gold penny stocks - tag category postings

Think of the gold price as ‘big daddy’ and the penny mining stocks as the little children of ‘big daddy’.  If the big daddy breaks out to a new all time high and powers higher creating a speculative frenzy, then the little children of big daddy a lot of the time get really excited as well.

My point is that the gold price can sometimes be important to adding speculative fuel to the mining penny stock sector.  The same could probably also be said of the uranium price.  If the uranium price were to blast higher to new all time highs it could light a tremendous fire under certain uranium penny mining stocks.

I remember many years ago there were two penny mining stocks that shot dramatically higher during the gold price super spike into 2006.  They were Franklin Mining and Roanoke Mines.  Franklin mining shot higher from .0009 to .15 and Roanoke Mines shot higher from .0001 to .15 cents all within a few months.  The amazing fact about the Roanoke Mines move was that this stock was not even a functioning penny mining stock company and was just trading on the pink sheets lingering around with no real operations.  That my friends is what a speculative frenzy in the gold price can do.

Having said that, I do not mean to say that any penny mining stock cannot get a good run going if the gold price just stays flat, goes sideways or even moves down.  Sometimes specific mining company events take precedent over everything else.

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