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Bitcoin continues to be a volatile place to invest for Canadian investors. Even though the cryptocurrency continues to trade above $60,000, during the month of April the currency came down from all-time highs. It became just clear how volatile Bitcoin can be after a widespread blackout affected the country.
While the blackout was unrelated to bitcoin, it just goes to show that anything digital can’t be relied on 100% of the time. This led to the largest drop in the price of bitcoin since November 2017, with $4.9 billion Bitcoin being pushed aside.
For investors seeking a bit more stability but with the potential for a huge growth, there is another stock that I would highly consider at this moment.
Gold over Bitcoin
For a currency with a lot more history, gold remains an excellent buy for investors. Although it is similar – in that it doesn’t really offer any useful value – it does have far more potential for growth when connecting gold to mining companies. A top gold stock that I would consider today would then be SolGold Pcl (TSX:SOLG).
The $1.1 billion company is an Australian-based minor and explore of gold. The company has the largest footprint in Ecuador, where it continues to expand. In fact, it’s this expansion that investors should start getting excited about before Bitcoin.
There has been a lot of insider trading going on with this company in the recent weeks. Over 1 million shares have been bought by insiders, suggesting that another large move is likely to happen. Digging further, investors should easily find that a large acquisition in Ecuador is likely to be announced any day now. This could significantly increase revenue and be the catalyst investors have been waiting for.
Not waiting long
It can be considered both good and bad that this company is only about three years old. On the one hand, SolGold has been doing a lot of spending in the recent years. All of these acquisitions have been diluting the share price for investors. That volatility could continue in the near term, as the company continues to expand.
But as I mentioned, long-term investors have nothing to fear. This short-term share price is supported by long-term growth. A new acquisition in Ecuador could mean a significant increase in revenue. That intern could finally lead to a huge boost in share price for SolGold stock.
Given that investors can buy shares at $0.50 per share, it would be easy for the stock to double by the end of 2021. While it might seem a bit risky to get in on a company that is so new, this gold miner is following the lead of other gold companies by seeking a diversified portfolio. Ecuador is not the only place where this company mines. It has numerous mines across the world, allowing for a diverse range of copper, silver and gold to provide to purchasers.
What’s the company continues to expand, and get more years under his belt, it’s likely to reach profitability in the next few years. Long-term investors can look forward to potentially tripling or quadrupling its share price in a very short period of time. That’s especially when comparing to something like Bitcoin.
The post Forget Bitcoin: 1 Stock Set to Double in 2021 appeared first on The Motley Fool Canada.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.
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