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Penny Stocks are those stocks which sell for less than one dollar per share. Most penny stocks have only a few million dollars in net tangible assets and have a short operating history. Penny stocks are almost always small cap stocks, but the reverse isn't necessarily true.

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Stocks which are traded for $5.00 or less than that per share over the counter (OTC) are known as penny stocks. People invest in these stocks because of their absolute low value. These are high risk investments.

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When penny stocks are dormant, insiders sometimes try to catch investor attention with circular trading. Using multiple offshore accounts, they will trade the same shares from side to side between their own accounts to give the idea of fine and running stocks.

Compare gold and silver dealers prices before you purchase. Ever wonder how to buy gold? Well here is a great article answering that question.

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