Leverage and Timing the Next Up-Leg

By: Dudley Baker | Mon, Jun 26, 2006
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Our subscribers are aware; we do not make predictions on the markets performance. That said, we attempt to read everything we can get on hands on as well as listening to many of the top analysts within the precious metals arena.

To us, there seems to be a consensus forming (is this a good thing?) that gold, silver and the mining stocks will move basically sideways to down over the next several weeks with the consolidation ending by late August. If correct, investors are advised to exercise patience (damn this is difficult) while continuing to seek opportunities for the coming (is there any question?) up-leg.

Again, the 'consensus' we read is gold has 'probably' bottomed but we may have one or two more scary moves down which will no doubt shake out the weak investors/non-believers of this bull market before the next up-leg begins.

True believers of this bull market will be taking advantage (as have we) of the exceptional buying opportunities presented to us with this decline/consolidation.

We have written many articles over the last year or so addressing different ways long-term investors can participate in the bull market including the purchase of gold bullion, mutual funds, ETF's (exchange traded funds), and common shares and long-term warrants of the mining and energy companies.

For short-term investors, (those with a one year or less time horizon) and those willing to accept more risk can also consider the use of call options and leaps on their favorite mining shares (if available) as well as warrants expiring within one year.

We invite you to visit our website and read some of our articles including, Mining Stocks - Options, LEAPS & Warrants, Why Warrants - Why Now? and Why Warrants - Why Now, Part 2.

Patience, due diligence and timing our entry points, we confidently believe, will lead investors to incredible gains in the coming months.



Dudley Baker

Author: Dudley Baker

Dudley Pierce Baker
Founder/Editor - Guadalajara/Ajijic, Mexico
A Market Data Service for Warrants

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 University in San Antonio, Texas with a major in accounting.

Disclaimer/Disclosure Statement: CommonStockWarrants.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.

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