Look! Gold and Silver Company Warrants Dramatically Outperform Gold Bullion and Gold

An Inside Look at the World of Gold & Silver Company Warrants

*
MunKNEE.com Editor-in-Chief Lorimer Wilson Holding a Gold Bar


The world of warrants is the best kept investment secret around. No one seems to realize that long-term (LT) gold and silver warrants were up 140% and 92%, respectively, in 2009 and 2010*in U. S. dollar terms. Investment and financial writers go on and on about gold being such a great investment these days but gold was up “only” 24% and 30%, respectively, during the same time frame. Isn’t it time investors, analysts and commentators conveyed the truth, the whole truth and nothing but the truth when it comes to investing in gold bullion and gold-related securities? This article will do just that!*Words: 1164

So*says*Lorimer Wilson*(www.FinancialArticleSummariesToday.com)*and editor of www.munKNEE.com.*Please note that this paragraph must be included in any article reposting with*a link* to the article source to avoid copyright infringement.*Wilson goes on to say:

The world of warrants*consists of*only 135 stars (i.e. constituents) of which only 32 are associated with 29 commodity-related stocks that have sufficient brightness (i.e. 24+ months duration) to warrant (the pun is intended!) the attention of earthly investors.

Warrants have been the best kept ‘secret’ of the investment world (when was the last time you read an article on warrants or had your financial advisor broach the subject?) until now so pay attention to the particulars provided below, prepare with proper due diligence and enjoy the prospects of future prosperity.

Warrants: A Definition

Before going any further it is important to know that warrants are *securities which gives the holder the right, but not the obligation, to acquire the underlying securities at predetermined (i.e. exercise) prices and within a specified period of time (i.e. term or duration).

The Commodity Company Warrants Index (CCWI)

The 32 LT*individually tradable warrants*of the*abovementioned*29 companies (3 companies have 2 warrants each)*have been gathered together into an equal dollar-weighted, proprietary basket which*I refer to as the*Commodity Company Warrants Index (CCWI). To date no ETF exists to take advantage of the leveraged performance of such securities but I believe it is just a matter of time.*

The CCWI was up 242% in U.S. dollar terms in 2009 and a further 91% in 2010!

Most financial writers and advisors are of the mistaken impression that warrants are just associated with penny stocks – the ‘juniors’ – but as the breakout of commodity-related companies with LT warrants*by market cap below shows that is not entirely the case:

5 (17%) are large-cap companies*(i.e. >$2.5B);
3 (10%)* are mid-cap (i.e. $500M – $2.5B);
5 (17%) are small-cap (i.e. $250 – $500M);******************************************* ************************************************** *******************************
9 (31%) are micro-cap (i.e. $100M – $250M);
7 (24%) are nano-cap (i.e.