THE DAILY ENCRYPT

October 4, 2022

2 penny stocks to buy in April and hold until 2030!

I think these penny stocks could help me make a fat sack of cash over the next decade, or so. Here's why I'd load up...
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Photo by Fabian Irsara

I’m searching for the best penny stocks to buy for my portfolio in April. Here are two I think could help me make spectacular returns through to 2030.

Why I’d buy this gold stock

I believe that investing in gold stocks remains a good idea as inflation heads through the roof. And I’m thinking of doing this by loading up on Chaarat Gold (LSE: CGH) shares.

Bullion is a popular safe-haven asset when rampant inflation shakes confidence in the true value of paper currencies. With inflation rocketing, it seems that gold prices could have much further to run, boosting profits at mining companies like this. Latest consumer price inflation data from the UK showed a 6.2% rise in February. This was higher than the expected 6%.

Chaarat Gold produces the yellow metal from the Kapan operating mine in Armenia. Encouragingly, this is a project from which production  comfortably beat forecasts in 2021. Chaarat also owns the Tulkubash and Kyzyltash projects in Kyrgyzstan which are under development.

Investing in smaller gold mining stocks can be dangerous business. They don’t have the financial resources of major operators and this can have disastrous consequences if they encounter exploration, development or production problems.

Still, I think the encouraging outlook for gold prices still makes Chaarat a penny stock to buy. Singapore’s United Overseas Bank thinks the precious metal will end 2022 at $2,200 per ounce, up around 15% from current levels. The current record for gold prices set in August 2020 sits around $2,070 per ounce.

A top renewable energy stock to buy

When talking about renewable energy stocks, images of wind farms and solar panels spring immediately to mind. However, these aren’t the only technologies that will have a large part to play in the green energy revolution. And this is where penny stock Velocys (LSE: VLS) comes in.

Velocys builds technology that transforms household, commercial and forestry waste into sustainable fuels. These fuels are then used to power the heavy goods transport and aviation sectors. Not only does Velocys’ product help reduce harmful emissions entering the atmosphere, it is also getting rid of rubbish that would otherwise be dumped in landfill sites.

Encouragingly, Velocys has inked some significant contracts in recent months which authenticates the commercial potential of its technology. In November, for instance, it signed multi-year agreements with British Airways owner IAG and Southwest Airlines to supply a cumulative 767 gallons of blended sustainable aviation fuel.

There is danger in investing in Velocys, naturally. First and foremost the Bayou Fuels biorefinery project in Mississippi, USA, is yet to be built. Any development issues here could threaten planned first production in 2026 and decimate earnings forecasts. They could also prompt Velocys to tap shareholders for cash, or rack up debt to keep the project going.

Still, I think the long-term benefits of owning this stock could outweigh the risks. It’s one I’m seriously considering for April to capitalise on the green energy revolution.

The post 2 penny stocks to buy in April and hold until 2030! appeared first on The Motley Fool UK.

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More reading

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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