Gold & silver penny stocks are a category that’s getting a lot of attention… They’re penny stocks so they’re cheap, and have a lot of growth potential. And they’re linked to gold and silver, giving them real value… At least that’s how the story goes. Do I think gold & silver penny stocks have real
Gold & silver penny stocks are a category that’s getting a lot of attention…
They’re penny stocks so they’re cheap, and have a lot of growth potential.
And they’re linked to gold and silver, giving them real value…
At least that’s how the story goes.
Do I think gold & silver penny stocks have real value? No — not most of them at least.
So if you’re looking for a good investment, or to get rich quick, look elsewhere.
The market is a ‘discounting machine.’ This means that any expected value is already priced in.
There are no deals in the market. And if you think you’ve stumbled on one, you’re likely missing something.
I teach my students to avoid this kind of thinking.
And it’s why I never give out stock picks. I study what’s happened in the past and look at reasons why it might happen again.
Then I watch to see what happens. When a setup I can trade presents itself, I want to be ready.
This is what I’ll talk about in this article. Gold & silver penny stocks have been catching the market’s attention…
I want you to avoid this kind of thinking. Instead, I’ll show you how these low-priced stocks have already been paying off.
Why Should You Trade Gold & Silver Penny Stocks?
Let’s get something straight: I’ll never tell you which penny stocks I think you should buy.
There’s no substitute for studying and screen time. I can’t make you see the trade opportunities I see…
But I can point you in the right direction so you can learn it for yourself. That’s why I built my Trading Challenge.
I learned how to trade on my own. When I started out, I was trading about $12,000 of my bar mitzvah money.
I’ve now built it up past $7.1 million.* It wasn’t easy.
I had to learn EVERYTHING on my own and learn from my own mistakes.
Find out how I almost blew up my account — read my book “An American Hedge Fund.” In it, I talk about my early success and how I let it get to my head. I ended up ignoring my own rules and believing in my trades. And I didn’t cut my losses quickly enough.
So when I preach caution, I’m speaking from experience.
I tell my students NEVER to believe in ANY stock. Penny stocks are about patterns, charts, and high-probability setups.
So if you study patterns…
… and avoid bad, impulsive decisions…
… and cut your losses quickly…
You could stand a chance of becoming a self-sufficient trader.
We don’t accept everybody. But if you’re ready to play by the rules, you’ve got a good shot.
List of 8 Gold & Silver Penny Stocks to Watch in 2021
This gold & silver penny stocks list is NOT some kind of cheat sheet. I don’t know which stocks will rise in the future…
And I’ll never tell you the best gold & silver penny stocks to buy right now.
It’s not because I’m holding out on you. There’s just no such thing as a 100% safe trade.
Copying another trader’s picks won’t help you in the long run or the short run. If you’re not working from your own watchlists and charts, you’ll enter trades late…
And that’s a surefire way to exit your trades too late. There are no shortcuts.
I made this gold & silver penny stocks list by looking at former runners, and stocks with upcoming news…
That’s how I make all of my watchlists. I’m not saying I’ll trade these stocks or that you should trade them.
I’m saying that they’re worth watching for ME. Do these gold & silver penny stocks belong on your watchlist?
And I post a different watchlist every day of the trading week. Check them out here:
At the start of every week, I send out a watchlist with my top watches. Sign up for my no-cost weekly watchlist here.
Gold & Silver (Not Quite Penny) Stocks Under $12
Let’s break down this watchlist by price range.
This is the top end of low-priced gold & silver stocks. They aren’t penny stocks anymore…
For some traders, that’s a good thing. Stocks in this price range still see a good amount of volatility…
Volatility is essential to trading. Check out my “Volatility Survival Guide” for some expert tips on harnessing it.
These stocks are tied to companies that have real businesses — not just future potential.
Fortuna Silver Mines Inc (NYSE: FSM)
Fortuna has had a bumpy year. It started 2021 close to its all-time high…
As of mid-June, it’s down almost 30%.
This doesn’t mean that Fortuna has a bad business. It’s a relatively small producer. It has two working mines, and another on the way.
In the past year, it’s been aggressive. Shares dropped by 22% at the end of April … but that wasn’t because of bad news.
It bought out another mining company. This buy-out is tied to future expenses, which is why the stock price dropped.
Look at the stock trending up since then. Fortuna seems to have a healthy business and looks to be trading near the bottom of its range.
Centerra Gold Inc. (NYSE: CGAU)
To see real movement in a stock, you usually need a catalyst.
Some of the best catalysts are news about a stock … and Centerra has some coming its way.
About 60% of its 2020 revenues came from its Central Asian subsidiary, Kumtor Gold Co. Its flagship mine is in Kyrgyzstan — and last month, the country seized it.
Now Centerra and Kyrgyzstan are discussing a divorce. The company is 26% Kyrgyz-owned, so the settlement might be fair.
Who knows? If there’s action, I’ll be watching.
Gold & Silver Penny Stocks Under $5
Let’s get into actual penny stocks — stocks that trade for under $5 a share. (New to penny stocks? Start with my FREE online guide here.)
These are the stocks I’ve traded throughout my career. I like them because there’s less competition from the trading establishment…
To me, the catalysts that move these stocks are easier to understand.
Most penny stocks aren’t a good investment. Their price increases are usually followed by a fall…
For traders, their volatility and low cost can be really useful.
Once you understand the patterns they follow, you can begin to trade them.
Yamana Gold Inc. (NYSE: AUY)
I looked at Yamana for my March gold penny stocks watchlist.
It hit a six-year high over the 2020 summer. Since then, it’s trended down … but in recent months it’s had a steady rise.
Now it’s back at the top of the penny stock range. And it has decent volume for a stock at its price point.
Its March turnaround coincided with a rise in gold prices. But AUY also has news pushing it. Its 15% rise in May came on the heels of a good earnings report.
In the past few months, it’s charted a stair stepper pattern. It has had short rises, followed by some chop.
It hasn’t done much since mid-May. But the conditions could be good for another pop.
Sokoman Minerals Corp. (OTCQB: SICNF)
This Canadian mining company has gone parabolic in 2021.
In March it traded at 15 cents. Its June peak hit 64 cents.
But its relatively low volume should make you wary. That said, when it spiked in March, it posted several days of unusual volume…
This is how a former runner should look. It moves on news and produces a lot of it. Over the past year, it acquired one property and sold another.
Both news items produced multi-day runs. Hopefully, it won’t be long before the next catalyst.
Gran Colombia Gold Corp. (OTCQX: TPRFF)
Gran Colombia released a good earnings report in mid-December. It had a colossal run-up … and not much since.
The volume tends to be low, even when it’s running.
This can be a dangerous combination. Don’t end up stuck in a stock.
Minera Alamos Inc. (OTCQX: MAIFF)
As the price of gold has risen, so has MAIFF stock.
This is a small Canadian company with gold, silver, and copper stakes in Mexico. It’s on the way to production at its latest gold mine there.
The next piece of news might pull it out of its sideways chop.
Gold & Silver Penny Stocks Under 10 Cents
Stocks in this category are the wildcards of the penny stock world.
They’re usually not up to much in a business sense. Believe in their prospects at your own risk.
Despite their sketchiness, they can make for good trades…
If you avoid the hype.
New World Gold Corp. (OTCPK: NWGC)
New World came out of nowhere this year.
It spent 2020 trading at sub-penny levels. It didn’t hit a tradeable volume till late in the year…
It’s since cracked 3 cents. Now it’s back to under 1 cent.
It’s still trading over 100 million shares on average in the past month. This is pretty high volume for a pink sheet stock tagged with a ‘stop sign’…
That means they’re not releasing info to the public.
They’re still releasing press releases though. So I’ll keep watching for the next run.
Newrange Gold Corp (OTCQB: NRGOF)
Newrange is just above the 10-cent mark…
Several analysts think it’s a buy. How significant is that for its potential moves? I couldn’t tell you that.
But people more in the know about gold mining than I have called it undervalued.
Frequently Asked Questions About Gold & Silver Penny Stocks
The following questions keep coming up, so let’s cover them…
Can I Get Rich Off of Penny Stocks?
If you’ve read my blog before, prepare for some déjà vu … Yes, you can make money by trading penny stocks — and no, it’s not typical. All trading is risky. There are no guarantees. If you have a get-rich-quick mindset, it will be even less likely.
What Is Penny Gold?
“Penny Gold” is a half-decent British whodunit film from 1973. It won’t help you trade gold & silver penny stocks. But the right trading education can help you learn to spot and navigate the hottest penny stocks in the market.
How Can I Invest in Real Gold?
There are a number of ways to invest in gold, but that’s outside of the scope of this post. I trade penny stocks and have for 20+ years. That’s why I know this niche so well and LOVE it. Investing just isn’t my bag.
The Bottom Line on Gold & Silver Penny Stocks
Things in the market are cyclical.
That’s why I emphasize studying in my Trading Challenge. All of these trends have happened before.
Gold & silver penny stocks can seem an exception to this rule … Newbie traders think they could have real value.
But experienced traders can see the trends. I’ve been teaching the same patterns for the past two decades. That’s because they haven’t changed.
Penny stocks still rise on news, then 99% of the time, they fail.
I don’t want to see anyone get taken in by the hype. There’s no ‘striking it rich’ with penny stocks…
There’s only hard work and lots of screen time. If you’re new to it, I hope this article is just a start.
What do you think about my gold & silver penny stock watchlist? Let me know in the comments — I love hearing from my readers.
*This level of successful trading is not typical and does not reflect the experience of the majority of individuals using the services and products offered on this website. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit.