Northern Dynasty Minerals Ltd (NAK)

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Penny stocks have a mixed reputation. Some people are drawn to the low-priced stocks as a road to quick riches. Others say to avoid hot penny stocks altogether.The truth is in the middle. There's a ton of bad businesses priced under $5 a share. The saying "you get what you pay for" is based in a general truth, after all.But there can be real bargains under $5 as well. You find many hot penny stocks that have gotten beaten up and seen their share prices plummet. And while many will never recover, others go on to triple, quadruple, and reach even greater heights.


Northern Dynasty Metals (NAK)Source: Shutterstock The price of gold continues to surge. Gold recently hit $1,500 an ounce and is near its highest level in five years. That's even with the U.S. dollar trading near its own multi-decade highs. Measured in other currencies such as the British Pound, gold is in a roaring bull market right now. That's making some previously troubled gold explorers such as Northern Dynasty (NYSEAMERICAN:NAK) back into interesting stocks. In fact, the mining space is full of hot penny stocks now thanks to the upswing in gold prices.From the outset, let me be clear.

It's still far from certain that Northern Dynasty's Pebble project will ever turn into a mine. The mega-gold deposit is located in a remote part of Alaska. This has drawn a flood of environmental activists. However, with the Trump Administration in power, environmentalists have lost a lot of their influence; the EPA recently reversed a previous decision that had blocked development of the Pebble project.

For years, the case against NAK stock went as follows: Even if the EPA gives way, there's no way you can build a profitable mine there with gold at $1,200 per ounce or whatever the price of gold was back then. With gold breaking $1,500 an ounce to the upside, however, even remote projects of questionable economic merit start to glitter again. NAK stock is highly speculative, make no mistake.

If the EPA lets Northern Dynasty proceed and the price of gold surges to $2,000 per ounce,
NAK stock could be a five or ten-bagger.
Those are both huge ifs. But
if you want a penny stock with explosive upside, NAK is one stock to watch.

NAK has been strong all day.

NAK 0.6399 Chg ($): 0.0199 + 3.2%