Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Wii, WHY, WOO of Trading Gold Stock Warrants

Commodities / Gold & Silver Stocks Feb 11, 2010 - 07:02 AM GMT

By: Dudley_Baker

Commodities

Best Financial Markets Analysis ArticleNot to worry, this is not a marketing pitch to encourage you to buy warrants. Investors must make numerous decisions before even considering the purchase of warrants as well as call options or LEAPS.


The first decision is your belief in where the gold market and thus the junior mining sector in heading in the next 12 to 24 months. You may use charts or technical analysis or some readers may prefer to defer to the views of the market gurus to which they subscribe. Regardless, you must have an opinion and it will be your money on the line.

The second decision is how you will invest in this market. Will you buy gold or silver bullion, mutual funds, ETF’s or perhaps allocate your monies among a basket of junior mining shares? Again, it is your money and your choice based on many factors including your level of knowledge and investment expertise, the amount of time you have available to ‘follow’ the markets and your individual level of risk tolerance.

If you want to purchase individual mining companies then your third decision will be deciding which companies to buy. Some of you will no doubt perform your own research and due diligence while others will defer to the recommendations of the newsletters and analysts to which they subscribe. Just remember that it is your money and you should also research the company even if it is widely recommended.

Now you have a list of companies which you want to purchase and this is where your fourth decision comes into play. The question now is does the companies you want to purchase have any other investment vehicles which you could purchase which might be more attractive and offer more leverage than just purchasing the common shares?

Depending upon the companies you have selected:

  • Some companies may have convertible debentures, giving you an income along with an equity participation
  •  Some companies may have long term warrants trading giving you potentially greater leverage and return on your investment with lives of 2 to 9 years.
  • Some companies may have call options or LEAPS available. Both call options and LEAPS will also give you potentially greater leverage. Reviewing the calls and LEAPS will demand you consider the expiration dates and exercise price of all choices. You must be comfortable that you will have the time necessary to accomplish your investment objective which was our first decision above.

Now that we have you thinking, now let’s see what the charts look like as of Wednesday,
10 February.

We would like to focus first on the $CDNX:$GOLD charts. The CDNX reflects the Venture Exchange and this is where we see the next great opportunity for investors. Please read our brief comments on the charts but we see both the daily and weekly charts holding up very well.

The next two charts are on gold. The daily chart of gold which has swung widely within the last week. We traded as low as 1042 on Friday the 5th and closed on the 10th at 1071. We will then take a look at the weekly chart which barely reflects this down move as we bounced back up so strongly and quickly into the close on Friday.

Our view is that the gold market has hit its lows and while we could possibly retest, we see the markets heading higher very soon. As well, the CDNX as representative of the Venture Exchange is looking good.

We suggest readers do their homework quickly as these markets are probably heading higher very soon.

For those readers unfamiliar with our services:

  • PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
  • InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.

We encourage all readers to sign up for our free weekly email.

Dudley Pierce Baker
Guadalajara/Ajijic, Mexico
Email: support@preciousmetalswarrants.com
Website: PreciousMetalsWarrants
Website: InsidersInsights

Dudley Pierce Baker is the owner and editor of Precious Metals Warrants and Insiders Insights. Articles are written by Dudley Baker along with contributing editors, Arnold Bock of Mendoza, Argentina and Lorimer Wilson of Toronto, Canada. PreciousMetalsWarrants provides an online subscription database for all warrants trading on junior mining and natural resource companies in the United States and Canada and a free weekly newsletter. InsidersInsights alerts subscribers when corporate insiders of a limited number of junior mining and natural resource companies are buying and selling.

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.

Dudley Pierce Baker Archive

© 2005-2022 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