Gold has traded between $1,291 and $1,307 so far today…as of 8:30 am Pacific, bullion is down $9 an ounce at $1,297…Silver is off a nickel at $19.68…Copper is up 3 pennies at $2.98…Crude Oil, at $101.61, has added $1.35 a barrel while the U.S. Dollar Index is flat at 80.01…
As John’s charts have shown, Gold has a strong support band between $1,270 and $1,300, and is now trading in the immediate vicinity of its 200-day moving average (SMA) which is currently $1,296…prices are now at their lowest level since February 13 when bullion was trading at $1,291…evidence of a pick-up in physical demand from Asia would certainly help Gold reverse course…
Holdings in the world’s largest Gold-backed exchange-traded fund, the SPDR Gold Trust, fell 1.8 tonnes to 817 tonnes yesterday after declining 2.7 tonnes in the previous session…that has cut its net inflow for the year to 18.8 tonnes…
Barclays has revised its 2014 Gold forecast to $1,250 an ounce from $1,205 an ounce, citing Gold’s year-to-date performance… investor sentiment seems to have stabilized and that will bode well for prices, said Barclays’ analysts. “That said, we have not changed our overall view and still believe that its next move will be lower,” said lead analyst Gayle Berry in a note dated yesterday…Berry said beyond safe-haven bids from Russia-Ukraine tensions, prices will struggle to hold onto recent gains and will need to find catalysts in the form of economic data to support prices at current levels…
Today’s Markets
Asia
After several days of gains, China’s Shanghai Composite fell 17 points overnight to close at 2047…Japan’s Nikkei pushed higher, gaining 146 points to close at 14623…
Europe
European markets were down slightly today…
North America
The Dow is up 2 points as of 8:30 am Pacific…a slew of economic reports this morning…the number of Americans filing new claims for unemployment benefits unexpectedly fell last week and touched its lowest level in nearly four months, suggesting the labor market was strengthening…meanwhile, a separate report showed U.S. economic growth was a bit faster than previously estimated in the fourth quarter (2.6% vs. previously estimated 2.4%), displaying underlying strength that could bolster views that the slowdown in activity early in the year would be temporary…the National Association of Realtors reported pending home sales fell for an eighth month in February, with sales down 10.5% from a year ago…
The TSX is 9 points lower while the Venture is down 13 points at 990 as of 8:30 am Pacific after dipping as low as 987 in early trading…
Mistaken Identity
Yesterday’s activity in Oculus VisionTech Inc. (OVT, TSX-V) shows how some investors are a little too “trigger happy” at times, and don’t think things through before hitting the buy or sell button…Facebook Inc. (FB, Nasdaq) announced late Tuesday that it had reached a definitive agreement to buy Oculus VR, Inc., the leader in immersive virtual reality technology, for $2 billion in cash and stock (Facebook’s first push into mobile hardware)…problem is, some investors jumped to the wrong Oculus and a buying stampede ensued in Oculus VisionTech (OVT, TSX-V, and OVTZ on the pink sheets) which is involved with watermaking digital media, like videos, to protect against piracy…OVT, which closed Tuesday at 13.5 cents, opened at 21 cents on the Venture yesterday and climbed to 34 cents during the first 25 minutes of trading before the stock was halted…the company then issued a new release confirming there were no material changes and that OVT is not associated with the transaction involving Facebook and Oculus VR…
Anyway, click on the link below for an interesting story on the private company that is getting taken over by Facebook…
http://www.gamesindustry.biz/articles/2014-02-28-vr-palmer-luckeys-quest-to-change-the-world
Magor Corp. (MCC, TSX-V)
On the subject of technology, check out the latest couple of news releases from Magor Corp. (MCC, TSX-V) which, quite simply, is changing the way people interact with video through its Aerus software platform (www.MagorCorp.com)…
Volume in Magor has picked up in recent sessions with the stock finding strong support around the 30-cent level…it climbed as high as 38.5 cents intra-day yesterday before closing at 34 cents, a gain of 4 pennies…below is a 1-year weekly chart from John as it appears MCC is ready to breakout from a downsloping wedge…MCC is unchanged at 34 cents as of 8:30 am Pacific…
Venture Updated Charts
The technical posture of the Venture at the end of last week – RSI(14) divergence with price, declining buy pressure – suggested a strong possibility of an immediate minor pullback, and that’s exactly what has occurred…investors need to keep in mind, however, that the overall trend remains very bullish and a correction to levels of very strong support is a normal and healthy process – not to mention an opportunity to grab quality issues at a discount…
9-Month Daily Venture Chart
This 9-month daily chart provides an Elliott Wave interpretation of how the Venture has been behaving in recent months, and how 985 could be a potential low – however, there is also plenty of support beneath 985 as the second chart will show…
13-Month Daily Chart
This 13-month daily chart shows an uptrend line from the beginning of this year that has been slightly breached; however, note the very strong chart support at 970 and the rising 100-day moving average (SMA) directly beneath it at 963…the 100-day SMA was rock-solid support for the Venture at the beginning of February when the Index fell to a low of 939…the rising 200-day SMA is currently 945…
10-Year Monthly Chart
This 10-year monthly chart demonstrates how positive the underlying strength of the Venture is at the moment…whenever there has been a major reversal to the upside in advancing issues, as we’ve seen recently with the Venture, this has confirmed that the primary trend is bullish and any pullbacks to support are excellent accumulation opportunities…
Cadillac Mining Corp. (CQX, TSX-V)
We’re keeping an eye on Cadillac Mining Corp. (CQX, TSX-V) which has shown an increase in both volume and price recently, and has a history of sudden and explosive moves to the upside…what’s particularly interesting is last week’s announcement by Cadillac that it has appointed Gary Nordin to its board of directors…as co-founder and former director, and vice-president (1982 to 1990) of Bema Gold Corp., Nordin was intimately involved in the exploration and development of the Champagne heap-leach Gold project in Idaho that formed the foundation for that company’s evolution into a mid-tier Gold producer…Nordin could be immensely helpful to Cadillac as it attempts to advance its Goldstrike Project in Utah which has strong geological merit…
Technically, CQX appears to have turned the corner after along downtrend that began in early 2012…below is a 2.5-year weekly chart from John…CQX closed at a nickel yesterday…
Note: Jon holds share positions in MCC and CQX.
A few days ago I said that the Bears had regained control of the gold market. And they still have control of if today. A pick-up in physical demand from Asia will not turn this market around. In fact, there is a strong possibility that Asians might put a damper on the market. China’s bubble is bursting, and investors will try to unload everything that is not bolted down in order to generate some money. A business friend of mine who was in Hong Kong this past week meeting with wealthy Chinese told me they are selling everything- houses, gold, silver, cars. Everything. In order for gold to climb higher we will need some geopolitical situation to escalate. If that doesn’t happen I believe gold will test the 1200 handle again before it resumes higher (sometime in May, June). Personally, I’ll see what happens in the first week of April, and if the trend doesn’t change, I will be unloading certain gold stocks.
Comment by Chris — March 27, 2014 @ 7:52 am
Is it wise to sell off my RBW at a great loss and move the funds to
ggi or another venture option – or do you think there is hope in the fortunes of Raibow?
Comment by Barry — March 27, 2014 @ 9:20 am
Doubleview to start Hat drilling March 30
2014-03-27 09:40 ET – News Release
Mr. Farshad Shirvani reports
DOUBLEVIEW CAPITAL CORP. ANNOUNCES COMMENCING 2014 EXPLORATION DRILLING PROGRAM AND ACCELERATION OF EXPIRY DATES OF 2012 PRIVATE PLACEMENT WARRANTS
Doubleview Capital Corp.’s diamond drilling program will commence on March 30, 2014, at the Hat property, located 95 kilometres southwest of Dease Lake in the Sheslay camp of the Stikine mining district of northwestern British Columbia.
The exploration camp on the Hat property is near completion, and necessary material and fuel have been placed on the property. The drilling equipment has now moved to the Golden Bear mine road staging location to be placed on the first drill target. It is anticipated that diamond drilling will commence on March 30, 2014.
Doubleview holds an option to acquire a 100-per-cent interest in the Hat property, subject to a 2-per-cent net smelter return royalty. The Hat property is an early-stage exploration property that is believed to host an alkalic copper-gold porphyry deposit. Such deposits customarily comprise irregular zones of disseminated mineralization within alteration halos close to magnetite, potassium and/or sodium-rich, low-silica intrusions. In addition to historic work by a major exploration company, Doubleview and the property vendors have completed geological, geochemical and geophysical surveys, and have developed the exploration model that is being pursued.
Erik A. Ostensoe, PGeo, a consulting geologist and Doubleview’s qualified person within the meaning of National Instrument 43-101 — Standards of Disclosure for Mineral Projects with respect to the Hat property, has reviewed and approved the technical disclosure of this news release. Mr. Ostensoe is not independent of Doubleview as he is a shareholder and is a co-optionor of the Hat property.
Acceleration of warrant expiry date
Doubleview also announces that it has elected to accelerate the expiry date of the warrants issued on Dec. 31, 2012, in connection with its flow-through and non-flow-through private placement unit offerings.
Pursuant to the terms of the 2012 private placement, if the volume-weighted average trading price of Doubleview’s shares on the TSX Venture Exchange is above 20 cents per share for five consecutive trading days, Doubleview is entitled to accelerate the expiry date of the warrants to a date 30 calendar days from the date notice of such acceleration is provided to holders of warrants. Doubleview has elected to provide notice of such acceleration to the holders of warrants.
This news release constitutes notice to warrantholders of the new expiry time. Any warrants remaining unexercised after the new expiry time will be cancelled. Effective today, the warrants issued to the purchasers pursuant to the 2012 private placement are set to expire at 5 p.m. (Vancouver time) on April 26, 2014.
Although it is unknown how many warrants will be exercised, if all of the warrants are exercised, Doubleview will receive additional proceeds of $554,450, and a total of 3,813,000 additional common shares of Doubleview will be issued. If all finders’ warrants issued in connection with the 2012 private placement are exercised, Doubleview will receive additional proceeds of $40,300, and a total of 403,000 additional common shares of Doubleview will be issued.
How to exercise warrants
Warrantholders who wish to exercise their warrants should instruct their investment adviser and be prepared to provide payment to their adviser firm equal to the exercise price for each warrant exercised. Investors should consult with their investment adviser to confirm the time required to complete this process and other costs associated with the exercise, if any.
Warrantholders who hold a physical certificate wishing to exercise warrants need to provide Doubleview with a certified cheque, bank draft or money order payable to Doubleview Capital, together with the warrant certificate with the exercise appended to the certificate duly completed.
We seek Safe Harbor.
Comment by John BMR — March 27, 2014 @ 11:15 am
Exciting times are coming for DBV and some serious buying opportunities at this time as some of the warrant holders will be exercising their warrants which may cause some short lived pressure on the stock.
Comment by Paul — March 27, 2014 @ 2:26 pm
Barry, if the price is ok… sell RBW… I am sure there are people who bought at 17-20 cents level… waiting for dumping… this stock only has small speculators playing… cannot go too high… especially after the slump
Comment by Theodore — March 27, 2014 @ 5:15 pm