From Nelson, B.C.
Gold has traded between $1,565 and $1,575 so far today…as of 6:05 am Pacific, the yellow metal is unchanged at $1,573…Silver is 12 cents lower at $26.78…Copper is off a penny at $3.32…Crude Oil is down $1.08 to 78.68 while the U.S. Dollar Index is up one-tenth of a point to 82.48…
This is an abbreviated edition of Morning Musings due to severe time constraints, Internet issues and travel logistics as most of our last two days have been spent on the ground at a Rainbow Resources‘ (RBW, TSX-V) site visit over the weekend which included the company’s flagship International Silver Property a few hours’ drive to the north of where we are now – the historic mining town of Nelson…we are extending our visit by an additional day to check out more of the area around Nelson including the flake graphite situation…we have accumulated a large amount of information which we’ll be putting together and sharing over the coming days…
Rainbow has made a great deal of its International Property since the company acquired this project when it took over privately-held Braveheart Resources last fall, but the International exceeded even our own expectations given its scope and widespread mineralization – some of which (in massive galena) is eye-popping…access through the property, which ranges in elevation from about 600 metres to 2100 metres, is also more than adequate to support substantial drilling…historically, access issues have prevented this project from ever reaching the drilling stage…it has to be one of the best un-drilled properties in all of British Columbia, and truly holds excellent potential for a Silver discovery…RBW is now gearing up for drilling, which is imminent, and the International is where its summer drill program will commence…the first holes will be drilled right into the heart of an impressive wall of mineralization as we showed in some pictures posted last night…
We’ll have more tomorrow from our visit…
In the meantime, John has chart updates this morning on Gold and the CRB Index…
Gold
CRB Index
Let me guess. BMR sees bullish signs in the TSX-V?
Comment by Don — June 25, 2012 @ 7:48 am
@Don, you repeat yourself every time you make a comment… Why’s that?
Comment by Kalkan - Sweden — June 25, 2012 @ 8:13 am
don does that cause he’s not sure if hes right or not. a fencesitter
like it or not, BMR makes a call.dont like, dont read
Comment by rdww — June 25, 2012 @ 8:17 am
1050 is what I see next coming on the TSX.V – Lets see what happens.
Comment by dave — June 25, 2012 @ 9:02 am
That’s the gap at .135 closed on RBW
Comment by Andrew — June 25, 2012 @ 9:29 am
13.5c gap filled on rbw
Comment by db — June 25, 2012 @ 9:31 am
I wish i truely believed it was gunna get filled. woulda had a nice bid at 14
Comment by db — June 25, 2012 @ 9:32 am
I think we may see it again. Perhaps lower as CDNX is headed for a 3 yr low.
Comment by Andrew — June 25, 2012 @ 9:58 am
Hey guys you should check out DVV Driven capital corp. Low share float only 28 million shares. Just starting geophysical surveying in the Blackwater east area. This is where richfield hit it big and Newgold took them out for 550 million. Trading at only 9 cents. Seems like a potential winner.
Comment by Ed — June 25, 2012 @ 10:14 am
DVV is also currently drilling at it 60 % owned yukon property. And yes i loaded up at 8 cents and want you guys to buy it up higher so i can sell and make a nice profit.
Comment by Ed — June 25, 2012 @ 10:31 am
db from what I can see the gap was from .13 to .135 in very late Dec 2011
the low 2day was .135
imho the gap is still open
Comment by ChartTrader — June 25, 2012 @ 11:18 am
I ask this question because BMR has seen bullish signs in the TSX-V over a year now. With what result? And they still try to find bullish signs in the chart when there is NONE. TSX-V is breaking all support, all the time. It will not move until the crisis in Europe eases. That BMR don’t get that amazes me. THERE IS NO BULLISH SIGNS IN THE VENTURE!!
Comment by Don — June 25, 2012 @ 11:20 am
RBW – just looked at the chart and yes, the gap is still open. SP needs to drop to .13 to close it.
Comment by Andrew — June 25, 2012 @ 11:42 am
@ Don, ok now I do understand your point of view and I fully respect that. But every day keep posting the same comment? Or you haven’t got an answer yet perhaps?
Comment by Kalkan - Sweden — June 25, 2012 @ 12:02 pm
Don – agree, although ironically I think we are 6-12 weeks away from some very large scale QE programs which will get the gold market moving, hopefully then the gold miners will move but the commodity indexes may not. Just my thoughts could be completely wrong of course.
Comment by Hugh — June 25, 2012 @ 12:08 pm
On a positive note, today gold stock outperformed the market in general. Today was an up-day for most gold stocks in all markets.
Comment by Andrew M — June 25, 2012 @ 4:48 pm
I believe RBW could go lower than the gap. Level 2 not looking healthy and we still have 2 months of summer and turmiol in Europe. If the TSX.V does test 1050 there will be some panic selling along the way.
Comment by dave — June 25, 2012 @ 7:01 pm
Andrew M you are correct. The beating was mostly ol and energy stocks from what I see
Comment by Pete — June 26, 2012 @ 3:07 am
sorry “oil and energy”
Comment by Pete — June 26, 2012 @ 3:08 am
Hi Don
You asked a general question so I will give you a general answer. Specifics do not matter as I do not have time for a debate.
When a stock or market is in a downtrend such as the CDNX is at this moment, my focus is not on the fact it is going down but WHEN, not IF, will it reverse to the upside. I look for bullish signs.
Why do chartists identify chart supports and resistances, use FIB Targets, Elliott Wave Theory, O/B and O/S zones of banded oscillators, divergencies of MACD etc? They all express PROBABILITITES of reversals. The focus must be on reversal of trend. Yes I am looking for bullish signs because I know that a reversal is coming…when, I don’t know.
Comment by John - BMR — June 26, 2012 @ 3:47 am
Hi Dave
I have worked out the end of the 5th Elliott wave of this downtrend to occur around 1082 which is quite close to your 1050. These levels are just probabilities don’t forget, that is why I said I did not KNOW.
Comment by John - BMR — June 26, 2012 @ 6:13 am