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Warrants - It's all about Leverage!Dudley Baker Many of the top analysts believe we are in a secular bull market in Precious Metals. Given that background, savvy investors are confronted with numerous different ways to invest given their individual preferences and levels of risk tolerance. Again, seems many analysts
today are recommending having 5% - 10% of your Portfolio in precious
metals. So, how does one play this game? You could purchase Gold
Bullion, Gold Coins, Mutual Funds, such as the widely respected
World Precious Minerals Fund, symbol (UNWPX), the new Exchange
Traded Fund (ETF), symbol, GLD, or Gold and Silver mining shares. Warrants offer you Increased Leverage over the other forms of investing. So, we ask, if you are only going to "invest" 5% - 10% in the Precious Metals, why not attempt to maximize your investment returns? You may be asking, what is
a Warrant? A Warrant is similar to an option, except a Warrant
is usually issued with a life of between 2 years to 5 years.
A Warrant gives the holder the right, but not the obligation,
to purchase the underlying stock at a specific price and expiring
on a specific date in the future. It is recommended that investors
purchase Warrants that have at least 2 years remaining before
the expiration. The objective here should be to "invest" in the long-term Warrants trading today. Numerous Warrants trading today do not expire until late 2007, even out to 2010. There are many Warrants trading that will provide incredible Leverage, if we are in a secular bull market . Leverage is what it is all about. An investor should be looking for Warrants that will result in at least a 2:1 Leverage, meaning that if the underlying common stock goes up 100%, the Warrants will appreciate at least 200%. 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 |
