Pershing Gold Corp. (OTCMKTS:PGLC) Logs a Strong Day

After calmer days and small percentile movements over the last month and a half, yesterday Pershing Gold Corp. (OTCMKTS:PGLC) moved up in double digits. PGLC‘s share price climbed 13% and stopped at $0.41 by the closing bell. Volume picked up as well, at 3.3 million shares changing hands.

Unlike a vast portion of the OTC stocks we cover, PGLC is actually backed up by significant financial resources. Even though the company is still in the development stage, their books boast cash resources of $9 million.

Even though there was no immediate trigger for PGLC‘s jump, the ticker did receive very positive coverage on another website focused on the stock markets just two days ago. This seemed to have had more of an effect on the share price movement than the last press releases from the company. PGLC is not spamming its PR feed with announcements just to keep everyone excited and this may partly explain the relatively low volume sessions and occasional daily spikes.

The company announced better-than-expected results from drilling activities in late January. This doesn’t mean that PGLC is knee-deep in high-grade gold ore just yet but the positive announcement triggered several strong volume days and pushed the price up. PGLC had cooled down from the $0.39 high it hit in the wake of the news announcement but its latest green hike pushed it even higher.

Insider buying, evidenced by the large number of Form 4-s that PGLC filed in recent months, could have also helped bolster investor confidence but then again, it’s been going on for some time now and the double-digit jump happened only yesterday.

While things appear to be generally looking up, PGLC still has no clear target date on which production can commence and it’s still in the development stage and all the risks associated with this should not be overlooked.