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January 10, 2013

BMR Morning Market Musings…

Gold is firming up today, thanks in part to a stronger euro and a weaker U.S. dollar…as of 7:55 am Pacific, the yellow metal is up $18 an ounce at $1,676…Silver has gained 38 cents to $30.74…Copper is up 4 pennies to $3.68…Crude Oil is 83 cents higher to at $93.83 while the U.S. Dollar Index has plummeted two-thirds of a point to 79.97…

Indian Gold Imports Surge

The Indian government’s efforts to control Gold imports and the overall hunger for Gold by a majority of its population suffered a setback as imports surged on the first week of this year…traders have imported between 25-30 metric tons in the past week compared to five to seven metric tons in the previous few weeks, said Prithviraj Kothari, managing director of Ridhi Sidhi Bullion Limited…analysts attribute the sudden rise in Gold imports to brisk buying by traders as they rush to place orders ahead of an expected rise in the import tax…

Euro Zone Recovery Seen In Second Half Of 2013 – Draghi

The European Central Bank said on Thursday that recent economic surveys and indicators had shown signs of stabilizing, suggesting an improved picture later in the year…”The economic weakness in the euro area is expected to extend into 2013,” ECB President Mario Draghi said at a news conference…”Later, in 2013, economic activity should gradually recover…several indicators have broadly stabilized, albeit at low levels and financial market confidence has improved significantly,” he said…Draghi was speaking after the ECB held its main interest rate at 0.75%…Draghi reiterated the ECB’s view that inflation, which held at 2.2% in December, would fall below 2% during the course of this year…

Strong Economic Data Out of China Exceeds Expectations

China’s exports surged in December, blowing away analysts’ expectations, while credit data also showed some bright spots…China’s December exports jumped 14.1% from a year earlier, up from a 2.9% gain in November, while imports were up 6%, following on from zero growth the previous month, according to data released today…the blockbuster pickup in shipments helped widen the trade surplus to $31.6 billion in December, trouncing estimates and ballooning sharply from a $19.6 billion surplus in November…economists polled by Dow Jones Newswires had estimated a trade surplus of $19.6 billion, on export growth of 4.6% and import gains of 3.3%…

U.S. Jobless Claims Rise Slightly

Weekly applications for U.S. unemployment benefits ticked up slightly last week, the latest sign of stability in the job market…the Labor Department said today that applications rose 4,000 to a seasonally adjusted 371,000, the most in five weeks…the previous week’s total was revised lower…the four-week average, a less volatile measure, increased 6,750 to 365,750, after falling to a four-year low the previous week…

TSX And Venture Statistics

The TSX and TSX-V have released their 2012 listing and financing results…the TSX welcomed 132 new listings last year, down from 199 in 2011, while the Venture welcomed 161 new listings, down from 216 a year earlier…TSX-listed companies raised $21.6-billion in IPO’s and secondary offerings, compared with $26.4-billion the year earlier…financings on the Venture dropped by almost half, with companies managing to raise only $4.1-billion, down from $7.1-billion in 2011…

Today’s Markets

The Venture is threatening to push through important resistance at 1240, the top of a down trendline in place since early 2011…as of 7:55 am Pacific, the Venture is up 11 points at 1240 on an uptick in volume as well…the TSX has jumped 50 points while the Dow is up 15 points…the TSX Gold Index of course is strong (up 6 points to 295) given Gold’s performance today…Asian markets were in the green overnight with China’s Shaghai Composite gaining 8 points to 2284…

Below is an interesting 4-year monthly comparative chart showing the Venture, Gold and the Dow…


Richmont Mines (RIC, TSX) Chart Update

Richmont Mines (RIC, TSX) is showing signs of recovering after basing in the $3 range the last couple of months…as of 7:55 am Pacific, RIC is up 9 cents to $3.32…RIC has just received mining permits for its Monique Gold Property near Val d’Or and will soon extract a 5,000 tonne bulk sample…Richmont had a difficult 2012 on the operating side but the worst of its problems appear to be over, and the company is enjoying success with its Island Gold Mine in Ontario…below is a 4-year weekly chart from John…note that the next major resistance is the down trendline at $3.80…


Mineral Mountain Resources (MMV, TSX-V) Chart Update

We continue to like the prospects for Mineral Mountain’s (MMV, TSX-V) Holy Terror Gold Project in South Dakota…the stock found strong support in December just above its rising 200-day moving average (SMA), and has resumed its uptrend…below is a 2.5-year weekly chart from John…


Mart Resources (MMT, TSX-V) Chart Update


Note: John, Jon and Terry do not hold positions in RIC, MMV or MMT

7 Comments

  1. Hey BMR – great pick with RBW – sitting at 12.5

    nice job

    You guys must be working part-time now to recoup some of the massive losses you’ve incurred during the past year.

    All your picks in the likes of GR, TRM, RBW, blah blah blah have pretty much gone bust. Not down a bit, but down 50% plus – so bust.

    On the bright side, it does take talent to pick losers as consistently as you have though.

    But I’m sure all this is a new bullish sign so everything will be ok

    Comment by alex — January 10, 2013 @ 10:24 am

  2. Alex,if you are reading this board you must have a stock portfolio that is beating the market,let me know.

    Comment by John — January 10, 2013 @ 10:47 am

  3. Have to agree with Alex, without the venom, of course. I look at this site for humour now, love to hear about how RBW will rocket up any day. It was GBB last year, set your watch, there will be another saviour in the hopper. I’d love to see behind the curtain here.

    Comment by Mike — January 10, 2013 @ 11:08 am

  4. Venture closes 1pt above 1240… Start of the uptrend?

    Comment by Tony T — January 10, 2013 @ 1:06 pm

  5. Alex, you will eat your words someday. It’s far from over with RBW. Patience is a virture!

    Comment by Bev — January 10, 2013 @ 5:03 pm

  6. Why do you come here to complain all the time? It’s your decision to take their information for what its worth, otherwise go complain on another site.

    Comment by Dave — January 11, 2013 @ 7:27 am

  7. I agree Dave, I am also getting sick and tired of the same guys and they know who they are, constantly whining and belly aching over their 1 or 2 cent loses. I wish they would grow some balls and accept the fact nobody twisted their arms to invest in anything, and it was their own decisions that resulted in any and all loses 100%. No one elses, and certainly not BMRs.It’s bloody tough for anybody to make money in what has been a bear market for junior miners these last 2 years, where even well run companies with good news or even great assay results get hammered with a sell off as investors take their money and run for the exits. Every junior has taken a hit the only question is how hard. As with everything else these juniors run in cycles and I think the CDNX has already bottomed out and is bouncing off the bottom gaining momentum to blast off to much higher levels soon but a little more patience is required as we are not quite there yet.

    Comment by Rob — January 11, 2013 @ 8:40 pm

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