The Warrant Report
‘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 massive printing of monies by the FED will we believe lead to incredible inflation, if not hyperinflation. Now we have Japan to open the printing presses.
While it would not have been unusual to experience a pullback in the markets, virtually no one, professional or individual investor, expected what has occurred. The Dark Side of the Dream, every investors dream and perhaps yours, of becoming rich in the bull market in the commodity stocks is either over or greatly delayed. So which is it?
The markets never play out the same way from one bull market to another. This interruption in the bull market in the natural resource sector will become one of the greatest head fakes of our time. A great shakeout so extreme that many investors have been so badly shaken they may never return to buy shares or long term warrants in the resource sector again. Or will they?
Emotions and investing are rarely compatible bedfellows. Strangely, investors, frequently, at the worst of times will sell out their positions because of fear, ignoring all facts, all reason, and will perhaps greatly regret their decisions. These same investors will once again enter the markets but not until they can no longer stand it as the markets are approaching their peaks. The emotions of these same investors will allow them to overstay their welcome and ride the markets down into the depths once again.
Most of our fellow newsletter writers as well as ourselves are ringing the bell for investors to be buying now. However, seems few are listening. As a contrarian, we love it and you should too.
For the investors with their eyes still open, we suggest the accumulation of selected junior mining shares and long-term warrants in this sector while they are still available at these ridiculously low prices. Time is fast running out so you must make a decision very soon. We see only three choices for investors: 1) Those that will never buy another share in the resource sector, 2) those that will just wait and see what happens for now (meaning to us, buying at substantially higher prices) and 3) those that recognize the opportunity of a lifetime and are buying now. Your Choice.
We trust that all of our subscribers will be with us at the finish line perhaps a few years from now with smiles on their faces, with their new found wealth and proud of themselves having weathered the stormy seas and the darkest days of this tricky and nasty, “bull market”.
See you there.
EDUCATION – INVESTMENT IDEAS – PERFORMANCE
Dudley Pierce Baker
Founder and Editor