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Precious Metals Warrants IndexDudley Baker What is REALLY happening in the precious metals sector? You'll be very surprised! Market analysts, investment
newsletter writers and financial planners are always commenting
on how well the precious metals mining sector is doing, which
specific mining company stocks show better than average potential,
how well the HUI or XAU indices are performing, etc but they
are not telling you the whole story. There is much more
happening than such assessments would suggest and you are going
to very surprised by what the analysis below reveals. a) the Philadelphia Gold & Silver Index (XAU) - a capitalization weighted index composed of 13 companies involved in the gold and silver mining industry. Newmont Mining Corp., Barrick Gold Corp., and Anglogold Ltd. make up 49.38% of the index. b) the Amex Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) - a modified equal dollar weighted index of 15 companies involved in gold mining and non-hedging of their gold production beyond 1.5 years. Newmont Mining Corp., Gold Fields Ltd. and Freeport McMoran Copper Gold 'b' make up 43.21% of the index. c) the S&P TSX Gold Index (SPTGD) - an index of the 20 largest gold mining companies trading on Canada's Toronto Stock Exchange. Only 3 companies; Goldcorp,
Kinross Gold and Meridian Gold are included in all 3 indices.
Anglogold, Agnico Eagle Mines and Pan American Silver Corp. are
unique to the XAU; Helca Mining and Golden Star Resources are
unique to the HUI.  Footnote: The Precious Metals Warrants Index is a Price Weighted Index and includes all warrants which were trading for at least 12 months as of 12/31/05. Calculations reviewed by Brenda Roxanne Samaniego, CPA. Never heard of most of them?
True, most are rather obscure, but one of them is going to change
the way you look at investing in the precious metals mining sector
from now on. It is #1 on the list above - the proprietary Precious
Metals Warrants Index (Composite). More than 50 companies in
the precious metals mining business offer warrants which are
trading in the United States and Canada (in addition to their
common stock) and they are now regularly tracked, analyzed and
published by PreciousMetalsWarrants.com. Then there is the two-fold leverage of warrants but that is another story (see a recent article titled, "Why Warrants? Why Now? (Part 2)". Dudley Baker Dudley Baker is the owner/editor of Precious Metals Warrants, a market data service which provides you with the details on all mining & energy companies with warrants trading on the U.S. and Canadian Exchanges. As new warrants are listed for trading they alert you via an e-mail blast. You are provided with links to the companies' websites, links to quotes and charts, tips for placing orders and much more. Precious Metals Warrants do not make any specific recommendations in their service. They do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders. For those investors seeking more knowledge on warrants do visit the Learning Center at Precious Metals Warrants, where you will find much more information and examples to enhance your learning experience. You may also sign up for The Warrant Report free weekly email. Disclaimer/Disclosure |
