Gold has traded in a range between $1,651 and $1,664 so far today…as of 5:45 am Pacific, the yellow metal is down $7 an ounce at $1,652…Silver trading in a strong support band between $30.50 and $31, is off 30 cents at $30.88…Copper is up a penny at $3.65…Crude Oil is up 36 cents at $96.24 while the U.S. Dollar Index has added one-tenth of a point to 79.89…
Today’s Markets & More Good News From China
Asian markets were mixed overnight but China’s Shanghai Composite put on a powerful show, climbing 55 points or 2.4% to close at 2356 on a whopping 38% increase in volume from Friday…as we noted back in December, the Shanghai broke above a down trendline in place since early 2011 and it has been on fire ever since…official data showed yesterday that profits earned by China’s industrial companies rose 17.3% in December from a year earlier to 895.2 billion yuan ($143.91 billion) as a fourth quarter recovery helped offset poorer corporate results from the third quarter…as reported earlier this month, the Chinese economy expanded an annual rate of 7.9% in Q4, snapping seven consecutive quarters of weaker growth, as a raft of pro-growth policies kicked in…the Q4 bounce helped lift full-year growth in the world’s second largest economy to 7.8% which, though China’s slowest pace in 13 years, generated roughly a third of global economic growth of 3.2% – itself the worst since the 2009 financial crisis and just barely above the 3% mark economists say signals a worldwide recession…European shares are mixed…on an intra-day basis, Germany’s DAX Index managed to reach a level not seen since January, 2008…European equity allocations are at a five-year high, according to a fund managers’ survey by Bank of America Merrill Lynch released last week…stock index futures in New York as of 5:45 am Pacific are pointing toward a positive opening on Wall Street after a stronger than expected durable good report that was just released…the S&P 500 crossed the key 1500 level Friday, logging its longest winning streak since 2004…
Global equities are clearly in a new bull phase, though this hasn’t spilled over just yet into the Venture Exchange which continues to struggle to gain traction despite putting in what appears to be a certain bottom in 2012…history tells us, though, that it’s just a matter of time before the Venture catches fire as investors gradually grow more comfortable with risk…a major discovery would clearly bring confidence and excitement back to the junior market, so that’s definitely something to watch out for – it could happen overnight…
Dow Chart Update
The Dow will need to take a breather shortly, based on John’s 9-month daily chart below…it’s possible that a minor pullback in the broader equity markets may also give a lift to Gold and Silver which both suffered last week…
Venture Comparative Chart
Going back to the Venture, it’s interesting to note that it has crossed above a down trendline on this 2.5-year weekly chart from John that also compares the CDNX with Gold and the CRB Index…theoretically, the trendline should now become new support…the Venture has been basing between 1220 and 1240 for the past 19 trading sessions…an important technical event to keep an eye on is a reversal to the upside in the 50-day moving average (SMA)….this hasn’t occurred yet but appears to be close at hand…reversals in the 50-day were followed by major moves in 2009 and 2010, and two significant rallies in 2012…with the stabilization of the situation in the euro zone, a recovery in China, and central bank support from Japan to the United States, 2013 should be a positive year for commodities and the Venture Exchange…
Rumors Of The Death Of The Gold Bull Market Are Premature
According to some analysts, Gold’s bull market is over…of course, that’s a comment we’ve heard rather frequently every year for the last several years…Gold’s recent inability to push through $1,700 an ounce has, however, definitely frustrated and concerned many traders and investors, but John has a long-term chart this morning that shows Gold’s behavior at the moment is very similar to the 2008-2009 period when it struggled for six quarters to push decisively through the $1,000 barrier…throughout its 12-year bull market, Gold has found terrific support around its monthly SMA(12) where it’s trading at now…patience is the key…keep in mind, too, that Gold is not trading much above the all-in costs of production for many companies…bullion is far from being in a “bubble”…many speculators and momentum players have left the scene for now, which has occurred from time to time over the last dozen years, but physical demand remains strong and the Fed’s balance sheet has crossed the $3 trillion mark for the first time with no signs of slowing down…
Updated Silver Charts – Short-Term & Long-Term
As usual every Monday morning, John has updated charts for Silver…some short-term technical weakness came into the market last week, but the support band between $30.50 and $31 is very strong and we’d be surprised if Silver were to break below that…
Silver Short-Term Chart
Silver Long-Term Chart
There have been only a handful of occasions over the last several years when RSI(2) on the 15-year monthly Silver chart has fallen to 30% or less, one of them being just recently when Silver dipped briefly below $30…when you follow this indicator, it’s hard to go wrong…RSI(2) has a clear pattern as it swings from overbought to oversold…what’s it’s telling us now, after bouncing off the 30 level, is that the downside risk at the moment is minimal…
Atico Mining Corp. (ATY, TSX-V)
Further to our piece on Friday morning regarding Atico Mining (ATY, TSX-V), and a very impressive result from underground drilling at the El Roble Mine, we suggest investors check out an excellent article by Kip Keen, including some core pictures from ATDHR-26 like the one below, that was posted at www.mineweb.com Friday (“So That’s What 7 Metres @ 15% Cu Looks Like“)…Atico gained another 3 pennies Friday to close at 98 cents, and there are some heavy hitters behind this play who are determined to make it succeed…as always, perform your own due diligence…
- Above, 7 metres @ 15.46% Cu, within 120 metres @ 6.89% Cu, from Atico’s El Roble Mine in Colombia.
RBW: “In just three months in the second half of last year, we drilled three separate properties and we “hit” on two of them”. Yes please, let’s see the results already. I’m quite eager to see what the “hit” means.
Comment by Kalkan - Sweden — January 28, 2013 @ 7:37 am
Rainbow Resources Inc. Presidents Update
January 28, 2013
President’s Update
Dear Shareholders:
This week I’m attending AME B.C.’s 30th Annual Mineral Exploration Round-Up Conference in Vancouver. Over 8,000 participants from 38 different countries attended this event last year. I highly recommend it to investors.
In the days ahead in Vancouver, I’m looking forward to sharing the important progress Rainbow has made on the ground in recent weeks and months as I firmly believe our company has entered a new stage in its young history with a significant early discovery at the Gold Viking Property in southeast British Columbia, and continued success at the advanced-stage Jewel Ridge Property in Nevada. This is what exploration is all about – uncovering potential new deposits the world needs. Gold Viking and Jewel Ridge have positioned Rainbow for a breakthrough year in 2013.
Our recent drilling discovery in the southern part of Gold Viking is even more remarkable when one considers this property had never been drilled before. What really excites me and our geological team is that we now have a clear trail of mineralization to pursue, supported by geophysical and geochemical data obtained last year, which is why we’re so eagerly anticipating the start of a Phase 2 drill program. Success in an initial round of drilling can often lead to even better results with the next set of holes. Rainbow has developed a strong relationship with the Village of Slocan, access to Gold Viking is easy (immediately adjacent to Slocan) and the property is surrounded by important infrastructure.
We already know the Slocan Valley is one of the most highly mineralized regions in the province. Since the late 19th century, this area has hosted more than 20 mining and milling operations and about 200 additional mines that have shipped ore to custom mills and smelters. Right next to Gold Viking is our Ottawa Property, part of the Ottawa Mines – the Slocan district’s #1 high-grade silver producer in the 1900’s. Gold Viking and Ottawa share similar geological characteristics, another reason we’re so excited by what we see at Gold Viking.
While Rainbow’s exploration focus remains squarely on Gold Viking and Jewel Ridge, due to exciting recent developments at both, keep in mind we have been developing an important pipeline of additional opportunities in the West Kootenays within the package that makes up our 100%-owned Big Strike Project. During the fourth quarter last year, we reported high-grade gold samples from both the Referendum and Whitewater properties. We look forward to advancing those situations in 2013. The International Silver Property remains a key asset based on historical evidence and what we learned from last summer’s initial shallow drill program.
Interest is also picking up in the Slocan Valley flake graphite district where we hold a strategic land position – the second-largest next to privately-held Eagle Graphite which operates the only natural flake graphite mine in western Canada. We are examining ways to unlock the value of our flake graphite asset to the benefit of shareholders.
As a director of the Chamber of Mines for eastern B.C., I can state unequivocally that interest in the mineral rich West Kootenay region is growing rapidly. This is great news for Rainbow which is an exploration leader in the area with a total land package of nearly 25,000 hectares (Big Strike Gold-Silver Project consisting of eight properties, plus the Slocan Valley Flake Graphite Project).
The companies that will succeed in this challenging junior market environment are the ones that can make real discoveries and move their projects forward with a strong team of people. At Rainbow, we are people-driven and discovery-focused. This is what led to our acceptance into the Core Shack Display for the March 2013 PDAC Convention in Toronto. In just three months in the second half of last year, we drilled three separate properties and we “hit” on two of them – a major accomplishment in these markets. By any measure, our progress over the last 12 months has been impressive and we begin 2013 far ahead of where we were at this time last year. Thank you for your continued support, and we look forward to an exciting and rewarding 2013.
Sincerely,
David W. Johnston
President
Rainbow Resources Inc.
RBW: TSX.V
RIINF: OTCQX
Comment by John - BMR — January 28, 2013 @ 9:57 am
Any day now we should hear NEWS from RBW Hopefully this NEWS will live up to expectations this time. President Johnston recently said in an interview that he knows shareholders are happy because they call him all the time but the picture at RBW’s website of Mr. Johnston at Gold Viking tells me a different story. Perhaps if the results are good this next time Mr Johnston will no longer have to hide behind a tree with a weapon in his hand ready to duck into a cave on a moments notice.
Comment by Rick — January 28, 2013 @ 10:47 am
@rbw. Bla bla bla. Fluff fluff fluff. Where are the results!!! They just keep pumping out the same old garbage over and over. Market moves on results end if story.
Comment by Heath — January 28, 2013 @ 2:35 pm
He seemed to be a very happy camper at Round-Up yesterday, Rick. Just based on his body language, I would suggest he won’t be ducking into any caves.
Comment by Jon - BMR — January 29, 2013 @ 4:46 am
@Jon
Let´s see what happens and how the market will react after this upcoming release. I personally hope that they came up with something good this time. They are talking about their “hits” and you are mentioning that “he seemed to be a very happy camper at Round-Up”. If there’s nothing good about the results Johnston must be a good actor I must say.
Comment by Kalkan - Sweden — January 29, 2013 @ 7:24 am