Gold has traded in a range between $1,583 and $1,596 so far today…as of 5:45 am Pacific, the yellow metal is up $8 an ounce at $1,589…there is technical resistance at $1,600…Silver is up 18 cents at $28.95…Copper has gained 3 pennies to $3.56…Crude Oil is up 94 cents a barrel to $94.07 while the U.S. Dollar Index has slipped nearly half a point to 81.18…
The Gold market – and the equity markets – have plenty to focus on this week, from Italian elections to two days of Congressional testimony on the economy from Ben Bernanke to a March 1 deadline facing U.S. lawmakers on “sequestration”…investors will also be weighing a slew of fresh economic data including consumer confidence, home sales and manufacturing…
A fascinating dynamic has emerged in Gold at the moment – commercial traders have cut their net short positions to their lowest levels in over a year, according to the latest available data through Tuesday of last week, while “managed money” (funds, large speculators) now has the highest gross short position of all time…this “tug of war” is going to be interesting to watch…rarely are the commercials on the wrong side of the trade which prompted one analyst (Clive Maund at www.CliveMaund.com) to write over the weekend: “There is now such an overwhelming array of technical evidence that the Precious Metals sector is forming a major bottom, that by the end of reading this update you will, or should unless you are stupid, understand why we now have no choice but to turn strongly and unequivocally bullish on the sector…Up until now we have had some reservations, but these have been swept away by the latest truly extraordinary data”…
A couple simple points we made last week are worth repeating…Gold’s RSI(14) on some long-term charts is at its lowest level in 13 years – the same with the TSX Gold Index…that doesn’t mean to say both Gold and the Gold Index can’t still move a little lower ($1,500 on Gold is certainly possible) but a major bottom is definitely forming given such negative (and extreme) sentiment readings…
Let’s take a look at how the Silver market is shaping up with John’s regular Monday Silver charts…
Silver Long-Term Chart
John’s 15-year monthly chart helps put things into perspective…a powerful “Wave 5” move is still completely intact with superb technical support at $26 which coincides with the Fibonacci 50% retracement level…one of the benefits of this long-term chart is the RSI(2) which has slipped below 20 – this has occurred on only a few occasions over the last decade and is a clear buy signal…if you want to go bearish on Silver right now, do so at your own peril – it could still drop another dollar or two but this chart provides strong evidence that Silver’s next BIG move it to the upside…
Silver Short-Term Chart
John’s 9-month daily chart shows RSI(14) at oversold levels while selling pressure is beginning to abate…notice the large gap between the price and the daily EMA-20 (good buying opportunity) which needs to flatten out and then reverse to the upside…this will take a bit of time…for now the EMA-20 is overhead resistance…
U.S. Dollar Index
An “awareness issue” for this week – keep a close eye on the U.S. Dollar Index which has moved up over the last few weeks and closed Friday at critical resistance (81.50)…a classic head-and-shoulders pattern has formed in the Dollar Index since late 2011 which is why we believe it has a greater chance of breaking down than busting out to the upside…a weaker U.S. Dollar Index is positive for Gold and the Venture Exchange…a convincing move through the 81.50 area, however, would invalidate the head-and-shoulders pattern, so we’ll be watching the direction of the Dollar Index with a great deal of interest this week…
Today’s Markets
Asian markets were mostly higher overnight, led by a 2.4% jump in Japanese shares after the yen slumped on news the government looks set to nominate Haruhiko Kuroda, the president of the Asian Development Bank and advocate of aggressive monetary easing, as the next Bank of Japan governor…Kuroda ran the Japanese finance ministry’s currency policy for four years in the early 2000’s…there, among other things, he oversaw an extended effort to drive down the yen’s value in order to make Japanese exports more affordable on the world market as outlined in an excellent piece this morning in the Financial Times…European shares are higher today as low turnout in Italy’s general election encouraged investors to bet on a victory of a pro-reform centre-left coalition…stock index futures in New York as of 6:00 am Pacific are pointing toward a strong opening on Wall Street…
SilverCrest Mines (SVL, TSX-V) Updated Chart
It’s a good time to be looking at Silver stocks and one of our favorite smaller producers is SilverCrest Mines (SVL, TSX-V) which closed Friday at $2.38, its 200-day moving average (SMA) which has recently reversed to the upside…SVL produced 579,609 ounces of Silver in 2012, exceeding market guidance by 33% in its first full year of commercial production at Santa Elena in Mexico…below is a 2.5-year weekly chart from John…
Critical Elements Corp. (CRE, TSX-V) Updated Chart
Critical Elements Corp. (CRE, TSX-V) ended last week on a strong note, closing up 3 pennies Friday at 23.5 cents on total volume (all exchanges) of more than 2 million shares…CRE is certainly worth our readers’ due diligence…
Note: John, Jon and Terry do not hold share positions in SVL or CRE.
Good article by Clive Maund! thanks BMR for that. Also, noticed CKR coming off a HALT!
Comment by STEVEN — February 25, 2013 @ 6:12 am
Jon,
RBW bid at 0.095 – looks like we’re right on track for that crazzzzy run!!!
any thoughts?
Comment by Avo — February 25, 2013 @ 6:36 am
BMR any commentry on RBW lately? Asides from stating the obvious that it’s about to trade in single digits, what’s your take on the $hitkicking this has taken lately?
Pardon my language.
I think many on this board would love to hear what you have to say.
Thanks,
Comment by alex — February 25, 2013 @ 7:00 am
These are challenging markets and a lot of companies with good things happening on the ground (take Huldra, for example, a producer) are not getting rewarded in terms of their share prices. In the case of RBW, they’ve never been in a better position in terms of where they’re at with their properties – three drilled, and two with very good results. The Venture is at a 3-yr low and that’s putting pressure on everyone. As investors we just have to try and ride it out.
Comment by Jon - BMR — February 25, 2013 @ 7:18 am
Personally I think we will see rbw at all-time low soon. Unfortunately. People don’t seem to belive anymore.
Comment by Kalkan - Sweden — February 25, 2013 @ 7:48 am
It is very surprise for me that in the past BMR always claim RBW will have positive affects and now they are saying:
BMR Quote:
In the case of RBW, they’ve never been in a better position in terms of where they’re at with their properties – three drilled, and two with very good results. The Venture is at a 3-yr low and that’s putting pressure on everyone. As investors we just have to try and ride it out.
Unquote:
I think I am loosing their confident.
Comment by Eric Benson — February 25, 2013 @ 9:33 am
anyone here following qit.v?
Comment by db — February 25, 2013 @ 9:36 am
I would suggest that people read the equedia blog. Its as of yesterday and is entitled extremely discounted assets. Its free, just sign up, and is very interesting. richar l
Comment by richard l — February 25, 2013 @ 11:35 am
Cap-Ex Ventures Ltd. (CEV:TSX.V), the other company in the area I follow, issued a very impressive initial resource estimate of 7.2 billion tons (Bt) iron ore in the Labrador Trough. The resource, located on Cap-Ex’s Block 103 project, is quite thick, good grade, flat lying and at or near surface. A 7.2 Bt resource is very large and it still has room to grow. Cap-Ex has the same challenge of convincing traders that the transport issue can be handled, but it’s also very inexpensive compared to the size and quality of resource it controls.
from:Spotting the Miners That Can Survive the Long Capital Drought: Eric Coffin
Huge potential…nice consolidation. Company emailed me today and informed me solution to transportation issues and results should be out shortly!!! glta
Comment by natalie — February 25, 2013 @ 12:38 pm
Eric Coffin: I personally and/or my family own shares of the following companies mentioned in this interview: SilverCrest Mines Inc., GoldQuest Mining Corp., Precipitate Gold Corp., Cap-Ex Ventures Ltd., International Northair Mines Ltd. and Lion One Metals Ltd. I was not paid by Streetwise Reports for participating in this story.
Dated todays date!! Current information from the BEST IN THE BUSINESS!!
Comment by natalie — February 25, 2013 @ 12:39 pm
With the CN solution, this work was part of the CN agreement of services. Cap-Ex has already gone back to the other potential transportation and port solutions and will work with knowledgeable and expert consultants very shortly in order to produce a realistic and viable solution for the project.
This will not have an effect to the overall development timeline for Cap-Ex Ventures.
Thank you,
Konstantine Tsakumis
Manager Investor Relations
Forbes West Management Corp.
Tel: 604-681-8030 (ext. 232)
E-mail: ktsakumis@forbeswest.com
Comment by natalie — February 25, 2013 @ 12:50 pm
RBW agm etc. mar 6, toronto. Not much notice given. richard l
Comment by richard l — February 25, 2013 @ 4:41 pm
Rainbow Resources Announces Non-brokered Financing
(via Thenewswire.ca)
Mr. David W. Johnston reports:
TORONTO, ONTARIO, February 26, 2013: Rainbow Resources Inc. (“RBW” – TSX.V:, “RIINF” – OTCQX: ) (“Rainbow” or the “Company”) announces that it intends to complete a non-brokered financing to raise approximately $1 million. Senior management and their associates have announced their intention to subscribe for a minimum of $200,000 of this financing.
The financing will be comprised of both units at $0.10 and flow through units at $0.12. All units will include one warrant which will entitle the holder to acquire one additional common share at $0.15 for a period of 24 months. In connection with this financing, Rainbow will be paying a commission of 8% cash and 8% broker warrants.
The proceeds of this financing will be used to continue exploration on the Company’s gold and silver properties in the Slocan Valley (the Gold Viking and the International) and in Nevada (the Jewel Ridge), on the prospective graphite property adjacent to Eagle Graphite Corp’s processing facility also in the Slocan Valley area of south-eastern British Colombia and for general working capital purposes.
Rainbow is encouraged by the results of its 2012 exploration programs on its gold and silver properties, in particular the Jewel Ridge Project in Nevada and the Gold Viking Property in the West Kootenays where important recent discoveries have been made. Samples from both properties will be on display at the upcoming PDAC Convention in Toronto where Rainbow will be participating in the Session “A” Core Shack Display.
Comment by pete — February 26, 2013 @ 7:01 am