Please don't bark me down because I really am looking for some help.
I have a broker somewhat pushing me towards buying a gold warrant. .
They sure know how to sell it, but unfortunately I have limited knowledge about what it all means.
From what I understand, I pay around 10k and get over 100k worth of exposure to gold.
And basically the quicker the price goes up, the more I make.
There seemed to be about a $100 profit for every $1 the gold price goes up.
Sounds great, but i'm sure it goes the other way too.
Also, we are now at record highs so it seems a bad time to get in. Maybe wait for a slight correction?
Anyway, my main reason for posting is to get a rundown of what a commodity warrant is all about. You can talk about trigger points and strike prices all you want but I'll have no idea what it means!