K, Kinross , Kwtc , Gold, FX etc.etc.

K aprl 2011 k.wt.c

Lets suppose you like gold and more than anything else you like Kinross simple because it has been going down for the better part of two years , and now , appears to provide you with that missed opportunity. For the sake of argument, lets suppose you are absolutely correct. The next question would be why would you buy Kinross stock (left) if the warrants (right) provide a much better return? (see also previous blogs).

The argument to buy Kinross is a good one. The stock is down from $25 to $15 or, give or take 40% while gold is up by about;

GLD apr 2011 Can $ apr 2011

45% or so , as the Can $ rose by about 15%, for a net of about 30% (notice that I do not take the math too seriously) So, if Kinross was ever attractive, would it not be more so now that the stock is down 40% and the “stuff” up by about 30% , a net discrepancy of 70% (again, never mind the math)

  So, to get to the point, DO NOT EVER (at this time) buy Kinross , buy the warrant instead! You will lose a lot less if you are wrong, and make a lot more if you are right; and that is what investing nowadays is all about.