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Leverage and Timing the Next Up-Leg

Dudley Baker
PreciousMetalsWarrants
June 27, 2006

Our subscribers are aware; we do not make predictions on the markets performance. That said, we attempt to read everything we can get our hands on as well as listening to many of the top analysts within the precious metals arena.

To us, there seems to be a consensus forming (is this a good thing?) that gold, silver and the mining stocks will move basically sideways to down over the next several weeks with the consolidation ending by late August. If correct, investors are advised to exercise patience (damn this is difficult) while continuing to seek opportunities for the coming (is there any question?) up-leg.

Again, the 'consensus' we read is gold has 'probably' bottomed but we may have one or two more scary moves down which will no doubt shake out the weak investors/non-believers of this bull market before the next up-leg begins.

True believers of this bull market will be taking advantage (as have we) of the exceptional buying opportunities presented to us with this decline/consolidation.

We have written many articles over the last year or so addressing different ways long-term investors can participate in the bull market including the purchase of gold bullion, mutual funds, ETFs (exchange traded funds), and common shares and long-term warrants of the mining and energy companies.

For short-term investors, (those with a one year or less time horizon) and those willing to accept more risk can also consider the use of call options and leaps on their favorite mining shares (if available) as well as warrants expiring within one year.

We invite you to visit our website and read some of our articles including, Mining Stocks - Options, LEAPS & Warrants, 'Why Warrants - Why Now?' and 'Why Warrants - Why Now, Part 2'.

Patience, due diligence and timing our entry points, we confidently believe, will lead investors to incredible gains in the coming months.

June 27, 2006
Dudley Baker
Guadalajara/Ajijic, Mexico
email: info@preciousmetalswarrants.com
website: www.preciousmetalswarrants.com

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 they 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 more. Precious Metals Warrants do not make any specific recommendations in their service. They do the work for you and provide you with the knowledge, trading tips and the confidence in placing your orders.

For those investors seeking more knowledge on warrants do visit the Learning Center at Precious Metals Warrants, where you will find much more information and examples to enhance your learning experience. You may also sign up for The Warrant Report free weekly email.

Disclaimer/Disclosure
PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed in this report are the express personal opinions of Dudley Baker. 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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