If you don’t have any exposure to gold, then the current pullback in gold prices may be your chance to jump in and get some!

Not all gold stocks are alike. Some are strong, established miners like Newmont or Barrick.

Others are, well, a little sketchier…

When gold is cheap, these fringe players don’t make money because their cost per ounce mined is very high. But they can pop more than the big guys when the price of gold moves higher.

These companies can produce outsized returns because they are so cheap to begin with. It’s a gamble, though, with the companies trying to stay in business until gold prices move higher.

One such speculation is McEwen Mining (NYSE: MUX).

McEwen Mining should be a very successful mining company. It isn’t… yet. But there is still hope.

It’s a microcap with a market cap of just over $400 million that has been profitable in the past. Chairman and CEO Rob McEwen is the largest shareholder. He was the founder of Goldcorp, which he took to a multibillion-dollar valuation before it was taken over by Newmont Mining.

McEwen has had a more difficult time with McEwen Mining, but the tide could be turning. And if it does, we could score a 50% to 100% winner with this one.

It’s speculative, for sure – the low is in the $0.60 range. That is where we would look to exit if the stock revisited those levels.

I will decide at that time based on the reason or lack of reason as to why it traded down to that level. The company is not shy about issuing stock to fund operations – that is a risk. Here is the statement from the most recent earnings call in August…

I very much wish I could say that all our difficulties that started last year are now behind, but they are not, yet. The second quarter was challenging from an operational and health and safety standpoint. Our significantly lower production not only reduced our revenue, but also dramatically increased our costs per ounce. In addition, a change in how we account for development expenditures added significantly to our cash cost per ounce at Black Fox. However, our path to future growth and improved operational performance has become clearer. We are in a transition period setting up for future growth. We have a large resource base, four operating mines and can see an exciting organic growth pipeline of projects ahead that could potentially push our production to 300,000 ounces per year. I recently purchased 2 million shares, increasing my ownership to 82 million shares, and underlining my confidence in our future.

So there you have it – a penny stock mining speculation that could hit it big… and the chief owner is backing it up with a multimillion-dollar share purchase.

Action Plan: Add some to your portfolio as a pure speculation, and be sure to position size.

In The War Room, we bring you all types of plays in every industry. Our only criterion is that they have a chance at making us money. Join me now to participate in more trades like McEwen Mining in real time!

P.S. Our strategies make The War Room something unique and profitable. We’ve handed members an insane 76.72% win rate since we launched! Over that time frame, we’ve had a 10.14% average gain with an average holding period of just over seven days. And this year alone, on average, we’re hitting two winning trades every day the markets are open. So what are you waiting for? Join me now and get in on the hottest action in the market!

P.P.S. Do you want to get Bryan and Karim’s one top pick – every single week? Better yet – do you want this one top pick to come to you in an engaging video? If so, then we have good news. Our brand-new Trade of the Day Plus service is coming soon. Keep a lookout!