Skip to main content

The Globe and Mail

Gold warrants worth a look in this market

With gold trading up at $1,613 (U.S.) an ounce on fears of a U.S. debt default and European sovereign credit concerns, investors who aren't already long the metal must be debating whether it's worth jumping in now, or if they've already missed the boat.

If you're in the first camp and believe there's still some upside, you might want to take a look at warrants for gold developers and producers, says Dundee Securities. Warrants aren't talked about often because the equities themselves usually take precedence, but they're worth at least even a quick look these days because gold stocks have lagged behind the metal's price increases.

Warrants, on the other hand, are very sensitive to price volatility, so even a slight up-tick in a stock can shoot a warrant's value higher.

Story continues below advertisement

They are also lucrative because they offer a big exposure to the equity for far less capital, and they often have longer expiry dates than options. However, warrants are much less liquid than stocks, so if you buy in, you could be stuck there for a while.

Dundee doesn't go so far as to name any warrants that are particularly attractive right now, but the firm does highlight which gold companies have warrants outstanding. The list is long, and includes the likes of likes of Kinross Gold Corp. , Agnico-Eagle Mines Ltd. , New Gold Inc. and Franco-Nevada Corp.

Report an error
About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.