Will Warren Buffett Really Let This Deep Value Slip By?

Will Warren Buffett Really Let This Deep Value Slip By? By Jeff Clark, Senior Precious Metals Analyst Right now, even the staunchest gold investors are weary of the years-long drubbing the gold price has taken since its $1,921 peak in August 2011. Whether the frustrating experience is the work of a market-rigging conspiracy, government manipulation of data to hide inflation, those blindingly loyal Keynesians who keep pounding us with messages that gold is nothing but a “shiny bitcoin,” or the gullibility of mainstream investors who tell themselves that, gee, since Warren Buffett is a billionaire, his “gold has no utility” mantra must be right, it hasn’t been fun. The nasty downcycle has offered no respite. That’s all about to change. If there’s one constant in the resource sector, it’s the boom-bust-repeat cycle that over the past 40 years has been almost predictable. This is particularly the case with gold stocks. We charted every major cycle for gold stocks (producers) from 1975—when gold again became legal to own in the US—to the present. You can easily see that not only do gold stocks cycle up and down repeatedly, but the percentage gains for buyers at a cycle bottom can be downright mouthwatering. What’s interesting about where we sit today in early 2015 is that gold stocks have now logged the second-deepest bear market since 1975—rougher even than the selloff following the 1980 mania. This history teaches three “how to get rich” lessons. For the recent bear market, the bottom for gold … Continue reading

Doug Casey on ISIS, Gold, Oil, and What to Expect in 2015

By Louis James, Chief Metals & Mining Investment Strategist Today’s feature is a special treat: a peek into the brain of one of the most successful speculators of all time. In what follows, Doug Casey talks to Louis James about what to expect in 2015. Doug weighs in on today’s most important issues, including ISIS, oil, Putin, and the stock market. He even sticks his nose out to make a bold call on gold. This (usually subscriber-only) content originally appeared in The Casey Report. Enjoy! Louis James: It’s been a long, eventful quarter since we last spoke, Doug. What’s most on your mind as 2014 draws to a close and we look ahead to 2015? Doug Casey: Let’s start with gold, since that’s the main focus we’ve had for so long. The Swiss gold reserve referendum just went down in flames, of course, and that was a big disappointment to many. L: Really? I don’t know anyone who was surprised. Doug: Well, surprise and disappointment aren’t the same thing. I’m constantly disappointed by how stupid people are, but I’m never surprised by it. There were early signs of support for the measure, but the powers that be mounted an immense propaganda campaign against it, and they succeeded. I hear that the balance sheet of the Swiss central bank has expanded faster than that of any other central bank in the world— L: Whoa—that would explain a lot. Doug: Yes. Relying on the Swiss franc to preserve your capital today is like relying on Swiss banks to preserve your privacy. Only fools … Continue reading

The 10th Man: Socialism Is Like a Nude Beach—Sounds Like a Great Idea Until You Get There

By Jared Dillian  I’ve been following the activities of Syriza for a long time. They started putting up big numbers in the polls in Greece three or four years ago.Syriza has a message that’s very popular with Greeks: Screw Germany. The word they use to describe what’s happened to Greece during the period of time since the debt crisis is “humiliation.” To be fair, if you owe a lot of money to someone, it can be tempting to give them the finger. When Greece’s debt was restructured, it was done in such a fashion that none of the debt was really forgiven, but the maturities were extended far out in the future. Since Greece doesn’t grow (for structural, demographic, and cultural reasons), this is known as extend and pretend. Everyone knew, even back then, that the only hope Greece would have to avoid default would be whatever ability they had to refinance. Greece has been struggling under the yoke of this debt over the last few years, and the Greeks are sick of being serfs. So Europe gets the bird, although deep down, Greece doesn’t really want to drop out of the euro. They get a lot of benefits from being part of the Eurozone, namely purchasing power and low interest rates. So naturally, having and eating their cake simultaneously is the goal. But Alexis Tsipras (the head of Syriza) will threaten to not pay to get what he wants, and it will be interesting to see if Germany will call his … Continue reading

How to Run a Government for Dummies

February 2, 2015 Martin Armstrong COMMENT: My wife took our 4-year old Alex to the bank today to open a savings account for him with his piggy bank of about 10k baht ($333.00). The teller noticed he was half Thai and asked if he was American, to which she said he was both Thai and American. The teller: “We won’t open an account for him because we have to report him to the IRS.” So my wife said “open it as a trust account as a Thai citizen.” The teller: “Can’t do that. It’s evading U.S. regulations.” End result: Alex can’t open an account here. Amazing, simply amazing. REPLY: FATCA is the worst law perhaps in history. It is prejudicial to Americans and it is wiping out the world economy at an incredible speed. It is also forcing Americans to abandon international business and bring all money home even if they have never lived here. Another ex-pat lives in Switzerland for 20 years with her husband. When her parents died she went to the bank to ask them to manage her inheritance. Not only did they refuse to accept money from an American, they closed her local account. But these morons are only interested in hunting down money. They see only their self-interest and to hell with everything that was fundamental to creating the world economy we live in today post-WWII. The truly amazing problem is these clowns do not know how to run even a local mom & pop … Continue reading

Warrants: Options On The Future

January 29, 2015 Dudley Pierce Baker http://CommonStockWarrants.com Have you ever explored the numerous opportunities available using stock warrants? Probably Not! Virtually everyday in the news with companies reporting a stock offering, either a private placement or a public offering, more often than not, stock warrants are attached to the offering. As well, you have probably seen articles about Warren Buffett and Carlos Slim with their personal investments involving stock warrants. My message for you today is that stock warrants are seen daily in the news and whether you will ever buy or sell warrants yourself, you need to understand what they are and the advantages that stock warrants can bring to your portfolio. But first we need to briefly discuss the overall market environment. These markets are getting very volatile whether you are investing in the resource sector with gold, silver or the shares or if you are investing in the Dow Jones Industrial Average, S&P500 or the NASDAQ, so let’s look at a few charts which tell the story of volatility, starting with the strength in the US Dollar.                           Stock Warrants versus Call Options A warrant is a security issued by a company giving the holder the right, but not the obligation, to acquire the underlying company’s shares at a specific price. That right expires on a specific date in the future. Generally, warrants are issued in connection with a stock or a bond offering. Frequently, they … Continue reading

Favorite Fortuna Silver And Endeavour Mining: Insiders Selling And Buying

Savvy investors are aware of the advantages of following the buying and selling by the company insiders. While this is not the Holy Grail, insider activity can be a valuable insight to making money. An insider can be defined as an officer, director or 10% plus shareholder of a public traded company and they are required to report their transactions on a timely basis. Company insider buying is a much more reliable indicator than selling. There is only one reason for the insiders to be buying but there can be an array of personal reasons why a company insider is selling. History has shown us not to rely on only one insider, thus we advise looking for 2 or more insiders buying or selling as a potential gage for the future performance of the shares. We suggest investors visit, CanadianInsiders.com for Canada Companies and InsiderTracking.com for the United States Companies. Both of these services are free and are owned by INK Research.com, a Canadian Company and institutional service of which we are subscribers. In the resource sector most of the companies are Canadian incorporated and thus their reporting requirements and filings are in Canada and all figures used in the examples below are in Canadian dollars. Now let’s showcase two Canadian Companies with recent insider trading activity which trade in the United States. Fortuna Silver (FSM:CA)   Fortuna Silver Mines Inc. is a rapidly growing silver producer with two low-cost operating mines and land holdings of more than 95,600 hectares in Peru and Mexico. Fortuna is … Continue reading

Favorite The Secret Of Investing With Stock Warrants

We start with the premise that warrants are a secret as so few investors know about the potential benefits via the additional leverage that warrants can offer. Did you know that virtually every company has some outstanding warrants in their capital structure? Simply, a warrant is a security giving the holder the right, but not the obligation, to purchase the underlying security at a specific price and expiring on a specific day in the future. Since the 1920s warrants have been issued in connection with initial public offerings and financing arrangements in which investors or the acquiring companies are seeking more leverage and thus warrants are viewed as an ‘equity kicker’ in those transactions. A call option would be defined very similar, except an option would be created/written by an investor where as a warrant originates from the company and the options will always have much shorter lives, usually 90 days to 1 year. Private Placement Warrants The warrants of most companies were issued in connection with a private placement and thus will never trade. Yes, a few investors will have the financial ability and legal opportunity to participate in a private placement in the resource sector but those offerings by U.S. companies outside of the resource sector give little opportunity for investment. Savvy investors like Rick Rule and Warren Buffett would never participate in a private placement without receiving warrants with at least two (2) years before expiration and many times substantially longer. Trading Stock Warrants Few investors are … Continue reading

How Many Stock Warrants Are Trading?

The Warrant Report How Many Stock Warrants Are Trading? We’re excited to have you on our mailing list. When I started our business in 2005 I was frequently asked, “Dudley, do you think there will continue to be enough warrants trading for you to always be in business?” Well, we have witnessed the list of warrants grow and as we recently expanded our services into the United States in addition to Canada, we are very busy with the new warrants coming to market and thus the new opportunities being made available for savvy investors like yourself. Over the last few days, I have included 13 more trading warrants to our databases and will upload all of these additions to our website this evening. Right now there are a total of 164 companies with stock warrants trading and some companies have two or more warrants trading bringing us to a total of 183 warrants in our databases. To name a few: AIG, Bank of America, New Gold and Sandstorm Gold. Frankly, no one has ever provided all of this information in one online investment newsletter, EVER!!! Tonight will be a good time for our updates as we are closing out the month of July and you can have all of this new information available to you within minutes of joining us. There is little NOT to like about warrants but if you are one of the few still skeptical investors visit our Learning Center. We maintain the United States companies and the Canadian … Continue reading

Favorite Warrant Advice | A Helping Hand

In this issue: Today’s Press Release for Common Stock Warrants Warrant Advice | A Helping Hand  Today’s Press Release for Common Stock Warrants This morning was our official press release announcing our new name and expansion of services. For our current subscribers we appreciate your business and for those just learning of our services, we trust you will join us soon. Read Here Warrant Advice | A Helping Hand Currently there are approximately 200 hundred companies which have stock warrants trading either in the United States or in Canada. The opportunities with warrants are spread among many different investment sectors from banking, mining companies (gold and silver), automotive, oil and gas, pipelines, biotech and many more. Our mission at Common Stock Warrants (CSW) is to provide our subscribers with the tools necessary for you to decide, which if any, warrants appear interesting. We have used this expression for years, “You Pick The Company, We’ve Done The Math”. “You Pick The Company” Investing in any of the stock markets in the world starts with investors deciding which companies in which to invest. Every investor has different areas of interest and each individual must perform their own research. Some investors will focus on earnings, others on cash flow and others on book value. At CSW, we provide you with the tools to perform this research, but the decision as to which company to pursue an investment in; is yours alone, or with the assistance or consultation with your financial advisors. Of course, … Continue reading

Favorite AIG Warrants | Up 280% in 20 Months

The Warrant Report June 10, 2013 AIG Warrants | Up 280% in 20 Months In this issue: U.S. Markets  Gold & Silver  AIG Warrants | Up 280% in 18 Months   U.S. Markets: As measured by the Dow and the S&P 500 the markets are still holding up near record levels but caution is in the wind. We are long overdue for a significant correction, but the good news is this will give a great entry point for those not invested and should give us numerous great opportunities with long term warrants.Gold & Silver: Last week we were “Waiting For The Next Shoe To Drop”, “…For gold and silver, while there has been some recent strength and gold traded briefly above the $1400, we feel there is another shoe to drop. We remain very cautious on the short term. Some of our sources still see the potential for a pullback in gold to the $1100 level, but at least to $1280. Now all of us know that anything can happen in these markets and yes, there is a chance the bottom in gold, silver and resource shares is already in place. However, short term we are “Waiting For The Next Shoe To Drop“….”Last Friday with the announcement of the U.S. Jobs report, gold and silver plunged. Is this the beginning of the next leg down to $1280? We’ll know more soon but again, caution is the operative word while continuing to seeking out those over sold bargain shares.AIG Warrants | … Continue reading