Future Inflation Fears Fuel Price of Gold Shares and Warrants
By: Lorimer Wilson
www.PreciousMetalsWarrants.com and www.InsidersInsights.com

The 2008 stock market meltdown brought panic and forced liquidation to all market sectors and especially junior resource shares (- 58.2% on average) and their associated warrants (-80.1%). Shares of companies that had a solid foundation for development, production and growth were unceremoniously dumped along with those more numerous juniors that had little more than hopes centered on grass roots exploration prospects. As a result of this indiscriminate selling - this throwing out the baby with the bath water - extraordinary opportunities have emerged creating once-in-a-lifetime values for discerning investors.

In spite of major rallies in the GDM, HUI, SPTGD and CDNX indices year-to-date (see below) even greater increases are required for them just to match their 2008 highs i.e. 32%, 38%, 18% and 143% respectively. In the case of commodity related stocks with warrants and their associated warrants increases of 102% and 179%, respectively, are necessary to achieve their 2008 highs. As such, given the future expectations for inflation, the price of gold and the value of the U.S. dollar as discussed in last week's article "Why Gold Mining Stocks and Warrants are Up so Dramatically", major increases can be expected in the next few years for all commodity related stocks and their warrants and particularly those of gold and silver miners.

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Lorimer Wilson;Future Inflation Fears Fuel Price of Gold Shares and Warrants