Gold Hits a Record High Price; Is It Time to Buy Northern Dynasty Minerals?

Smashing through the $2,000 per-ounce threshold for the first time since August 2020, the price of gold proceeded to hit a record high of $2.078.80 per ounce in today's trading session. With the yellow stuff skyrocketing in price, investors are digging into mining stocks for ways to add some sheen to their portfolios.

One of the usual suspects when it comes to gold stocks is Northern Dynasty Minerals (NYSEMKT: NAK), a pre-revenue gold producer whose core asset is the Pebble Project, located in Alaska. Unsurprisingly, shares of Northern Dynasty Minerals soared today, leaving some investors to wonder if there's still room for this gold stock to run.

Trading for less than one dollar per share, Northern Dynasty Minerals' stock may seem enticing to investors who are looking to grow their gold exposure on the cheap. Experienced investors, however, know that it's foolhardy at best to predicate buying stock based on this reasoning. Penny stocks, like Northern Dynasty Minerals, are oftentimes fraught with risks, and investing in them is more akin to gambling -- not prudent investing.

Source Fool.com