Top Gold Penny Stocks

Small-cap mining stocks have several advantages over physical gold. They're a cheaper investment vehicle in getting exposure to the precious yellow metal, and their prices skyrocket when the spot price of gold goes up. If you're interested in diversifying your portfolio on some of the best gold penny stocks in 2014, look no further than these three.

Golden Minerals

Delaware-based Golden Minerals owns the Velardena and Chicago precious metals mining, and has a diverse portfolio of precious metals exploration in Mexico and Argentina. The company's resources are estimated at around 64.6 million silver equivalent ounces, and an additional 65.8 million silver equivalent in the Inferred class. In the second quarter of 2013, Golden Minerals production was able to reach approximately 2,400 ounces of gold , 395,000 silver equivalent ounces, and 251,000 silver ounces. As of June 2014, the company earned around $10.4 million in cash and equivalents.

Minco Gold Corporation

Minco Gold Corporation is an exploration company that deals with the valuation of gold ore properties in China. It owns 51% interest in the Changkeng gold project in Guangzhou, 10 exploration licenses in Gansu province, and 100% interests in Longnan-based exploration projects. Minco has a bright future, what with China being the largest gold consumer in the world right now. Any gold that would be discovered by Minco would be very liquid in the country. Minco Gold Corporation was founded in 1982, and used to carry the name Minco Mining & Metals Corporation. The company decided to change its name in order to reflect its focus on excavating gold.

Avino Silver and Gold Mines

Avino Silver & Gold Mines is a Vancouver-based mining and exploration company. It is the first junior mining company that was able to enter the Mexican market after the revolution from 1910 to 1920. In the first quarter of 2014, Avino Silver and Gold Mines was able to raise $10.7 million in cash. In July, it announced its intent to acquire Bralorne Gold Mines Ltd. in order to expand its mining operations in Vancouver.

While penny mining stocks are a good way to get exposure in the physical metal, there’s no real substitute to physical gold investments. Investors who are looking at gold for wealth purposes should take cue from Germany’s gold investment strategy. Investment site BullionVault reports on Germany's gold repatriation program with lessons that investors can reflect on. Germany has no intentions of selling it until 2020, or if they see it absolutely necessary to. The same, however, cannot be said for penny stocks. When mining companies go bankrupt, their stocks become useless. Make sure to know why you’re investing in gold before making investments in either gold penny stocks or physical gold. If you’re investing in gold for wealth purposes, choose the physical commodity. But if you’re just looking for a way to diversify your portfolio, you may go for penny stocks. 

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