Gold is firming up after trading in a tight range overnight…as of 6:25 am Pacific, the yellow metal is up $8 an ounce at $1,773…it has been as high as $1,777 and as low as $1,760…Silver is 29 cents higher at $34.26…Copper has gained 2 pennies to $3.73…Crude Oil is up 82 cents at $92.75 while the U.S. Dollar Index is down slightly at 79.44…
Remarks from UBS on Gold: “What’s been quite evident over the past week is that buyers are very eager to step in on dips such that any move lower has been short-lived…there is a risk that no such better buying opportunity will present itself, as we saw after QE1 when Gold simply proceeded to make higher highs and higher lows”…
Indian Monsoon Season Not As Bad As First Feared – Good For Gold
There has been a noticeable pick-up in Gold demand in India recently, thanks to a declining U.S. dollar and a monsoon season that has turned out to be not as bad as first feared…since rural farmers account for 70% of that country’s Gold purchases, a successful monsoon season there has important implications for the Gold market…in fact, according to the Ministry of Agriculture today, Indian farmers are expected to produce 117.8 million tonnes of food grains in this current season, higher than expectations…the Ministry said the first advance estimates of production of kharif crops (rainy season) are actually higher than the average of the first advance estimates of the last five years of 113 million tonnes…
Meanwhile, India’s monsoon rains have begun easing from the western desert state of Rajasthan but should continue in the northeast until the end of the month and give a lift to summer-sown crops there, weather office sources said today…”The monsoon withdrawal has started,” one of the sources at the India Meteorological Department (IMD) told Reuters…the monsoon rains are so far 6% below average and the uneven distribution has already led to drought in pulse and cereal growing areas of western and south states, reducing planting…but late rains in other areas have improved prospects for summer-sown crops…”We expect this year’s monsoon season to end with around 7-8% below normal rainfall,” one source said…it is considered a drought if the figure is 10% below the long-term average…in the northeast, floods and landslides triggered by relentless rain have killed at least 33 people and displaced more than a million over the past week…India depends on the annual monsoon to irrigate more than half of its farmland…
Silver Assets In ETP’s Near Record
Silver assets in exchange-traded products are poised to expand to a record, joining the biggest- ever hoards of Gold and platinum, as increased stimulus from the world’s central banks spurs investors to accumulate precious metals…the amount held in ETP’s was 18,525.76 metric tons as of yesterday, just 0.6% below the peak of 18,639.07 tons in April, 2011, according to data compiled by Bloomberg…Silver, which also benefits from bets on economic recovery, has risen 22% this year, outperforming Gold, platinum and palladium futures…Silver “runs very hard and fast and it usually goes too far in whatever direction it’s going,” said Nick Trevethan, senior commodities strategist at Australia & New Zealand Banking Group Ltd., who predicts record ETP holdings…“Silver will track Gold, but for people to get really excited about Silver, we’ll need to see strong industrial demand as well”…
Great Panther Silver (GPR, TSX) Chart Update
One of our favorite Silver producers is Great Panther Silver (GPR, TSX) which has a very interesting chart at the moment…you’ll notice below, in John’s 2.5-year weekly, how GPR recently broke above a downsloping flag in place for over a year…the top of the flag is now support, and what typically happens in situations like this is that this new support is quickly tested…GPR, which shot as high as $2.40 last week, fell 15 cents yesterday to $2.19…a decline back down to the $2 area would put GPR in the “sweet spot” at the top of the flag…this is not shown on the chart, but it’s interesting to note that GPR‘s rising 1,000-day moving average, currently around $1.60, provided stellar support this year…GPR could be one of those Silver stocks that absolutely explodes during the fourth quarter, assuming Silver does what we believe it will do…
Will QE3 Turn Into A Juiced-Up QE4?
Wouldn’t the Gold market love this…Morgan Stanley chief equity strategist Adam Parker believes the Fed will actually soon will find its new program inadequate…”QE3 will likely be insufficient to significantly boost equity markets and we wouldn’t be at all surprised to see the Fed dramatically augment this program (i.e., QE4) before year-end,” Parker said in a research note, according to a CNBC article by Jeff Cox…Parker said the probability that the Fed will need to juice up the program will increase “particularly if economic and corporate news continue to deteriorate as they have over the past few weeks”…as it stands, the latest round of easing will see the Fed create money that will allow it to buy $40 billion of mortgage-backed securities each month…following the conclusion of its September meeting two weeks ago, the Fed said that rather than target a specific amount of purchases – the “quantitative” part of QE – it instead will keep buying until the unemployment rate hits an acceptable though unspecified level…but Parker said that total will achieve only incremental help in the Fed’s quest to spike asset prices, particularly in the stock market, and help out the housing recovery, which it hopes will generate a “wealth effect” that will lead to more hiring…
Obama Now Leads Romney In Who Can Better Fix Economy
In a scary statistic, a national CNBC poll finds President Barack Obama holds a commanding lead over Mitt Romney on the key issue of who would be better for the economy over the next four years…Obama gets that nod even though Americans, by overwhelming margins, believe the economy is worse now than it was four years ago when Obama’s term began…the latest CNBC All-America Economic Survey of 800 adults across the nation shows Obama with a 9-point lead over Romney, 43% to 34%, on who would do a better job on the economy in the future…that’s a huge shift from the June survey when Romney held a 39% to 33% edge, and reflects the recent damage to the Romney brand from an incompetent campaign…the former Massachusetts governor, in our view, has the right ideas on how to revive the American economy but has been astonishingly unable to articulate that vision and rally the nation in the process…a Ronald Reagan he is not…the danger for the Republicans is that Romney’s campaign will cause collateral damage for the GOP, setting up the possibility of the Democrats regaining control of the House…the scenario of another four years of Obama, combined with Democratic control of Congress (the House and the Senate) for at least the next two years, would be hugely bullish for Gold as markets would assume the U.S. debt problem won’t be effectively addressed anytime soon…real change won’t come to Washington until at least 2014, perhaps only after another financial crisis…
General Electric Aims To Double The Size of Its Mining Business
GE executive Lorenzo Simonelli told the Wall Stree Journal Monday that the company wants to more than double the size of its new mining business to $5 billion in revenue by 2016…”measured acquisitions” would be a part of that, Simonelli said, but he cautioned not to expect anything huge or “all at once”…expansion into the mining sector would be part of a larger bet by GE on energy and resource-rich countries…the conglomerate expects them to spend heavily on its drilling and mining equipment, as well as on the medical machines and power generators it sells…the strategy will mirror the approach the company used to build up its oil and gas business…five years ago, GE’s oil and gas presence was inconsequential…but after spending $11 billion over the last five years acquiring companies, oil and gas is now a stand-alone business on track to make $14 billion of revenue this year…
Today’s Markets
Asian markets were quiet overnight with China’s Shanghai Composite declining 4 points to 2029…European shares are relatively unchanged while stock index futures in New York as of 6:15 am Pacific are pointing toward a slightly positive open on Wall Street…the Conference Board will release its consumer confidence index 30 minutes into trading at 7:00 am Pacific…analysts polled by Briefing.com forecast a jump to 63 in September, from 60.6 in August…
The Venture Exchange softened yesterday, not surprisingly, as temporarily short-term overbought technical conditions set in last week…the Index fell 12 points, closing at 1333 – about 10 points above the 10-day SMA…the 20-day SMA is currently just under 1290…we expect any further weakness in the Venture to be short-lived and limited given those supporting moving averages and the bullish primary trend…the advantage of this minor pullback is that it will cleanse the overbought conditions enough in order to allow the Index to push through the next resistance band between 1350 and 1365 as John outlined in his chart Saturday…
Canadian Dollar = Commodities, Venture Strength
We’ve found it very useful in recent months to closely track the Canadian dollar, the strength of which has consistently shown the commodities skeptics to be dead-wrong…the loonie is on a roll, and there’s really no end in sight to this based on John’s updated 21-month weekly chart below…for now the loonie is taking a bit of a breather, which is very healthy from a technical perspective, and it’s sure to find strong support between $1.01 and $1.015…the Canadian dollar has a high correlation to the CRB, and the Venture performs best when the dollar is strong, so this is one major reason we’re so bullish on the markets over the next several months at least…
GoldQuest Mining (GQC, TSX-V) Update
GoldQuest Mining (GQC, TSX-V) has just released assay results from three more holes at Romero, and these are the weakest numbers GQC has announced so far from this important discovery in the Dominican Republic…hole LTP-100 – the deepest mineralization to date – returned 122.7 metres grading 2.64 g/t Au and 0.33% Cu…a 72-metre interval in LTP-99 graded 0.51 g/t Au and 1.31% Cu while hole LTP-98 returned 146.5 metres of 0.42 g/t Au and 0.74% Cu…Romero is still a major discovery but these latest results won’t meet the market’s expectations…
Orko Silver (OK, TSX-V)
Below is an update on Orko Silver (OK, TSX-V) which encountered resistance at $2 as John predicted in his most recent OK chart…it then corrected 20% to the top of the cup support…in a runaway Silver market, OK should be a star performer…
Comstock Metals (CSL, TSX-V)
The waiting game is on for assays from Comstock Metals (CSL, TSX-V) which announced yesterday that it has just completed 1,300 metres of drilling (8 holes) at its very promising QV Project in the White Gold District of the Yukon…as reported by CSL, early indications are positive as drilling intersected thick zones of quartz-sericite-carbonate-altered quartz-biotite gneiss, feldspar augen gneiss, and feldspar porphyry dikes with stockworked quartz veining, breccias, disseminated and vein controlled pyrite, and locally, visible Gold…the alteration and mineralization appear to be hosted along a northeast-trending fault zone, with a shallow 30 degrees dip to the northwest, and overlay intensely potassic and iron-altered footwall units…the zone is open along strike and at depth, and the geology and style of mineralization are similar to that of Kinross’s Golden Saddle deposit located 10 kilometres from Comstock’s discovery…CSL fell another 7 cents yesterday to 46 cents…John’s updated chart shows a strong support band between 43 and 46 cents, with secondary support at 36 cents…
Note: John, Jon and Terry do not hold share positions in GPR, OK, or CSL.
No thoughts on gqc ? Tanking this morning!!!!
Comment by mike — September 25, 2012 @ 5:44 am
Sub par drill results. I’m sure theo can enlighten us
Comment by OldMan — September 25, 2012 @ 5:49 am
This is still a major discovery which remains open in all directions….in a process like this, you’re going to get some great holes, some good ones, and some mediocre ones, and these 3 are definitely mediocre and didn’t meet the market’s expectations…but this is still an impressive deposit…institutions will provide support…has broken below the 50-day SMA for the first time since this all started in late May…..
Comment by Jon - BMR — September 25, 2012 @ 5:51 am
Dont get me wrong I own rbw but their chart is terrible many juniors are up 30 40 50 percent in the last month rbw seems to be stuck in the mud
Comment by gil — September 25, 2012 @ 6:08 am
Jon, can you post an updated chart for Everton Resourses (v.EVR)? Is there any pending news that we should be expecting? Based on your interview with Mr. Audet, I was expecting them to start drilling any time now. Your thoughts?
Comment by Steven — September 25, 2012 @ 7:12 am
Yes, Steve, we’ll try to do this for tomorrow….personally, I think EVR is looking very good – it’s resting right now at its 200-day SMA with great support at its rising 100-day SMA at 8.5 cents….EVR raised some money recently and should be a good performer through the end of the year…the key thing with the market and a lot of these stocks right now is patience….the trend is up, but it’s a gradual process at the moment with a couple steps up and then a step back…..minor pullbacks like we’re seeing now, totally expected, are great accumulation opportunities IMHO with the bullish trend growing stronger during the 4th quarter…
Comment by Jon - BMR — September 25, 2012 @ 7:19 am
Carlin finishes drilling at Cortez, awaits results
2012-09-25 08:33 ET – News Release
Shares issued 78,939,464
CGD Close 2012-09-24 C$ 0.22
Mr. Wayne Livingstone reports
CARLIN COMPLETES INITIAL CORTEZ SUMMIT DRILLING; MOVES DRILL TO ITS JDS PROPERTY
Carlin Gold Corp. has completed an initial phase 1 drill program on its 100-per-cent-owned Cortez Summit property, Eureka county, Nevada. The initial program consisted of seven reverse-circulation drill holes totalling 11,720 feet (3,573 metres) ranging in depth between 1,500 feet and 1,800 feet (450 metres and 550 metres). Drilling was completed by Envirotech Drilling based in Winnemucca, Nev. One hole was collared in the Paleozoic rocks on the west side of the property and the other six were drilled into Paleozoic rocks beneath the younger Miocene basalts and gravels. The company is awaiting assay results to evaluate follow-up drilling.
Carlin’s Nevada properties
Carlin owns 100 per cent of three properties in northern Nevada, described below, all of which represent Carlin-type gold targets.
JDS property
The company has moved the drill rig to its JDS property, 21 kilometres southeast of Cortez Summit. It is located along the southeast extension of the Cortez gold trend near the southernmost Paleozoic carbonate window in the trend. The target area is covered by late Tertiary sedimentary rocks and alluvium and is defined by mercury gas and soil geochemistry data indicating potential buried mineralization in the northwest portion of the property. The geochemical target is coincident with a gravity high, which suggests relatively shallow bedrock. The mercury anomalies are considered important targets because of the known mercury association with Cortez trend mineralization. The company plans to drill two to three widely spaced drill holes to approximately 1,000 feet (300 metres) while it awaits assays on the initial Cortez Summit drilling program.
Cortez Summit property
The Cortez Summit property consists of 142 claims located on the Cortez trend in Nevada, adjacent to Barrick Gold Corp.’s recently announced gold discoveries, Red Hill and Gold Rush, and the past-producing Horse Canyon and Buckhorn gold deposits. The Cortez trend contains a major gold endowment that exceeds 40 million ounces of total gold produced, reserves and resources. Production in 2011 at Barrick’s Cortez-district operations is reported to be 1.42 million ounces of gold.
On Sept. 7, 2011, Barrick announced two new gold discoveries, Red Hill and Goldrush, on property adjacent to Cortez Summit. The closer Red Hill discovery was reported to contain an inferred resource of 3.5 million ounces of gold at a grade of 0.123 ounce per ton. One of the better holes reported at Red Hill contains 194 feet (59.1 metres) grading 0.90 ounce per ton gold and is located 2,000 metres south-southwest of Cortez Summit. Barrick states that the Red Hill geology is similar to its other deposits in the district. Barrick’s operating Cortez Hills mine is located 6.5 kilometres west of the Cortez Summit.
On Feb. 16, 2012, Barrick announced an indicated and inferred resource at Red Hill-Goldrush (now referred to by Barrick as Goldrush) of 7.0 million ounces of gold as of Dec. 31, 2011, doubling the estimate reported just a few months earlier. The deposit is open for expansion, and Barrick is now carrying out a planned $64-million exploration program for this area in 2012. Twelve drill rigs were observed at Red Hill-Goldrush in June. Mineralized holes occur within 1.5 kilometres southwest of Cortez Summit.
Company geologists believe that the geological environment at Cortez Summit is similar to Barrick’s nearby Carlin-type deposits. Sampling by Carlin along a prominent north-northwest-trending structural zone on the west side of Cortez Summit has yielded gold values of 447 parts per billion and 263 parts per billion in hydrothermally altered siltstones. Much of this target is blind, being covered by postmineral gravel and basaltic andesite. The company conducted a gravity survey to obtain information from the target terrain underneath the cover. The survey was successful in defining potentially favourable structures, which represent drill targets.
The company is awaiting assay data on its recently completed initial drill program, at which point it will decide how to proceed with further evaluation.
Willow property
The Willow property is located in northeast Nevada, northwest of the new Long Canyon gold discovery in the Pequop Mountains, which is part of the Newmont Mining Corp. acquisition in 2011 of Fronteer Gold Inc., a $2.3-billion transaction. Carlin-type targets have been defined in favourable silty carbonate rocks of the Roberts Mountain formation within an area of significant structural preparation.
Yukon joint venture
Carlin also owns approximately 90,000 hectares distributed over 13 project areas in Yukon in a 50/50 joint venture with Constantine Metal Resources Ltd. The properties are early stage, with the initial field evaluation program completed in 2011. Several significant gold anomalies have been identified to date.
Robert Thomas, CPG, vice-president of Carlin and a qualified person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical information contained in this news release on behalf of Carlin.
We seek Safe Harbor.
Comment by robert — September 25, 2012 @ 7:30 am
cgd all holes drilled in lower plate rocks
assays 2 to 3 weeks
market has no clue
new discovery coming soon enough
Comment by robert — September 25, 2012 @ 7:32 am
gqc game over
Comment by robert — September 25, 2012 @ 7:32 am
I expect GQC to adjust in price but nobody will expect this kind of damaging dump… luckily, I do not have any holdings.
Comment by Theodore — September 25, 2012 @ 7:39 am
Gil you still holding ARX??? something happening…
Comment by Brillo — September 25, 2012 @ 8:21 am
sorry RGX…
Comment by Brillo — September 25, 2012 @ 8:22 am
Wish I only held stocks that just went up and never down….
Comment by greg — September 25, 2012 @ 8:25 am
I hear you Greg… sold some RGX to buy RBW(.22), hopefully when drill results come out I can buy back RGX and still have $ left over… ~:>)
Comment by Brillo — September 25, 2012 @ 8:39 am
Anyone have any idea why the markets have all of a sudden turned red ? Is it b/c of what Merkel said today?
reuters.com/article/2012/09/25/us-eurozone-merkel-idUSBRE88O0D620120925
Comment by Tony T. — September 25, 2012 @ 8:58 am
BRILLO I still love azx after 30 percent gain yesterday may have some profit taking Finding gold at 8 dollars per ounce good location backed by big players 3million in the till will report soon on more holes drilled selling at less than 10 per ounce when other juniors selling at 50 to 60 dollars per ounce long term hold I see this as a 5 to ten bagger
Comment by gil — September 25, 2012 @ 10:28 am
@Tony
I really don’t think that in the long term, the long term being a yr or more, that the talking heads, ie. merkel, bernanke, etc. can keep on manipulating the markets, by coming out with statements about the economy and what they or we need to do, the damage is done, the debt is too HUGE to be paid back, they have no choice, they must inflate, print money, buy back debt, QE whatever you want to call it, which is very sad because we all are going to pay for this, even with our gold and silver investments it may not be enough…I am thankful I have my faith in God and not this world or I would really be getting scared when I look at what is coming…
Comment by greg — September 25, 2012 @ 10:29 am
Drilling permits granted to Nulegacy Gold on a potential Carlin Trend type discovery.
http://nulegacygold.com/s/News.asp?ReportID=549529&_Type=News&_Title=NuLegacy-Receives-Permits-for-Central-Mineralized-Zone-Drilling-Program
Comment by Dan — September 25, 2012 @ 11:32 am
Thanks for your reply Greg :o)
Comment by Tony T. — September 25, 2012 @ 11:36 am
sorry that was meant to be 🙂
Comment by Tony T. — September 25, 2012 @ 11:36 am
September 25, 2012 – Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (the “Company” or “Gold Bullion”) announces that it will make an application to the TSX Venture Exchange to reduce the exercise price of an aggregate of 16,975,653 share purchase warrants to $0.155 per share. All other terms and conditions remain constant.
Of these warrants, 15,273,153 form part of a private placement financing, the first tranche of which closed on December 22, 2011, consisting of two parts: (i) 19,109,957 flow-through units issued at a purchase price of $0.18 per unit, each flow-through unit consisting of one common share and one-half of a share purchase warrant. Each whole warrant entitles the holder to purchase one additional non-flow-through common share at a purchase price of $0.22 per share on or before December 21, 2012; and (ii) 5,718,175 non-flow-through units issued at a purchase price of $0.16 per unit; each non-flow-through unit consisting of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional non-flow-through common share at a purchase price of $0.20 per share on or before December 21, 2012.
The remaining 1,702,500 share purchase warrants were issued pursuant to the second tranche of the private placement financing which closed on December 29, 2011 consisting of 3,405,000 flow-through units issued at a purchase price of $0.18 per unit, with each unit consisting of one common share and one-half of a share purchase warrant, each whole warrant entitling the holder to purchase one additional non-flow-through common share at a purchase price of $0.22 per share on or before December 29, 2012.
The amendment is subject to approval by the Warrant Holders and the TSX Venture Exchange.
Comment by Marc — September 25, 2012 @ 12:57 pm
any idea why GBB would apply for this? will this cause a pause at 0.155 almost creating a ceiling in the price instead of 0.18 or 0.22 as the original warrant exercise price was?
OR
is this positive so they can flush out the outstanding warrants quicker to shore up some more cash?
Comment by Marc — September 25, 2012 @ 12:59 pm
GQC : drill results from THREE holes and people panic!!! I,m with Jon on this one re his comments above!
Comment by fred — September 25, 2012 @ 1:34 pm
GQC… it appears that the honeymoon time has ended and unlikely that it can go back to $1.40 or higher. Downward will continue to hit this one to go below $1 mark in short time. GBB – in my opinion, the worst time has gone and it will climb to 14-16 cents mark. SFF – a very good turnover today and I expect to go higher up in short term… possibly to 19 cents mark. I am selling them even though I put 15 cents as my sell lot.
Comment by Theodore — September 25, 2012 @ 3:01 pm
GQC
There it is & not a darn thing can i do about it. I am talking about
GQC & may i add, i am a shareholder, but i am not going to shed tears
just yet. It do remind me though, that accumulating shares before news,
may not be the right way to go, or is it ? well ! it is, if the stock
moves up, but not so, if it falls like lead. I already mentioned, i don’t
use stop losses & now i can mention that stocks fall before some traders
can comprehend what is really going on & while you watch, you wait for a
a turn around. I appreciated Jon’s words’ about GQC today, positive words
are always comforting, when things don’t go right.. It is now a challenge
for me to find a way to exit this play, not with a loss, but a gain & i do
welcome the challenge. Good night ! R !
Comment by Bert — September 25, 2012 @ 4:53 pm
Take a look at what happened with Gold Standard….great property, stock tumbled in mid-August when it let the market down on some results….fell to $1.20 or so and then doubled to $2.40 within a month on better results…GoldQuest could move back up in a hurry….deposit still open in all directions….
Comment by Jon - BMR — September 25, 2012 @ 5:36 pm
CGD all 7 holes drilled into Paleozoic rocks just like Barrick
In terms of their regional tectonic setting, the BMT gold deposits are hosted in carbonate rocks within a thick sequence of Paleozoic miogeosynclinal sedimentary rocks
again from barricks 2012 report
Comment by robert — September 25, 2012 @ 6:23 pm