Warren Buffett's Biggest Loss

Tom Beck of Portfolio Wealth Global shares his strategy for investing in commodities. For close to five years, investors, experts and analysts have been predicting that commodities, as a group, are going nowhere. Still, millions of respected, intelligent investors seek to invest in minerals and resources because of one important reason: one solid position can fund a decade worth of retirement. Warren Buffett, whom I personally regard as the absolute best investor the world has ever known, was even duped into buying oil stocks because he fell into the “Peak Oil” theory, which was popular prior to the invention of “fracking.” This reminds me of the famous 1890 London Futurist experiment, where the most highly regarded scientists of Oxford were asked to envision London 40 years into the future, and the prediction was sealed until 1930, when it was finally opened and read. Their theory was that London would be impossible to live in because of horse manure and diseases caused by sanitation. They couldn’t possibly forecast that within the decade after their brainstorming, the automobile would be invented. Today, London is the most expensive and sought-after location of the ultra-rich, as well as a tourist hub. The bottom line is that commodities are unpredictable, and they often move inversely to fundamentals, research and common sense. Even worse, when they do change from bust to boom and vice versa, the discipline it takes to notice the trend change and the precision involved with investing and timing it is sheer luck. … Continue reading

✅ DJIA Near Highs and Gold Springs Back to Life

March 19, 2017 DJIA Near Highs and Gold Springs Back to Life Good Sunday Afternoon, This week the DJIA closed at 20914 near the highs giving support to U.S. stocks and the warrants trading thereon. Gold as well sprang back to life after the Fed announcements and closed the week at $1229. Silver            $17.41 Crude Oil      $49.31 Copper           $2.69 USD              100.37 In our opinion the US Dollar has put in place a major top on the weekly chart we show below. The negative divergence is easy to see with the USD heading up but the indicators diverting to the downside. Of course, all of this with the Trump administration basically talking down the dollar. Over time this will no doubt impact the U.S. markets and should be a positive indicator for the future price of gold and commodities, we shall see. My preference is to ‘play this game’ with the junior mining shares and/or stock warrants. However, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, bio-techs, pharmaceuticals, banking, etc. Let me assist you with finding these opportunities and increasing your gains as I am on a roll with some monster gains over the last few months, yes 1,000%, and 2,000% PLUS gains. Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies … Continue reading

Gold for Protection; This Metal for Wealth

Inflation has been rising at a rapid rate since the election. Not only is the CPI up, but the Dow Jones just experienced its fastest 1,000-point move in history. With the bull market in its ninth year, Lior Gantz of Wealth Research Group believes this is the time for investors to become very selective, and he points to one commodity that is experiencing very tight supply right now. China’s infrastructure plan dwarfs America’s and the big players are betting on Asia. This bull market is now entering its 9th year, which makes it the 2nd longest in history. In my personal 2017 portfolio and game plan, I stress the need to make sure that you’re defending gains and becoming very selective when it comes to new investments in the broad indices. Every savvy investor must own a combination of Safe Havens. Zero-percent interest rates have played a major role in making the S&P 500 the most expensive it has been since the Dotcom bubble, and retirees have few options to earn High yields—there are very few Wealth Stocks at bargain prices left. Now, with inflation rising and Trump’s trillion-dollar infrastructure plan on the table, the big banks are finally bullish on commodities after 6–7 years of bearish outlook. In 2016, I’ve studied close to 758 resource stocks, and less than 1% of them have the characteristics of greatness. The resource market is predictable—it booms and busts. Since the U.S., China, and Europe were in a recession or a severe slowdown … Continue reading

Stock Warrants | Hostess Brands (TWNK) | Yes, Our Twinkies Are Trading

March 19, 2017 Dudley Pierce Baker Editor-Founder http://CommonStockWarrants.com Did you know that our childhood favorite, twinkies are a trading company? Probably Not!!!! Hostess Brands was the target company for Gores Holdings (GRSH) , a blank check company in late 2016.   Most investors would never know…. Except subscribers to our service. Gores Holdings (GRSH) was a blank check company which went public in 2015 raising $375M and looking for an acquisition. Press Release Wow, did they find a acquisition? Hostess Brands had been a private company and this transaction was finalized on November 4, 2016. Gores Holdings, Inc. Completes Acquisition of Hostess Brands, LLC, Maker of Twinkies ® Hostess Brands (our Twinkies) are now trading with the symbols: TWNK – common shares TWNKW – stock warrants An interesting speculation for those Twinkie lovers…. The Street Is Sweet On Hostess Brands Visit the Hostess Brands website and subscribe to http://CommonStockWarrants.com for details on the stock warrants trading.   … Continue reading

Will FATCA be repealed?

Posted on 19 February, 2017 by Orlando Gotay Since I have been closely following the unfolding—and somewhat constantly shifting tax policy of the Trump administration and the 115th Congress, I get asked often what will happen, if anything, to FATCA, the Foreign Account Tax Compliance Act. Recall FATCA has turned virtually every foreign country and bank into an agent of the IRS, reporting back to the US Treasury on the holdings of US “persons”. Along with a bunch of additional requirements, like the odious Foreign Bank Account Report, it presents a truly formidable fiscal challenge even for the ‘normal’ expat. Most countries folded and signed agreements with the US where they agree to share financial information of US persons, under clear threat of punishing withholding taxes of US sourced payments to people in those countries. Even Vatican City signed up. Some countries have taken their time, and there has been more or less some push-back. The interesting thing is that there was a promise in the Republican party platform to repeal FATCA. I have been a delegate to National Conventions, so I can tell you the language in these much fought over platforms has often ended up in the dustbin. But the Trump administration is anything but normal. Could they try to repeal FATCA? The first hurdle is that FATCA may not be as high as we could wish on the administration’s tax priorities. Well ahead is Obamacare repeal (remember it has plenty of tax components) plus the Trump “big … Continue reading

Jack Chan's Weekly Gold and Silver Update

Technical analyst Jack Chan charts the latest moves in the gold and silver sectors. Our proprietary cycle indicator is down. The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term. The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders. Silver is on a long-term buy signal. SLV is on a short-term sell signal, and short-term signals can last for days to weeks, more suitable for traders. SummaryThe gold sector is on major buy signal. The cycle is down. A correction is in progress. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page. Disclosure: 1) … Continue reading

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies By Nick Giambruno “It was the single most important financial event of my career.” That’s what my friend Rick Rule of Sprott Global recently told me of his experience in the uranium market. Rick was referring to Paladin Energy, a uranium company that leaped from one penny to $10 per share during uranium’s last bull market. That’s a 1,000-fold increase. In other words, a $1,000 investment could have exploded into $1 million. Even the worst-performing companies in the uranium sector delivered 20-to-1 returns. Uranium can deliver these almost unbelievable returns because of unique supply-and-demand quirks that create colossal bull and bear markets. Here’s a quick rundown… and a closer look at how uranium’s coming bull market could hand you these kinds of life-altering profits. The 1950s Uranium Bull Market Uranium cycled through its first bull market in the 1950s. This bull was mainly driven by the nuclear arms race between the US and the Soviet Union. Back then, the only practical way an investor could get exposure was through uranium exploration companies trading on small regional stock exchanges, like the one in Salt Lake City (which closed in 1986). Those who did made a bundle. The Late 1970s Uranium Bull Market The uranium price increased more than tenfold during this bull market… from $3 to $43. Some uranium stocks shot up by a factor of 100. Greater nuclear power use was the main driver. It … Continue reading

Trevali Proving Zinc Is Golden

Trevali Mining has added a portfolio of zinc assets to its already impressive resource list with the purchase of Glencore’s producing Rosh Pinah and Perkoa zinc mines. Trevali Mining Corp. (TV:TSX; TV:BVL; TREVF:OTCQX) announced on March 13th its agreement to purchase a portfolio of zinc assets from Glencore International Plc (GLEN:LSE), “which includes “80% interest in the Rosh Pinah mine in Namibia, a 90% interest in the Perkoa mine in Burkina Faso, an effective 39% interest in the Gergarub project in Namibia and an option to acquire 100% interest in the Heath Steele property in Canada.” Dr. Mark Cruise, president and Chief Executive Officer of Trevali stated, “The acquisition of Rosh Pinah and Perkoa is a historic event and unique opportunity for Trevali shareholders, and sets the stage for a multi-asset, low-cost global zinc producer.” Glencore will increase its stake in Trevali to 25% from 4% and will gain an additional seat on Trevali’s board, bringing Glencore’s seats to two. Glencore will also have the offtake from all four of Trevali’s mines. The acquisitions extend Trevali’s zinc reach globally, adding mines in Africa to its ongoing operations in Canada at Caribou and in Peru at Santander. In a Mar. 13 report, Paradigm Capital analyst Jeff Woolley stated that the Santander mine is “generating positive cash flow and its second mine, Caribou, now commercial,” is moving Trevali into a path for growth. Woolley’s 2017 forecast has Trevali’s “payable production of 178Mlb Zn (+19% y/y) and 216Mlb ZnEq (+10%y/y) at a cash … Continue reading

Silver Wheaton's Profile Boosted by Progress at Antamina Mine

Silver Wheaton Corp. and Franco-Nevada Corp. hosted a mine tour of the Antamina Mine in Peru on March 2, and the promise of substantial additions to the streaming company’s assets prompted positive comments from two industry analysts. “With Antamina representing a significant proportion of SLW’s production profile, the tour highlighted the opportunity for substantial mine life extension, including the potential to upgrade material and add additional ounces through exploration,” analyst Andrew Kaip noted in a March 7 report for BMO Capital Markets. “We see Antamina as representing a meaningful proportion of SLW’s production profile,” Kaip stated. Production from Antamina totaled 431kt of copper in 2016, Macquarie analyst Michael Siperco wrote in a March 6 report. In addition, guidance from Silver Wheaton and Franco-Nevada “implies total silver production averaging 14–16moz over the next 20 years.” Macquarie considers Antamina a “top ten global producer of copper, zinc and silver,” with the site encompassing “a polymetallic skarn deposit containing copper, zinc (together ~90% of mine value), silver, molybdenum, lead and bismuth.” Silver Wheaton Corp. (SLW:TSX; SLW:NYSE), like Franco-Nevada Corp. (FNV:TSX; FNV:NYSE), has “multiple multi-decade streams on high quality mines with high quality counterparties,” Siperco continued. “These are the type of assets that have set SLW and FNV apart from their competitors, and should support cash flow generation and dividend increases for decades to come.” According to Macquarie, “both FNV and SLW will continue to be core holdings for investors looking for low-risk exposure to precious metals in growing, dividend-paying vehicles.” Kaip noted “SLW … Continue reading

High-Impact Drilling Will Test Pan Orient's Indonesian Field

High-impact drilling on Pan Orient Energy’s East Jabung project in Sumatra, Indonesia, is slated to begin by the end of March. Talisman Energy, a subsidiary of Spanish major Repsol SA, will test Pan Orient Energy Corp.’s (POE:TSX.V) East Jabung field in Sumatra. Pan Orient acquired the property in 2011. PiercePoints in ValueWalk noted that Pan Orient Energy “used seismic surveys the last few years to uncover a massive reef and clastics drill target—which could be one of the biggest onshore discoveries of the decade. . .independent engineers appraised [the project] as having a best likely size of 149 million barrels equivalent—absolutely huge for an onshore project. “ Talisman “executed a farm-in deal with Pan Orient where it will pay 100% of the costs for an exploration well in order to earn a 51% interest in the project,” commented PiercePoints. “That’s a lot smaller interest than majors usually demand for a carried well. Leaving Pan Orient with a full 49% ownership in the project—equating to 73 million barrels equivalent upside in the best case forecast by reserves engineers—while this junior sits back and watches Repsol pay to test the prospect.” In his What is Chen Buying? What is Chen Selling? newsletter, Chen Lin noted that “Talisman/Repsol owns the block just to south of it and knows the area and its geology well. The decision of drilling these two wells was made by Repsol one year ago when oil was at 30 dollars.” Lin also noted that he is surprised that Pan … Continue reading