep reading for our top picks for the best gold penny stocks to buy now.
Gold and other precious metals are portfolio staples for many investors because they are typically very stable and a potential hedge against inflation.
Best of all, you don’t need to purchase an ounce of gold for thousands of dollars to get exposure.
You can even start investing for as little as $5 by trading gold penny stocks.
Best Gold Penny Stocks to Buy Right Now
Gran Colombia Gold Corp. (OTC: TPRFF)
Gran Colombia is a mining and exploration venture based in Canada with operations in South America.
Currently, the company runs two large projects in Colombia and Guyana and is the largest gold and silver producer in Colombia.
It has also invested in other mining projects in North and South America to diversify its revenue stream further.
For the most part, both revenue and quarterly production numbers have increased year-over-year, according to its last earnings report.
The company isn’t currently carrying any net debt, and as a mid-tier producer, it can keep its production steady.
Additionally, Gran Colombia still has room to increase its production.
The company has indicated that it’s only using a fraction of the gold veins available in its Segovia project in Colombia.
Golden Star Resources (NYSE: GSS)
Golden Star Resources is a small-cap gold stock that has seen massive growth throughout the fall.
The company has its headquarters in Toronto but operates the Wassa mine in Ghana.
Unlike many other mining companies with a diverse range of precious metals, Golden Star Resources focuses only on gold.
This makes it a great option if you are looking for a pure gold play.
However, it does create a small amount of inherent risk, as the company doesn’t have any alternate streams of revenue if gold prices tank.
Golden Star’s share price has spiked in late fall after struggling throughout the summer.
The increase comes from an agreement to an acquisition by Chifeng Jilong Gold, a Chinese mining company.
Golden Star hopes to use the momentum from this sale to boost business further.
Marathon Gold Corp. (OTC: MGDPF)
Marathon Gold Corp is a Canadian gold company based in Toronto.
It has 100% ownership of the Valentine Gold Project, located in Newfoundland and Labrador.
This project is currently in development and is expected to start production in 2023.
This mining area has enormous potential, but it hasn’t been fully explored.
Not only will this project be lucrative for Marathon Gold, but it will also provide a huge boost to the local economy.
Marathon Gold Corp. is still a small company with just one mining project.
As a result, its stock could experience volatility until this project starts production.
Fortunately, the Newfoundland and Labrador region has huge mining potential and could be part of a long-term investment strategy.
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Popular Gold Penny Stocks
Gold Resource (NYSEAMERICAN: GORO)
Gold Resource is a gold and silver producer and developer focused on the Oaxaca region of Mexico.
Mines in this region cover roughly 265 square miles in total area on the surface.
There’s an estimated 4.5 tonnes of gold and silver in Gold Resource’s two mines.
The company has been through some major changes of late, including a new board and senior leadership.
It’s also recently acquired Aquila resources, a company with pre-development interests in Michigan.
These changes have left investors wondering, and share prices have dropped as a result.
As soon as Gold Resource finds its stride with its new team, stock prices could really ramp up.
Calibre Mining Corp. (OTC: CXBMF)
Calibre Mining currently has three producing gold mines, all of which are currently located in Nicaragua.
The company is headquartered in Vancouver, Canada, and has been in business since 1969.
This feat makes it one of the oldest companies on this list.
Calibre uses a “hub and spoke” exploration strategy, which helps it maximize production from its existing assets while also continuing exploration.
The company recently committed to expanding its portfolio even further by acquiring Fiore Gold Ltd. — an American gold producer.
Financially, Calibre is currently operating with no debt and has increased the amount of cash it has on hand between the second and third quarters of 2021.
The company also has consistently increased its production throughout 2021.
Both of these factors could bode well for the future of this stock.
Gold Penny Stocks Under $1
Paramount Gold Nevada Corp. (NYSE: PZG)
Paramount Gold is an American mining company with operations in Nevada, Oregon, and Idaho.
Its biggest asset is the Sleeper Gold project, which has been producing for decades and continues to generate strong output numbers.
The company is now focused on moving its other sites towards production.
Recently, Paramount Gold completed positive surveys of its newer sites in Nevada.
Although the company has a small market cap, it’s managed to keep its balance sheet relatively clean.
Further, Paramount Gold managed to keep its cash flow strong, always a good sign for a penny stock.
Share prices have been down since February, but a good financial quarter could turn things right around.
Avino Silver & Gold Mines Ltd. (NYSE: ASM)
Avino Silver & Gold Mines is a Vancouver-based company that has been in business since the late 1960s.
While its corporate headquarters are in Vancouver, the company produces its gold through a wholly-owned mine in central Mexico.
Avino produces a full portfolio of precious metals, including gold, silver, copper, and zinc.
This diversity is essential to the company’s long-term success.
If the price of any one of these metals drops unexpectedly, Avino Silver & Gold Mines still has other sources of income.
While this stock has struggled somewhat over the past few years, it had a somewhat positive third quarter.
Investors interested in this gold penny stock may be able to ride these financial waves.
Labrador Gold Corp. (OTC: NKOSF)
Labrador Gold is a Canadian exploration company looking to the far north for untouched gold.
The venture has three projects in different areas of northern Canada, each forecasting substantial amounts of the rare metal.
One of these projects has a 50,000 drill campaign underway to reach high-quality gold along the Appleton Fault Zone.
After a successful 2021, Labrador Gold has a positive outlook for 2022 with hopes of discovering new veins and additional opportunities.
Shares are well within penny stock range at around $0.60 per share, but prices have doubled over the last year.
Stock prices could take off if Labrador strikes it big this year.
Should I Buy Gold Stocks?
Gold has always been a popular investment during turbulent economic times because of its inherent value and its ability to hedge against inflation.
However, buying physical gold as an investment is unrealistic for many people.
So investing in gold penny stocks could be a great alternative.
These stocks benefit when gold prices go up, and you don’t have to worry about storing physical gold.
Gold penny stocks have share prices of $5 or less, making it easier for investors on a budget to buy-in.
It’s important to note that low-priced stocks can be volatile, often due to low trading volume.
If you’re interested in investing in gold penny stocks, you need to understand the company’s business model and the risks involved.
However, if you are savvy with your penny stock investments, they can result in solid returns.
Where to Invest in Gold Penny Stocks
To invest in the stock market, you’ll need to set up your own brokerage account.
There are many different brokerage accounts to choose from, but some stand out among the crowd.
These apps are designed for retail investors and offer handy features like fractional shares, no commission fees, and investor education.
It’s important to note that many gold penny stocks are also OTC stocks.
Not every platform offers OTC trading, so if you’re interested in these stocks, look for a broker who does.
Gold Penny Stocks: Final Words
There are plenty of gold penny stocks on the market right now with excellent potential.
This precious metal can add a lot of value to a portfolio if you pick the right stock.
Also, investing in these gold mining companies can help you create a diverse portfolio without having to buy commodities directly.
There are other options, like silver, but their industrial uses make them more susceptible to market forces.
If you’re looking to do some precious metal investing, take a look at gold first.