Gold in the Perfect Storm - Got Leverage?
Investors in gold and silver have been richly rewarded the last few weeks as they have exploded to the upside. As we write this on Wednesday morning, gold is sitting on 839 (up 19) in the spot market and silver at 15.64 (up .40).
This morning the U.S. Dollar Index is plunging to new lows currently at 75.28 (down .75). In the U.S., the Dow is set to open substantially lower and the S&P 500 futures are down about 17 points, the Japanese Yen is down (perhaps more unwinding of the Yen carry trade) and oil is approaching 98 dollars a barrel. Seems to be the perfect storm unfolding for gold.
Nothing goes straight up, so a pullback would not surprise us but this would merely present another great buying opportunity as we see this bull market continuing for several months and extending into the April - June 2008 time frame. Based upon the views of other analysts we follow, a move to 1200, 1500 or higher is not out of the question within this time frame. Can you feel the excitement? Get ready for much more.
As we mentioned, we and other analysts have been looking for a pullback/consolidation but this strength is showing us the power of a bull market. We have all waited along time for this bull to arrive and now that it is here let's make sure that we capitalize on the opportunities.
There are many different ways for investors to 'play' this powerful move in gold and silver. The simple way is to invest in mutual funds specializing in the natural resource and commodity stocks.
You could also utilize, the ETF's (Exchange Traded Funds), or buy gold or gold coins directly.
For us, we prefer to invest in the common shares of mining companies and also long-term warrants on mining shares. We believe this is where the most money will be made by investors with the incredible leverage possibilities.
By focusing on the mining shares, leaps and long term warrants, investors are wisely using leverage without the fear and risk of short term volatility in the markets. As you may recall from our previous articles, our investments are basically within the commodity and natural resource sectors and the common shares or long term warrants trading on those shares. We are confident we are positioned correctly to not only generate capital gains, but have given ourselves the opportunity to create great wealth.
For subscribers to our basic service, we provide a table listing all companies with call options and leaps trading on the natural resource shares.
For those readers desiring more information on warrants you may wish to visit www.PreciousMetalsWarrants.com where you will find much more information and education on warrants in our new Learning Center. You may also signup for our free weekly email, The Warrant Report.
And for those readers in the San Francisco area, we will be providing a master workshop at the Hard Assets Investment Conference (November 18th & 19th). Our workshop is on the 19th at 7:30 - 8:00am. Please check the conference schedule for more details.