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Gold is once again challenging the $1,600 resistance area…as of 5:45 am Pacific, the yellow metal is up $4 an ounce at $1,594…Silver has gained a dime to $28.91…Copper is a penny higher at $3.54…Crude Oil has advanced 66 cents to $93.69 while the U.S. Dollar Index has dropped over one-third of a point to 82.16…

Barclays Lowers 2013 Average Gold price

Citing “investor fatigue,” Barclays has lowered its 2013 average Gold price forecast to $1,646 an ounce, the firm said yesterday…“We have revised lower our Gold price forecast, as the downside risks to the outlook have risen while the upside catalysts have receded…there is scope for Gold to gain traction, given the forthcoming debt ceiling debate, but investor fatigue has weighed upon prices,” the bank said…Gold prices are likely to remain in a range, with support coming from physical demand and the low interest rate environment, but the upside is likely to be capped unless the market can find a new catalyst, they said…Barclays said physical buying, particularly in China, has responded to the lower Gold prices and is providing solid support…

Today’s Markets

Asian markets were mixed overnight, though Japan’s Nikkei average closed at a fresh 4.5-year high on continued optimism over monetary stimulus…the Nikkei climbed 180 points or 1.45% to close at 12561…China’s Shanghai Composite posted a more modest 8-point gain to finish the week at 2278…European shares are moderately lower in late trading as a European Union (EU) summit continues in Brussels and finance ministers gear up for a late night of talks aimed at thrashing out a bailout program for troubled Cyprus…EU heads of state continued are discussing the region’s austerity and growth policies, rising youth unemployment and whether to give countries such as France and Spain leeway on EU budget rules…stock index futures in New York as of 5:45 am Pacific are pointing toward a flat opening on Wall Street…the Dow has been up every day so far this month, advancing 10 consecutive sessions for the first time since 1996, while it’s also now set to post its 11th straight weekly gain…the S&P 500, meanwhile, finished just 2 points shy of its record close yesterday and is just 13 points from its all-time intra-day high of 1575 set in October, 2007…former Fed Chairman Alan Greenspan told CNBC this morning that “irrational exuberance” is the last term he’d use to describe today’s market…he said in a “Squawk Box” interview that stocks by historical standards are “significantly undervalued” even considering the recent moves higher…meanwhile, the Venture Exchange, which was one of the world’s best-performing markets in 2009 and 2010, continues to struggle as it fell another 3 points yesterday to close at 1113…

U.S. consumer prices recorded their largest increase in nearly four years in February as the cost of gasoline surged, but details of the report this morning (released at 5:30 am Pacific) showed no sign of a pickup in inflation to trouble the Federal Reserve…the Labor Department said its consumer price index increased 0.7% last month, the largest gain since June, 2009, after being flat in January…gasoline accounted for about three-quarters of the spike in consumer inflation…economists polled by Reuters had expected the CPI to advance 5%…other economic data is due out shortly including industrial production (6:15 am Pacific) and consumer sentiment (6:55 am Pacific)…

Updated Dow Chart

The Dow is obviously short-term overbought at the moment but its March momentum may not subside until it climbs above 14700 according to Fibonacci levels worked out by John in the 5-year monthly chart below…

Magor Corporation (MCC, TSX-V)

Video-conferencing upstart Magor Corporation begins trading on the Venture today under the symbol “MCC” after raising nearly $6 million at 59 cents…MCC was the qualifying transaction for capital pool company Biovest Corp. 1 (BVC.P)…MCC’s technology has landed some important clients in Canada and throughout the world, and its chairman is Terry Matthews – the founder of Newbridge Networks which got taken out 13 years ago for $7 billion…Magor has impressive revenue growth potential with high margins and is definitely worthy of our readers’ due diligence (www.magorcorp..com)…

GoldQuest Mining (GQC, TSX-V) Updated Chart

GoldQuest Mining (GQC, TSX-V) has been trading within a support band between 40 and 48.5 cents since late February…there are some encouraging signs in John’s 2.5-year weekly chart below, but the imminent possibility of the 200-day moving average (SMA) reversing to the downside is a concern…geologically, one can put forth a very strong case that GoldQuest will make additional discoveries this year in its current 30,000-metre drill program in the DR…the stock was obviously very volatile last year…expect more of the same throughout the balance of 2013…

SilverCrest Mines (SVL, TSX-V) Chart Update

Note: Jon holds a share position in MCC.

Gold has been under some mild pressure today, thanks in part to a continued strong greenback…as of 6:45 am Pacific, bullion is off $2 an ounce at $1,586 after dipping as low as $1,576…Silver is also trying to rebound and is currently down 17 cents at $28.75…Copper is up a penny at $3.52…Crude Oil is up slightly at $92.60 while the U.S. Dollar Index hit a fresh 7-month high this morning…it’s currently up one-tenth of a point to 82.99…

U.S. Probes Metals Pricing By Banks

The top U.S. derivatives regulator has started internal discussions on whether the daily setting of Gold and Silver prices in London is open to manipulation, the Wall Street Journal reported this morning, citing people familiar with the situation…the Commodity Futures Trading Commission (CFTC) has not launched a formal investigation into the matter, but it is examining various aspects of price fixings, including whether they are sufficiently transparent, the paper said in its online edition…those discussions come after the Libor rigging scandal that exposed widespread manipulation by British banks, including Barclays, of the interest rate setting benchmark and has increased scrutiny by global regulators of other money market benchmarks…Gold prices are set twice daily by five banks via teleconference, while three banks set silver prices…those fixings are used to determine spot prices for the billions of dollars of the two precious metals traded each day, impacting everything from jewelry prices world-wide to how much mining companies earn selling raw metals to refineries…it also helps determine the value of derivatives whose prices are tied to the metals…

Today’s Equity Markets

Asian markets were mixed overnight but Japan and China both saw gains with the Nikkei average climbing by over 1% to close at 12381 while the Shanghai Composite added 6 points to finish at 2270…European shares hit 4.5-year highs today as EU heads of states get set for a summit in Brussels to discuss the region’s mounting social problems…Germany has ignored calls from its euro zone partners for more economic stimulus by tabling plans to cut spending and balance its budget ahead of schedule on the eve of the EU summit dedicated to growth…the Dow, powered by stronger-than-expected economic numbers in the United States and an energy boom in several states, has advanced for 9 consecutive sessions for the first time since November of 1996…that streak in ’96 was immediately followed by a 5% pullback, so a near-term correction in the Dow should certainly be expected to help unwind overbought conditions…the Dow has also posted 10 consecutive weekly gains…unlike the Dow, the S&P 500 has yet to hit a new record high but is edging closer…it closed yesterday at 1554, 22 points below its all-time intra-day high from 2007…Apple Inc. shares shares have dropped 39% since topping above $700 in September…the iPhone and iPad maker was such a big driver of the S&P 500’s rally off the March 2009 lows but has quickly turned into a thorn in the side of the Index…as of 6:55 am Pacific, U.S. markets continue to charge higher with the S&P up 6 points while the Dow has gained another 51 points to 14506…the TSX is up 22 points while the Venture Exchange is down 2 points to 1113…

Canadian Dollar Chart Update

Canadian equity markets perform best when the loonie is strong, and weakness in the Canadian dollar since the fourth quarter of last year helps explain why the Venture Exchange has been struggling in recent weeks and months…the dollar’s massive rally from early 2009 into 2011 (77 cents to $1.06) corresponded with the Venture’s powerful run, while consolidation by the dollar since then has contributed to the weakness in the Venture…it’s therefore critical to keep a close eye on the direction of the loonie…at the moment, RSI(14) is in a strong support zone as shown in John’s 3-year weekly chart below, while price support is very evident between 95 and 97 cents…the start of a sustained new uptrend in the dollar (too early to predict at this point) would be a very positive sign for the Venture…

CRB Index Chart Update

Important support has been holding at 290 on the CRB Index, and another encouraging technical sign for a potential rebound in the commodity sector is a Slow Stochastics crossover as shown in John’s 2.5-year weekly chart below…the CRB has been trading in a horizontal channel between 290 and 306 since October…

Discovery Ventures (DVN, TSX-V) Chart Update

Discovery Ventures (DVN, TSX-V) was one of the top performers on the Venture during the fourth quarter of 2012 and also completed a financing in excess of $2 million while closing its Willa Property acquisition…a normal retracement may have run its course this week with the stock hitting an intra-day low of 20 cents Tuesday….yesterday, DVN climbed a nickel to close at 27.5 cents, though volume was light…below is a 2.5-year weekly chart from John…as always, perform your own due diligence…

Note: John, Jon and Terry do not hold share positions in DVN.

Gold dipped as low as $1,588 overnight but is trading at $1,595, a gain of $2 for the day, as of 7:00 am Pacific…Gold rose yesterday after European Central Bank council member and head of Germany’s Bundesbank, Jens Weidmann, said the ECB will maintain its accommodative monetary-policy stance “for as long as necessary”…Silver is up 6 cents at $29.21…Copper is off a penny at $3.53…Crude Oil is up 64 cents to $93.18 while the U.S. Dollar Index has is up nearly half a point at 82.96…

Silver is starting to receive more attention by market participants, supported by “moderately bullish” fundamentals, says HSBC…the bank cites a Bloomberg story that China’s Silver fabrication demand from electronics manufacturing represents 18% of the global total, and almost 9% of overall Silver demand, split between the manufacturing of computers and semiconductors…”With more than half of total Silver demand going to manufacturing applications and processes, the bulk of which is consumed by the electrical and electronics industries, we believe this is likely to mean strong Silver demand with a commensurate impact on prices,” HSBC stated…the bank also cites strong Silver coin demand, citing record sales by the U.S. Mint in February…”The sales surge may be attributed to opportunistic buyers amidst lower Silver prices or willingness to own the metal as global industrial production gradually improves,” HSBC stated…

U.S. Retail Sales Jump More Than Expected

Retail sales rose more than expected in February as Americans bought motor vehicles and a range of other goods even as they paid more for gasoline, suggesting consumer spending this quarter will hold up despite higher taxes…the Commerce Department reported this morning that retail sales increased 1.1%, the largest rise since September, after a revised 0.2% in January…economists polled by Reuters had expected retail sales, which account for about 30% of consumer spending, to rise 0.5% last month after a previously reported 0.1% gain in January…

Today’s Equity Markets

Asian markets were lower overnight with China’s Shanghai Composite falling 23 points to 2264…the red-hot Nikkei slipped 75 points to 12240…Nikkei losses were limited by expectations of aggressive monetary easing when a new Bank of Japan governor takes over next month…news that Japan’s main opposition Democratic Party has decided to back Haruhiko Kuroda, a long-time advocate of money printing and the government’s nominee for the central bank’s top post, cemented investor expectations that radical stimulus is coming soon…European markets are mildly lower today…Italy’s 3-year borrowing costs rose to their highest level since December which encouraged profit-taking…the Dow is off 18 points at 14432 through the first 30 minutes of trading…it closed at a record high for the sixth consecutive session yesterday, though the Nasdaq suffered its biggest loss in two weeks…the TSX has given up 79 points while the Venture Exchange is down 2 points at 1117…

Shanghai Composite Updated Chart

We noted in December that China’s Shanghai Composite had broken out above a 2-year downtrend line, a positive development for global equities in general though the Venture Exchange continues to struggle…the Shanghai had a powerful December and January, climbing several hundred points, before starting what appears to be a normal correction in February…the evidence suggests that this pullback has nearly run its course with strong Fibonacci support between 2150 and 2250 (the Composite closed at 2264 today) as John’s 6-month daily chart shows below…it would be a positive sign if the Shanghai is able to hold this important support…history shows that the Shanghai and the Venture Exchange, two very speculative markets, tend to follow the same general trend though the Venture typically lags a little bit…

Zenyatta Ventures Ltd. (ZEN, TSX-V) Updated Chart

Crude Oil – Where To From Here?

One Oil industry expert, the CEO of Australian-based commodities trading firm Compass Global Markets, gave a very bold and bearish forecast for WTI on CNBC’s “Asia Squawk Box” yesterday…Andrew Su predicts WTI will drop nearly 20% to around $75 a barrel during the upcoming second quarter and even further beyond that…”Shale Oil is the reason why Oil prices fell last year and the reason why it will continue to fall in the next few years,” said Su…”Shale Oil will reshape the way that the entire Oil industry is run and the U.S. will become an exporter of Oil in the next five to 10 years…that will have a significant impact on the U.S. and the global economy,” he added…

Oil demand in the U.S. last year fell to its lowest level in 16 years, down 2% compared to 2011 levels, the International Energy Agency reported at the end of February…the decline in consumption was blamed on the weak economy, high unemployment, growing vehicle efficiency and high fuel prices…meanwhile, the U.S. Energy Information Administration yesterday cut its 2013 forecast for WTI in its monthly Short-Term Energy Outlook…Crude will average $91.92 this year, down from a February estimate of $92.81, according to the Energy Department’s statistical unit…

Keep in mind that significantly lower Oil prices, if this were to occur, would be bullish for Gold producers as Oil is such an important component in their cost structures…

Below are two WTI charts from John…the first one is 6-month daily chart that shows how WTI became technically overbought in January as it rallied from its November-December lows and approached the $100 level…strong support exists around $90 (the 200-day SMA is $90.38) while near-term resistance is at $93…the long-term chart below the 6-month chart is interesting in that it shows Crude is trading in a 4-year symmetrical triangle with “decision time” nearing…it could break either way, up or down – so a fall to $75 certainly can’t be ruled out…

WTI 6-Month Daily Chart

WTI Long-Term Chart

Note: John, Jon and Terry do not hold share positions in ZEN.

Gold is firmer today, aided by reports of strong physical buying out of Asia (why does China remain so aggressive at accumulating Gold?)…as of 7:05 am Pacific, the yellow metal is up $12 an ounce at $1,594…Silver has jumped 25 cents to $29.22…Copper is 4 pennies higher at $3.55…Crude Oil has added $1.07 a barrel to $93.13 while the U.S. Dollar Index is off one-fifth of a point to 82.49…

Investors sold 106.2 metric tons valued at $5.4 billion from exchange-traded Gold products in February, the most since their creation in 2003, data compiled by Bloomberg show…another 26.1 tons was cut since then…Credit Suisse Group AG and Barclays Plc say the 12-year rally will peak this year and billionaire George Soros reduced his stake in the biggest ETP by 55% in the last quarter…prices are within 4% of a “bear market” (20% decline from the 2011 high) after the longest string of monthly losses since 1997…

While the mainstream media continues to make a big issue of the above and that Gold is off to its “worst start to a year in a quarter century”, suggesting the “bubble” has burst in bullion’s longest rally since the end of World War 1, the Gold chart is holding up extremely well and physical buying continues to underpin this market…fund liquidation has been intense in recent months, yet Gold has held above critical support at $1,500…the “smart money” commercial traders are more bullish now than they’ve been in a long time, while the perfect set-up exists for a major new uptrend given overall sentiment levels and record short positions that have been built up by large funds (“managed money”)…so many traders and investors can’t see beyond tomorrow and are chasing the “flavor of the day” (i.e., the Dow, the S&P 500, the Nikkei), creating tremendous opportunities for more patient investors in Gold and the beaten-down Gold stocks…yes, Gold is out of favor at the moment – the exact opposite of the situation in the summer/fall of 2011 when everyone was jumping on the bandwagon and bullion had clearly become overbought and due for a major correction…

Today’s Markets

Asian markets were lower overnight on profit-taking with China’s Shanghai Composite falling 24 points to 2287…the Nikkei was off just slightly and closed at 12315…European shares are generally flat…Italy’s 12-month funding costs hit a 3-month high today…the official political consultation over a new government in Italy is not due to start before next week…the Dow has set a record high for a 6th consecutive session…as of 7:10 am Pacific, the Dow is up another 24 points at 14471…the TSX is up 41 points at 12899, its late January high, while the Venture has gained 6 points to 1122…

Contrarian Call

With the major equity markets technically overbought, at least on a near-term/short-term basis,  we like how the HXD (double short S&P/TSX 60 ETF) has been bottoming recently in a horizontal channel between about $7.60 and $8.00…this has good potential as a defensive move and short-term trade…as always, perform your own due diligence…we expect Gold and Gold stocks (the producers at least) to continue to run counter-cyclical to the broader markets…the HXD is currently off 3 cents at $7.62…

TomaGold Corp. (LOT, TSX-V) and Real Quinto Capital Corp. (QIT, TSX-V) Expand Drilling At Monster Lake Discovery

TomaGold Corp. (LOT, TSX-V) and Quinto Real Capital Corp. (QIT, TSX-V) have expanded their drill program at the Monster Lake Property to 5,000 metres…the companies announced that drilling resumed on the 325 Gold Zone this morning…the new holes (dark blue dots) will test the zone along strike at at depth as seen in the map below…the big question is, does the the 325 Zone become wider and richer at depth as appears very possible given results of the first nine holes?…

Richmont Mines (RIC, TSX) Updated Chart

One of our readers brought up Richmont Mines (RIC, TSX) over the weekend which dipped to $2.30 last week, its lowest level since the 2008 Crash and a correction of about 80% from its late 2011 all-time high…RIC is making excellent progress adding high-grade resources to its Island Gold Mine in Ontario (the new “C” zone has higher average widths and grades than what Richmont is currently mining closer to surface and remains open in all directions)…all of RIC’s bad news (Francoeur, Wasamac) seems to be behind it, and the company was sitting on $60 million in cash at the end of the year with virtually no debt…the stock has recently recovered to $2.60 but that still leaves RIC below book value ($3 per share)…the first sign of a major turnaround in the stock will be a move above the downsloping wedge…below is a 2.5-year weekly chart from John…

Amarc Resources (AHR, TSX-V) Update

Amarc Resources (AHR, TSX-V), affiliated with the Hunter Dickinson Group, is working on several potential large-scale projects in British Columbia including Galaxie – one of the few remaining under-explored areas of the prolific Stikine terrane…in a sign of the times, AHR is trading at its 2008 Crash all-time lows at 7.5 cents (market cap approximately $10 million)…it was sitting on nearly $6 million at the end of December…

Note: John holds a share position in AHR while Jon holds a position in the HXD.

It’s a quiet day in the markets so far to begin the new week…Gold has traded in a range between $1,576 and $1,585…as of 7:00 am Pacific, bullion is relatively unchanged at $1,580…Silver is down 13 cents to $28.87 (see updated Silver charts below)…Copper is off 2 pennies to $3.49…Crude Oil is down 64 cents at $91.31 while the U.S. Dollar Index is unchanged at 82.82…

Today’s Equity Markets

Asian markets were mixed overnight, but a weak yen drove Japan’s Nikkei average to a new multi-year high…the Nikkei is up nearly 20% so far in 2013…Japanese core machinery orders fell 13.1% in January from the previous month, the government said today, the first decline in four months, as Japan’s economic recovery has yet to gain momentum…this will certainly encourage more aggressive monetary easing in that country…European shares are under mild pressure as investors reacted to Italy’s credit rating downgrade…ratings agency Fitch reduced Italy’s credit rating to BBB plus on Friday, citing political uncertainty as the key reason for the downgrade…Fitch stated, “The inconclusive results of the Italian parliamentary elections on February 24-25 make it unlikely that a stable new government can be formed in the next few weeks”…it added that the political situation was a “non-conducive backdrop” for further structural reform measures…Beppe Grillo, the comedian and leader of the “5 Star Movement”, which emerged as the surprise winner in the elections, reiterated that his party would not form an alliance with his opponents…in North America, the Dow is flat in early trading while the Venture Exchange has slipped 2 points to 1116…

Inflation Picks Up In China

A slew of economic data came out of China over the weekend including an uptick in inflation to 3.2% year-on-year in February, up from 2% in January for the highest increase since April last year…this is undoubtedly a concern for Chinese officials but prices may have been distorted by the Lunar New Year holiday which often sees a spike in prices for food and other goods, so the March data will become quite important…industrial production grew slightly more slowly with a 9.9% year-on-year rise in January and February, after a 10.3% gain in December…other indicators of economic activity softened in the first two months of the year…retail sales were up 12.3% year on year in January and February, compared with a 15.2% year on year rise in December…electricity output, which is closely watched in China because of concerns about the quality of other data, was up 3.4% year-on-year in the same period, compared with growth of between 6% and 8% in the final months of last year…

Updated Dow Chart – Overbought Conditions

After 10 consecutive weekly gains, there’s no question the Dow is in overbought territory from a short-term technical standpoint…below is a 9-month daily chart from John that shows RSI(2) after Friday was at an extreme 99.32…the extent of a near-term pullback is the only question…astute investors will be locking in first quarter gains as March progresses…

Silver Looking Stronger – Updated Charts

As usual, John has updated short-term and long-term Silver charts this morning with both of them providing encouragement…

Silver – Short-Term Chart

Silver – Long-Term Chart

TomaGold Corp. (LOT, TSX-V) Updated Chart

TomaGold Corp. (LOT, TSX-V) and Real Quinto Capital Corp. (QIT, TSX-V), which released more results from their Monster Lake discovery Friday, are both experiencing minor pullbacks this morning which is not surprising given the extent of their recent run-ups…Monster Lake is a legitimate play that will be interesting to see unfold in the coming weeks…both stocks can be expected to be volatile, so they are certainly not for the faint of heart…substantial gains from current levels are possible if additional drilling extends mineralization laterally and at depth with good grades…below is a 3-month daily LOT chart from John showing technical support levels…some consolidation at this point is normal…as of 7:00 am Pacific, LOT is down 1.5 cents at 31 cents…

Trueclaim Exploration (TRM, TSX-V) Updated Chart

Note: John holds a share position in TRM.

TSX Venture Exchange and Gold

The beleagured Venture Exchange posted its fifth consecutive weekly loss, hitting lows not seen in over three-and-a-half years, while the Dow Jones Industrial Average raced to a new all-time record high as it closed up for the 10th week in a row.  It may seem that these are the worst of times if you’re a junior resource stock investor, or even if you hold some “blue chip” Gold producers.  But one of the secrets to making BIG money in the market is buying stocks or being patient with stocks that no one else wants at the moment, and selling them later – whenever that might be – at much higher prices as sentiment changes.  It’s a very simple formula, but not an easy one for most investors to execute as emotions (fear and greed) often get in the way of common sense.  The 2008 Crash was a great example of how to get rich by running in the opposite direction of the crowd.  At the moment, yet again, public sentiment toward Gold stocks and the junior resource sector as a whole is at record or near-record lows.  This will change.  Unfortunately, it’s impossible to know exactly when that sentiment shift will occur – next week, next month, this summer, next year?

The Venture closed Friday at 1118, though this was a loss of just 2 points for the week.  Below is a 5-year weekly chart from John that does offer some encouragement.  For now at least, technical support is holding around the 1100 area while there is also a divergence between RSI(14) and price.  What this market needs right now more than anything is the start of a new uptrend in Gold and Silver prices, and/or a major discovery or two that could also ignite a legitimate area play.  In the past, such events have always pulled the Venture Exchange, or the old Vancouver Stock Exchange, out of the doldrums.

More consolidation around the 1100 level should be expected in the week ahead.  The broader equity markets are due for a correction – the Dow’s RSI(2) is at an extreme 99.32 as John will show in a chart Monday morning.  What will be interesting to see is how Gold, the Venture and the TSX Gold Index each behaves during a broad market pullback.  Our hunch is that Gold and the producers, at least, will go counter-cyclical.

Gold

A stronger than expected U.S. jobs report Friday initially put pressure on the Gold market, but bullion recovered almost all of its losses by the end of the day to close down just $2 for the week at $1,579.  Technical support is holding above the February low of $1,554 and the COT structure is very bullish, so the likelihood of a collapse below key long-term support beneath $1,500 seems remote despite the many bearish forecasts that have contributed to Gold’s recent weakness.  Liquidation by large funds seems to have subsided, and physical buying from Asia is giving Gold the support it needs.  It’s encouraging that bullion is still trading where it is despite the recent intense selling pressure.  Below is a 2-year weekly chart from John.

Silver managed to move up slightly last week to $29.00.  Copper added 3 pennies to close at $3.51.  Crude Oil gained nearly $1 a barrel to $91.64 while the U.S. Dollar Index climbed nearly half a point to 82.71.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, Gold is being driven by both the Fear Trade and the Love Trade.  The transfer of wealth from west to east, and the accumulation of wealth particularly in China and India, is having a huge impact on Gold.

The fundamental case for Gold remains incredibly strong – currency instability and an overall lack of confidence in fiat currencies, governments and world leaders in general, an environment of historically low interest rates and negative real interest rates that won’t end anytime soon (inflation is greater than the nominal interest rate even in parts of the world where rates are increasing), a Fed balance sheet now in excess of $3 trillion and expanding at $85 billion a month, money supply growth, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand, investment demand, emerging market growth, geopolitical unrest and conflicts, and inflation concerns…the list goes on.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than three years and strictly through word-of-mouth we have built a loyal following. 

We’re continuing with our plans to ultimately build a very unique investment and money-management resource site that goes considerably beyond what we have now.  While we focus a great deal on the Gold and Silver markets and trends in the global economy, and of course the technical health of the TSX Venture Exchange (CDNX), an important component of this site will always be original research on undiscovered junior exploration companies or small producers, mostly in the Gold and Silver exploration space, that offer very real and significant upside potential. We are extremely selective in the companies we feature and put forward to investors – we prefer quality over quantity.  However, investors must understand that these are still highly speculative situations and entail considerable risk, volatility and unpredictability.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. Always perform your own due diligence and please read our disclaimer at the bottom.

We use a combination of fundamental and technical factors in determining the value and potential of a stock.  In terms of fundamentals we look for a company with a superb project supported by strong management.  Management must possess integrity, solid ethics and a determination to succeed and build shareholder value.

At BullMarketRun (BMR) we approach the handling of money from a biblical perspective and this is an important topic we will be sharing with our readers (and listeners) as the site continues to develop. The Bible teaches so much about money and how to handle it and invest it –  there are literally thousands of verses on how we should handle the money and possessions that God entrusts us with.  By examining the life of Jesus and reading the Word of God, we can all become fully equipped to be successful investors and handle money wisely.  If it’s the other way around –  if you’re a slave to money by being in debt for instance, or if you don’t respect the value of money and spend it foolishly –  you’re in trouble and you’ll never be blessed financially.  We have a God who thinks big – He created the universe – and He wants us to think big  in every area of our lives.  When we handle money from a Biblical perpective (His money that we have been given stewardship of) He will bless our financial decisions and an increase of tenfold or a hundredfold is always possible.  This all begins, of course, with a personal relationship with Jesus Christ by accepting Him as your Lord and Savior and putting Him at the throne of your life.  It is the most important decision you’ll ever make.

God Bless,

Terry Dyer

Owner/Publisher, www.BullMarketRun.com

Disclaimer:

BullMarketRun.com (BMR) is completely independent from any companies it covers.  BMR accepts no compensation of any kind from any groups, individuals or corporations for coverage of any company mentioned on this site.  We accept no advertising either.  Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks.  We are not Registered Securities Advisers. Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulations in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time.  Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.

Forward Looking Statements:

All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Gold got hurt by the stronger-than-expected U.S. February jobs number this morning but has staged an important reversal…as of 7:10 am Pacific, bullion is now up $2 an ounce at $1,581 after dipping as low as $1,560…Silver fell briefly below $28.50 but is now 31 cents higher at $29.19…Copper is flat at $3.51…Crude Oil is unchanged at $91.54 while the U.S. Dollar Index has surged nearly three-quarters of a point to 82.75…

Gold Bears Growing In Number – Good Sign

Nomura is the latest bank to turn bearish on Gold, another sign the downturn in bullion is likely nearing an end…”For the first time since 2008, in our view, the investment environment for Gold is deteriorating as economic recovery, rising interest rates and still benign Western inflation (for now) will likely leave some investors rethinking their cumulative $240 billion investment in Gold over the past four years,” wrote Nomura analysts in a sector note yesterday…even more interesting were comments from Societe Generale analysts Jesper Dannesboe and Robin Bhar in a report on commodity strategy yesterday…”The Gold price is in bubble territory and the sufficient conditions for a burst are coming into place,” they warned…we’ll examine those comments in detail in the coming days…

U.S. Economy Picks Up Steam With Strong February Jobs Number

U.S. job creation broke out in February, with the economy creating a net 236,000 new jobs as the unemployment rate fell to 7.7%…economists were expecting around 160,000 new jobs in February with the unemployment rate holding steady at 7.9%…private job creation stood at a robust 246,000, finally indicating that the economy may be ready to escape the tight growth range in which it has been held since the financial crisis…service industries led the gains with 73,000 new jobs, while construction added 48,000 and health care provided 32,000…

China’s Exports Stronger Than Expected

China’s trade figures for February revealed signs of a steady recovery in the world’s second-largest economy…trade surplus and exports came in stronger than estimated forecasts but imports slumped 15% from a year earlier…looking at the first two months of 2013 compared to the same period last year, which helps smooth out distortions from the Chinese Lunar New Year holiday, export and import growth held up reasonably well…exports were up 23.6% while imports were up 5%…many analysts expect the country to improve on last year’s 7.8% growth on the back of stronger domestic investment and consumption…China is not as reliant on export growth as it used to be…

China Expresses Fresh Concerns About “Competitive Currency Depreciation”

Beijing has issued a new warning against competitive devaluations by rich countries, saying that emerging markets will pay the price for so-called currency wars…“For the global economy this year, I am worried about inflation, about competitive currency depreciation and about the negative spillover effects of excessive issuance of the main currencies,” commerce minister Chen Deming said today…he was speaking at the National People’s Congress, China’s rubber-stamp parliament…

Today’s Markets

Another day, another new record high for the Dow…as of 7:10 am Pacific, the Dow is up 21 points to 14350 (it rocketed as high as 14413 in very early trading) as investors are cheering the jobs report…the Wall Street Journal reported this morning that U.S. companies are showering investors with a record windfall in the form of dividends and share buybacks, helping to propel the stock market’s rally…companies in the S&P 500 Index are expected to pay at least $300 billion in dividends in 2013, according to S&P Dow Jones Indices, which would top last year’s $282 billion…American corporations also announced plans to buy back $117.8 billion of their own shares in February, the highest monthly total in records dating back to 1985, according to Birinyi Associates Inc. a Westport, Conn.-based market research firm…the TSX is up 10 points while the Venture is relatively unchanged at 1115 through the first 40 minutes of trading…Asian markets were mostly higher overnight with Japan’s Nikkei average hitting a new 4.5-year high, climbing 2.6% to close at 12284…China’s Shanghai Composite was off 5 points to finish the week at 2319…European shares are up significantly thanks to the strong U.S. non-farm payrolls report…Conn.-based market research firm…

High-Grade Mineralization Extended At Monster Lake

TomaGold Corp. (LOT, TSX-V) and Quinto Real Capital (QIT, TSX-V) released results from six more holes this morning at their “325 Zone” Monster Lake discovery near Chibougamau, Quebec, and drilling along two new sections (100 metres apart) shows the high-grade zone remains open along strike and at depth…highlights from holes M-13-96 to M-13-101 include 26 g/t Au over 5.7 metres in M-13-98 at a vertical depth of 280 metres; 32.6 g/t Au over 6 metres in M-13-99 at a vertical depth of 170 metres; and 48.9 g/t Au over 3.5 metres in M-13-101 at a vertical depth of 275 metres…all holes drilled to date in this phase (9 in total) have been reported with drilling resuming early next week (following Spring Break in Quebec) according to a TomaGold representative we spoke to this morning…it’ll be interesting to see how this plays out with some deeper holes – that will be the real test…promising results so far, but much more drilling is going to be required…QIT has an option to earn up to a 70% interest in the project…the stocks have responded well to the news with LOT gaining 7 cents to 38.5 cents while QIT has climbed 22 cents to 86 cents…

Additional Producer Charts

With a bottom believed to be forming in bullion, this morning we’re taking a technical look at three additional producers worthy of our readers’ due diligence at this particular time…recently, we highlighted New Gold Inc. (NGD, TSX-V) which we believe is one of the best-run companies in the industry…

Goldcorp Inc. (G, TSX)

Yamana Gold Inc. (YRI, TSX)

St. Andrew Goldfields (SAS, TSX)

Note: John, Jon and Terry do not hold positions in G, YRI or SAS.