What the Aden Sisters Are Watching Before Jumping Back into Natural Resources

The Gold Report: We are only a month into 2015 and already the economic news has been dramatic. Switzerland decoupled the franc from the euro. The European Central Bank (ECB) has announced quantitative easing (QE). The Russian ruble is crashing along with oil prices, but the U.S. stock market seems to be soaring. What indicators are you watching and what are you expecting in the global economy in 2015? Pamela Aden: Never a dull moment. The biggest beneficiary of all this turmoil has been the dollar. The dollar index is at 10-year highs. Meanwhile the euro and the Canadian dollar have gotten caught up in a deflationary cycle along with oil and commodities. Mary Anne Aden: We are watching the exchange rate and the cross rate. The strength of the dollar is the key because it has become the world’s favorite safe haven in these times of uncertainty. Everyone is quite concerned about what’s coming next. With the renewed liquidity from the ECB and the Bank of Japan, the decoupling of the Swiss franc and the collapse of the oil price, fundamental factors like gross domestic product and debt levels have almost been tossed by the wayside. The wild events in currency markets are impacting the stock markets in a big way. PA: It is also having an effect on the bond market. A year ago the bond market bottom was rising. It became one of the biggest surprise investments for 2014. Even the end of QE in the U.S. … Continue reading

Stefan Ioannou: Bottom-Fishing Opportunities in Base Metals, Especially Zinc

The Mining Report: Copper has fallen about 12% in 2015 and other base metals are seeing significantly weaker support after the World Bank said it expects the global economy to slow by as much as 1% this year. Is the bull market for commodities over or is this a pause in an otherwise bullish cycle? Stefan Ioannou: Looking at this market as bullish over the past couple of years may be a bit aggressive. There has been a cautious tone since 2012. Metal prices relative to historic prices are definitely higher, but so are operating costs. The margins haven’t changed much. Depending on the metal you’re talking about, there are also concerns about large surpluses and global economies possibly slowing down. TMR: Would it be fair to say that while base metal prices may be under pressure in a broad sense, specific equities may have catalysts or other news that could offset commodity price weakness? “Balmoral Resources Ltd.’s project portfolio includes the high-grade Grasset deposit in Quebec, where massive sulphide mineralization remains open in multiple directions.“ SI: Well-run companies tend to do well, assuming they have a project that can demonstrate reasonable economics in a given pricing environment. However, in mid-January we witnessed a massive correction in the copper price—a lot of value has been taken off the table. When there are rapid drops like that it almost doesn’t matter how great a project is. In the short term those companies will face general market sentiment, which tends to hit … Continue reading

The Warrant Report | Primero | New Gold and The U.S. Dollar

  The October issue of The Warrant Report showcases two warrants as great examples of potential leverage as well as how to reduce your dollar cost in the investment with warrants versus buying the common shares. Primero Mining and New Gold are the two companies showcased. We also present numerous charts of gold, usd, gold in Euros and gold in Russian Rubles. Click Here for the complete report.   … Continue reading

A Focus on Time – Pilot Gold versus FieldPoint Petroleum

In our March issue of The Warrant Report we stated, “…Actually now, gold (and somewhat silver) are short-term overbought and a reasonable pullback, possibly down to the $1270 and $20.50 range should not be unexpected…”
Gold did make it down to $1276 and silver to around the $19.70 range.
Gold has subsequently bounced back up and closed on Friday, April 4th at $1302.30 and silver at $19.96.

Read The Full April 2014 Warrant Report Here


A new year with new warrants trading

  Perhaps the most important question for all investments is timing. In the United States, the markets are in the process of their first serious consolidation in a couple of years and in the Canadian markets, the resource shares have either bottomed are in the process thereof. Read The Full February 2014 Warrant Report Here   … Continue reading

2013- The year that would not end

 Read The Full January 1, 2014 Warrant Report Here No investor in the resource sector would argue that 2013 has been a year from hell. Gold still trades near the low that was made in June 2013 and while there has been a retest of those lows recently it is still too early to know for certain that ‘the bottom is in place’. Charts are great to review in hindsight the price performance for commodities and shares. However, predicting the future from past performance is virtually impossible and is merely subject to one’s interpretation. The Dow and S&P 500 have soared in 2013, posting the biggest annual gains since the late 1990s. The Dow was up 26% and the S&P 500 gained more than 29%. The NASDAQ has surged nearly 40%, to highs not seen since 2000. Read The Full January 1, 2014 Warrant Report Here … Continue reading

Is 2016 The Target Year For Maximum Gains?

  Dudley Pierce Baker www.CommonStockWarrants.com Can you wait until 2016? I follow many of the newsletters and analysts in the resource sector as well as in the U.S. markets. Several of the analysts I follow are looking to 2016 as the year in which we will see new highs in gold as well as in the U.S. stock markets. They speak of the possibility of $5,000 plus for gold and over 30,000 in the Dow Jones Industrial Average. Yes, the prospect is that both markets will rally together. There are numerous reasons for their projections and I will not get into the details in this article but I firmly believe in their forecast. One of these analysts, Larry Edelson of Money and Markets, states in his promotional email dated November 3, 2013: “All of my research is telling me that a new bull leg higher in gold is coming, and it will be the last big move up that you will see in your lifetime. Maximize your profit potential by getting properly positioned, and sooner rather than later.”  Did you get that statement above? “… the last big move up that you will see in your lifetime …”  I can’t speak for you, but I want a piece of this rally, heck, I want a really big piece. This could be what we have waited for and hoped for and now this opportunity could be right in front of us. Current Markets The markets in the United States have recently hit … Continue reading

The Speculative Merits of Common Stock Warrants

  There are days, and this is one of them, when I feel like I’m preaching to the choir about the profit potential of investing in common stock warrants. It’s a small choir of successful investors, but there are few people in the pews paying attention to my sermon. The granddaddy of investing in stock warrants was Sidney Fried, who died in 1992 at age 72. He was active from the 1950s to the 1970s, publishing a warrant survey newsletter, “The RHM Warrant Survey”, and writing many books about warrants — all of which I own and have studied for many years. Despite his towering expertise about stock warrants, Fried was puzzled and frustrated that otherwise savvy investors ignored stock warrants. Today, I am an echo of that frustration. In his “The Speculative Merits of Common Stock Warrants”, published in 1949, Fried wrote: “…with potential profits and potential losses so great it is a source of wonder that so little understanding of the nature of common stock warrants exists not only among the investing ‘public’, who might be forgiven this sin, but even among the many ‘professionals’ of the business upon whom the ‘public’ depends for information and guidance.” The news of the past month reminds me of Fried’s frustration. Warren Buffett made another half-billon or so because he invests in common stock warrants. This time the warrants were with General Motors (he barely broke even here), but he made a bundle exercising his warrants for stock in Bank of … Continue reading

Special Situations Alert | What Would Your Broker Say?

THE WARRANT REPORT In this issue: Current Market Update Special Situations Alert In the current markets, we see two really interesting setups for the gold market. Last Thursday, gold broke a short down trend AND the MACD has now crossed over to the upside. Charts not shown. There is a good chance gold with proceed upward, at least for the short term. In our gut, we still see the chance for gold to retest the June lows but it is difficult to ignore this interesting short term setup. We advise remaining patient for now. Special Situations Alert Investors should always be on the alert for special situations that appear in the markets from time to time. Our definition of a special situation would be when opportunity and timing come together and present investors with a greater than normal chance for exceptional gains. We believe the current time in the equity markets is approaching this special situation and suggest that investors be ready to act soon by establishing positions in long/term warrants. In the United States with the totally dysfunctional government and a pending default on the government debt, the Dow Jones and the S&P 500 are holding up amazingly well. But, for how long we ask and why have they been so strong of late? The potential for a collapse is clearly upon investors. With a collapse, in our opinion, would come opportunity and this would present an excellent entry point for some of your favorite stocks. Many of our … Continue reading