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Canadian Dollar, Mining Stocks & Warrants



-- Posted Wednesday, 3 May 2006 | Digg This ArticleDigg It!

Dudley Baker

Precious Metals Warrants

May 3, 2006

 

 

Are you keeping up with the Canadian Dollar (commonly known as the Loonie)?

 

The Canadian Dollar is now the strongest currency in the world and there have been many forecasts of parity with the U.S. Dollar and as of today, the Loonie is trading at 90.35 as we write this article.

 

The first and second charts below shows the strength of the Loonie over the last year and the third chart is of the XAU Gold Index.  Observe the long term trends in all of the charts.

 

 

 

 

 

 

 

For investors around the world how can you best position yourselves to benefit from the rising value of the Canadian Dollar?

 

If you are like many of us, you are currently participating in the bull market in the commodities sector, specifically, in the precious metals, i.e., gold, silver, copper, zinc, etc.  If you are not on board this rally perhaps we can enlighten you to some different ways to benefit not only from the Canadian Dollar but also from your investments.

 

When an investor purchases shares in the Canadian mining companies you are in essence invested in the Canadian Dollar.  With the Canadian dollar increasing relative to your country’s currency, your investment is increasing.  As the value of your Canadian investments increases, you win again.  Thus, you gain from the increasing in the currency as well as the increase in your investments in the mining shares or perhaps, long-term warrants on the mining shares.

 

The point is, currently investors are experiencing the best of both worlds and we would expect this trend to continue with normal corrections along the way for at least several more years.

 

We, as investors ourselves, prefer to defer to the experts, Jim Dines, Doug Casey, Pam & Mary Ann Aden, James Turk and others as to the continued direction and strength of the current bull market.

 

Perhaps you are a conservative investor and neither you nor your investment advisor are currently aware of the bull market in the commodity sector.  We believe that soon, within the next few months or within the year, you, yes, you will be investing in this sector, so the choice is yours, now or later.

 

Investors have many wonderful opportunities for investments from the gold and silver bullion, ETF’s of gold and silver, mutual funds, mining shares and for those investors looking for additional leverage, long-term warrants on mining shares, some of which do not expire until 2011.

 

As the experts mentioned above believe, this bull market has strong legs and many years to run, we accordingly suggest investors position themselves and not to worry about the day to day fluctuations of the market.

 

The important thing for all investors is to recognize the big picture, take a position and enjoy what may be the ride of our lifetime.

 

May 3, 2006

Dudley Baker

Email:  info@preciousmetalswarrants.com

Website: PreciousMetalsWarrants

 

 

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.

 

 

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.


-- Posted Wednesday, 3 May 2006 | Digg This Article




 



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