Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Uranium Investments – A European Perspective

Commodities / Investing Feb 27, 2007 - 09:53 AM GMT

By: Dudley_Baker

Commodities

Last week was a very interesting one here in Ajijic , Mexico , land of tacos, tortillas and tequila. We had representatives of a private European bank here visiting current clients, making a presentation of their organization and recruiting new clients/investors for their bank.

Our village is always on their list of locations to visit because of the large numbers of Americans and Canadians living in this community. Most investors are advised of the need to get some monies outside the U.S. and Canada so this was a great opportunity to see what this European bank had to say.


The bank would give us U.S. and Canadian investors an ‘offshore' bank thus transferring some funds outside the control of the U.S. and Canadian authorities. Investors are offered many advantages with this organization as we could do the following:

• Have our ‘dollars' denominated in over 15 different currencies

• Make use of the Japanese Yen carry trade

• Invest in many of the popular mutual funds

• Buy stocks, futures and options on futures

This flexibility sounded great and the only downside was that all of our orders would have to be placed with a telephone call and not online. This could delay our trades for some of us and also here in the Central Time Zone we have a 7 hour difference meaning we may be placing orders at 1 or 2 in the morning.

Obviously, I have strayed from the title of this article but I wanted you to understand one of the reasons for me attending this investment presentation. The other reason for attending was to get their views on the U.S. Dollar, gold, mining stocks, uranium and uranium stocks from their European perspective. Not only did I attend their 2 hour presentation but I had the opportunity to spend a wonderful 3 hour Saturday afternoon with these representatives with great conversation and asking many questions on the following subjects:

U.S. Dollar ---------- Basing their views of the U.S. dollar using technical analysis, they see the U.S. dollar climbing HIGHER in the coming days, weeks and perhaps months even though they agree from a fundamental view, the dollar should decline long term.

Gold & Silver -- Gold and silver will continue up even with the rising U.S. dollar.

World Liquidity ---- The massive liquidity in the world's financial system will continue, probably driving the indices higher in most countries.

Mining stocks ---- They currently have little or no knowledge thereof (leaving me almost speechless).

Uranium &

Uranium stocks —They currently have little or no knowledge of uranium or investing in the uranium shares and commented that “this seems very risky”.

The Great Disconnect: I informed them that a significant portion of my investments were in the mining stocks, uranium stocks and/or the long term warrants thereon and that ‘we' are in a bull market. They looked at me as though I was crazy and I thought they were crazy because they didn't even know about the bull market in the mining shares.

It would be one's first instinct to dismiss these bankers' as unknowledgeable or ignorant investors. But this is far from the truth. Then it hit me . What my new friend's have reminded me of is that we view the world and the markets in different currencies. Think about it; with the Euro and other currencies stronger against the U.S. dollar it has been advantageous for many investors in the world to remain invested in other stock markets in the world which have performed extremely well in the last few years.

It also occurred to me that Henk J. Krasenberg, European Gold Centre , (a European Perspective) based in London recently voiced a similar view while speaking at the investment conference in Vancouver, CA in January. In essence, the majority of European investors are not yet interested in, nor currently investing in, the mining shares.

The Great Question Is: The question now becomes, “will the European investors EVER be investing in ‘our' ( U.S. and Canadian) bull market in the precious metals stocks?” Most analysts assume (I know, this is usually trouble) that all investors in the world will one day be investing in the precious metals stocks and/or warrants. Maybe – Maybe Not!! Is it possible this bull market will remain basically a U.S. and Canadian affair? Do we need the rest of the investors of the world to assist with driving the mining shares to the outrageous price levels predicted by some analysts as we peak in the coming years?

Conclusion: Investors' views and opinions of the world financial markets, gold, uranium, etc. are dictated by the specific currency in which we make our investment decisions. As the U.S. dollar rises or declines, the Euro rises or declines as well as all other currencies of the world, investors are faced with making investment decisions as viewed from their particular currency. It is possible the lack of European investors in the mining shares is a sign that we are still in the early stages of this bull market. Perhaps; but it is entirely possible that this bull market will take place basically on this side of the pond. Either way it will still be a great party but the more investors the better before the clock strikes midnight .

 

By Dudley Pierce Baker
Email: info@preciousmetalswarrants.com
Website: PreciousMetalsWarrants

Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U. S. and Canadian Exchanges. As new warrants are listed for trading we alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders and much, much more. We do not make any specific recommendations in our service. We do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

Disclaimer/Disclosure Statement: PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in