Posted on November 3, 2017 by Egon von Greyerz We are currently standing before one of the most unique and frightening periods in history. Never have there been so many extremes in so many different areas. In the last 100 years everything seems to have developed so much faster, including population, technology, inflation, debt, money printing, budget deficits, stock, bond and property prices, crypto currencies etc. All of these areas are now in an exponential growth phase. The final stage of exponential growth is explosive and looks like a spike that goes straight up. A spike for a major sample like global population or the Dow never finishes with just a sideways move. Once a spike move has finished, it always results in a spike move down. It seems that everything in the world is developing much faster today like computers and mobile phones or robots. The world assumes that this … Continue reading

Resource Sector – Time to Sell or Double Down

Resource Sector – Time to Sell or Double Down?

I believe most would agree that the resource sector presents the most challenging investment climate for investors.

Timing is everything as you buy and sell and frankly, you better get it correct or at least very close to correct. Entering the market buying shares or stock warrants in mining companies too early sets one up for great disappointment and periods of depression. You might look up and see your positions down 10%, 20%, 50% or more.

The seasoned investor knows this game and while we do not like it, it is sometimes part of the process of investing in this space. This is truly an art, so to speak, of picking your preferred companies and time the entry of your buying.

Why do we continue to invest in this space is a frequent question. The answer is simple in that when we succeed in picking the correct companies and the markets are in a bull market, great gains of hundred’s or thousand’s of percent can be achieved.

Today, gold, silver and shares are being sold by investors, begging the question is it time to sell or double down? For me, the answer for investors is to be patient, (even with your losing positions). If you sell now your loses are real with no chance of those large upside gains in the future. It is an individual decision whether to double down, but in my opinion, if you still like the companies in which you have invested, it makes perfect sense at this particular time.

Even most of the best companies shares have sold off in this market decline, sort of ‘throwing the baby out with the bath water’ theory, but don’t allow yourself to be part of this philosophy. Be smart, hold tight and/or buy more shares and/or stock warrants in those companies which you like and see great upside potential.

One of the most savvy investors in the resource sector is our friend, Rick Rule. Rick in this month’s issue of Resource World gives his opinion of this very subject and it is a great read for all investors.

Contrarian investor Rick Rule shares his winning strategies

Today the markets are presenting resource investors with a true contrarian investment philosophy, this is not the time to run.

My preference is to ‘play this game’ with the junior mining shares and/or stock warrants.

However, many investors are finding great opportunities with warrants on the U.S. stocks in other sectors, biotechs, pharmaceuticals, banking, etc.

Remember that only 25% or so of my personal portfolio is in stock warrants, the balance are common shares in the junior mining companies and I am on the hunt for new additions to my portfolio.

There are many interesting opportunities in stocks as well as the stock warrants available today, so if you not a current  subscriber, LET’S GET YOU STARTED NOW.

The next several years, 2017 – 2020 will see some exciting times in the PM sector and I am looking to make
a fortune. Do you want to follow me? Let’s have some fun and make money together.

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From the shores of Lake Chapala, Jalisco, Mexico

Dudley Pierce Baker