Penny Stock Brokers 4u

There is more than one way to mine for gold – you can set yourself down in a riverbed and pan for it yourself; you can pick up an axe and start digging; or you can buy stock in a gold mining company and let them do all the hard work. I don’t know about you, but that third choice makes the most sense to me especially since I wouldn’t have a clue where to start looking for gold and would probably end up with a nice big rock of fool’s gold for my efforts anyhow! That is not to say that “mining” for perfect gold penny stocks is any easier but you will save yourself the headaches of an aching back.

One of the things that makes gold so interesting is that each year 2500 metric tons of gold are discovered. You would think with this kind of supply that the prices would be dropping, but since the demand for gold is still higher than the supply, instead the price continues to grow. Even though there is a stockpile of many tons sitting in central banks, gold is currently at about $1,200 per ounce and many believe it will rise to two or three times that amount in coming years.

Investing in gold can be done in a number of ways.

• Buy bars of gold. Since gold bars come in a variety of sizes from small 1 gram wafers to the very heavy 400 ounce ingot. There are advantages and disadvantages involved in which size you obtain – smaller sizes are easier to buy and sell, transport and store but they are priced higher than larger sizes. Gold bars can be purchased to keep in your own possession or can be held in escrow.
• Purchase gold coins. There are many different types of gold coins as there are a number of countries that produce them. They have the unique trait of being beautiful as well as valuable. One disadvantage of gold coins is the ones that are proof coins, which most are. These coins should never be handled without the use of soft gloves and should be kept in a protective plastic bubble case at all times to maintain their value. The value of a gold coin is determined by its rarity, age, number minted, condition and popularity.
• Buying gold jewelry. Gold jewelry comes in various carats from 24 carat which is pure gold with nothing added down to 9 carat. Most common is 18 carat gold which is 75 percent gold and 25 percent other metals such as silver or copper.  The reason very little jewelry is produced as pure gold is that it is usually alloyed with other metals to make it harder and more durable.
• Invest in gold penny mining stock. In this case you do not own any gold whatsoever and instead are investing in a mining and exploration company that is currently selling at a low price but you hope will skyrocket with their next big discovery. As with any penny stock, you should be sure to carefully perform due diligence when considering investing because if that discovery does not come and capital dries up, your investment will become worthless. You should also expect these investments to need some hand-holding and may take a bit of time to reap the profits you would like. A few examples of gold penny stock companies:
  • Terrane Metals Corp (OTC:TRXOF.PK) – Currently trading around $1 per share, it has had a 52 week range of $.19 to $1.72 with a 3m average trading volume just over 200,000 shares.
  • Canaco Resources, Inc. (OTC:CANWF.PK) – Not doing much trading at the moment with a current price of $.63 which is at the higher end of their 52 week range of $.06 to $.74. Although not perhaps a good investment at the moment, it may be worth keeping an eye on.
  • Great Basin Gold Ltd. (AMEX:GBG) – Experiencing some nice trading volume with 3m average volume over 1.5 million shares it is currently priced at $1.86 with a 52 week range of $1.22 to $2.04. It saw $3 and $4 prices in 2008. The company was founded in 1986 and is headquartered in Sandton, South Africa. Their projects include Nevada and South Africa.
  • Vista Gold Corp (AMEX:VGZ) – Although lower trading volume than others (3m average volume of under 400,000 shares) it is currently priced in the middle of its 52 week range of $1.45 to $3.38. The company is based in Littleton, Colorado with holdings in the Paredones Amarillos and Guadalupe de los Reyes in Mexico, Mt. Todd in Australia, Yellow Pine in Idaho, Long Valley in California, Awak Mas in Indonesia as well as claims in Utah.
  • Augusta Resource Corp (AMEX:AZC) – After taking a tumble in January 2009, it appears on the comeback.  Currently trading around $2, it has had a 52 week range of $1.32 to $3.61 and just may work its way back to its 2008 prices over $6.00 though the price target set for it is still a nice profit possibility at $4 per share.
  • Gold Reserves Inc. (AMEX:GRZ) – This stock has been staying pretty steady around $1 for most of 2010 with a brief spike in early January to $1.58 and one back in December 2009 over $1.70. The company owns mining assets in Venezuela with its primary one containing reserves of over 9 million ounces of gold as well as over 1 billion pounds of copper. This one is uncertain in that they are dealing with issues with the Venezuelan government but should they reclaim their mining rights there will be a major change in their price.

Whichever way you proceed to get into the world of gold investments, you will need to be sure to use caution to determine that you are not falling prey to any scams.  All that glitters is not gold – be sure you are getting what you are paying for and understand the risks involved with the investment choice you are considering before you proceed.