Happy Thanksgiving to our American friends…U.S. markets of course are closed, so all other markets are quiet as a result…Gold traded as high as $1,704 overnight and is currently up $1 at $1,693 (as of 8:45 am Pacific)…the support band between $1,665 and $1,680 is holding so far…a breach of that area would likely mean a test of the important trendline support at about $1,625…Silver is unchanged at $31.77…Copper is off a penny at $3.29…Crude Oil has gained 65 cents to $96.82 while the U.S. Dollar Index is up slightly at 79.12…
European shares pared gains today after German Chancellor Angela Merkel reiterated her opposition to jointly issued euro bonds and calls to change the role of the European Central Bank in the fight against the euro zone debt crisis…meanwhile, investors continue to fret about the implications of Germany’s poor debt auction yesterday with some fearing it shows sovereign contagion has reached the very core of the single currency bloc…Japanese shares are at their lowest level since April, 2009, a slump that is testament to the sentiment-sapping force of the euro zone debt crisis and the negative impact the fiscal turmoil is seen having on the global economy…who knows where this is all going to lead but one would think the end result will be bullish for Gold…with the CDNX in the grips of a bear market, we continue to favor the producers at the moment…
The TSX is down 100 points at 11,472…the Index has now retraced 63% of its gains from the October 4 low of 10,848 to the November 8 high of 12,543…the HIX and HXD short ETF’s have been on fire with the HXD on track for its ninth consecutive daily gain…the CDNX, meanwhile, is off another 10 points at 1512 with support at 1500…
The Canadian Dollar has taken a pounding recently but is now oversold based on Stochastics and close to support, which suggests the markets could be ready to turnaround and that we could see a significant bounce perhaps next week…the Dollar is flat this morning at 95.4 cents, and John updates the chart below…
Cap-Ex Ventures (CEV, TSX-V) corrected to 96 cents yesterday but has rebounded today, thanks in part to a large insider buy yesterday of nearly half a million shares at $1.14 which has given the market a boost of confidence…CEV opened higher at $1.03, touched $1.01, ran as high as $1.10 and is currently up 7 cents at $1.07…the company has made a significant iron ore discovery near Schefferville, Quebec, but got a little over-zealous in its news release yesterday and had to issue a retraction regarding comments made regarding the potential size of that deposit (“Block 103 appears to host a multi-billion-tonne near-surface iron ore deposit”)…nonetheless, they got their message out…
Miner Anglo-American PLC is “very positive” on the fundamentals of the iron ore industry, with demand for the steelmaking material to increase as much as 39% over the 2010-2020 period, Brazil-based directors of the mining company said yesterday…annual world iron ore demand is set to grow at an average of 3.4% a year between 2010 and 2020, mainly driven by Chinese steelmaking growth, according to Paulo Castellari, commercial director of Anglo’s Brazilian iron ore unit…Anglo will “significantly enhance” its presence in the global iron ore market when it brings its $5 billion Minas-Rio iron ore project in Brazil into production in the second half of 2013 with a capacity of 26.5 million tons a year of iron ore…(the resource contains 5.3 billion tons)…
Visible Gold Mines (VGD, TSX-V) closed a flow-through private placement yesterday at 30 cents, raising net proceeds of nearly $2.7 million…we remain bullish on the prospects of VGD’s two main projects, Joutel and its Wasamac-area properties…however, it seems the market has knocked VGD off its game…rather than being on the offensive, like it was over the summer, the company seems to have pulled back as evidenced by this flow-through financing (shows weakness) and the statement in yesterday’s news release that next year’s drilling will be 25,000 metres…assuming the company completes 40,000 meters this year, as promised, that would mean they are proposing a nearly 40% reduction in next year’s drilling – before all results are even in from Wasamac and Joutel…that is astounding…VGD management is sending confusing and disturbing signals to the market and that’s not helpful when it comes to share price performance…the stock is unchanged this morning at 20 cents…
We’re long-term energy bulls and this morning John has a chart on Ithaca Energy (IAE, TSX), a former Venture-listed stock, that he’d like to share…IAE is currently up 4 pennies at $1.98 but the 2.5-year weekly chart below shows a better buying opportunity is likely…a strong support band exists between $1.60 and $1.80…it’s worth keeping this play on one’s radar screen…as always, perform your own due diligence…
Hi BMR and boys and girls, can we PLEASE have another informative chart on the MERITS of GBB and the Long Bars zone?? OOPS!! Looks like MY call on .145 was a little premature as I now see GBB at .155 and going lower, I will definitely be changing my bid to .11 as tax loss selling begins in to gain momentum, things could get REALLY ugly for GBB, not to mention SFF, GDX, ABI SD and the list goes on and on. On a brighter note the Muskowekwan 1st nation in Saskatchewan votes THIS Saturday on whether to DOUBLE the mine life from 40 to possible 85 PLUS years and whether to DOUBLE the resource of Potash on the reserve. I wonder how they will vote??? hhmmmm lets see, they JUST 3 days ago invested 3 MILLION of the bands money to buy shares in Encanto Potash, their partner……hhhhmmmmm remember kiddies, you CAN’T eat Gold, even long bars of gold cannot be eaten!!!!
Comment by John — November 24, 2011 @ 10:06 am
Hey John. You sure are a funny guy? If gold is so unimportant why are central banks all across the globe scrambling to get their hands on it. I’ll tell you why it’s because when the shit really hits the fan gold and silver are the only forms of money that are accepted. Check out Alan Greenspan’s speech where he outlines this fact in much more eloquent language. You can keep your potash and do whatever you want with it it’s precious metals for me to survive the coming paper money crisis.
Comment by Patrick — November 24, 2011 @ 10:38 am
Paper money?? Dude. I use plastic…LOL as a side note, I bought AND SOLD 50,000 shares of GBB today, in at .155 out at .17 thank you
Comment by John — November 24, 2011 @ 11:07 am
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/24_Michael_Pento_-_Failed_German_Auction_Will_Force_ECB_to_Print.html
Comment by Hugh — November 24, 2011 @ 11:20 am
Johnny – Paper money?? Dude. I use plastic…LOL
Bert – Don’t forget my buddy, you can’t use plastic
to pay for your plastic purchases. Johnny, you always
seem to have an answer for everything, pretty smart
guy i assume, but then i ask myself, self, how could
such a smart guy, buy so many out of favor stocks, hint!
hint! R !
Comment by Bert — November 24, 2011 @ 11:39 am
John – I didn’t hear you make these predictions several months back, in fact you were here telling everyone lies that you were speaking with VGN and had insider news related to them. This is good board where people can get together and share information about small cap mining companies. For the most part the conversation is civilized, please lets keep it that way. Move along.
Comment by Hugh — November 25, 2011 @ 4:48 am