Gold has traded between $1,287 and $1,298 so far today…as of 7:00 am Pacific, bullion is up $8 an ounce at $1,295…Silver is 38 cents higher at $19.97…Copper is making an important move, up 7 cents to $3.24 (refer to John’s Copper chart yesterday) thanks to stronger-than-expected economic data out of China…a close above resistance and an ascending triangle at $3.20 (today and tomorrow to finish the week) would be a very bullish development in the Copper market from a technical perspective…Crude Oil is down 81 cents to $103.56 while the U.S. Dollar Index is off one-fifth of a point to 81.05…it hit a 7-week low this morning…
The world’s biggest Gold-backed exchange-traded fund, New York’s SPDR Gold Shares, said its holdings fell by another 4.5 tonnes yesterday, bringing its total outflow for the week to 8.1 tonnes…
Gold demand has picked up again after prices fell back below $1,300 an ounce, according to Standard Bank…“Looking at China first, two days ago, when Gold was still above $1,300, the physical premium on the Shanghai Gold Exchange reached a high of $22.83; yesterday morning, when Gold dropped below $1,300, the high was $26.25,” the bank stated. “By contrast, the premium was $14.87 last week when Gold was above $1,330. The physical premium indicates strong Gold-bar demand out of China. More broadly, the Standard Bank Gold Physical Flow Index, which captures the physical demand trend in Asia, also increased substantially since the start of the week with the Gold price below $1,300, not far from levels seen at the start of July when Gold had moved into backwardation”…
U.S. Dollar Index-Gold Comparative Chart
The U.S. Dollar Index continues to struggle and is likely headed lower as you can see in John’s 6-month chart below…that has to be considered supportive for Gold at the moment which hit a low of $1,180 in late June when the Dollar Index raced hard to resistance at 85…there is now strong chart resistance at 82, and just half a point above that is the declining 50-day moving average (SMA)…not always, but generally the Dollar Index and Gold tend to move in opposite directions…note the “exhaustion gap” when the Dollar Index pushed through 84 at the beginning of July…that was a clear sign of a near-term top, which John correctly pointed out at the time, and Gold is up significantly since then though it met its own resistance recently at $1,350…
China Reports Better-Than-Expected Export/Import Data
One has to be careful with any numbers reported out of China, but markets have responded positively today to data showing that exports and imports there grew strongly in July…traders are interpreting this as a sign that the Chinese economy may be stabilizing after a shaky first half of the year…exports rose 5.1% year-on-year, rebounding from a 3.1% drop in June…imports increased 10.9%, up from a 0.7% fall in June…both figures were considerably stronger than analysts had forecast, pointing to a possible steadying of the country’s growth outlook after a sharp slowdown in exports and imports over the previous few months…the big jump in imports was especially notable as it’s an indication that Chinese domestic demand is holding up well…the data followed a survey of manufacturing companies released last week that showed modest expansion in Chinese factory activity in July…a fuller picture will come tomorrow when Chinese officials release data on industrial output, retail sales and inflation…
U.S., U.K, Japan & Euro Area Showing Growth In Economic Momentum: OECD
Brazil, Russia, India and China (BRIC) are showing worrying signs of a decline in economic growth, while the U.S., U.K., Japan and even the euro area are in far better shape, according to a report by the Organization for Economic Co-Operation and Development (OECD)…using composite leading indicators (CLI’s), which anticipate turning points in economic activity, the OECD concluded that there is a continuing divergence in growth patterns across major economies…”The CLI’s for the United States, Japan and the United Kingdom point to economic growth firming, while in the euro area as a whole, the CLI continues to indicate a gain in growth momentum”, the OECD stated…Italy is currently showing a positive change in its growth momentum, while France’s economic picture is stabilizing…however, Brazil, Russia and China are showing slowing economic momentum, while India, whose CLI’s point to a vastly fluctuating economy, is showing signs of a tentative positive change in momentum, although its CLI figure is still down year-on-year…
Today’s Markets
Japan’s Nikkei average suffered another significant drop overnight as the yen continues to gain strength, falling 219 points or 1.6% to close at 13606…China’s Shanghai Composite finished relatively unchanged at 2045…European shares are up moderately in late trading overseas…in New York, the Dow is trying to reverse a 3-day slump and is up 39 points through the first 30 minutes of trading…the TSX is up 64 points as of 7:00 am Pacific while the Venture has gained 4 points…the Venture closed yesterday at 907, 1 point above its rising 30-day moving average (SMA) where it may have found support…
Tinka Resources Ltd. (TK, TSX-V) Chart
It has been a little while since we’ve taken a look at Tinka Resources (TK, TSX-V) which has significantly out-performed the overall market during the past year as it continues to have exploration success at its major projects in the richly mineralized Silver-Lead-Zinc belt of Central Peru…John’s chart says a lot here…Tinka, which closed yesterday at 75 cents, is trading at strong support as shown in this weekly chart going back to the spring of 2011…RSI(14) has also bounced up from previous support…what’s also interesting, though not shown on the chart, is that Tinka has consistently found support at its rising 500-day SMA since its move started in mid-2010…the 500-day is currently at 66 cents…as always, perform your own due diligence…but if you believe Silver has a good chance to rally at some point over the next couple of months, Tinka is at attractive entry point here based on the stock’s technical posture at the moment…as always, perform your own due diligence…
Northwest British Columbia Update – Colorado Resources Ltd. (CXO, TSX-V)
Monday, we’ll have a fresh and interesting piece on the Sheslay River Valley area where we believe Prosper Gold (PGX.H, TSX-V) and Garibaldi Resources (GGI, TSX-V) will generate a lot of investor excitement in the near future given a variety of factors, not the least of which is Pete Bernier’s arrival on the scene up there…meanwhile, about 60 miles to the east, Colorado Resources (CXO, TSX-V) continues work at its North ROK Copper-Gold discovery with fresh drill results expected soon…below is a 7-month weekly CXO chart – nothing new to report as CXO continues to trade near technical support around 70 cents…the market is patiently waiting for news…the overbought condition that emerged during May-June has certainly been cleansed…the 50-day SMA is declining and now at 80 cents (resistance)…if and when there’s a reversal to the upside in the 50-day, that would be an important indication that a fresh uptrend has commenced…
Pacific Potash Corp. (PP, TSX-V) Chart Update
Potash plays took their lumps last week on the news from Russia’s Urakali and the apparent break-up of the global potash cartel…Pacific Potash (PP, TSX-V), which has been an impressive performer most of this year on the Venture, broke below important support at 15 cents and fell as low as 12 cents…investors may have over-reacted with these potash stocks, we’ll have to wait and see…keep in mind that Pacific Pacific is gearing up for a drill program at its project in northwestern Brazil – expected to commence next month…PP closed yesterday at 13.5 cents and appears to be forming a nice base near 2 Fibonacci retracement levels – 13 cents and 11 cents…RSI(14) on this 7-month weekly chart is at previous support…
Note: John, Terry and Jon do not hold positions in TK, CXO and PP…
Any update coming from Rainbow????
Comment by Barry — August 8, 2013 @ 8:18 am
yes barry – I have some good updates on them
-BMR pumped it
-Rbw ran to a quarter
-then like every one of their pics since the inception of this website, it tanked – it’s currently trading at 2 or 3 cents – I don’t even waste my bandwidth looking at it..
-everyone lost their money
-the ventures has become a garbage dump
-don’t ever invest your money or someone else’s money
-I believe the flavor of the month is Colorado Resources – lots of noise there – so BMR makes a case to buy the stock. Then sell it to you of course at astronomical valuations..1 in about a 1000 hit and they take claim for discovering or calling it.
Can’t help but chuckle out loud when I type this. It’s actually quite true
Let’s hope BMR has the spine to post this.
Kudos if they do.
Good luck kid.
Comment by Alex — August 8, 2013 @ 6:18 pm
Alex, we welcome and value everyone’s feedback, including yours, even if we don’t always agree with the opinions expressed or inaccurate statements are made. Obviously you’re still visiting the site, as many others are, so you must see some value here, and we thank for your participation and any comments you can make that can be helpful to all of us. The Venture is a very speculative and risky market and the only way to play it is to have a basket of the best situations possible, and cash always available. Many plays simply won’t work out, for a variety of reasons. But you can be wrong on 8 stocks out of 10, and if you keep those losses to a minimum (critical) and hit a home run on 1 or 2 out of 10, you can make a lot of money. This market is risky, yes, but also provides incredible potential leverage. And right now, there are some historic opportunities in our view. Just in the last few months – even in a lackluster overall market – we’ve highlighted numerous situations that have increased substantially in value. Specifically with regard to RBW, this young company was impressively aggressive last year at a time when many juniors were hiding their heads in the sand. We give them a lot of credit for that. They raised about $2.5 million and drilled 3 properties in 3 months, and actually got good results from 2 of them – including an interesting early high-grade discovery at Gold Viking (right when the market started collapsing again) which deserves immediate follow-up. They also strategically assembled a large land package in an up-and-coming graphite area that likely hosts one of the world’s top 5 flake graphite deposits (Eagle Graphite), currently in production. So there is still immense potential with RBW. Don’t count them out. We first introduced this company when it was in its infancy in late 2011, trading around 10 cents. It ran to .30 and is now sitting at .03. That’s the nature of this business, especially when you’ve had the kind of slaughter in the markets we’ve all witnessed in the past number of months. But given how hot B.C. is for exploration right now, I can certainly see the possibility of RBW marching right back up the ladder under the right conditions over the next 12 months and you’ll be kicking yourself for not buying at 3 cents. That’s the way these things often go. They are volatile. There are certainly issues around the Venture at the moment including the number of “lifestyle” companies that exist, but the market will weed those out accordingly. I believe this is a fabulous time right now to make some wise investments in some of these plays and make a fortune over the next couple of years. GLTA. There is lots to be positive about at the moment.
Comment by Jon - BMR — August 8, 2013 @ 7:21 pm
Jon,any plans to interview anyone from GGI on their plans for the Grizzly property?If so,any date in place yet?
Comment by Jim Niles — August 8, 2013 @ 8:25 pm
Hi Jon, I am a major shareholder in RBW. Is it reasonable to ask you to continue providing information, charts, and interviews on Rainbow? Is not the money to be gained made by buying good companies that are out of favour. Thanks
Comment by Alexandre — August 8, 2013 @ 8:33 pm
This is being put forward in a joking manner only
BMR – Barry, Obviously you’re still visiting the site, as many others are, so you must see some value here.
Bert – Some of us still read the comics, no value there, except a scattered chuckle.
Comment by Bert — August 9, 2013 @ 2:44 am
Alexandre, I understand your point, but it would be a lot easier for us to provide more coverage and insight if there was more regular news flow, and of course a successful completion of their current financing. Overall market conditions have been difficult since March and in that 5+ month period RBW has provided very little meat for us to chew on. But hopefully that will change in the near future. Last year, of course, it was all guns blazing, which made the story a lot easier to follow. I think it’s just a matter of everyone having patience here until they’re at the point when they can actually get some work done on the ground. Then there’s something to talk and write about. We can look at a chart at least in the near future.
Comment by Jon - BMR — August 9, 2013 @ 3:31 am
Yes, Jim. Steve Regoci has agreed to an interview with us, after Prosper Gold begins trading, which is expected very shortly. I suspect they have something up their sleeve. I just spoke recently with Pete Bernier. He’s very busy at the moment, and that’s good news. We’ll have an interesting piece Monday on the Sheslay/Grizzly projects.
Comment by Jon - BMR — August 9, 2013 @ 3:58 am
BMR, you have been fighting tooth and nail for the last 2+ years about RBW and can’t say enough great things about this operation – let me remind you, David Johnston or whatever that clown’s name is walks around with a silver nugget and a drill backpack promoting a penny stock??? Hmmmmm, if that’s not a red flag, I’m not sure what is. Are you serious guys? Take your money and put it into true undervalued resource-proven or producing mining companies that are not only trading well below book value, but near all-time lows. How do you think I’ve recovered my losses during the past 6 months? You’re telling me you’d rather park money in the ventures instead of companies like Pretium Resources, Alacer, Ivanplats, the list is endless.
At the end of the day, your timeline for a recovery, which is a conjecture at best, is a year and beyond. In that period of time, I will have enough money to not have to chase 4 fold returns, which you get in less than 3-4% of these companies even in a bull-market. The only thing we can agree on is that this is the riskiest place to “invest” your money – but I would personally add that it’s also the dumbest way of investing. You’re right, I have kicked myself many time, but have done so for pumping my money into this joke of an exchange. It had its once in a lifetime run back in 2010 – and now, you continue selling that dream to naive people on this board, me being one of them once upon a time.
No offence, but the only value this site brings me these days is nothing more than the entertainment it gives me to see people cling on to hopes and fantasies of the big bull market run that you have been promoting. That is why I check it out once in a while; for all the reasons you don’t want people frequenting this site.
For your sake, I hope you’re right, but while global equities reach for higher highs, the ventures continue to get decimated. That’s because people are pulling their monies out of this junkyard and putting them into indices which are actually generating unprecedented returns. That’s what I did and I’m so glad.
I followed you guys, swung 3 times and struck out of this crap shoot exchange – SD, GBB and the latest tankshow, RBW. The numbers speak for themselves.
Go buy real companies on the tsx and retire down the road. The ventures should be outlawed.
Good luck,
Alex
Comment by Alex — August 10, 2013 @ 9:24 am