7 Silver and Gold Mining Penny Stocks to Brighten Your Portfolio | Summary and Q&A

TL;DR

Analysts predict a surge in gold and silver prices due to inflation and a weakening US dollar, making penny stocks in the mining industry attractive for leveraged returns.

Key Insights

• 🥈 Analysts at Citigroup predict that silver prices may reach $40 per ounce in the next 12 months, a 60% increase from the current price.
• 🏅 Gold and silver mining penny stocks offer greater potential for leveraged returns compared to established mining companies.
• ✋ Expectations of high inflation and a weakening US dollar are driving the surge in gold and silver prices.
• 💄 Silver Dollar Resources has significant mineralization in its La Jolla project in Mexico, making it a potential investment opportunity.
• ✋ Avino Silver and Gold Mines has a strong balance sheet and projects in Canada and Mexico, with estimated 2021 production as high as 2.8 million ounces.
• 🤘 Taseko Mines, although primarily a copper miner, offers exposure to industrial metals and has several projects that could contribute to production growth.
• 😘 Galiano Gold operates the Asanko gold mine in West Africa, with a low-cost production model and potential for profit.
• 😘 Paramount Gold Nevada has exploration projects in Oregon and Nevada, with estimated reserves and profitability even at lower gold prices.
• 😘 Gold Resource Corporation pays a dividend, has profitable mines in Mexico, and maintains a low-cost production model.

Transcript

analysts at citigroup expect silver to reach as high as 40 an ounce over the next 12 months another 60 percent from here and goldman sachs thinks we may be heading into another commodity super cycle if that happens we could see gold and silver prices surge from here in this video i'll show you why prices for precious metals are heading higher this ... Read More

Questions & Answers

Q: Why are analysts predicting a surge in gold and silver prices?

Analysts believe that expectations of inflation and a weakening US dollar will drive up gold and silver prices. These factors increase the demand for precious metals as a hedge against currency devaluation.

Q: Why are mining penny stocks preferred during a period of rising prices for gold and silver?

Mining penny stocks have the potential to magnify the effects of rising metal prices through financial leverage. This can significantly boost profits and returns in an upward market.

Q: What are the risks associated with investing in penny stocks?

Penny stocks, especially in the mining industry, are highly risky due to their lack of financial leverage and reliance on a few projects. Their success is heavily dependent on the success of those specific projects, making them vulnerable to feast or famine scenarios.

Q: What are the key factors contributing to the potential rise in gold and silver prices?

The two main factors are expectations of inflation and a weakening US dollar. Both factors contribute to increased demand for precious metals as a store of value and protection against currency depreciation.

Summary & Key Takeaways

• Precious metals, particularly gold and silver, are expected to experience a significant price increase in the next 12 months due to expectations of high inflation and a weakening US dollar.

• Investing in mining penny stocks can provide leveraged returns during this potential commodity super cycle.

• Several penny stocks in the gold and silver mining industry show promising potential for profits, such as Silver Dollar Resources, Avino Silver and Gold Mines, and Paramount Gold Nevada.