BullMarketRun   BullMarketRun.com

A Daily, Vibrant Voice Focused on Speculative Opportunities,
Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
 

"Market-Trouncing Returns Through Unbeatable
Technical & Fundamental Analysis of Niche Sectors"

March 31, 2012

Rainbow Resources Chart Update

Too often, investors are guided by their emotions and do not understand how to handle volatility.  One result is that they get fearful and sell a stock at exactly the wrong time, especially if they’re not focused on the bigger picture and don’t have a “game plan” in place.

The activity in Rainbow Resources (RBW, TSX-V) the last couple of trading days this month should not rattle anyone who has a basic understanding of technical analysis as well as what the company is all about and the direction it’s going (more on the latter Monday).   Rainbow dropped a penny-and-a-half Thursday and another 4 cents Friday to close the week and the month at 21.5 cents.  The fall came after news (positive, actually) on a couple of fronts but on low volume, however, as only 212,000 shares in total changed  hands on those two days.

Rainbow is one of the few companies on the entire CDNX with rising 50, 100, 200 and 300-day moving averages which confirms that the stock is in a primary uptrend.  In situations like this, smart investors will look for pullbacks to areas of strong support to add to existing positions or enter the market for the first time.  Below is a 15-month weekly chart from John that should help investors put RBW’s end-of-month weakness into proper perspective.

Note: John and Jon hold positions in RBW (Terry does not) with Jon adding to his position last week.

March 30, 2012

BMR Morning Market Musings…

Gold is steady this morning on this final trading day of the month and quarter…as of 5:40 am Pacific, the yellow metal is up $7 an ounce at $1,668…Silver is 31 cents higher at $32.57…Copper, on track for a 10% increase in Q1, is up a nickel to $3.85…Crude Oil has rebounded 46 cents to $103.24 while the U.S. Dollar Index is off one-quarter of a point at 78.77…

Gold, which posted its first quarterly drop in three years at the end of last year, is set for a respectable 6% climb for the first quarter of 2012…of course it had a powerful move in January and February and has retraced some of those gains this month…as John’s chart shows below, Gold has successfully tested support at the Fibonacci $1643 level on nine occasions over the last 12 sessions…

Today’s Markets

It appears a positive day is shaping up for the markets with strength in commodities and after yesterday’s intra-day recovery…as of 5:40 am Pacific, stock index futures in New York are pointing toward a higher open…Europe is strong as euro zone finance minsters meet in Denmark today and tomorrow…they’ve already issued a statement that they’re increasing the firepower of the region’s bailout fund to just over 700 billion euros…

Rainbow Resources (RBW, TSX-V)

It wasn’t the best day for any company to put out news yesterday, but Rainbow Resources (RBW, TSX-V) went on the offensive and announced it’s optioning a property along the Battle Mountain-Eureka Trend in Nevada on either side of two major projects – and this came just a few hours after an update on the company’s promising International Property in the West Kootenays…that was a lot for the market to swallow in one day and the stock was surprisingly quiet with RBW trading just 87,000 shares (all exchanges) and falling a penny-and-a-half to 25.5 cents…we spoke with President David Johnston late yesterday afternoon after the company held an event in Calgary (“information session” for investors)…”We had an excellent turnout,” Johnston told us, “and we actually carried on with some people until after 5 o’clock…the feedback on both the Kootenay project and Nevada was very positive…I know the overall markets haven’t been great recently but we’re doing all the right things corporately and on the ground to move this company forward each and every day…that’s what we’re focused on and investors should get an even better picture of that next week”…

In our view, Rainbow’s entry into Nevada makes a lot of sense as it gives the company the ability to explore and drill on a year-round basis…in a way Jewel Ridge reminds us a little of Cadillac Mining’s (CQX, TSX-V) Goldstrike Project in Nevada in the sense that it contains several past producing open-pits…RBW should be able to go in there – just like CQX did with Goldstrike – and have an excellent chance of pulling out some nice holes with a properly executed drill program…we’ll have more on our Johnston interview in a couple of days, but he did tell us that Moose Mountain loves what it has seen so far at Jewel Ridge and believes it has multiple mineralized zones at that property to pursue…”The folks at Moose Mountain are perfectly capable of walking and chewing gum at the same time,” Johnston chuckled…”They know they have a huge commitment to fulfill with our flagship Kootenay properties but they’ve assured us they have all the resources they need to carry out an immediate program in Nevada and carry out all the plans for the Big Strike Project”…yes, indeed, it looks like some busy times ahead for Rainbow...RBW has enjoyed a terrific first quarter which should be just the start of great things to come…

Great Panther Silver (GPR, TSX)

One of our favorite Silver producers continues to be Great Panther (GPR, TSX) which appears to have bottomed out just below $2 at the end of December after reaching nearly $5 early last year…the question is, when will it break out of downsloping channel?…patience remains the key with GPR…it’s up about 10% for the year after closing yesterday at $2.27…

Note: John, Jon and Terry do not hold positions in GPR.

March 29, 2012

BMR Morning Market Musings….

Gold is off $2 an ounce at $1,660 as of 5:55 am Pacific…Silver is down 9 cents to $31.83…Copper is 2 pennies lower at $3.77…Crude Oil has lost 51 cents to $104.90 while the U.S. Dollar Index is up slightly at 79.25…

Citing data from the International Monetary Fund, HSBC notes some emerging market central banks turned net sellers of Gold in February…Mexico, Tajikistan, Turkey, and Russia reduced holdings by 0.1 ton, 0.2 ton, 1.3 ton and 3.8 tons, respectively, while Kazakhstan increased Gold reserves by 2.2 tons…the bank stated, “Central banks have been an important source of demand for bullion recently as lower prices tend to increase buying interests…although net sellers in February, we maintain our view that they will be net buyers of Gold in 2012″…

Recent economic data suggest the U.S. economy will power ahead of Europe in the first half of 2012, with consumers growing increasingly confident and boosting activity in the former while more reforms are needed in the latter to boost growth, the Organization for Economic Cooperation and Development (OECD) said in a report today…

Efforts by some of the world’s biggest oil buyers to co-ordinate the possible release of emergency reserves and an intervention by Saudi Arabia sent crude prices tumbling yesterday, raising the prospect of relief for Europe’s flagging economies and American motorists facing pump prices of almost $4 a gallon…as France’s energy minister, Eric Besson, confirmed his country was in talks with the US, UK and Japan to release billions of barrels of oil on to the market, Saudi Arabia’s influential oil minister said Riyadh would do all it could to bring prices down…

Today’s Markets

Asian markets were down overnight with China’s Shanghai Index, which was over 2400 recently, slipping to 2252…European markets are lower while futures in New York suggest a slightly negative open on Wall Street…the Venture Exchange closed at 1550 yesterday, just 12 points off its March low of 1538 set on the 22nd…it has been a shaky month with the Index down 7.3% entering the final two trading days of the quarter…

Rainbow Resources (RBW, TSX-V) Confirms Grades At International

Rainbow Resources (RBW, TSX-V) has come out with news during the last half hour, detailing a potentially robust system at its International Property in the Kootenays…RBW’s geological consultant, Moose Mountain Technical Services, has confirmed historical high-grade assays from the International with rock samples as high as 1,148 g/t Silver and 68% lead…what’s particularly interesting is that the International is now being viewed as a potential “epigenetic polymetallic” deposit containing Silver, lead, zinc and possibly Gold which is the first time we’ve heard Gold brought up regarding the International…President David Johnston states, “We are eagerly anticipating an aggressive drill program to test this system for continuity and possible extensions in all directions…given our strong knowledge of the area and Rainbow’s focus on defining a deposit, this is going to be a very exciting spring and summer for us…the Duncan Lake district has produced numerous silver-lead-zinc deposits and we believe the geological conditions are ideal for the discovery of a substantial deposit at the International”…the Tin City Property could turn out to be an extension of the International deposit, while it’s also interesting that beryllium – a rare earth element – has also been noted at that property…Rainbow has clearly put together a stellar land package and now the task at hand is to drill it…eight properties in total…the company is holding an event for investors in Calgary this afternoon, in advance of the start of the Cambridge Show there, and Johnston has granted our request for a short interview following that meeting…so we’ll have more to report on Rainbow tomorrow…this is a company with a determination to charge forward and make things happen, and that’s refreshing to see…RBW closed yesterday at 27 cents and continues to have one of the strongest charts on the CDNX

Gold Bullion Development (GBB, TSX-V)

Gold Bullion Development (GBB, TSX-V) has recovered somewhat from a low of 11 cents the other day, but John’s chart below shows the challenges GBB still faces in the market…SGS Canada is handling an interesting drill program for GBB in the northern part of the Eastern Extension, and results from that will be critical in terms of GBB gaining fresh momentum to break out of a downtrend that has been in place for over a year…John updates the chart below…


Note: John and Jon do not hold positions in GBB (Terry does).

CMC Metals (CMB, TSX-V)

CMC Metals (CMB, TSX-V), which is on our “Sleeper” list, was one of the few bright spots in the market yesterday as it gained 3 pennies to close at 20 cents…this is a company worth doing some due diligence on…John’s 6-month daily chart below show a bullish RSI “w” formation, strong technical support between 16 and 17 cents, and the next major resistance level at 23 cents…


Note:  John, Jon and Terry do not hold positions in CMB.




March 28, 2012

BMR Morning Market Musings…

Gold has traded in a range between $1,673 and $1,686 so far today…as of 6:05 am Pacific, the yellow metal is down $6 an ounce at $1,675…Silver is 24 cents lower at $32.29…Copper is 7 pennies lower at $3.80…Crude Oil is off $1.29 at $106.04 while the U.S. Dollar Index is up one-tenth of a point at 79.24…the market seems to be so fixated on every word spoken by Ben Bernanke…the Fed Chairman was on ABC News last night, following his speech to a group of economists earlier in the day that reversed the view of some traders that an improving economy makes it less likely that the Fed will engage in another round of quantitative easing…a look at stimulative measures introduced by central banks around the world in recent months clearly paints the picture of a global liquidity boom as we showed in Monday’s chart…”Fed speak” is back in force tomorrow when Bernanke lectures another class at George Washington University and several Fed presidents are speaking…

It’s budget day tomorrow in Ottawa and as investors in the resource sector, we can take comfort in the fact the Conservatives are likely to significantly streamline federal government regulation in the industry and quicken the project approval process…this, of course, is sure to draw of wrath of the environmentalists who have dangerously overdosed on all the green kool-aid served up by the likes of Obama, Gore, McGuinty and Suzuki…amazingly, the narrative in certain parts of Ontario and Quebec is that somehow Alberta and Saskatchewan  are responsible for the decline in their manufacturing industries because of Canada’s “petro dollar”…of course that completely ignores the fact that Ontario and Quebec have been damaged severely by their own fiscally incompetent tax-and-spend governments who wouldn’t know how to run a profitable lemonade stand let alone create the conditions necessary to attract investment and foster entrepreneurial growth…

The American public’s attitude toward the economy is broadly on the upswing, according to the latest CNBC All-America Economic Survey, but details show deep-seated concerns that present problems for both political parties going into the November presidential elections…the poll of 836 Americans across the country found that 36% believe the economy will improve over the next year, a nearly 10-point gain from November, and the highest level of optimism since 2010…Americans expect the biggest gains in their paychecks in nearly four years…they are also more upbeat about their homes: 22 percent expect their home’s value to increase in the next year, up from 15% last quarter and the highest level since December, 2010…more than 51% of the public own an Apple product, with one in three owning more than one…interestingly, Gold is seen by the American public as the best investment right now, chosen by 37% of respondents…real estate is a distant second with 24%, followed by stocks at 19%…one could make the argument that those numbers are potentially bearish for Gold and bullish for stocks, though those readings could hit more extreme levels in the months ahead…

The price of Gold, one of the most eagerly watched indicators of market confidence, is currently “too low” relative to real interest rates, according to commodities analysts at Goldman Sachs…they forecast that Gold will rise to $1,785 per ounce over the next three months, $1,840 over the next six, and $1,940 over the next year…what’s very strange, however, is their statement Gold remains a “compelling trade” at current levels but “not a long-term investment”…that could be how Gold is viewed in the United States but not in Asia or other parts of the world…

At BMR, we continue to be bullish on Gold and John’s chart yesterday showed the strong possibility of a move to the $2,000 level later this year…Silver, however, could very well prove to be the investment of the decade which is why investors should perform their due diligence on high quality Silver producers and Silver exploration companies…

John has a chart update this morning on Silver which, like Gold, appears to be forming a bullish inverted head-and-shoulders pattern….below is a 9-month weekly chart…


Rainbow Resources (RBW, TSX-V) Update

Rainbow Resources (RBW, TSX-V) is holding an event for investors in Calgary tomorrow which leads us to believe that significant news is on the way from the company by tomorrow morning…over the last several weeks, Rainbow has been gradually providing more details on its West Kootenay land package but we suspect the company may have saved its “best for last” as far as the month of March is concerned…President David Johnston has agreed to speak with BMR following tomorrow’s Calgary event…rumor has it, some major brokers will be in attendance which adds further credence to the theory that Rainbow is up to something…we doubt they will disappoint given how things have progressed with the company over the last couple of months…

Argex Mining (RGX, TSX-V)

At the request of some of our readers, below is a chart update on Argex Mining (RGX, TSX-V)…RGX has been a great performer so far this year, and we like what this company is doing, but from a technical perspective it appears we’re about to see the “handle” form on this very possible classic “cup with handle” pattern…a cleansing of the current overbought conditions could have started yesterday when the stock climbed as high as 90 cents and closed down 4 pennies at 80 cents on high volume…


Note: John, Jon and Terry do not hold positions in RGX.

Probe Mines (PRB, TSX-V)

Probe Mines (PRB, TSX-V) has been making great progress with its Borden Lake Gold Project in northern Ontario, even though this month’s drop in the share price wouldn’t suggest that…Probe fell as low as $1.22 this month on a sell-off that made little sense, but smart buyers stepped in as we suggested they would…PRB closed at $1.50 yesterday

Note: John, Jon and Terry do not hold positions in PRB.

March 27, 2012

BMR Morning Market Musings…

Gold is steady this morning with only some minor overnight profit-taking after yesterday’s sharp gains that took it to a two-week high…as of 6:00 am Pacific, the yellow metal is up $3 an ounce at $1,693…Silver is up 16 cents to $33.00…Copper is down 3 pennies to $3.86…Crude Oil has lost a dime to $106.93 while the U.S. Dollar Index is flat at 79.01…comments yesterday by Federal Reserve Chairman Ben Bernanke, who hinted that more monetary stimulus could be on the way to boost the U.S. economy, lifted commodity and stock markets…Bernanke speaks again today beginning at 12:45 pm eastern at George Washington University in the third of four guest lectures…New York Fed President William Dudley also testifies at 10 am eastern before the House committee on the European sovereign debt crisis and the Fed’s role…

China – Fiscal And Monetary Stimulus On The Way

According to a report published by Goldman Sachs today, the Chinese government’s fiscal revenues in 2012 are expected to exceed budget estimates…that’s no surprise and it will put more money in the government’s hands to spend on projects that will support consumption, in turn giving a boost to the retail, consumer goods and energy sectors…the report says, “Fiscal revenues will likely beat the budget by around Yuan 500 billion ($79.3 billion)”…it also states that historically expenditures have exceeded budget estimates each year together with revenues…”Executing a more proactive fiscal policy is a core part of China’s 2012 economic agenda,” the report says…with low fiscal deficit as part of gross domestic product (GDP) in 2011 and low government debt as part of GDP, we believe China has ample fiscal flexibility”…according to the report, the government’s 2012 fiscal deficit target is 2% of GDP, up from 1% in 2011 which indicates higher potential to spend on spurring a slowing economy…during the last financial crisis in 2008-2009, China announced a $586 billion stimulus plan to reignite its economy…

Updated Gold Chart- Bullish Inverted Head & Shoulders Formation?

We’ve written recently about the possibility of a bullish inverted head and shoulders pattern forming in Gold, and that’s indeed what appears to be happening after recent trading action that took Gold down to a low of just under $1,630 last Thursday followed by an intra-day recovery Thursday and advances Friday and Monday…this chart that John has prepared this morning is truly quite amazing…expect Gold to meet resistance near-term at and just above $1,700, as John showed in his chart Sunday, but these patterns do take time to play out…us Gold bugs must be patient…however, the current chart is definitely very supportive of a move to a new record high in 2012 around $2,000 an ounce (Silver should outperform)…

CDNX Chart Update

The CDNX rebounded to close at its 10-day moving average yesterday, 1581, and the key will be to see some continued follow-through over the next week or so which would allow the Index to get back into the mid-1600’s to decisively and convincingly recapture bullish momentum…there are positive indications on the chart as John details below…


Focus Metals (FMS, TSX-V) enjoyed a powerful day yesterday, blasting through an area of resistance to close at $1.28 on total volume (all exchanges) of nearly 1.5 million shares…this should be an exciting year for FMSGold Bullion Development (GBB, TSX-V) may have finally put in an important low at 11 cents (this was a major resistance area in early 2010) after releasing an update on its Granada Gold Property…GBB reversed during the day and closed unchanged on total volume (all exchanges) of nearly 2.5 million shares…GBB is expected to release a NI-43-101 resource estimate for the LONG Bars Zone by the end of this week, or early April, though this initial number will fall short of previous expectations in part due to the fact that only 70% of the holes drilled to date are being used in this calculation…there is no denying the incredible potential of the Granada Gold Property…as stated by GBB yesterday, “the overall potential strike length of Gold Bullion’s landholdings ranges from 10.1 to 13.6 kilometres with no exploration undertaken to date on the eastern Adanac extension”…Gold Bullion may indeed have a Malarctic-sized deposit but unfortunately the company has not followed the aggressive, quick and efficient Osisko (OSK, TSX) model of proving up a resource…in fact, GBB has demonstrated a lot of inefficiency in terms of its “ground game”…if Osisko sees the potential of the LONG Bars Zone, and rumor has it they’ve been following this story with some interest, then we speculate the time could be approaching when they may decide to swoop in and swallow up GBB at these seemingly attractive levels…Osisko and other companies would have the resources necessary to prove up a multi-million ounce deposit at Granada…

ATAC Resources (ATC, TSX-V)

Rest assured, especially with higher Gold prices, the Yukon will heat up this year and ATAC Resources (ATC, TSX-V) is the leader of the pack there…John continues to like what he sees in the ATAC chart…


Note: John, Jon and Terry do not hold positions in ATAC.



March 26, 2012

BMR Morning Market Musings…

Gold has traded in a narrow range so far today through the overnight hours…as of 1:30 am Pacific, with this being a very early posting of Morning Musings, the yellow metal is off $5 an ounce at $1,558…Silver is 18 cents lower at $32.06…Copper is unchanged at $3.81…Crude Oil is down 52 cents at $106.35 while the U.S. Dollar Index is up nearly one-third of a point at 79.58…

For the near-term at least, Gold appears to be range-bound between strong support in the low-to-mid $1,600’s and resistance between $1,672 and $1,725 per ounce as John’s chart showed yesterday…as far as we’re concerned it’s VERY significant Gold has fallen below its 200-day moving average (SMA) which continues to rise and currently sits at $1,689…Gold has dropped below its 200-day SMA on 29 other occasions over the last decade and each time it recovered and eventually moved on to a new high…below is another chart from John showing Gold’s 100, 200 and 300-day SMA’s over the last 12 years…notice how the 300-day, in particular, has provided superb support with the exception of the brief period during the 2008 Crash…this long-term weekly chart also shows the RSI(14) at 47.73…that RSI level has consistently proven to be a good entry point for longs (notice how overbought Gold became last August/September – that condition has been cleansed)…

On the fundamental side, it’s clearly a positive for Gold that we’re currently experiencing one of the greatest global liquidity booms the world has ever seen…over the past seven months, there have been well over 100 stimulative policy initiatives from central banks around the world, according to ISI Group…you can see from Canaccord’s chart below that injecting liquidity into the global monetary system has given Gold the fuel to power higher year after year…the global monetary base has ballooned three times larger, with Gold increasing nearly six-fold…

Gold stocks, of course, have been under-performing relative to the metal but we’re convinced there will come a point when that will change dramatically…Silver has been out-performing Gold this year and that trend may very well continue…

Venture Exchange

Over the last 18 trading sessions the CDNX has retraced 50% of its gains since its December low of 1399 and its February 29 2012 high of 1696…while March has been a disappointing month, this kind of pullback is certainly not an unusual technical event – in fact it’s quite normal, albeit a little painful for some…what this demonstrates is how important it is to always have cash on hand to take advantage of bargains that appear due to unexpected swings or general volatility…

Below, John has chart updates on five situations (Rainbow Resources, Focus Metals, Corvus Gold, Encanto Potash and CMC Metals) that are looking especially interesting from a technical perspective…the fundamentals with each are also solid in our view…as always, however, perform your own due diligence…

Rainbow (RBW, TSX-V) enjoyed a strong day Friday and an interesting week is shaping up for this aggressive young exploration company with more details on its Big Strike Project in the West Kootenays and an “information session for market participants” Thursday afternoon in Calgary, immediately preceding the start of the Calgary Cambridge Resource Show…below is one of the best-looking charts you’ll see at the moment on the entire CDNX and we believe it speaks volumes for how this company is developing and the strength of its management…

Focus Metals (FMS, TSX-V)

Like Rainbow, Focus Metals (FMS, TSX-V) is on our “Strong Play” Group A list and has bucked the CDNX trend with a 12-cent gain so far this month after closing Friday at $1.16…this is a very compelling graphite and graphene story with considerable upside potential…the company just recently completed a $10 million bought deal financing…


Corvus Gold (KOR, TSX), Encanto Potash (EPO, TSX-V) and CMC Metals (CMB, TSX-V) have all pulled back this month but appear to be underpinned by strong technical support and are showing signs of bouncing back…

Corvus Gold (KOR, TSX)

Encanto Potash (EPO, TSX-V)

CMC Metals (CMB, TSX-V)

Note: John and Jon both hold positions in Rainbow Resources (Terry does not) with Jon adding to his position Friday.

March 25, 2012

The Week In Review And A Look Ahead

TSX Venture Exchange And Gold

The Venture Exchange slipped for the fourth consecutive week, falling 50 points to 1556, but Friday’s 15-point recovery is likely a sign the Index is beginning to work its way out of oversold conditions.  This has been a disappointing month for the CDNX (off 7%) and the TSX Gold Index (down 9.3%), both led lower by a 10% plunge in Gold from its late February 2012 high.

The performance of the CDNX in January has always been a very reliable indicator of the trend for the year, so that’s just one of many reasons we continue to be bullish regarding the “big picture” outlook for this market.  At this point, the wisest conclusion one can come to concerning the pullback we’ve seen this month is that it has been a normal retracement of the gains experienced since December.  The CDNX fell as low as 1399 during the final month of 2011.   It rallied from there, closing the year at 1485 and climbing as high as 1696 February 29, a gain of 21% in just over two months.  We’ve now seen what should be considered a normal Fibonacci retracement of 50% as John illustrates in the 6-month daily chart below.  The support band in yellow is strong.  RSI(14) has just bounced off previous support while the daily Slow Stochastics(14) – not displayed here – shows very oversold conditions, nearly identical to what was seen in December.  With the end of the first quarter approaching, we expect a decent finish to the month as investors adjust their portfolios and search for bargains.  This is not a time to be discouraged.

Gold

Gold rallied Friday to close the week essentially unchanged (up $3 an ounce) at $1,663.  The interesting thing is that on a closing basis, Gold managed to hold support at the Fibonacci 50% retracement level of $1,643. For now, Gold will find significant resistance between $1,672, as shown on the chart below, and the $1,690 area which is where the 100 and 200-day moving averages (20 and 40 week SMA’s) currently sit.  Notice how the RSI(14) recent overbought condition has completely unwound with a bullish “W” forming below the 40% level.  Gold’s rising 300-day moving average, which has provided tremendous support throughout this decade-long bull run, is at $1,614.  While we could still see some consolidation in the days ahead, look for continued support in the low $1,640’s or, failing that, right around $1,600.

Silver fell another 32 cents for the week to $32.56.  Copper was off a nickel to $3.81.  Crude Oil slipped 19 cents to $107.06 ($100 appears to be the new “floor”) while the U.S. Dollar Index lost half a point to 79.30.

After closing up shop for five days over the introduction of an additional tax on Gold imports, bullion traders across India decided to open their shops on Thursday, following late-night developments with government officials to end the impasse. More than 100,000 bullion dealers across the country had shut their shops as a form of protest, and traders estimate they could have suffered a revenue loss of over $700 million in sales

Although India may have increased taxes for Gold, the move could present an opportunity for Silver – the poor man’s Gold – to shine. After escaping India’s budget reforms, investors have shown a keen interest in buying one kilo Silver bars. On Friday, India’s Finance Minister exempted branded Silver jewelry from excise duty. Silver coins of 99.9% purity and above were also exempted from excise duty. However, the excise duty on refined Gold was doubled from 1.5 to 3%.  “Silver has clearly been exempted for a reason,” said Prithviraj Kothari, president of the Bombay Bullion Association. “Out of $50 billion worth of imports of precious metals into India, Silver imports were just $4 billion, while that for Gold was the other $46 billion,” he said.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), money supply growth, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.  It’s hard to imagine Gold not performing well in this environment.  The Middle East is being turned on its head and that could ultimately have major positive consequences for Gold.

Independent Research and Analysis of Gold, the TSX Venture Exchange and Emerging Junior Resource Companies: Speculative Opportunities in Today’s Markets

Welcome to our site, or at least the initial version of it!  BMR has been online for more than two years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus very much on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Older Posts »
  • All Posts: