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
The US Dollar is the Driver of the Gold & Silver Sectors - 28th Jul 21
Fed: Murderer of Markets and the Middle Class - 28th Jul 21
Gold And Silver – Which Will Have An Explosive Price Rally And Which Will Have A Sustained One? - 28th Jul 21
I Guess The Stock Market Does Not Fear Covid - So Should You? - 28th Jul 21
Eight Do’s and Don’ts For Options Traders - 28th Jul 21
Chasing Value in Unloved by Markets Small Cap Biotech Stocks for the Long-run - 27th Jul 21
Inflation Pressures Persist Despite Biden Propaganda - 27th Jul 21
Gold Investors Wavering - 27th Jul 21
Bogdance - How Binance Scams Futures Traders With Fake Bitcoin Prices to Run Limits and Margin Calls - 27th Jul 21
SPX Going for the Major Stock Market Top? - 27th Jul 21
What Is HND and How It Will Help Your Career Growth? - 27th Jul 21
5 Mobile Apps Day Traders Should Know About - 27th Jul 21
Global Stock Market Investing: Here's the Message of Consumer "Overconfidence" - 25th Jul 21
Gold’s Behavior in Various Parallel Inflation Universes - 25th Jul 21
Indian Delta Variant INFECTED! How infectious, Deadly, Do Vaccines Work? Avoid the PCR Test? - 25th Jul 21
Bitcoin Stock to Flow Model to Infinity and Beyond Price Forecasts - 25th Jul 21
Bitcoin Black Swan - GOOGLE! - 24th Jul 21
Stock Market Stalling Signs? Taking a Look Under the Hood of US Equities - 24th Jul 21
Biden’s Dangerous Inflation Denials - 24th Jul 21
How does CFD trading work - 24th Jul 21
Junior Gold Miners: New Yearly Lows! Will We See a Further Drop? - 23rd Jul 21
Best Forex Strategy for Consistent Profits - 23rd Jul 21
Popular Forex Brokers That You Might Want to Check Out - 22nd Jul 21
Bitcoin Black Swan - Will Crypto Currencies Get Banned? - 22nd Jul 21
Bitcoin Price Enters Stage #4 Excess Phase Peak Breakdown – Where To Next? - 22nd Jul 21
Powell Gave Congress Dovish Signs. Will It Help Gold Price? - 22nd Jul 21
What’s Next For Gold Is Always About The US Dollar - 22nd Jul 21
URGENT! ALL Windows 10 Users Must Do this NOW! Windows Image Backup Before it is Too Late! - 22nd Jul 21
Bitcoin Price CRASH, How to SELL BTC at $40k! Real Analysis vs Shill Coin Pumper's and Clueless Newbs - 21st Jul 21
Emotional Stock Traders React To Recent Market Rotation – Are You Ready For What’s Next? - 21st Jul 21
Killing Driveway Weeds FAST with a Pressure Washer - 8 months Later - Did it work?- Block Paving Weeds - 21st Jul 21
Post-Covid Stimulus Payouts & The US Fed Push Global Investors Deeper Into US Value Bubble - 21st Jul 21
What is Social Trading - 21st Jul 21
Would Transparency Help Crypto? - 21st Jul 21
AI Predicts US Tech Stocks Price Valuations Three Years Ahead (ASVF) - 20th Jul 21
Gold Asks: Has Inflation Already Peaked? - 20th Jul 21
FREE PASS to Analysis and Trend forecasts of 50+ Global Markets by Elliott Wave International - 20th Jul 21
Nissan to Create 1000s of jobs with electric vehicle investment in UK - 20th Jul 21
Bitcoin Halvings Price Forecast and Stock to Flow Analysis - 18th Jul 21
Dell S3220DGF Unboxing and Stand Assembly - 32 Inch 165hz Curved Gaming Monitor Amazon Discount - 18th Jul 21
What Does The Fed Mean By “Transitory Inflation” And Why Is It Important To Understand? - 18th Jul 21
Will the US stock market’s worsening breadth matter? - 18th Jul 21
Bitcoin Halving's Price Projection Forecasts Trend Trajectory - 18th Jul 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