Gold and Silver are about to enter March in very bullish fashion …as of 5:50 am Pacific, Gold is unchanged at $1,784 after climbing as high as $1,791 overnight…as John’s charts have shown, the yellow metal faces some important resistance around $1,800 – specifically, the November high just below $1,810 – so any move through the $1,810 area on a closing basis will open the door for a challenge of $1,900 and the all-time high…we believe the TSX Venture Exchange, as a very reliable leading indicator, is signaling that it’s just a matter of when, not if, Gold shoots decisively through $1,800…”when” is probably sometime in March…Silver hit a 5-month high yesterday – it has broken out as predicted – and is up another 19 cents at the moment to $37.12…Silver may hit some temporary resistance around $37.50 but it’s looking exceptionally bullish on the charts…Copper has added 4 pennies to $3.90…Crude Oil is up 34 cents to $106.89 while the U.S. Dollar Index is up slightly at 78.20…
The second round of the European Central Bank’s mass release of loans at its record low interest rate into the European banking system was slightly higher than expectations today, helping commodities and giving European and Asian markets a lift…the ECB announced that its second long-term refinancing operation (LTRO) with a maturity of three years had a take-up of 529.5 billion euros ($713 billion) today, ahead of analysts’ predictions of around 500 billion euros…in December’s operation, 489 billion euros was taken up…this time, 800 banks around Europe took up the cheap funding offered by the LTRO, up from 523 last time round, indicating that the initial stigma surrounding the operation had been removed…the LTRO has been a major factor in driving commodities and stock markets higher since December…the world is being flooded with liquidity by central banks, so pay attention everyone – it’s “risk on” in the markets and many asset classes stand to benefit…
The U.S. economy grew a bit faster than initially thought in the fourth quarter on slightly firmer consumer and business spending…GDP expanded at a 3% annual rate, the quickest pace since the second quarter of 2010, the Commerce Department reported this morning in its second estimate…that was a step up from the 2.8% pace it reported in January…
Stock index futures as of 5:50 am Pacific are pointing toward a slightly positive open on Wall Street…we never like predicting daily moves but we do believe, based on technical factors, that there’s a very strong probability the Venture Exchange will finally bust through a resistance band today, tomorrow or Friday…position yourself accordingly for what has the potential to be an extremely bullish March…we put forward some outstanding situations for our readers’ due diligence Monday, and a few have made nice upside moves already…Wildcat Silver (WS, TSX) jumped 16 cents yesterday to $2.04 while Rainbow Resources‘ (RBW, TSX-V) bullish chart shows it’s drawing closer to another leg up…
Our “Sleeper” list includes GoldQuest Resources (GQC, TSX-V) which has commenced a 3,000-metre drill program at its La Escandalosa Project in the Dominican Republic…historically, GQC’s share price is resting in the “sweet spot” at 11 cents which makes the risk-reward ratio with this stock very attractive at the moment…there’s money to be made when you come across a chart like you see below…
Note: John, Jon and Terry do not hold positions in GQC.
A company we are adding to our “Watch” list (“B” Group) is Levon Resources (LVN, TSX)…our last look at Levon was on February 6 when we stated, “Now, however, is probably a good time for patient investors to consider accumulating LVN on any weakness – especially if it moves closer to the very strong symmetrical triangle support around 80 cents”…that’s indeed what has occurred as LVN successfully tested that support late last week/early this week…Levon has a lot going on in Mexico (check out their Feb. 13 news release regarding their Cordero Project) and over the short or medium term should be able to break out of the descending triangle as shown below…it closed yesterday at 95 cents…
Adventure Gold (AGE, TSX-V) continues to march forward…it gained 4 cents yesterday to close at 54 cents, its highest closing price since last September…John’s 4.5-year monthly chart below removes the “noise” from the daily chart and shows a very bullish overall picture and an important February breakout…AGE is one of one five companies on our “Strong Play” list (“A” Group) and while we believe Rainbow Resources (RBW, TSX-V) has the most immediate upside potential, we expect Adventure Gold to be a stellar performer in 2012 as it continues to develop Pascalis-Colombiere and other projects…AGE’s 100-day moving average (SMA) has reversed a slide that started last July…
Note: John, Jon and Terry do not hold positions in AGE.
Thanks for the chart and TA on Levon – its on my watchlist and I’ve been watching closely.
Comment by Andrew — February 29, 2012 @ 6:00 am
Another good nr from KOR.
Jon – did you learn anything about RIC and Martin Rivard’s resignation? RIC looking like an attractive buy.
Comment by Andrew — February 29, 2012 @ 6:38 am
Nice NR from GBB. Gold Bullion announces preliminary metallurgical testing showing average gold recovery of 94.1 % with an average gold grade of 0.94 g/t at the Granada Gold Property. SGS doing their job!
Comment by pete — February 29, 2012 @ 6:54 am
Richmont, from Les Affaires, Quebec Business newspaper.
lesaffaires.com/secteurs-d-activite/mines-et-metaux/changement-de-la-garde-chez-richmont/541564
Un départ à l’amiable.
” Après 15 ans chez Richmont, il était difficile de concilier le travail et la famille “, a confié M. Rivard, père de trois enfants de 10 et de 12 ans. ” C’est une décision déchirante, mon père ayant fondé l’entreprise “.
M. Rivard ne ferme pas la porte à l’industrie minière dans laquelle il a grandi, mais il tourne la page, affirmant n’avoir aucun projet spécifique après août 2012.
” Les enfats font des lites de choses qu’ils aimeraient faire “.
D’ici là, M. Rivard veut s’assurer d’une bonne transition en attendant le nouveau président que le conseil choisira. M. Rivard quittera aussi le conseil car ” il n’est pas
ldéal pour un nouveau président que le prédécesseur traîne “.
Comment by Alexandre — February 29, 2012 @ 7:03 am
Merci beaucoup, Alexandre – I didn’t realise that Martin Rivard’s father founded the company – end of an era.
Comment by Andrew — February 29, 2012 @ 7:09 am
good release from gbb,
. this should be the defining month for gbb, in my opinion.To me the fact that gbb set their ex. gen. meeting to ok shareholders rights agreement means that sgs 44-101 will probably be released before that meeting in early april. richard
Comment by richard — February 29, 2012 @ 7:10 am
RIC is a great buy on this weakness…..my take on what’s happening is that there is a change of direction brewing with RIC…..Bob Buchan’s investment and appointment to the board was very significant…….my hunch is the board wants to take RIC in a more aggressive direction and that has to be considered bullish for the stock price……….
Comment by Jon - BMR — February 29, 2012 @ 7:15 am
Graphite plays are in vogue and FMS the leader but for a junior with promising property for exploration Strike Graphite Corp. looks good SRK-TSXV, still in an upward channel and news this morning.
Comment by Andrew — February 29, 2012 @ 7:37 am
The arse is gone out of the market, gold down $75.00, so much for the 1800
resistance, maybe when we get there. According to a poster, the institutions
have left us, so what do we do now ? Like the so called essay writer, i don’t
know what to do. Disappointed but not giing up. R !
Comment by Bert — February 29, 2012 @ 8:34 am
Bert, temporary down for gold, Bernake said the job market is still “far from normal” and may require the Fed to launch more stimulus measures…..1800 is not far off….
Comment by pete — February 29, 2012 @ 9:02 am
Bernake’s comments were just what JPMORGAN and et al needed to drive the prices down, gold and especially silver is totally manipulated by JPM morgan et al, JP Morgan is short 25% of the world’s silver market, they are not going down without a fight.
Comment by Greg — February 29, 2012 @ 9:30 am
Gold and silver recovering already. An organized takedown centered on Bernanke’s comments. Doesn’t change the fact that central banks are creating money from fresh air all over the planet and this is will be reflected in increased prices in precious metals. QE to infinity is still going strong.
Comment by Patrick — February 29, 2012 @ 10:12 am
Sounds like the chances of RBW getting an NR this week before the PDAC are slim. So much data to go thru and they dont want a mistake in the filing like they had when closing the pp…db
Comment by db — February 29, 2012 @ 10:32 am
RBW trying to break thru 30 cents, probably would if not for the ugly day in the silver price.
Comment by Greg — February 29, 2012 @ 10:32 am
db – I’m not too concerned about RBW’s news release but I think IR said a news release for last week (didn’t happen) and one for this week so they should have just kept quiet like last time. 🙂
Comment by Andrew — February 29, 2012 @ 10:54 am
Martin
Martin-Up, you could have picked a better day to make a prediction (joking).
Anyway, i will give you credit though, we did go to 0.295. R !
Comment by Bert — February 29, 2012 @ 11:22 am
The day is not over Andrew but i dont thing we will get 0.32$. In anycase with next resistance a 0.37$ wich we will go thrught easily with the repport. From there next resistance at 0.52$.
Also would haved like to have more cash (as always :-)) to take a long position in Trelawney TRR. Look pretty beaten up with that (inferred vs indicated) story. Any thoughts?
Comment by Martin — February 29, 2012 @ 12:16 pm
Martin
I read somewhere that the analysts were concerned about the economics of trelawney, not so much the amount in indicated and inferred, will have to see if I can find that..
Comment by GREG — February 29, 2012 @ 12:56 pm
Allo Martin, Yes big discrepancy between indicated and inferred, I’d guess it’s at its low – oversold anyway. I don’t follow TRR (probably should as they are in NB too). It’s low grade so needs the ounces but is open pit. Unfortunately the 43-101 only included assays to September and they had a nr in mid February (165m at 1.2g/t )but the sp was already in decline. It may bounce off its low to the 50day sma quite quickly when gold breaks 1800 and that would be a 35% gain?
There were a lot of bargains today, thanks to Bernanke. I didn’t think I’d see RIC back in the 9s. I like LVN, it held up well today. No cash, I’m fully invested and wish CEV would make a move so I can sell some more.
Good volume on RBW again and controlled selling/buying – I like it! 🙂
Comment by Andrew — February 29, 2012 @ 1:10 pm
Yes, that tell you how strong RBW is after a 6.5% decline in silver today.
Greg, so if TRR is not economicly viable, forget about GBB as well.
Comment by Martin — February 29, 2012 @ 1:19 pm
Hi BMR, care to comment on GBB’s NR today? Pretty impressive I think. Recovery rate at 95% at a grade of .94 g/t is pretty impressive over 320meters of drill core given the known nugget effect and lower drill core grade. It shows that the gold is everywhere and we are only talking a 2 inch core. What do you think it would be if it was mined…a lot higher imo, especially given the bulk sample already showed a 100% increase in grade. Setting up nicely for the first RE.
Comment by Dan — February 29, 2012 @ 2:36 pm
Mr. Bernanke had his say today, no more goodies says he.
Tomorrow will be an UP day, as we LEAP from February to March.
Comment by Bert — February 29, 2012 @ 2:38 pm
Martin – A few gold stocks got beaten down the other day along with TRR: GCU to a lesser degree, BAT (lowest sp since Summer 2009)& GUY (lowest since Autumn 2009). BAT and GCU managed to finish green today. GUY is high grade.
Comment by Andrew — February 29, 2012 @ 4:06 pm
Newfie Medical Dictionary
The Newfoundlanders have the lowest stress rate
because they do not take medical terminology seriously …
Medical Term Newfie Definition
Artery —The study of paintings
Bacteria —Back door to cafeteria
Barium—What doctors do when patients die
Benign —What you be after you be eight
Caesarean Section —A neighbourhood in Rome
Cat scan —Searching for Kitty
Cauterize —Made eye contact with her
Colic —A sheep dog
Coma —A punctuation mark,
Dilate —To live long
Enema —Not a friend
Fester —Quicker than someone else
Fibula —A small lie
Impotent —Distinguished, well known
Labour Pain —Getting hurt at work
Medical Staff —A Doctor’s cane
Morbid —A higher offer
Nitrates —Rates of Pay for Working at Night
Node —I knew it !
Outpatient —A person who has fainted
Pelvis —Second cousin to Elvis
Post-Operative —A letter carrier
Recovery Room —Place to do upholstery
Rectum —Damn near killed him !
Secretion —Hiding something
Seizure —Roman Emperor
Tablet —A small table
Terminal Illness —Getting sick at the airport
Tumour —One plus one more
Urine —Opposite of you’re out
Comment by Bert — February 29, 2012 @ 5:54 pm
er….Bert
My wife, a nurse, has put a contract out on you with the Codfather!!!!!!
Comment by John - BMR — February 29, 2012 @ 5:58 pm
Bert, thank you. I think we all needed that.
Comment by vlad — February 29, 2012 @ 6:15 pm
Martin,
I think I read it wrong, it was the lower grade that caused some analysts to downgrade the price targets, CIBC I believe. sorry
Comment by Greg — February 29, 2012 @ 11:08 pm