Promithian Global Ventures, Inc. (PGVI)

[whatisthecolorofmone]

Do you know this?

Gold penny stocks and gold junior mining stocks are basically gambles that the price of gold will continue to rise, and this would then result in higher profits. However, a consumer needs to realize that even if gold prices were to reach record highs, it is still possible for a mining operation to fail. Commercial operations are subjected to a number of different risks that could individually or collectively cause the company to go bankrupt. Whether there is weather issues or simply trouble locating gold, a mining organization could be forced to close leaving all of the investors with a complete loss.

Multiple investigations by the SEC have determined that many gold penny stocks and junior mining stocks are riddled with fraudulent business practices and non-existent companies. In the modern day gold rush, consumers have been quick to jump on the bandwagon and attempt to make an incredible amount of money with fly by night mining operations. The risks are simply not worth it, and the majority of individuals will lose every bit of their investment in their attempt to invest in gold.

Gold mining companies often sell shares of their stock to investors, but it is necessary to note that these investments do not actually represent any precious metal. The success or failure of the miners is what an individual is investing in, and it is incredibly easy to lose money in these ventures. Gold coins are often considered to be one of the safest investments and is valuable throughout the world, but a stock has no guarantees and is in no way secured by existing gold. Unless an individual is looking for a volatile and risky investment that is likely to lose any money tied up in it, it is advisable to stay away from mining stocks.