Gold rallied off support at $1,700 yesterday and it’s reasonable to believe the yellow metal will extend those gains in the days ahead, particularly if the right signals come from euro zone…as of 6 am Pacific, Gold has reversed its earlier losses today and is now up $4 an ounce at $1,733…Silver is off a dime $32.66…Copper is down 2 pennies at $3.54…Crude Oil is 33 cents lower at $100.95 while the U.S. Dollar Index is up nearly one-fifth of a point to 78.67…
Dow futures as of 6:00 am Pacific point to a slightly lower open on Wall Street…
The global financial crisis is giving investors more reasons to love Gold…U.S. investors, both retail and professional, poured $3.6 billion into Gold exchange-traded funds funds last month, quadruple the $813 million in October, according to numbers crunched by research firm Birinyi Associates…it also was double the $1.7 billion placed in the second biggest ETF category by inflows, investment grade corporate bonds…investors are betting that inflation could heat up as many countries cut interest rates – essentially devaluing their currencies – and Europe gets set to inflate its way out of its credit crisis…“It is going to be a go-to asset once everyone digests that if Europe is to be saved, the ECB will have to directly or indirectly print money and the inflation trade will be all on once again,” Michael Block of Phoenix Partners Group told CNBC…“I would be buying Gold opportunistically”…
The COT structure for Silver at the moment is absolutely stunning…what it suggests is that Silver is gearing up for an explosion to the upside, which fits well with one of John’s recent “big picture” Silver charts that points to a new all-time high by the middle of next year…commercial long positions in Silver are at a record level – the long to short ratio is a hugely bullish signal – while the typically wrong large and small specs are quite negative regarding Silver at the moment…it’s never a good idea to bet against the commercial traders, they are consistently correct…there is a bullish COT structure for Gold right now, too, but Silver is way off the scale which suggests Silver will out-perform Gold on a percentage basis going forward…
Rather than chase Silver stocks later, it’s best in our view to ensure that you have exposure now for both the short-term and the long-term in quality Silver plays including producers and explorers…just a few of our favorites include Great Panther Silver (GPR, TSX), Alexco Resources (AXR, TSX) and Wildcat Silver (WS, TSX)…we’ve referred to GPR consistently throughout the year and it closed yesterday at $2.41…AXR’s Bellekeno Mine in the Keno Hill Silver District is one of the highest-grade Silver mines in the world…the stock closed yesterday at $7.08…both AXR and GPR are trading below their respective and still-rising 300-day moving averages…WS, entering today’s trading at $1.53, is developing a substantial deposit at its Hermosa Property in Santa Cruz country, Arizona…for the more adventurous, we suggest investors take a look at Rainbow Resources (RBW, TSX-V) which is an up-and-coming Silver-lead-Gold play in southeast British Columbia…it closed yesterday at 16.5 cents for a market cap of just $4 million…some highly respected and successful Calgary businessmen are involved in Rainbow including Jim Decker of Grande Cache Coal fame…they have an interesting Silver property in their southeast B.C. land package and we suspect this one year-old company is going to move aggressively in terms of exploration and overall business development…consider RBW our Christmas gift to readers as a potential big winner in 2012…as always, perform your own due diligence…
Yesterday, Jon spoke with Cap-Ex Ventures‘ Brett Matich, in preparation for an interview with the CEV President and CEO tomorrow morning…the more we look at CEV, the more we like it – even though the stock has appreciated considerably over the last couple of months after bottoming out at just under 30 cents at the beginning of October…the involvement of Forbes & Manhattan is a huge development for Cap-Ex which appears to be sitting on one of the world’s largest iron ore deposits…given the strong insider buying and Forbes & Manhattan stepping up to the plate, investors should feel confident with this company for both the short-term and the long-term…the current market cap of just under $50 million is modest indeed…
John has two charts to share this morning of two companies that are executing well on the ground with their respective properties – Spanish Mountain Gold (SPA, TSX-V) and Adventure Gold (AGE, TSX-V)…both stocks have out-performed the CDNX this year and we expect that trend to continue in 2012…the Spanish Mountain chart is a picture of beauty with the share price showing a slow but steady progression in an upsloping channel throughout the year…the Spanish Mountain deposit in central British Columbia is low-grade but high-tonnage with a current 43-101 all-category resource (see company’s Nov. 15 news release) of 4.5 million ounces of Gold and 3.7 million ounces of Silver at a cut-off grade of 0.30 g/t Au…the company is now focusing on the completion of additional infill drilling, principally within the promising North zone and adjacent to the Main zone with the objective of enabling a reclassification of part of the large inferred resource (2.7 million ounces) to the measured and indicated categories…an updated resource estimate and a pre-feasibility report are expected by early in the second quarter of next year…the company has a strong management team (they do what they say there are going to do) and impressive financial backers…the current market cap of $133 million values the all-category Gold resource at just $30 an ounce, so there’s plenty of upside potential here…this deposit needs high Gold prices, so a big move either way in Gold will certainly impact the share price…in otherwords there are risks but if you’re a believer in Gold moving higher, Spanish Mountain should be a big winner as we’ve stated on numerous occasions during the year…it closed yesterday at 80 cents…
Adventure Gold’s (AGE, TSX-V) key asset is its Pascalis-Colombiere Gold Property near Val d-‘Or which the company has advanced nicely this year…Pascalis-Colombiere encompasses the former producing L.C. Beliveau Mine and lies immediately adjacent to Richmont Mines‘ (RIC, TSX) Beaufor Property and Mine (a significant fact)…drilling and exploration work this year have shown there are numerous extensions to the former Beliveau Mine, and AGE is working on an initial 43-101 resource estimate which should be ready in the near future…AGE, which has a large portfolio of properties in in Quebec and Ontario, closed yesterday at 45 cents for a market cap of $25 million…
Great news from GBB!!
Comment by M. — December 7, 2011 @ 6:34 am
Results are consistent with previous results, so the deposit continues to grow. Just reviewing the drill map to see if there’s anything of note that wasn’t pointed out in the NR.
Comment by Jon - BMR — December 7, 2011 @ 7:06 am
CEV is a keeper for sure. The next major step up in price will probably occur On the announcement of the DSO drill results, which I expect will be around end of January. This should take it to the $2 level.
CJC – support is at .55 – If assays don’t come before Dec. 16, they may hold off till right after new years. Her next spike up which could be soon, could take her into the 80’s. She is rated: bullish, very bullish, bullish at this time.
Congrats to all who entered both plays at .35 when I mentioned them.
Comment by dave — December 7, 2011 @ 7:20 am
Looks like cjc pullback might be over already! Please keep updating us Dave!
Comment by george — December 7, 2011 @ 7:20 am
Yes, don’t keep quiet Dave! Update us with your TA and thoughts on CJC as often as you wish – we all appreciate it. I don’t thin k it’s overbought, still room to move up? I’m hoping that there will still be the exploration update this week – it may help to consolidate in the .60s?
Comment by Andrew — December 7, 2011 @ 7:30 am
Huge volume on gbb. Looked like it was going to be a big gain, but no shortage of sellers. I continue to read the drill results as very positive while the rest of the market vomits.
Comment by mike — December 7, 2011 @ 8:53 am
CJC – the recent pull back has helped to unwind the RSI a bit which is healthy. Watching level 2 today, I saw that many wanted in at .55, which was the first line of support. When this did not happen, they started buying up and chasing it. We should have a good close in the 60’s and the next spike shortly here will send it to the 80’s. She is capable of being $2 to $4 in January and higher in February. All depend on the drill results, but when you use a percentage from 0 to 100 in odds, many are giving 90’s odds that they have made a major discovery. I will be more conservative. 80% they hit good REE and 50% on heavy REE.
CEV – keep watching your TA and trade the chart, take what the market gives ya. Cheers
Comment by dave — December 7, 2011 @ 9:15 am
I should have clarified my post yesterday better. I didn’t mean that I was not going to post at all again, just yesterday so Bruce could add on the correction. Hope he was WISE.
Comment by dave — December 7, 2011 @ 9:23 am
LOL. Dave, I’ve added some this morning at 0.57. I was hoping for a much bigger pull back though.
I guess too many peopel know now, so won’t need your silence 😉 (silence would’ve been nice in the 40s).
There is an exploration risk (of course). But if they hit, it will be huge with only 18M shares. It will be hard for big boys to get in.
Comment by Bruce — December 7, 2011 @ 9:44 am
Wheres the update on GBB?? And the GREAT results they released this morning which resulted in the HUGE .01 cent gain?? GBB has fallen FLAT on it’s FACE!! And, oh yes as for CUI and the others ” it’s that time of year agin, tax loss selling”!!! What a LAME excuse!! BMR has yet to comment on the GBB reults, why?? Are they evn still in the stock?? Or nothing really to write home about?? Ho-HUM,nobody gives a rats ass about GBB’s results, because how many MILLIONS of shares were BOUGHT at the ” SUPPORT” of .35???? Now it’s rah-rah for cjc, which is doing great, and I hope you all make a pile of cash, just BE CAREFUL if BMR starts to PROMOTE it oo much, that will be your signal to SELL it!! SD, CUI GBB< SFF ISD ABI, TRM and the list goes on and on. Ofcourse BMR ALWAYS has an EXC– USE for their FAILINGS!! Im just curious, when will BMR again remind us loyal readers every weekend HOW many PERCENTAGE POINTS they are UP pn all the stocks the " pick"?? I've been trading MRP.V for days doing rather well, also DNI has now found MASSIVE support in the .35-.40 range, I picked that GEM up at .15 2 weeks ago.Keep an eye on v.SLV, could make some EASY money on it within 2 weeks.
Comment by John — December 7, 2011 @ 9:54 am
Bruce – now you have the big picture, congrats.
Comment by dave — December 7, 2011 @ 10:02 am
Just got email from stockcharts, RBW is now listed .
Comment by george — December 7, 2011 @ 10:13 am
Since you seem to have a hard on for silver today, please check out SVL (silver crest mines). Please don’t just go off my recommendation, do your own dd, but I have held it for 6 months now and its not disappointing me.
Comment by Tim — December 7, 2011 @ 10:26 am
dave, I see the potential. I just want to get in at a lower price in case of exploration risk…
Comment by Bruce — December 7, 2011 @ 10:27 am
@ Dave
$2 to $4 in january and maybe higher february sounds optimistic but it would be a dream come true. If you’re right I will be rich and I will never forget you man! 🙂
Comment by Kalkan — December 7, 2011 @ 10:57 am
Hey John how is VGN ,EPO doing could you provide a chart,you have been running your mouth about BMR,I you you can really back up your trash talking about VGN.How long have you been mouthing about Tony sitting by his phone.I know know what Tony is doing,he is buying CJC,keep posting,thanks.
Comment by John — December 7, 2011 @ 11:10 am
Bert, have you noticed the large bids coming in on VGD? Maybe time for a chart update, not that it’ll change the assays? 🙂
Comment by Andrew — December 7, 2011 @ 11:38 am
VGD
I have to see more volume before i feel confident about something happening with VGD.
The bids are looking good, but only 41K bought at 0.20 tells me the story is not ready
to be told yet. R !
Comment by Bert — December 7, 2011 @ 12:19 pm
ABI ?
Comment by Frank Speaker — December 7, 2011 @ 1:38 pm
I will be very blunt about ABI. Excellent properties – Elder/Tagami should become a mine, and the Silver property is a significant resource. It’s hard to dispute that, and in my view ABI is presently undervalued. The problem is Renaud Hinse – he needs to step aside as President and CEO IMHO in the interests of shareholder value. Fresh blood required here. He’s a nice guy, and can continue in an advisory capacity, but a new person at the helm here is a must in order to effectively develop the company’s assets and increase shareholder value.
Comment by Jon - BMR — December 7, 2011 @ 1:46 pm
I think it is hard to put a price target of how high CJC can go. All depends on the assays and irrational minds.
The timing depends on the assay releases and the results. Based on the chart, it went to 1.50 on spec alone, so it going past at least 1.50 is plausible if the initial result is good.
It looks like the assays are going to be released in the multiple batches. Sharp spikes, either up or down, can be expected.
Comment by Bruce — December 7, 2011 @ 3:17 pm
CJC just posted their exploration presentation to date on their web site, it said Dec 8 I guess they jumped the gun a bit
Comment by Dan — December 7, 2011 @ 7:28 pm
CJC – news out. READ CAREFULLY. Cheers.
Comment by dave — December 7, 2011 @ 9:43 pm