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Precious Metals
Warrants Index
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.
Like the broad
market DOW, S&P 500, S&P/TSX etc indices, there are a number of
precious metals (gold or otherwise) mining indices that dice and
splice the components of the precious metals mining sector to
arrive at a wide variety of insights. Not just the 2 or 3 that
you might be aware of but as many as 42 in all (see a complete
list below).
The 3 most
popular precious metals mining indices are:
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.
But what about
those other indices? Here they all are in order of performance
during 2005:
|
Rank |
INDEX NAME |
2005
Incr. |
-
|
Precious Metals Warrants Index (PMWI) (Composite) |
51.4% |
-
|
DJ US
General Mining Index |
46.0% |
-
|
S&P/TSX
Capped Diversified Metals and Mining Index |
45.2% |
-
|
CBOE
Gold Stock Index |
44.6% |
-
|
FTSE
Gold Stocks Index - Africa |
42.5% |
-
|
DJ
US Mining Index |
41.9% |
-
|
FTSE
Gold Mines Index - Australasia |
39.9% |
-
|
Philadelphia Gold and Silver Index (XAU) |
37.0% |
-
|
Barron’s Gold Mining Index |
36.2% |
-
|
DJ
Gold Mining Micro Sector Index |
33.3% |
-
|
FTSE
Gold Mines Index – America |
31.5% |
-
|
Amex
Gold Miners Index |
29.1% |
-
|
Amex
Gold BUGS Index (HUI) |
28.6% |
-
|
Dow
Jones Precious Metals Index |
28.3% |
-
|
Global
Gold Index |
28.2% |
-
|
Shultz
Gold Stocks Index |
27.8% |
-
|
ISE
Gold Index |
27.3% |
-
|
S&P/TSX
Gold Index (SPTGD) |
25.8% |
-
|
Globe
Precious Metals Peer Index |
23.3% |
-
|
iUnits
Gold Sector Index |
22.8% |
-
|
DJ –
AIG Precious Metals Spot Index |
21.3% |
-
|
DJ –
AIG Precious Metals Total Return Index |
20.4% |
-
|
DJ US
Gold Mining Index |
19.7% |
-
|
Goldman
Sachs Commodity (Precious Metals) Index |
19.5% |
-
|
Goldcolony Index of Junior Gold Stocks |
18.9% |
-
|
Gold
TRAKRS Index |
18.2% |
-
|
iShares
COMEX Gold Trust Index |
17.6% |
-
|
Australian Gold Emerging Producers Index |
16.8% |
-
|
DJ –
AIG Precious Metals Index |
16.6% |
-
|
Canadian Gold Producers Index |
13.4% |
-
|
Australian Gold Producers Index |
7.4% |
-
|
Australian Gold Juniors Index |
5.9% |
-
|
DJ US
Platinum & Precious Metals Index |
2.8% |
-
|
CBOE
Power Packs Gold Index (Started July/05) |
N/A |
-
|
IBD
Gold Stock Index |
N/A |
-
|
Junior
Gold Stock Index (J. Taylor) |
N/A |
|
37. |
TSI
Gold Stock Index |
N/A |
|
38. |
South
African Gold Producers Index |
N/A |
|
39. |
Financial Sense Junior Gold Index (Composite) |
N/A |
|
40. |
Financial Sense Junior Gold Index (Junior Producer Cos) |
N/A |
|
41. |
Financial Sense Junior Gold Index (Junior Development
Cos) |
N/A |
|
42. |
Financial Sense Junior Gold Index (Junior Exploration
Cos) |
N/A |
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
Yes, 2005 was a
good year for precious metals with rhodium up 125.6%,
uranium 76.8%, palladium 38.2%, silver 29.5%, ruthenium 27.9%,
gold 18.2%, iridium 14.7%, and platinum 12.1% while molybdenum
was down 11.7%. It was even better for the companies who
mined the various minerals with their stocks up in excess of 40%
on average depending on the index used. But the best way
to have played the precious metals market in 2005 was to have
been invested in a complete basket of precious metals warrants
which realized an outstanding 51.4% increase.
February 7, 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.
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Disclosure/Disclaimer Statement
PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. 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.
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