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Gold penny stocks are the most exciting sector in the entire investing arena. Small precious metal miners can produce life-changing returns with even moderately high prices for the underlying commodities. But an all-out bull market run can exponentially send share prices to the moon as the internal rate of return for these companies multiplies. What’s even more exciting is that this bull market appears even stronger and longer due to the numerous factors supporting increased demand and decreased supply of natural resources and commodities.
Gold Penny Stocks Offer Far More Reward For The Risk
Gold penny stocks, and junior resource companies in general, can produce generational wealth like no other asset class I’ve ever seen. Financial analysts and advisors would lead us to believe that we are doing fine if we can double our money in five to seven years. Some may be happy with that. However, even that has proven elusive. The broad markets, including the DOW and NASDAQ, were basically flat throughout the entire first decade of this century. That’s a lot of lost time, especially if your investment horizon is short because you are approaching retirement.
Gold Penny Stocks And How They Show You The Money
Jaw-dropping returns in the resource sector are not theory. Instead of doubling your money in five years, a mere 100% return, what if you could generate a return of 16,000% instead? Aurelian Resources did just that. That’s like having had invested 80 times as much money, and then doubled that. In other words, $1,000 doubled in five years is $2,000. But $1,000 subjected to a 16,000% return in the same time frame becomes $161,000. That 16,000% return puts you in the same league as the guy who started out with $80,000, instead of your mere $1,000, and then doubled it. Simply put, you can multiply your money so much faster with these types of gains that you can run circles around a guy starting out with much, much more money than you.
They don’t all turn out that way. Maybe it’s just 12,000% instead. And maybe it takes seven years instead of five. If you had been on board with Canplats Resources, you’d have multiplied your money by a factor of 120. On the flip side, there’s also the occasional 85,000% return. When a stock goes from a nickel to nearly $43 in three years, life changes for you radically. I confess that these are surrounded by a fleet of 500% and 1,000% gains. However, it only takes one big hit with gold penny stocks to make all the difference in the world. And strong 3- and 4-digit returns coming your way in the process of looking for the life changer is nice. Gold and silver funds, typically being made up of larger producers, are not well poised to multiply like that.
Gold Penny Stocks – All That Glitters Isn’t Gold… It Could Be Better Though
As you can see, gold is not the only penny stock play worthy of your investment dollars. The resource sector, in general, is filled with a broad buffet of commodities. There are other precious metals besides gold, such as silver, platinum, and palladium. Silver lagged for a while, but has begun to outperform gold. That trend is expected to continue. The other precious metals have significant industrial applications as well, moreso than gold. So this gives them a special place in the resource sector.
In addition to the precious metals are the base metals. Copper is chief among them. The fossil fuels are excellent resources to invest in, when done the right way. World energy demands are on the rise. Speaking of energy, nuclear power is also gaining popularity, even if not in the United States as much. As a result uranium is in high demand. There are also a plethora of alternative energy options as well. These include solar, wind, and geothermal. It’s easy to overlook, but water is perhaps the most precious commodity of all. Fresh water supplies are dwindling around the globe. So, unique ways to play water could offer some promise. The bottom line is that there are even more opportunities than just those found in gold penny stocks.
Gold Penny Stocks Presenting A Once In A “Worldtime” Opportunity
The resource sector cycles like any other. However, there are many factors that point to this being an unusually long and strong bull market for commodities. These forecast a bright future for gold penny stocks. There is geo-political unrest around the world. There are rumors of resource wars. Indeed, China essentially monopolizes the world’s rare earth element supply. Countries are expected to significantly hoard both rare earth elements and uranium. Oil and other resources are in sharp demand as developing nations ratchet up the quality of life of their citizens.
Gold penny stocks are staged to soar for a host of additional reasons too. Foreign countries are largely disinterested in U.S. Treasuries anymore, with China and India preferring to stockpile gold instead. Silver is an incredibly tiny market, with the lowest above-ground reserve levels in decades as people pour into silver ETF investments. We’re not talking about iPads or $5 cups of coffee at boutique coffee shops. These are the real raw materials our modern way of life is built upon. And there are billions of people wanting the same luxuries as enjoyed by most developed nations. The demand is real. The supplies are dropping. The prices are rising. This all bodes extremely well for gold penny stocks.
