Gold is under some pressure this morning with the euro sliding to a three-week low versus the greenback…as of 5:50 am Pacific, the yellow metal is off $19 an ounce at $1,709…Silver is 69 cents lower at $32.81…Copper has fallen 6 pennies to $3.74 while the U.S. Dollar Index has climbed nearly one-third of a point to exactly 80.00…
Gold Demand Growing
Demand for Gold hit an all-time high in 2011 as European, Indian and Chinese demand soared according to the World Gold Council’s just-released annual report…in Europe, Germany and Switzerland were the main drivers of the growth as the euro zone debt crisis escalated and investors looked for safe havens…
While the jewelry market was resilient, the Gold investment market grew more, with a 5% increase in annual demand…total demand around the world rose to 4,067 tonnes, worth around $206 billion – the first time annual demand for Gold has risen above $200 billion…
India is still the country where most Gold is sold, despite the recent weakness of the rupee, with around 500 metric tons of Gold jewelry sold in 2012 and total demand of 933 metric tons…
There was a hefty increase in Chinese demand which led the WGC to predict that China is emerging as the world’s biggest buyer of Gold…
Central banks also hiked their purchases from 77 metric tons in 2010 to 440 metric tons in 2011 as worries about a second global recession grew…
The Fed – Will They Or Won’t They?
The Federal Reserve is not yet ready for a QE3 program of asset purchases to boost the U.S. recovery, according to the minutes of its January policy meeting released yesterday…only a few members of the rate-setting Federal Open Market Committee thought that economic conditions “could warrant the initiation of additional securities purchases before long”…the minutes show that despite the Fed’s bias towards doing more to aid an economy beset by high unemployment, its hurdle for another big asset purchase program is high…
Today’s Markets
Stock index futures as of 5:50 am Pacific have rebounded after earlier losses, thanks to a slew of U.S. economic reports released in the last half hour…jobless claims fell 13,000 to 348,000 (close to a four-year low)…housing starts rose more than expected in January while producer prices outside food and energy recorded their largest increase in six months last month..they are unlikely to ignite inflation pressures, however, given the slack in the labor market…the Philadelphia Fed’s business outlook index is released at 7:00 am Pacific…
The TSX Venture Exchange closed up 4 points yesterday to close at 1634 despite the Dow’s largest single-day point drop of the year…the Venture’s overbought daily technical condition has been unwinding nicely over the last eight trading sessions, so the downside from current levels is really quite limited in our view…if 1625 doesn’t hold as support, then the 1565 to 1575 area most definitely will…it’s time to lock in positions on good quality situations in advance of what we believe is a very powerful move in the making…one of the best 20-cent deals we see at the moment is Rainbow Resources (RBW, TSX-V) which has successfully completed a $1.1 million financing on almost entirely “hard dollars” (very little flow-through which was nice to see)…with the PP out of the way, we expect things to heat up with Rainbow and a major report is pending from the company’s geological consultant on RBW’s Big Strike Project in the West Kootenay region of British Columbia…
John hit the “nail on the head” with Encanto Potash (EPO, TSX-V) which closed yesterday at 42.5 cents…momentum traders have certainly jumped on EPO as we speculated they would after the stock broke out to 30.5 cents February 3…the next major resistance area for EPO is 50 cents as John outlines in the updated chart below…
Note: John, Jon and Terry do not hold positions in EPO.
Some of our readers are closely following Focus Metals Inc. (FMS, TSX-V) which is a graphite play we have reported on occasionally over the last year or so…again, John was bang-on in his February 10 breakout call for FMS as it busted through resistance in the mid-80’s…below is an updated FMS chart that continues to look very strong…
Note: John, Jon and Terry do not hold positions in FMS.
As regular readers know, one of our favorite small Gold producers is Richmont Mines (RIC, TSX) which is at a “sweet spot” right now with the stock closing yesterday at $11.56…RIC has declined in 7 out of the last 9 sessions and now is the time (based on technical patterns) to be jumping all over it…this is a very well-managed and profitable company with an impressive production growth profile…
Note: John, Jon and Terry do not hold positions in RIC.
Hi BMR
Long time since you wrote about GBB, can you descibe the latest new from there and what we can expect in the future?
Kind regards
Bosse
Comment by Bosse — February 16, 2012 @ 6:32 am
Hello Friends,
I heard SD merged with Cameco?. Your comments highly appreciated.
Thanks
Comment by Eric Benson — February 16, 2012 @ 6:41 am
Encouraging status for those still holding CEV:
Cap-Ex Ranked Third Out of Ten Mining Companies to Make TSX Venture 50(R)
Comment by Andrew — February 16, 2012 @ 7:07 am
Adventure Gold Starts a 15,000-Metre Drilling Program at the Past Producing Beliveau Mine East of Val-D’or, Quebec
AGE has a steady news flow (6 nrs this year I think) and the SP holds up well, but it refuses to break out! 🙂
Comment by Andrew — February 16, 2012 @ 7:09 am
SD is now CRU-Cameo resources
I believe they consolidated shares to 30:1. that’s what I get when looking at TMX.com….
Comment by M. — February 16, 2012 @ 7:16 am
Test
Comment by bert — February 16, 2012 @ 8:08 am
For goodness sake, i got through. Was i really cut off ? if so,
was i sentenced to a week watching, but not being able to post.
Whatever, the story goes this way, i tried posting for a full day
without being able to get through. This has happened before, but
it seemed different this time. I immediately contacted a close
friend of mine & requested he post my last post, he did, but
guess what ? that was his last post, he hasn’t been able to get
through since, so what would you think ? Anyway, it now appears
that i have served my sentence & i am now able to destroy the
complaint i was about to send to John’s wife, a lady from Newfoundland.
My complaint in part read, My Lady Newfoundlander, oh how i hate to
write, but would you be so kind as to speak to Dear John etc etc.
The market is not responding to HRC, but it’s not responding to much
these days. Anyway, in case anyone may be interested, HRC had a recent
NR, a mineral resource estimate, which stated in part, they have
1,020,000 ozs. of gold, measured & indicated @1.32 g/t with a 0.5 g/t
cut off. & may i add 240,000 in the inferred category. They will be
having a PEA completed the latter part of the second quarter & mark
my word, one of the present sniffers will no doubt make an offer.
Good to be back. R !
Bert
Comment by bert — February 16, 2012 @ 8:34 am
Is BMR going to do any follow up to v.ABI’s recent silver find? Wondering how bullish/bearish you are about the company and if you plan on doing any reporting on them in the near future.
Comment by mchedd — February 16, 2012 @ 8:41 am
w/b Bert
don’t think you were banned
teckie probs??? who knows /w these computers
from Peterborough here u know who
Comment by ChartTrader — February 16, 2012 @ 8:45 am
Jon, it would be nice to hear your thoughts on the latest news release from GBB. How about a new interview with Frank Basa? I am sure there are many investors (like myself) who are very interested in what he has to say.
On a side note, I took a nice position in EPO. I think that stock has explosive potential, it’s just a matter of time.
Comment by Steven — February 16, 2012 @ 8:50 am
Good to see BMR give props to reader who found International geo report from braveheart…wink, wink, nudge, nudge. For those who havent seen it. I also posted it on Stockhouses RBWs bullboards feb6th..db
Comment by db — February 16, 2012 @ 8:55 am
Thanks for the FMS chart. Looking good. RBW as well. I also would like to know what you think of the GBB news and situation in general with them. Thx
Comment by pete — February 16, 2012 @ 8:56 am
RBW
Thanks Jon for enticing me into RBW. I now have 40K shares, not a lot
if it should go to 0.75, but way too many, if i watch it move back to
a dime..
They started the company with financing at 0.15, ordinary & flow through
shares. No doubt, the recent selling at 0.195/0.20 was from the original
financiers, who are now left with the perks…They have 18 months from Dec
2010, to cash in their perks at 0.25. I would therefore suggest we will see
the price move to 0.30 or higher in the not too distant future. The
company stated in their most recent news that there will be a continuous
flow of news, so i feel very safe with this one at 0.20.
Comment by bert — February 16, 2012 @ 10:17 am
Thank you, Bert……by the way, it’s great to have you posting again. And rest assured, no one at BMR cut out any of your postings recently or sent you to the dog house. Unfortunately, as I’ve explained before, the system very occasionally automatically deletes a post that it interprets as possible spam. We can correct that manually but if we’re really busy, it’s difficult to notice or easy to miss. And that’s what happened in your case. So I’m sorry that occurred (again). I think it only happens in your case when you cut and paste an article or news from somewhere. We will endeavor to watch this more closely.
Comment by Jon - BMR — February 16, 2012 @ 10:43 am
What news release are you guys referring to on GBB?,the shareholders rights plan is the last one I see?
thanks greg
Comment by GREG H — February 16, 2012 @ 10:52 am
Greg – GBB had a news release on 14th February: Gold Bullion Enters Into Option Agreement to Acquire Beaver and Violet Silver Properties, Postpones Castle Silver Mines IPO
Comment by Andrew — February 16, 2012 @ 11:04 am
Thanks Andrew,. forgot about that one..
Comment by GREG H — February 16, 2012 @ 11:31 am
Bert I was in touch with IR for RBW yesterday and he said expect news next week AND the week after…
Comment by db — February 16, 2012 @ 11:36 am
CEV & SGC
Where i have been on sort of a vacation for awhile, i feel i should
mention the above noted stocks. Please be advised, i still feel very
comfortable holding both. More news coming for both. There are some
stocks you just have to hold for a period of time, you just have to
know when to hold & when to fold. I like to be able to buy a stock
today & sell today, but that’s not usually how the cash is made..
Remember the 50K i told you about, that’s because i held, but maybe
i neglected to tell you, i left over that amount on the table, but i
did feel very comfortable looking at the increase in my account. Minimum
wage down this way is $10.00 & it would take a worker two years to make
that kind of money, that is if he/she were able to keep the deductions.
Anyway, good luck !
p.s. thanks db
Comment by bert — February 16, 2012 @ 11:53 am
Why does bmr always avoid questions on GBB? I heard Jon(john?) had a fall out with Frank. Thought nothing of it before but something strange here. I’m not at all trying to be critical because I appreciate what you guys do but be straight up.
Comment by Barry — February 16, 2012 @ 3:57 pm
RBW
If i may, i will suggest that RBW will move up tomorrow, that is, if the overall market is positive.
Good night !
Disclaimer…Move up could mean, by .01 to .05.
Comment by Bert — February 16, 2012 @ 5:18 pm
Barry, the fact is, there’s really nothing to say at the moment on GBB. It’s in a holding pattern, and everyone is waiting to see what Basa next move is. We’ve maintained since Day 1 that the LONG Bars Zone has the potential to be a multi-million ounce deposit – the gold is there and many are convinced there’s lots of it. Unfortunately, GENIVAR mishandled the drill program (though the buck really stops with Basa). SGS is now GBB’s new geological consultant. I guess we’ll find out fairly soon what their strategy and plan of attack is. Quite simply, GBB must re-establish the market’s confidence in the program on the ground at Granada. I saw and spoke with Frank at the Resource Show in Vancouver. We get along just fine. I got frustrated like most people last year when GBB (GENIVAR) failed to execute properly on the ground. Frank insists things are going much better with SGS. We’ll see what happens in the coming weeks and report more on GBB when there’s something of substance to report. At 15 cents, GBB offers incredible value – assuming they get things going in the right direction again.
Comment by Jon - BMR — February 16, 2012 @ 5:46 pm
Yes, ABI got some interesting results and we’re continuing to follow it. Their properties are great – the problem is that Renaud Hinse as President and CEO doesn’t inspire confidence with the market. The company needs a fresh face at the helm to unlock the real value of its assets. Worth holding onto given the assets and the possibility of a takeover down the road or new management.
Comment by Jon - BMR — February 16, 2012 @ 5:58 pm
Jon
do you still hold GBB?
thanks Greg
Comment by GREG H — February 16, 2012 @ 6:01 pm
No I don’t, at the moment. But it’s temping where it is now.
Comment by Jon - BMR — February 16, 2012 @ 6:05 pm
Thank you Jon. Just that makes me feel a little better. The silence was deafening. So Frank still seems confident, that is good. What do you make of the silver property purchase. Certainly was cheap. Good bad what do you think?
I do apologize if I was too harsh before, just an anxious/frustrated holder I guess
Comment by Barry — February 16, 2012 @ 6:17 pm
I’ve been frustrated with GBB, too, but 2012 should be a much better year I think. The Silver property acquisition means little or nothing to me – it’s all about Granada. That’s where the elephant is and the focus needs to be.
Comment by Jon - BMR — February 16, 2012 @ 6:22 pm
Bert, Id like to see RBW test the 25c mark tomorrow. Chart is looking like its getting ready for another run. Perfect timing for MMR(moose mountain report) next week?
Comment by db — February 16, 2012 @ 7:05 pm
Thanks Jon
Comment by GREG H — February 16, 2012 @ 7:25 pm
You know you’re from Newfoundland when…
– You only know three spices – salt, pepper and ketchup.
– You design your Halloween costume to fit over a snowsuit.
– The mosquitoes have landing lights.
– You have more miles on your snowblower than your car.
– You have 10 favourite recipes for bottled moose.
– Canadian Tire on any Saturday is busier than the toy stores at Christmas.
– You live in a house that has no front step, yet the door is one meter above the ground.
– You’ve taken your kids trick-or-treating in a blizzard.
– Driving is better in the winter because the potholes are filled in with snow.
– You think sexy lingerie is tube-socks and a flannel nightie with only 8 buttons.
– You owe more money on your snowmobile than your car.
– The local paper covers national and international headlines on 1/4 page, but requires 6 pages for local softball scores.
– At least twice a year, the kitchen doubles as a meat processing plant.
– The most effective mosquito repellent is a shotgun.
– Your snowblower gets stuck on the roof.
– You think the start of salmon fishing season is a national holiday.
– You frequently clean grease off your barbeque so the bears won’t prowl on your deck.
– You know which leaves make good toilet paper.
– You find -40C a little nippy.
– The trunk of your car doubles as a deep freeze.
– You can play road hockey on skates.
– You know 4 seasons – Winter, Still Winter, almost Winter and Construction.
– The municipality buys a Zamboni before a bus.
–
Comment by bert — February 17, 2012 @ 4:17 am
lol thx Bert! im gunna send this to my uncle whos a newfie, he’d get a kick out of it…
Comment by db — February 17, 2012 @ 5:24 am