FSU Editorial: "Gold in the Perfect Storm" by Dudley Baker 11/07/2007

GOLD IN THE PERFECT STORM - GOT LEVERAGE?
by Dudley Baker
PreciousMetalsWarrants.com
November 7, 2007

Investors in gold and silver have been richly rewarded the last few weeks as they have exploded to the upside. As we write this on Wednesday morning, gold is sitting on 839 (up 19) in the spot market and silver at 15.64 (up .40).

This morning the U.S. Dollar Index is plunging to new lows currently at 75.28 (down .75). In the U.S., the Dow is set to open substantially lower and the S&P 500 futures are down about 17 points, the Japanese Yen is down (perhaps more unwinding of the Yen carry trade) and oil is approaching 98 dollars a barrel. Seems to be the perfect storm unfolding for gold.

Nothing goes straight up, so a pullback would not surprise us but this would merely present another great buying opportunity as we see this bull market continuing for several months and extending into the April – June 2008 time frame. Based upon the views of other analysts we follow, a move to 1200, 1500 or higher is not out of the question within this time frame. Can you feel the excitement? Get ready for much more.

As we mentioned, we and other analysts have been looking for a pullback/consolidation but this strength is showing us the power of a bull market. We have all waited along time for this bull to arrive and now that it is here let’s make sure that we capitalize on the opportunities.

There are many different ways for investors to ‘play’ this powerful move in gold and silver. The simple way is to invest in mutual funds specializing in the natural resource and commodity stocks.

You could also utilize, the ETF’s (Exchange Traded Funds), or buy gold or gold coins directly.

For us, we prefer to invest in the common shares of mining companies and also long-term warrants on mining shares. We believe this is where the most money will be made by investors with the incredible leverage possibilities.

By focusing on the mining shares, leaps and long term warrants, investors are wisely using leverage without the fear and risk of short term volatility in the markets. As you may recall from our previous articles, our investments are basically within the commodity and natural resource sectors and the common shares or long term warrants trading on those shares. We are confident we are positioned correctly to not only generate capital gains, but have given ourselves the opportunity to create great wealth.

CONTACT INFORMATION
Dudley Baker
PreciousMetalsWarrants.com
Ajijic/Guadalajara, Mexico
Email l Website

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 we 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, much more. We do not make any specific recommendations in our service. We do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

Disclaimer/Disclosure Statement:
PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

The opinions of FSU contributors do not necessarily reflect those of Financial Sense