Gold has traded between $1,661 and $1,674 so far today…as of 6:00 am Pacific, bullion is down $3 an ounce at $1,665…Silver is 29 cents lower at $31.55…Copper is off a penny at $3.74…Crude Oil has retreated $1.23 a barrel $96.54 while the U.S. Dollar Index is up one-quarter of a point to 79.42…
The COT structure for Gold is looking a lot more bullish after commercial traders last week trimmed back their short positions to the lowest levels since last August, just prior to Gold’s big rally…”Peak Gold” has been a topic recently in the media as the senior Gold miners find it difficult to grow…the U.S. Geological Survey recently reported that U.S. mines produced 230 metric tons of Gold in 2012, down from 234 metric tons in 2011…similarly, Silver production was down to 1,050 tons in 2012 from 1,120 tons in 2011…lower Gold and Silver production should ultimately lead to higher prices…
TSX Gold Index Chart
Not only are the commercial traders saying that Gold is gearing up for another rally, but the oversold condition of the TSX Gold Index suggests that Gold stocks are going to heat up in February…below is a 2-year weekly Gold Index chart from John relative to Gold (the numbers on the right hand side of the chart, 0.17 to 0.29, indicate the ratio between the two)…note that RSI(2) is at the most extreme level seen at anytime over the last two years…
Updated Silver Charts
As usual, John has updated short-term and long-term charts for Silver this morning…the next important resistance level is $32.50…Silver is once again out-performing Gold…
Silver 9-Month Daily Chart
Silver 15-Year Monthly Chart
“Wave 5” continues to progress well…RSI(2) also recently bottomed just below 30, giving us another clue regarding the bullish short-term direction of Silver…RSI-2 on this 15-year chart typically fluctuates between 90+ (overbought) and less than 30 (oversold)…it’s currently 56 with plenty of room to move higher again…
Today’s Markets
Asian markets were mixed overnight with Japan and China posting small gains…the Shanghai Composite added 9 points to close at 2428…European shares are lower today, generally down 1% or more, thanks in part to new data showing that factory prices remained disappointing for December…stock index futures in New York are pointing toward a lower opening on Wall Street after the Dow hit its highest level last week in over five years, closing Friday just above 14000…for the month of January, U.S. stocks experienced the best month in more than two decades…per the Stock Traders’ Almanac market indicator, the “January Barometer,” the performance of the S&P 500 Index in the first month of the year dictates where stock prices will head for the year…though it may not feel like it for Americans, shareholders and investors have recovered the more than $8 trillion in wealth lost during the recession with the Dow breaching 14000 and the S&P above 1500…a new survey from Spectrem Group shows that millionaire confidence in the economy hit the highest level in two years, led by their bullishness on the economy and corporate earnings…
We expect the strength in the broader equity markets and higher Gold and Silver prices to ultimately help ignite the Venture Exchange which has been like a very slow moving train so far this year…the Venture gained a whopping 1 point for the month of January…the 30 and 40-day moving averages, however, have reversed to the upside – an event we haven’t seen since last August, just prior to a nearly 20% advance in the Index…
Cap-Ex Ventures (CEV, TSX-V)
Cap-Ex Ventures Ltd. (CEV, TSX-V) has more than doubled since December, closing Friday at 46 cents, and this morning the company released the first resource estimate on its wholly owned Block 103 Property in Labrador, northeast of Schefferville…the inferred resource is 7.2 billion tonnes at 29.2% total iron (18.9% magnetic iron) based on a cut-off grade of 12.5% magnetic iron…a PEA (Preliminary Economic Assessment) is expected later this quarter…this world class resource covers an area with a strike length of approximately 4 kilometers and a width of 2.5 kilometres…however, based on the magnetic airborne survey previously completed, Block 103 covers a strike length of approximately 12 kilometres…mineralized zones are open toward the northwest and southeast and to depth…
TrueClaim Exploration (TRM, TSX-V)
TrueClaim Exploration (TRM, TSX-V) has recently backed off after a powerful move that took it from a low of 2 cents at the end of October to a high of 10 cents in January…the company recently announced a small 8-cent financing and the stock closed Friday just below that at 7.5 cents…the rising 100-day moving average at 6.5 cents provides very strong technical support along with the Fibonacci 61.8% retracement level which is 7 cents…below is an updated 6-month daily chart from John…
Graphite One Resources (GPH, TSX-V)
As we’ve noted, graphite stocks started to pick up in December and Graphite One (GPH, TSX-V) is another example of that…below is an interesting chart from John that shows a confirmed breakout at 15 cents in GPH…the stock closed Friday at 18.5 cents when the company also announced it had arranged a non-brokered private placement to sell up to 4.3 million units on a “commercially reasonable-efforts” basis at a price of 14 cents per unit for gross proceeds of up to $602,000…over the short-term, due to the financing, GPH could test new support around 15 cents…as always, perform your own due diligence…
Note: John holds a position in TRM.
not one peep about CEV today??? 7.2 billion tonnes inferred with only about a third of strike explored!
Comment by db — February 4, 2013 @ 6:06 am
Just came out in the last couple hours, we’ve added it in….great resource. We’ll probably do an updated chart tomorrow.
Comment by Jon - BMR — February 4, 2013 @ 6:22 am
Jon,
Any development from discussions with David Johnston? Expected timeline for release?
Comment by Mike C — February 4, 2013 @ 10:28 am
RBw news out. Just as expected. Strike three!!
Comment by Heath — February 4, 2013 @ 11:07 am
Excellent results, actually, Heath…..high-grade silver discovery, nice grades on the gold.
Comment by Jon - BMR — February 4, 2013 @ 11:11 am
@ Jon. Nice grades on gold??? Where???
Comment by Heath — February 4, 2013 @ 11:13 am
Heath do us all a favor and sell all 10000 of your rbw shares and buy yourself a TV to keep busy.
Wow how much more annoying can you get? What do you expect these guys to find? A gold mine with miners already digging?
Comment by alex — February 4, 2013 @ 11:42 am
It looks like some investors agree with Heath…
Comment by db — February 4, 2013 @ 12:29 pm
done with RBW
Comment by brian — February 4, 2013 @ 12:32 pm
RBW. News out and -10%. Oh dear. I was hoping for a turn around.
Comment by Kalkan - Sweden — February 4, 2013 @ 12:53 pm
RBW is cooked.
Comment by OldMan — February 4, 2013 @ 1:04 pm
lets hope he gets viking out quick,not bad results,but news better start comming fast and furious or you may be right old man.to be goin to the shack in march i hope rbw has something up thier sleeve.but you still have to admit that the market is being pretty tough on everyone rite now.
Comment by tom — February 4, 2013 @ 1:33 pm
It’s a difficult overall market and even when companies come out with good numbers, there’s the risk of a “sell on news” mentality. But also, this news still needs to digest. $1,000 rock with that intercept in hole 4 – impressive. A legitimate discovery of high-grade silver that certainly could be repeated elsewhere on the property, and it will add to the economics of the project. Typical lower grade gold mineralization that you find in this part of the Battle Mountain Trend, but it’s profitable to mine even well under 1 g/t. So there is nothing wrong with those gold grades whatsoever. Lookout Mountain to the south is around half a gram. RBW has done an excellent job moving Jewel Ridge forward with these numbers and what they’re doing in terms of pulling together a whole bunch of historical data. In many cases right now, stock prices are detached from reality. I’ve spoken today to several major investors I respect, and a couple of geologists, and they believe these results are fantastic. There’s a lot to build on here, geologically. Rainbow has made some serious progress and that’s what the exploration game is all about. You keep making progress and eventually your stock price gets rewarded.
Comment by Jon - BMR — February 4, 2013 @ 1:36 pm
im going to hang in there, but i have to agree with alex,heath dont know and dont care where you live , but here in bc with have lots of cliffs for you to jump off of.so do us a favor and find one .
Comment by tom — February 4, 2013 @ 1:42 pm
I think the market was looking for more of a contiguous interval though such as the one they were trying to duplicate. Does RBW post the full details of the holes anywhere on their website? Or can you assume the unreported portions are just negligible values.
Comment by Justin — February 4, 2013 @ 1:45 pm
Well,“sell on news” is usually preceeded by the stock being bid up in anticipation – no such luck with rbw 🙁
I still think their best hope is the graphite property, will we see a name change to rainbow graphite?
I think graphite one is a great pick too(little overbought here maybe).
Comment by greg — February 4, 2013 @ 2:09 pm
@alex. Looks like the market agreed with me eh?
Comment by Heath — February 4, 2013 @ 2:10 pm
dont sugar coat it Jon. The market does not like these results
Comment by sean — February 4, 2013 @ 3:18 pm
There’s no need to sugar coat anything. The results are very good, period, and I’ll stand by that. You’re basing your opinion on the results (whether they’re good, bad or indifferent) simply on the stock price at the end of the day – that’s your measuring stick. That’s the same logic that got a lot of people in trouble in late 2010 and 2011. They couldn’t read exploration results properly, but they assumed that just because their stock was going up (in a great market) the results from that company must have been fantastic. The measuring stick said so. Where you make money in the market is when you DON’T follow the crowd, when you can see opportunities that others don’t or situations where the value is not being fully priced in (there are a lot of those opportunities right now). Of course that takes a lot more effort, time, and dedication, which few investors are prepared to put in. They would rather be followers. That’s much more easy, but ultimately less profitable when all is said and done.
Comment by Jon - BMR — February 4, 2013 @ 3:34 pm
@tom. It’s ok buddy, I have thick skin, you can’ take out all your aggression on me. But lets be clear here, all I am guilty of is telling the truth and calling this pig correctly the whole way along. Your shooting the messenger while living by the ego with a horrible case of toxic disease dis-ease!!
Comment by Heath — February 4, 2013 @ 4:36 pm
Well folks,look at ugd,cev,ppp,all good results and look at where they are.its plain to see its a tough market rite now,I agree with Jon we need to let this soak in befour anyone needs to panic.
Comment by Tom — February 4, 2013 @ 4:42 pm
Makes you wonder if the rest of the holes at Gold Viking are not so good and they are stalling for time until they can get a drill rig over there to chase down that gold vain.
They manage to get a high grade silver assay back from Jewel Ridge while they’ve been forever at GV.
Comment by Rick — February 4, 2013 @ 7:13 pm
I disagree with Heath’s delivery, but he has been right. A question for those following BMR is, would you invest in “the next” stock BMR gets exicted about and sends out a special e-mail touting? for me it looks like RBW can be thrown on the pile with SD, GBB and various others that BMR has been “exicted” about in the past.
Comment by Paul — February 4, 2013 @ 8:09 pm
a more suitable name for your side would perhaps bear market run
Comment by Carl — February 5, 2013 @ 11:25 am