OPTION & LEAPS

This table alone is worth our subscription price.

"Dudley, I owe you big!!!! The investment in your site has made me several hundred thousand dollars and I have recommended it to several of my friends. Keep up the good work."

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"Precious Metals Warrants is the leader in education and information on warrants."

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"We stress subscribers consider
warrants as investments not speculation and focus on warrants with a remaining life of at least 2 years."

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"Precious Metals Warrants provides subscribers email alerts for news on warrants and many proprietary links for information in our database not found anywhere else."
 

A Warrant gives the holder the right, (but not the obligation), to purchase the underlying stock at a specific price, within a specified time period.  In essence, a Warrant is a long-term option.   

Warrants are usually issued by a company in connection with a private placement or financing arrangement.  Some of these Warrants remain privately held and do not trade in the open marketplace.  Our service only covers Warrants which are tradable on the exchanges. 

As an individual investor, your objective is usually to only trade the Warrant, not to exercise the Warrant and the Warrants trade freely, just like the common stock.    

Currently there are many Warrants trading with  expiration dates out to the year 2011.   Warrants expiring within, say, 2 years, while they may possess great upside leverage, also pose a greater risk.   It is widely recommended for most investors to focus on Warrants with at least 2 years left before expiration date.  

In the very popular and highly recommended book, &";The Coming Collapse Of The Dollar And How To Profit From It” by James Turk and John Rubino, they discuss options and LEAPS as a possible avenue for investing in the mining stocks.   They did not discuss our third possibility, warrants, which we feel is more “investor friendly”. Why?  Because of the all-important element of TIME.  How many times have your options expired worthless but yet within a few months or so your stock goes up; you just ran out of TIME.  (James Turk is now one of the many professionals who are subscribers to our service).

For more information on Warrants click on "Our Favorite Articles" and read "What Are Warrants?"

Good  Question   -   Simple  Answer 
Increase Leverage - Decrease Risk
A Win-Win Situation

Leverage

The reason most investors acquire Warrants is to increase their Leverage.   

Most investors are looking for at least a 2:1 ratio.   In other words, if the common stock doubles (100%), we are looking for a minimum 200% move in the price of the Warrant.  

Decrease Risk  

Another primary reason for buying Warrants, in lieu of the common stock, is to decrease your investment dollars and thus your risk all the while maintaining the same equity position. 

For example, say, Bema Gold is trading at $3.00 USD, while the Warrant is trading at C$2.28 , say $1.84 USD.  Thus, a purchase of 1,000 warrants for $1,840 in lieu of 1,000 shares of Bema common for $3,000 has reduced your investment dollar exposure/risk while maintaining your equity control of 1,000 shares and still provides the great upside leverage we are looking for!  Also, if Bema Gold incurred financial hardships and became worthless, (just an example folks) you would have less dollars at risk with the Warrants and therefore a smaller loss.

WARRANTS
 'Opportunities for ALL Investors'

Short-Term and Aggressive Investors

Warrants offer incredible opportunities for those investors seeking short-term gains by focusing on those warrants expiring within 12 months.  The average investor must be cautioned to the additional risk involved in the short-term warrants but incredible gains have been made by many investors in warrants of Peru Copper, Northgate Minerals and Blue Pearl.  Click on each of the links above to see the charts of the incredible gains within the last few months.  Perhaps YOU can pick the next winner out of our Warrant Database!

Option investors shouldconsider the possibilities of including warrants in their investment strategies along with call and put options and LEAPS.  More opportunities, more possibilities, more flexibility = greater potential profits.

Long-Term Investors

For those investors with a longer term horizon of the precious metals and energy markets there are many warrants trading which have a remaining life until expiration of 3 years, 4 years and more.

You determine your favorite mining stock which has warrants trading will a long-term life and thus establish a long-term position and do not concern yourself with the daily, weekly or even monthly movements in the markets.  Relax, enjoy the ride, and sleep well at night knowing you are positioned with the long-term trend.  

RECENT   EXAMPLES

LEVERAGE

LEVERAGE

LEVERAGE

This is what we are looking for folks.  While this is an incredible return on one's investment, a return of this magnitude is not out of the question on many of the Warrants that are trading today (given the outlook by some of the top analysts for a secular bull market in precious metals). 

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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.