Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan
Gold Price Back Below $1,800! - 10th Sep 21
The Inflation/Deflation debate wears on… - 10th Sep 21
Silver Price seen tracking Copper prices higher - 10th Sep 21
The Pitfalls of Not Using a Solicitor for Your Divorce - 10th Sep 21
Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
This Boom-Bust Cycle in US Home Ownership Should Give Home Shoppers Pause - 9th Sep 21
Stock Market September Smackdown Coming Next? - 9th Sep 21 - Monica_Kingsley
Crazy Crypto Markets How to Buy Bitcoin, Litecoin for Half Market Price and Sell for TRIPLE! - 8th Sep 21
Sun Sea and Sand UK Holidays 2021, Scarborough in VR 180 3D! - 8th Sep 21
Bitcoin BTC Price Detailed Trend Forecast Into End 2021 - 8th Sep 21
Hyper Growth Stocks - This billionaire is now using one of our top strategies - 8th Sep 21
6 common trading mistakes to avoid at all costs - 8th Sep 21
US Dollar Upswing, S&P 500 and Nasdaq Outlook - 7th Sep 21
Dovish Assassins of the USD Index - 7th Sep 21
Weak August Payrolls: Why We Should Care - 7th Sep 21
A Mixed Stock Market - Still - 6th Sep 21
Energy Metals Build Momentum; Silver & Platinum May Follow - 6th Sep 21
What‘s Not to Love About Crypto Market Fireworks - 6th Sep 21
Surging US Home Prices and Gold – What’s the Link? - 6th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Some Commodity Related Securities Outpacing Gold 15:1 YTD

Commodities / Options & Warrants Jul 29, 2009 - 05:09 PM GMT

By: Lorimer_Wilson

Commodities Best Financial Markets Analysis ArticleWhere should we be investing what is left of our hard earned money these days? As the table below reveals having bought a basket of commodity related warrants with a minimum duration of at least 24 months at the beginning of 2009 would have been the right choice. Such warrants are up 111.9% YTD, up 12.8% in the past month and up 11.7% in just the last week. That is 14.7 times greater than the 7.6% YTD increase in gold, 13.3 times greater than the 8.4% increase in the S&P 500, 5.8 times greater than the 19.4% increase in the HUI and 4.8 times greater than the 23% YTD increase in silver.


* All calculations are based on U.S. dollar equivalent numbers
** Week ending July 24th, 2009

***CDNX is the symbol for the S&P/TSX Venture Composite Index consisting of 558 micro/nano cap companies of which 44% are engaged in the mining, exploration and/or development of gold and/or silver and other mineral resources and 18% in oil or natural gas pursuits.
****HUI is the symbol of the AMEX Gold BUGS (Basket of Un-hedged Gold Stocks) Index and is a modified equal dollar-weighted index of 15 large/mid cap gold mining companies that do not hedge their gold beyond 1.5 years.
*****GDM is the symbol for the NYSE Arca Gold Miners Index and is a modified market capitalization weighted index of 31 large/mid/small cap gold and silver mining companies.
******SPTGD is the symbol for the S&P/TSX Global Gold Index and is a modified market capitalization index of 19 large/mid cap precious metals mining companies.

Most people think of warrants (i.e. securities that give the holder the right, but not the obligation, to purchase common shares of a company at a specific price within a specific time period) as being associated primarily with micro/nano cap junior gold and silver mining companies but that is not entirely the case. Of the 35 companies offering warrants of 24 or more months duration (of which there are 48 in total):

  • 6 are large-cap commodity based companies (2 gold mining companies; 2 royalty companies; 1 oil and gas company; and 1 molybdenum miner)
  • 5 are small/mid-cap mining companies (2 gold, 1 coal, 1 uranium) and 1 oil and gas producer
  • 24 are micro/nano cap companies of which 19 are in mining; 3 in merchant banking and 2 in oil and gas. They are primarily involved in the development of properties for mining/drilling and/or in the exploration phase of operations.

Investors who are interested in the considerable over-and-above returns that certain warrants can generate compared to investing in the company stock itself should become personally involved in the selection process. Firstly, they should undertake their own due diligence in determining which of the commodity related stocks with long-term warrants have, in their opinion, the most outstanding future stock price appreciation prospects. They should then determine which warrants of these selected companies have the most favourable leverage possibilities given the duration periods of the warrants being considered. The best way to make this all-important decision would be to make use of the services of preciousmetalswarrants.com. Only then would they be sufficiently informed to invest in an astute and prudent manner. To learn more about warrants as an investment please visit our site for detailed information, sign up for our free weekly newsletter and subscribe to one of our several one-of-a-kind services.

If you believe, as suggested by the outstanding YTD performance of commodity related stocks with long-term warrants, that:

  • major inflation is coming in the years ahead (I do),
  • the USD is going to decline vis-à-vis other currencies in the years to come (I do),
  • the bull run in gold, silver and other commodities has many more years to go (I do),
  • the profitability of commodity-related companies are going to increase as a result (I do),
  • the price of most commodity-related stocks are then going to increase dramatically (I do),
  • many of the junior miners/explorers will be bought out by the majors in the future (I do),
  • that the worst of the economic/fiscal/financial crisis is yet to engulf us (I do),

then you should prepare your portfolio to reflect these coming events.

One of the best ways to accomplish that objective would be to included a diversified selection of well-chosen high leverage/time value warrants (approx. 5-10% of your portfolio) along with some other commodity-related stocks and some silver and gold bullion during this period of summer doldrums. You will then be well prepared to ride out whatever financial/economic storm is around the corner.

Please feel free to contact me at the address below with your comments and questions. I guarantee you a rely where requested.

Disclosure: While no specific companies or funds are mentioned in this article I do own commodity-based stocks, warrants, gold and silver.

Lorimer Wilson (lorimer.wilson@live.com) is Director of Marketing and Contributing Editor of:

  • www.PreciousMetalsWarrants.com which provides an online subscription database for all warrants trading on mining and other natural resource companies in the United States and Canada and offers a free weekly email and
  •   www.InsidersInsights.com which alerts subscribers when corporate insiders of a limited number of junior mining and natural resource companies are buying and selling.

© 2009 Copyright Lorimer Wilson- All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Lorimer Wilson Archive

© 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