There are ways to make smart investments, even in a poor economy and without much money to spend. With the price of gold on the rise, some people have decided to buy gold coins now and sell them when the price of gold peaks. These items are nice, but they require an amount of storage space, which many people do not have. Making an investment in gold mining stocks is another way to get a piece of the golden pie. The cheapest gold mining stocks are affordable to many people.
There are penny stocks, which literally cost pennies per share, but there are also micro cap gold mining stocks. These are stocks in gold mining companies that have market caps of between $50 million and $300 million. The stocks tend to cost several dollars per share, making them a reasonable investment for those wishing to have ownership in a gold mine.
For a current price of less than one dollar per share, individuals can purchase stock in Almaden Minerals LTD (AAU). At $1.72 per share, there is Vista Gold Corp (VGZ), and Keegan Resources (KGN) carries a stock price of $5.37. With a market cap of just over $180 million, Capital Gold Corporation is currently trading at $3.72 per share. This company owns 100 percent of the El Chanate gold mine located in Sonora, Mexico.
When investing in gold mining stocks, it is important to review the price to earnings ratio and earnings per share statistics. Though past performance is not an indicator of future earnings, it will provide the investor with an idea of the stock’s track record. In the current market, the larger cap gold mining stocks seem to be performing better than the micro caps.
Investing in cheap gold mining stocks can yield a profit if the right stock is purchased, and later sold, at the correct time. Investors should identify several stocks of interest and then track their performance for several weeks prior to making any investments. The best investments are found by individuals who do their homework.