"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 13 hours Is This The Death Of The iPhone X?
  • 14 hours Is London Still The Financial Capital Of The World?
  • 15 hours Is Gold Staging A Comeback?
  • 16 hours The $200 Million ‘Golden Parachute’ For Rupert Murdoch
  • 17 hours Bitcoin’s Breakout Is Not As Bullish As it Seems
  • 19 hours Farmers On Edge As Trade War Hits U.S. Grain Shipments
  • 21 hours Is Silver Poised For A Massive Break Out?
  • 2 days Meet The Hedge Fund Billionaires Club
  • 2 days The Next Housing Crisis Could Be Right Around The Corner
  • 2 days Cartel's, Pirates And Corruption Cost Mexico $1.6 Billion Per Year
  • 2 days Africa’s Fastest Growing Economy
  • 2 days The Blockchain Boom Hits The Utilities Sector
  • 2 days Why Smart Money Is Selling Off Right Before The Bell
  • 2 days Tech Giants Rally Ahead Of Earnings Reports
  • 3 days Global Debt Hits 225% Of GDP
  • 3 days The World’s First Trillionaire Will Be A Space Miner
  • 3 days How Student Debt Could Cause The Next Real Estate Crisis
  • 3 days This $550 Billion Industry Is Betting On Bitcoin
  • 3 days One Commodity Set To Soar On Russian Sanctions
  • 3 days China’s New Car-Market Rules
Dudley Baker

Dudley Baker

Dudley Pierce Baker is the founder and editor of Common Stock Warrants and its predecessor, Precious Metals Warrants and a 1967 graduate of St. Mary’s…

More Info

Better Early Than Never

Virtually all investors, whether in the stock markets in the United States or globally, commodities or the mining shares, the results over the last month or so is the same. Nasty, really, really nasty. Most of us in the business have also suffered and we feel the pain of our readers and subscribers to our services. Everyone is hurting.

That said, on a personal note, I have continued to purchase selected common shares and long-term warrants over the last several weeks. Yes, I have been early. With hindsight it would have been great to have waited a few more weeks or months but we make real decisions in real time. When I see a great opportunity, I don't know if it will jump up tomorrow, leaving me out or plunging in price, making it an even better opportunity.

It's just my gut feeling that when the turn does come for the junior mining shares, it will happen very quickly. Some unexpected event will occur which will drive the price of gold and the juniors higher overnight. Could it be a decision starting with this weekend's Global Economic Summit of the G 20? Perhaps an event with investors in the December Gold & Silver contracts actually calling for delivery of the physical?

If an unexpected event would happen most investors would not and could not react fast enough and would be like the deer caught in the highlights. The lack of a quick decision would see gold and the shares increasing greatly in value leaving investors behind. We could possibly see quick gains of 25%, 50% or more in the juniors in a given day and many investors would just not react in time and would decide not to invest. Thus, they would never get in.

I know some will take exception to my approach but while I may be investing in some of the selected juniors and long-term warrants on the early side at least I am in the game and I will not be left out when the markets do takeoff.

So, Better Early Than Never, is a choice only you can make. But remember, 'they' didn't ring a bell at the top telling you to sell and 'they' will not ring a bell at the bottom telling you to buy. Each investor should come to grips with this decision but it seems like most of us in the business are, at a minimum, doing some selective buying. I must also add that I have a few stocks and warrants which I am backing up the truck because of my confidence level of these specific companies which I have shared with my subscribers.

Let's take a look at a few charts. First is the U.S. dollar, observe the massive negative divergence forming at the dollar is hitting highs. This rally must end soon.

Next we look at a chart of gold and also the HUI index as of Wednesday's close. It looks like we are testing the recent lows and I believe there is a high probably of the previous lows holding.

To summarize, the only place to be in our opinion is in gold and silver (bullion, if you can find some), mining shares (yes, they will come back) and long term warrants on selected mining shares.

For subscribers, we also provide a database for all companies with call options and leaps trading on the natural resource shares in addition to the warrants. A valuable tool for all investors.

For those readers interested in warrants and why Warren Buffett is receiving warrants in his recent transactions, visit our website and learning center for more information.

 

Back to homepage

Leave a comment

Leave a comment