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Chuck E. Cheese Will Soon Be Publicly Traded

I dare say that every parent, grandparent, aunt and uncle, everyone, has been to a Chuck E. Cheese somewhere in the world.

Chuck E. Cheese will soon be completing a merger with Leo Holding Corp., a blank check company, sometimes referred to as a Special Purpose Acquisition Corporation - (SPAC) which will allow CEC to become a publicly traded company. Upon the completion of this business combination, the new name will be Chuck E Cheese Brands, Inc. and new symbols will be issued for trading.

Leo issued a press release announcing that it has scheduled the extraordinary general meeting of its shareholders to approve the Business Combination for July 30, 2019. However, I caution investors, until this merger is finalized issues can still arise, and until the deal is done, the deal is not done.

Leo Holding Corp. currently trades as LHC on the New York Stock Exchange as do the stock warrants which trade as LHC.WS.

Soon investors will have another restaurant and entertainment company trading which might represent an attractive opportunity depending upon your personal investment objectives.

My fascination and purpose in writing this article is that Leo Holding Corp. has stock warrants trading which will become stock warrants of the new company which may be of interest to many investors.

Currently in our databases, there are 66 blank check companies trading and with each company there is a stock warrant trading which was issued in the initial offering of the blank check company. All of these 66 companies are seeking merger candidates.

The stock warrants have a life of 5 years from the date of the merger which in effect gives holders of the warrants a 5 year call option and a wonderful opportunity to benefit from the upside performance of the company.

The exercise price of these stock warrants is $11.50 and one warrant buys one common share.

While the deal is not yet completed, the current trading price of the common shares is $10.26 and the stock warrants $1.20.

The stock warrants appear to be an interesting way to participate in the growth of Chuck E. Cheese and at a substantially lower entry price of approximately 90% less than buying the common shares and with great upside leverage possibilities. A win-win situation.

Upon the closing of this transaction, new stock and warrant symbols will be issued.

Company Specifics

About CEC Entertainment, Inc.:

"CEC Entertainment. Inc. ("CEC"), headquartered in Irving, Texas, was originally incorporated under the name ShowBiz Pizza Place, Inc. In 1998, the company changed its name to CEC Entertainment, Inc. Today, CEC is the nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese and Peter Piper Pizza venues.

CEC Entertainment, Inc. is the nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese and Peter Piper Pizza venues. As America's #1 place for birthdays and the place Where A Kid Can Be A Kid®, Chuck E. Cheese's goal is to create positive, lifelong memories for families through fun, play and delicious handmade pizza. With the first-of-its-kind gaming experience, All You Can Play, kids have access to play every game at Chuck E. Cheese, as many times as they want on any day, without any restrictions. Committed to providing a fun, safe environment, Chuck E. Cheese helps protect families through industry-leading programs such as Kid Check®. As a strong advocate for its local communities, Chuck E. Cheese has donated more than $16 million to schools through its fundraising programs and supports its new national charity partner, Boys and Girls Clubs of America. Peter Piper Pizza features dining, entertainment and carryout with a neighborhood pizzeria feel and "pizza made fresh, families made happy" culture. Peter Piper Pizza takes pride in delivering quality food and fun that reconnects family and friends. With a bold design and contemporary layout, an open kitchen revealing much of their handcrafted food preparation, the latest technology and games, and beer and wine for adults, Peter Piper Pizza restaurants appeal to parents and kids alike. As of December 30, 2018, the Company and its franchisees operated a system of 609 Chuck E. Cheese and 141 Peter Piper Pizza venues, with locations in 47 states and 14 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com."

About Leo Holdings Corp.:

Leo Holdings Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.

Annual Guidance

The Company is again reiterating its annual guidance that was referenced in the investor presentation related to the definitive business combination agreement with Leo, which includes the following:

  • Total revenues of $929 million;
  • Comparable venue sales growth of 4.2%;
  • Adjusted EBITDA(1) of $187 million;
  • Four net Peter Piper Pizza openings and 11 net international franchised Chuck E. Cheese openings; and
  • Capital expenditures of $95 million to $105 million.

Second Quarter and Year-to-Date 2019 Sales Results Comparable venue sales increased 0.4% in the second quarter of 2019 and increased 4.5% in the first half of 2019. “We generated our fifth consecutive quarter of comparable venue sales growth due to the positive impact of the All You Can Play game packages and More Tickets initiatives and despite the estimated 1.8% negative impact from the shift of Easter and the corresponding timing of Spring Breaks in the second quarter 2019 versus the first quarter 2018.

Through the first half of 2019, our comparable venue sales growth was an impressive 4.5%,” said Tom Leverton, Chief Executive Officer. “Looking ahead, we are re-affirming the annual guidance that we first laid out in April. Our team is doing a solid job of advancing the Chuck E. Cheese brand through planned initiatives while simultaneously further improving the guest experience. We continue to be pleased with the results of our venue re-imaging project and are on track to complete the targeted 60 venue remodels in the back half of this year.” As of June 30, 2019, the Company’s system-wide portfolio consisted of:

                                                  Chuck E. Cheese’s               Peter Piper Pizza         Total

Total Company operated                         516                                    38                           554
Domestic franchised                                 25                                    61                             86
International franchised                             68                                    42                           110
Total                                                       609                                  141                           750

 

Complete financials can be found on the company’s website.

Investors are encouraged to perform your own due diligence and/or seek the advise of your financial advisor before buying any shares are warrants.

Some Fool Just Sold These Stock Warrants

July 15, 2019
By Dudley Pierce Baker
Founder - Editor
http://CommonStockWarrants.com

I'm going to vent for a moment.......

This morning before the markets opened I saw that stock warrants on one of my favorite companies had an Ask Price of $C0.16 and 75,000 warrants available. Meaning I could have bought 75,000 warrants at C$0.16.

Well I got busy and missed this trade but I am wondering, what fool sold these warrants? Surely not one of my savvy subscribers.

I own a whole bunch of these warrants and while I really don't need to own more, why not, por que no, as I see these warrants selling at substantially higher before they expire in October 6, 2021.

To be specific the stock warrants are on Equinox Gold, TSXV:EQX and EQX.WT
The warrants expire on October 6, 2021 and have an exercise price of C$3.00

I love this story and legendary Ross Beaty now heads up the company as Chairman of the Board and currently owns over 66 million shares and 3 million of these stock warrants.

Gold production is anticipated to be over 200,000 oz by years end and I am looking for the gold market to explode to the upside over the next year or two, probably much sooner. Of course, with higher gold prices for a producer the revenue goes to the bottom line.

Our colleagues at TheTechnicalTraders are very bullish as well and they approach the markets from a technical perspective.

Their last article should be of interest to all investors,

Could Gold Launch Into A Parabolic Upside Rally?    Recently posted on my http://JuniorMiningNews.com website

So back to my point, why would any investor sell the warrants when there appears to be so much upside, in my opinion. Personally, I can see these warrants selling for several dollars, not pennies, C$2, C$5 perhaps more before the warrants expire.

I guess this is what makes markets....

E.B. Tucker with Casey Research, recently referred to Dudley as 'the top expert in the field with over 40 years of experience' with stock warrants.

"I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well."

My Warrant Database:
There are many other exciting opportunities in my stock warrant databases in all industries and sectors, with something for everyone, resources, biotechnology, biopharmaceuticals, cannabis/marijuana and much more.

If you are not a current subscriber, this would be a great time to GET STARTED.

Need more information on warrants, download my FREE book below:

 

Gold Forecast: Gold Is Going Parabolic

 

July 5, 2019
Chris Vermeulen
TheTechnicalTraders.com

Gold Forecast:  Gold Is Going Parabolic

Investors don't forget the great opportunities available with stock warrants which will increase your potential gains and greatly decrease your investment cost by at least half.

E.B. Tucker with Casey Research, recently referred to Dudley as 'the top expert in the field with over 40 years of experience' with stock warrants.

"I also encourage you to check out the work from our friend Dudley Baker. Dudley is the founder and editor of Common Stock Warrants. He’s been trading warrants for 40 years and has developed an exclusive database of all stock warrants trading in the U.S. and Canada. We’re paid-up subscribers as well."

 

Stock Warrants - Power Point Presentation

 

Jeff Baker
Senior Analyst - Admin/Web Developer
B.Sc. Geological Sciences (UTEP)
Common Stock Warrants & Junior Mining News

Gold Price Signals Next Global Crisis

GOLD PRICE SIGNALS NEXT GLOBAL CRISIS

June 27, 2019

by Egon von Greyerz

Finally it happened although it took 6 long years to break through The Gold Maginot Line at $1,350!

This resistance was a lot stronger than the original French one in WW II since it took the Germans less than a year to penetrate it in 1940.

But we must remember that the rising gold price is a warning signal for the coming economic crisis.

In my article on February 14th I said.

“No one must believe that the line will hold. It is extremely likely to be penetrated conclusively in 2019 and most probably within maximum the next three months.”

It took four months for the break to happen so I was one month out. Still it had to happen. I also said in the article that:

“once it is broken, the correction of gold is finally over and we are on our way to new highs and much beyond.”

So that’s where we are today. The break has now finally taken place and I doubt that we will see $1,350 decisively broken on the downside in my lifetime. The 6 year resistance line has now become an extremely strong support line.

Yes, gold will go quickly to $1,650+ on its way to new highs and far above that. As I have said many times, we will see levels that no one can imagine today.

GOLD RALLY HAS BARELY STARTED

The precious metals rally hasn’t really started yet. Gold has moved up $125 since May 30th but silver is lagging behind with the gold/silver ratio at over 92, a new high for this century. The paper silver shorts are fighting a desperate battle to hold the white metal down. They will eventually fail of course, although we could see the ratio going a bit higher before it turns. Once the turn comes, the silver price will explode and go up more than twice as fast as gold. If the ratio reaches the 30 level as in 2011, silver will go up 3x as fast as gold. When gold reaches $2,000, silver should reach $66. But that is only the beginning. But we must remember that silver is extremely volatile and not for the faint hearted.

Platinum has not yet joined gold and is creeping along the bottom at levels seen in 2004 and 2008. At some point, platinum will take off and most probably move a lot faster than gold.

DOLLAR HAS STARTED ITS JOURNEY TO PERDITION

Finally, the dollar now seems to be starting the journey to zero. It clearly won’t happen overnight but it is guaranteed that we will see the end of the dollar and its reserve currency status in the next few years.

GOLD IS NOT AN INVESTMENT BUT WEALTH PRESERVATION

Many savvy investors are now talking about gold and the potential for much higher prices, just as I have done above. But we must remember that we are not holding gold as an investment but for wealth preservation purposes in order to protect against a rotten financial system, and a bankrupt global economy.

Gold is not held for short term gains but as insurance against the massive risks we see in the system. We are not in gold to take part in a price move. Instead, gold is the consequence of our analysis of global risk which is at an extreme. At the same time as many impatient holders of gold are now rejoicing over the price move, we must remember that the very strong rise of gold that we are about to see, is a warning signal of very difficult times ahead in the world which I have been discussing many times. I obviously don’t want to be a joy killer so let’s enjoy this first proper rally for six years.

THE ILLUSION IS OVER AND THE DARK YEARS ARE HERE

But let us at the same time realise that we are in the next phase going to experience the Dark Years that I have written about in the past.

The Dark Years are the consequence of a world that for decades has lived above its means, in the belief that credit and printed money can bring prosperity. We will soon experience that this has all been an illusion which will painfully turn into a harsh reality. That means, an implosion of debt markets and also of all the bubble assets that have been financed by the debt.

The biggest risk is the $1.5 quadrillion derivatives market which at some point will evaporate in smoke. These derivatives only function in bull markets when there is liquidity in the system. In the coming bear markets, there will be no liquidity and the derivatives bubble will implode as counterparty not only fails but also disappears.There will be no one on the other side of all these derivative trades which have been the most massive money spinner for the bankers. I will later talk about Deutsche Bank as an example of the coming derivatives disaster.

IS VENEZUELA SHOWING THE WAY?

The consequences of the coming financial and economic global cataclysm will clearly have a major impact on human beings around the world. We can just look at Venezuela to understand what happens when a mismanaged country runs out of money and turns to money printing on a massive scale in a futile attempt to remedy its failures. The majority of the Venezuelans have no money, not enough food, water or fuel and no medicines. By the end of 2019, 5 million desperate Venezuelans will have fled the country. That then has repercussions for the surrounding countries Columbia, Peru, Chile etc that has little capacity to help the refugees. This problem will of course be much greater when it becomes global and most countries are in the same situation which means that no one has the capacity to help their neighbour.

FED STATEMENT WAS THE TRIGGER BUT NOT THE CAUSE

So what happens next. Well, there are always catalysts that trigger the inevitable. The recent gold rally wasn’t caused by the Fed statement. It would have happened anyway. The Fed was just the trigger. Gold was poised to rally and there is always a catalyst or an excuse that the media can hang it on.

Markets in the next few months will be extremely volatile. The US stock market is still in its final hurrah stage when any news is good news. Potentially lower rates due to a slowing economy should be very bearish for stocks but not in this final euphoric phase. US stocks as well as global markets are finishing their final moves up before a long term secular bear market starts. The fall could begin in the next few weeks or possibly take as long as 2-3 months. Before the decline is finished, we should see a fall of at least 90%, in real terms, just like in 1929-31.

When the bear market in stocks starts in earnest, investors will initially buy the dips but very soon the sustained bear market will surprise investors and when the crash stage starts, euphoria and optimism will soon turn to dysphoria and extreme pessimism. I have experienced this personally in the early 1970s in the UK when we thought that the downturn would never end.

CENTRAL BANKS WILL SOON PANIC

With the global economy slowing down and the financial system being under pressure, central banks around the world are now all in a rate cutting mode. The Fed is expected to make 4 cuts within the next 12 months and Draghi has just made clear that the ECB is standing ready with the whole gambit of stimulus. He indicated that further rate cuts “remain part of our tools” and also additional asset purchase which means more QE. And Kuroda of the Bank of Japan decided to join the other two money printers and just said “If the economy loses momentum toward achieving our price target, we will of course consider expanding stimulus without hesitation.”

So there we have it, a probable coordinated action by central banks to add further stimulus to an ailing world economy. And we know why, the world economy is slowing down a lot faster than any central banker dares to admit to. They also know of course that the next slowdown will lead to a lot of bad debt becoming worthless debt. Just take the $1.2 trillion corporate junk debt in the US. Or take the Chinese debt that has exploded from $2 trillion to $40t in this century or Italian debt which is 145% of GDP.

Or take the Japanese debt of Yen 1.1 quadrillion which is 235% of GDP and 70% owned by the Japanese government which is the only buyer of new issues. And even at just above 0% interest rates, Japan can’t afford even the interest on the debt without issuing more debt. As I have stated for a while, the Japanese economy will sink into the Pacific together with the Yen. I could go on since there isn’t one country which is in a sound economic position.

IS DEUTSCHE BANK THE SICKEST OF THEM ALL?

Just to give an example of a bankrupt bank and therefore a potential trigger for the next global financial crisis, let’s look at Deutsche Bank – DB. We only need to look at the share price which tells us everything. DB’s share price has lost 94% since 2007. A stock that loses all but 6% of its value is virtually guaranteed to go to ZERO.

It is only a matter of how long it takes. Since DB is one of the biggest banks in the world, a collapse would have implications for the global banking system. DB is just too big to fail. But it is also too big to survive. Especially as it has a sick balance sheet. DB is a global bank and also part of the German establishment. Thus neither the German government, nor the Fed or other central banks will let it fall without a massive rescue effort.

But how can DB survive with a balance sheet that would be the envy of the shrewdest fraudster.

Share capital and reserves are EUR 54 billion which is 1.8% of total assets. So a credit loss of 2% would make the bank insolvent. They will be lucky if credit losses would only reach 20%.

But wait, now we add derivatives at EUR 44 trillion. DB’s net worth only covers 0.1% of the derivatives. So a loss of only 0.1% on the derivatives portfolio is all it would take to bankrupt DB.

Now, like all banks, the DB management will argue that the net derivatives exposure is only a fraction of the EUR 44 trillion. What they are not taking into account is that when counterparty fails, gross exposure remains gross. Thus no netting. Also, as I explained above, when derivatives fail in a bear market there will be no liquidity and no buyers.

And this bank that the board states is worth EUR 54 billion as a going concern is clearly not considered as a going concern by the stock market since the market value is only EUR 13 billion or 23% of the board’s valuation. Hmmm!

DB is one of the worst banks, but when the financial crisis unravels, we will find that most banks are in dire straits. Unlimited money printing is not far away and with that comes hyperinflation and interest rates no longer negative or 0-2% but in the teens or higher.

WHAT WILL TRIGGER THE NEXT GLOBAL CRISIS?

The next crisis for the world is likely to start in the autumn of 2019. It will be a continuation of the 2006-9 crisis which was never solved but just postponed. This time the world is starting with a debt of $240 trillion, over twice the debt level of 2006. And risk is exponentially higher than last time.

The catalyst for the coming cataclysm in the world economy can come from anywhere, like Deutsche Bank, US junk bonds or Japan. Whatever the catalyst is, it will lead to panic in markets with confidence evaporating and fear setting in.

Now is the time to prepare for this. It will soon be too late. Physical gold should be part of everyone’s wealth preservation strategy.

Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management
Zurich, Switzerland
Phone: +41 44 213 62 45

Matterhorn Asset Management’s global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. Matterhorn Asset Management is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 60 countries.

BOOM – Gold Breaks Above $1300

June 2, 2019
By Dudley Pierce Baker
Common Stock Warrants

On Friday May 31st, Gold screamed above $1300 to close out the month and maintain the gains through the day as we closed at $1305.

We will know more as the markets open Sunday evening and Monday morning as to whether these gains will hold, but for now Gold has put in a very impressive move to the upside.

Precious metals investors know that the fate of their shares and warrants lie with the price of gold and silver going forward. The last several years have been a disaster for these investors, but times may be changing.

Below I present some charts for your review which I have been sharing with my subscribers.

If I can assist you with some investments ideas, whether precious metals companies or stock warrants trading on those company, I would like you to consider joining me immediately.

Gold Daily

Gold Monthly

Silver Weekly

HUI (Gold Bugs Index) Monthly


Could Gold Hit $1900 In 2019 ……

May 2, 2019
By Dudley Pierce Baker

$1900 gold this year would exceed the wildest imagination of most investors.

I do think gold will exceed $1900 in the next two years or so, but this year?

In the article I shared with you this morning from Gold Switzerland, they do see the possibility of Gold at $1900 THIS YEAR (2019).

"... So the only short term method to predict gold’s next move is looking at gold’s technical picture. This tells us that gold is now in the finishing stages of a corrective move. Once the correction is over and gold breaks the Maginot Line at $1,350, we will see a quick move to $1,600. I would not be surprised to see gold making new highs in 2019 against the dollar, above $1,920. The next move up could start as soon as in the next 2-3 weeks. Possibly, but less likely is that the move starts August – September...."

When gold starts to climb to $1500, $1600, $1700, $1800 and $1900 and more, you must know that virtually all resource shares and warrants will be on fire and rising hundreds but probably thousands of percent. Even those dogs and cats which you think are worthless will probably come back to life.

Ten baggers, (1,000% or more) will be common place and stock warrants trading on those shares will be 2 times, 3 times or more than just ten baggers. I realize this sounds crazy to you, but this is what is coming and coming soon.

This is not the time for resource investors to be shy or timid, you should already be invested at these low prices but if not, you must get started now and I mean today.

I would like you to join me immediately as a subscriber to my service at http://CommonStockWarrants.com

You will have immediate access to my Canadian and U.S. Databases with all stock warrants trading with complete details.

Subscribers to my Gold and Lifetime Subscription will also have access to my personal portfolio and my weekly audio. This information will allow you to know exactly what I am doing, buying or selling.

JOIN ME NOW,

Dudley

The Master Tournament & Some Great Articles Requiring Your Attention

With The Masters rapping up in Atlanta, we have Tiger, still in the hunt with a few holes remaining as I write this piece.

Hello Subscribers and others interested in possibly becoming subscribers.

Gold has substantially fulfilled our views as well as the views of TheTechnicalTraders.com to the down side target of no more than $1278. We could easily trade in a tight range now for a few weeks, before we resume the upside move and then take out the longtime overhead resistance around $1400 and then head to $1500 perhaps by years end.

You need to be in position very soon to capture what I believe will be the potential for many 10 baggers in resource shares and much more in the stock warrants on those shares.

Get Started Now

Recent Articles On Our Websites:

Enjoy your weekend but don’t go to sleep and miss this opportunity,

Dudley Pierce Baker
http://CommonStockWarrants.com

GET STARTED NOW

 

Your Best Opportunity For Wealth Creation

You can call me lucky if you want, I don’t care. I am only out to become wealthy in the next two years.

If you choose to sit out this coming rally you will have no one to blame but yourself, but don’t tell your spouse as they will  surely disown you, if you miss this opportunity.

This is Dudley Pierce Baker, the editor of http://JuniorMiningNews.com and http://CommonStockWarrants.com and I believe we are on the verge of a major move up in the resource sector.

Timing is everything in the markets and the timing seems to be on our side for resource investors.

The next two years are being talked about now by several newsletter writers and even by Jim Cramer (CNBC) as an excellent time to being investing in the precious resource sector.

In a few years, some investors will think they are smart as heck when if fact they are just lucky to have been invested in the resource sector at this particular time.

So, timing will prove the expression correct, that 'it is better to be lucky than to be smart'.

The important take away for you as an investor is that the stage has been set (bottoms are in and bases built) and the next two years may well present investors with an explosive rally in silver, gold, copper and possibly uranium.

Simon Constable writing for TheStreet.com, Why It's a Good Time to Invest in Copper has an interview with Jim Cramer on Freeport-McMoRan: Prices Are Exploding.



I own a small copper company operating in Nevada currently selling for C$0.11. Over the last decade or so these stares have climbed to C$4.00. Whether the shares can reach C$4.00 again in the next two years, I surely do not know, but, I have a really nice position of hundred ’s of thousands of shares in this company, just in case, I get lucky.

Our colleagues at TheTechnicalTraders are looking for the next two years to possibly take silver and gold to new highs but probably at least to the previous highs of $50 and $1900, respectively. You will definitely want to read their latest article and see their charts.

Best Precious Metals Investment And Trading For 2019

I own many silver and gold companies and some even have stock warrants trading which can provide investors an even greater reward over the next two years, if we get lucky.

Some warrants I own on one of my favorite gold companies, in my opinion, could ‘easily’ sell for over C$5.00, and they currently sell for a mere C$0.22.

I know that sounds crazy but you see I expect to ‘get lucky’ and make a fortune on just this one position.

I own a nice position in a silver company which recently completed a private placement in which I participated and greatly increased my position. The shares are currently selling for C$0.13 and, in my opinion, could  ‘easily’ sell for well over C$1.00, if I get lucky. Another wealth building opportunity.

It is impossible to say how high some of these shares or warrants could go in a rip roaring bull market, but my (best read article ever) addresses the possibilities of outrageous gains ahead,

Gold and Silver Stocks, How High Can They Go

Frank Holmes, Rick Rule, David Morgan are in the camp of substantially higher prices.

If you would like to ‘get lucky’ with me, I encourage you to join me as a subscriber.

My Gold and Lifetime Subscribers have access to my personal portfolio and to my weekly audio and you will know exactly my views and current positions.

When I ‘get lucky’ this just might be the perfect time to hang it up and move to a sleepy little fishing village in Mexico, but hell I have already done that. So maybe I will need to seek out a new opportunity/adventure.

Life is great but it is going to be greater yet, when I (and hopefully you as a subscriber) become wealthy or wealthier in the next few years.

JOIN ME NOW, folks, I mean now do not delay this incredible wealth building opportunity.

Dudley Pierce Baker
Chapala, Jalisco, Mexico
Founder - Editor
http://JuniorMiningNews.com
http://CommonStockWarrant.com

Best Precious Metals Investment And Trades For 2019

It’s been years since the gold and silver topped out in 2011. We have been waiting for a new bottom form and a new bull market to emerge for nearly 8 years. In this article, I’m going to compare palladium, gold, platinum, and silver and show you which of these precious metals I feel is the best long-term investment and also the best trade for 2019.

The analysis presented below is based on technical analysis using previous significant highs, and Fibonacci extensions. Both of these techniques work exceptionally well for predicting price targets both to the upside and also price corrections to the downside. If you have never used Fibonacci retracement or extensions in your trading I highly recommend learning more about them. I have no doubt it will improve your market price projection targets for your investments. I have found this technique to be the number one best trading tool for projecting future price movements in all asset classes.

The charts below will show to price forecasts for each metal. The first price target is based on the previous significant high that price made between 2000 and the current timeframe. Previous significant highs are typically the first target for the price to reach and that is also our first major upside target for these metals. The second price target I use is based on Fibonacci extensions using stand out lows formed anywhere between 2002 to the current price time and projecting that forward into the future beyond the previous highs shown on the charts.

So let’s get started with the worst precious metal to invest in and work your way down to the best precious metal.

 

#4 PALLADIUM

Palladium, In my opinion, is the worst precious metal to own for 2019. While palladium is used in everything from dentistry to groundwater treatment, Palladium is by far the most versatile precious metal. Only a little while ago palladium was not nearly as popular as it is today due to the incredible economic growth in developing countries especially China. This multi-use metal is steadily growing its importance in the markets hence the strong performance to date.

There is no doubt that Palladium has staged a massive rally from the 2009 lows and also another mega-rally from the 2016 low. But, knowing the best performing investments eventually become the worst performing investments later, let’s take a look at the chart of Palladium and see why I feel as though Palladium is the worst investment metal for 2019.

The monthly chart of Palladium below shows the previous high in price in the year 2000. That high has been broken and now the price has gone parabolic blasting above that level to the 1550 mark. At this point, the previous high target has been breached and we no longer see that as a price target. There is zero upside potential based on the previous high.

The second price target is based off the lows in 2016 using the Fibonacci extension the pullback in 2018 followed by this recent rally. This gives us a price projection of nearly $1500 an ounce. As you can see this perfect bull flag (continuation pattern) has reached the hundred percent Fibonacci measured target of 1500. Therefore I see this upside move as being complete and it is more likely to pull back and correct in 2019 with 0% upside potential. Anything beyond this price level is a bubble which could burst at any time and carries a high level of downside risk.

 

#3 GOLD

Gold is the second worst investment for 2019 when it comes to precious metals in my opinion based on potential upside growth. Keep in mind I am very bullish on the price of gold looking forward but other metals definitely have a lot more profit potential than gold.

As you can see on the monthly chart of gold the previous high was about $1900 in 2011. That level is our first price target for gold upon a breakout of this multiyear basing formation it has been forming since 2013. This makes for a potential gain of 46% in price.

Now if we apply a Fibonacci extension to get our second target we take the low from 2002 to the high in 2011 and bring it back down to the low in 2015. This gives us an upside price target of $2681 an ounce. Based at the current price of gold we could see gold rally 106% over the next year or two.

 

#2 PLATINUM

Platinum is the second best metal for short-term and long-term gains from 2019 and beyond. Looking at the monthly chart you can see the previous high in 2008 was around $2300 based on the current price if we get a move to the previous high it provides a 176% potential gain. Also, notice how the price is testing the major support level forms in 2008 this could act as a very significant double bottom in price as well.

Using Fibonacci extensions we take 2001 low up to 2008 high and back down to the recent low in 2018 or 2009 both are the same price this projected price gives us an upside target of $2659 an ounce. Based on the current price of platinum that gives us the 221% potential gain over the next couple of years.

 

#1 SILVER

The number one precious metal to own in 2019 and beyond is silver. Based on the previous high in 2011 and looking at the current price of silver there is a potential upside gain of 226%. Also, notice how silver is putting in a potential double bottom from the 2015 lows it also goes all the way back on the chart to 2006 through 2010 as a key support zone. Much like platinum, silver is at support and could very easily start a new mega-rally at any time.

Using a Fibonacci extension, we can get our second target for silver based on 2002 low and 2011 high along with the 2015 bottom. This gives us a $59 price target. With the current price of silver trading at $15 an ounce, there is an upside target of 296% potential gain over the next couple of years when silver starts its next bull market. In fact, I recently purchased a couple more silver bars from SDBullion to add to my silver stacks because I like the potential.

 

CONCLUSION:

In short, I feel precious metals should be a part of everyone’s portfolio as a long-term hedge and investment. I see precious metals as an insurance policy in case all hell breaks loose in the financial system and we need to fall back to something with physical value for a short period of time.

With that said, I am a firm believer that you should never overload in one particular investment or asset class. But I do feel certain metals should have a heavier weighting based on their current potential. The more upside potential the more of that metal you should own shares or physical bullion.

How should you invest and trade precious metals? There are a few ways to own metals as a trader and investor. You can own physical bullion rounds or bars and I don’t recommend coins simply because you pay a premium for a design and if metals ever do become a true currency the added value you paid for a design stamped in the metal will be tossed out the window and you lose that value as price will be based purely on weight.

A really simple way to trade and invest in metals are trading the ETFs for each bullion like Gold (GLD), Silver (SLV), Platinum (PLTM), and Palladium (PALL). Another and even more simple way is to own the GLTR fund which owns a basket of Gold, Silver, Platinum, and Pallium. Obviously owning precious metals mining stocks is another (GDX, GDXJ, JNUG, NUGT etc..)

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Chris Vermeulen
Technical Traders Ltd.