Gold Stocks versus Broad Stock Market

The Warrant Report January 22, 2013 Gold Stocks versus Broad Stock Market In this issue: Gold Stocks Versus Broad Stock Market Gold Mania Phase Approaching for Juniors The mystery behind the Bundesbank’s gold Gold Stocks Versus Broad Stock Market We found this analysis interesting from our friend Steve Saville at and we bring to you a few of his recent quotes: “Investors in gold stocks often worry about what will happen to their investments if the broad stock market falls. The worry is that the gold sector will be dragged down by the broad market. Based on logic and historical data, this worry is generally unfounded. On a long-term basis the gold sector is inversely correlated with the broad stock market in that secular bull markets in gold equities coincide with secular valuation declines in general equities. This is the way it should be, because the demand for gold as an investment and as a store of value ramps up as central banks and governments attempt to fight the conditions associated with declining equity valuations. On a short-term basis there is no consistent relationship between the gold sector and the broad stock market. The two are uncorrelated. Sometimes they trend in the same direction, sometimes they trend in opposite directions. Over the past two years the gold sector (as represented by the HUI) and the broad stock market (as represented by the SPX) have more often than not trended in opposite directions. The following chart comparison of the HUI … Continue reading

LEAPS: Table Updated

The Warrant Report January 14, 2013 LEAPS: Table Updated Dudley Pierce Baker www.JuniorMiningResources.comThis week we updated our LEAPS Table which we make available for our paid subscribers to and If you are asking, ‘what the heck is A LEAP?’ hang on for a minute and we will explain. It would take many hours for investors to research all of the LEAPS which are available for the resource shares and listed on the Chicago Board Option Exchange, Frankly, more like, how many days? We have done the work for our subscribers as we list ALL of the resource companies with LEAPS and we have a hyperlink for you to Yahoo Finance to the longest term LEAPS-Option available. For example: Company           Symbol & Link      Expiration Date                               New Gold                   NGD                   16-Jan-2015 Normally there are not many changes in the LEAPS available and thus it is only necessary to update our table on a quarterly or semi-annually basis. Recently the CBOE has extended the life and availability on many of the LEAPS and the longest life is now 16 January 2015. You might ask; “why are we excited at the new extension of the LEAPS life at this particular time?” Frankly, our subscribers know that I represent the most bullish newsletters in the resource sector, and I am not a lone ranger as many of the ‘big-boys’ are also extremely bullish, i.e., Rick Rule, Pam Aden, Steve Saville, Doug Casey and the list goes on…. Yes, we have … Continue reading

‘The Dark Side of Investors Dreams’

The Warrant Report January 7, 2013 ‘The Dark Side of Investors Dreams’ The year 2013 has already seen incredible volatility in gold and silver and we would like to share with you our views as to where we have been and our vision of where we are going in the not to distance future.You may recall four (4) years ago we wrote an article titled, “The Dark Side of the Dream” so we will bring it up to the present while quoting much of our previous writings. The last four or five years have been a nightmare for many investors especially those of us investors in the natural resource stocks. Even though gold and silver rallied to new highs in 2011 most shares did not follow and have in fact greatly lagged in performance.Of course there have been some winners, some big winners for us, and we have several of those shares or warrants in our portfolio which is available for paid subscribers. But we know as well as you that on balance, the natural resource sector has been a nightmare for investors of the shares of juniors and exploration companies. Throughout the darkest hours we never lost the vision of our dream. The reasons for us investing in the natural resource shares over the last few years, particularly the gold and silver shares, gold and silver bullion and coins, has never changed. All of the reasons for investing in this sector are even more compelling today than ever: the … Continue reading