What are the Top Gold Stocks to Buy in 2012?
So, another year is upon us and another year of investing lies ahead for everyone, which is always both an exciting time, and one that can make even the most seasoned investor nervous. 2011 introduced a whole new concept of turmoil, with the European Union and the Euro debt crisis, and the United States continuing to reel from the economic effects from the Quantitative Easing (QE) and the debasement of the US Dollar.
These questions are still on investors mind, and will continue to play a major factor in the market. The good news for investors is that 2012 offers some excellent opportunities for investors, especially gold and gold stocks. The yellow metal is trading well above historical price levels, touching upon $1900 per ounce at one point in 2011, establishing a new price base in the meantime.
The opportunity though is not in the physical possession of gold, that ship has sailed, at least from Penny Stocks Research standpoint, but gold stocks still offer an exceptional opportunity for investors to gain exposure to gold and still capitalize on potential growth.
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Why Gold Stocks and Not the Physical Metal?
This is not to say that gold will not continue to climb, there is a very strong likelihood that gold will continue its accent, but the fact is $1500 gold is not nearly as attractive as $750 gold. Put this into perspective, one of the chief ways to gain exposure to gold is to invest in gold equities, and the good news for investors is that gold stocks have not had nearly the dramatic rise in price, as the stock price of many established gold companies continue to lag well behind their increase revenues and increased value of inground reserves.
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Gold Stocks Increase in Value When the Price of Gold Goes Up
Two things to keep in mind when looking for to invest in gold equities, first in production and the second is reserves. Companies producing gold are earning a lot more per ton of ore today than they were early last year, and dramatically more than they were in 2010 or 2009. But despite these earnings going up, many top gold stocks in 2012 are not trading at a significant premium to 2011, 2010 or 2009 prices. This is an opportunity for investors, because it is only a matter of time before Mr. Market comes to reason and places a fair value on these companies.
Second, gold stocks which have significant gold in ground reserves ad resources have just seen a huge increase of value of their underlying assets. But the market has not caught up to this fact, despite many of these companies holding significant gold reserves which had increase 50% to 60%, the stock price of these companies has not gone up at all. Again, this is not uncommon as gold stocks typically lag well behind the physical metal. That being said, gold stocks will rise in value, and it is Penny Stocks Research contention that 2012 will be the year that we see this gap close to fair value.
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How Can I Find Top Gold Penny Stocks
There are lots of options for investors to make gains by investing in stocks with exposure to gold, but the market with the most explosive growth opportunties in our opinion reside in the penny stock market. This is because many of these companies trade a fraction of their in the ground reserves, and are attractive takeover targets of the major gold producers. The way to weed through the confusion, and locate the best gold stocks in 2012 is by due diligence and research.
Penny Stocks Research is an excellent resource for investors who are looking for a first step in the due diligence department. We look through a number of the top gold stocks and publish our findings, such as their current stage of exploration, where their operations are located, are they in production, or near production, what is the size of their proven and probable reserve, etc.
If you are looking to find the best gold stocks in 2012, then you need to subscribe to Penny Stocks Research, and get our free reports delivered directly to your email. We provide enough information that you will be able to establish an unbeatable base to begin your due diligence endeavours.
And make sure to read our disclaimer before making any investment decisions.
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