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After sliding $30 an ounce yesterday to its lowest level since late June, Gold is up $7 an ounce at $1,195 as of 4:00 am Pacific…Silver is up a dime at $19.35…Copper has added 2 pennies to $3.29…Crude Oil is down slightly at $98.72 while the U.S. Dollar Index is essentially unchanged at 80.67…

Now is certainly not the time to be pushing the panic button regarding Gold, even though it could still plunge a little lower in the days ahead…there are simply too many investors in the bearish camp right now, just the opposite of what occurred in the bullion market in the summer of 2011…so some Christmas gifts we’re looking forward to are a selection of quality Gold stocks at bargain prices…one scenario that could play out in the near-term is a breach of the June low of $1,179, a sudden spike downward that would shake some more loose apples out of the tree…this would likely be the precursor to a powerful rally…given the time of the year, additional volatility is very possible with squaring of positions going into 2014…another scenario, of course, is that support at the June low will hold…either way, Gold in our view has limited downside from current levels (limited meaning it’s trading within about 10% of a potential ultimate bottom which would keep bullion above $1,000 an ounce)…2014 will be a much better year…

Below is a 10-year monthly Gold chart from John…excellent support exists at the Fibonacci 38.2% level which is $1,155…the 10-year monthly will be a valuable chart to review frequently in 2014…what we’ll be looking for is a break above the RSI(14) trendline…keep in mind that all-in sustaining costs (AISC) for most producers range from approximately $1,000 to $1,200 an ounce (for some it’s even higher than $1,200), so the best cure for low prices is low prices…China, meanwhile, continues to absorb much of the western selling which is driven by the “herd mentality” of many North American investors…

10-Year Monthly Gold Chart

Money Managers were the most bullish on Gold when it hit an all-time high in September, 2011…they are now the least bullish they have been since 2007 when bullion was trading at $700 an ounce…that’s a classic contrarian indictator and tells us that Gold has to be very close to an important low, if it hasn’t made one already…

Bitcoin

Overstock plans to become the first big U.S. online retailer to accept Bitcoin, as Patrick Byrne, the company’s libertarian chief executive, warms to the virtual currency as a refuge from government control…Byrne told the Financial Times that Overstock plans to start accepting Bitcoin next year, possibly by the end of the second quarter, a decision that he said was driven mainly by his own political philosophy…“I think a healthy monetary system at the end of the day isn’t an upside down pyramid based on the whim of a government official, but is based on something that they can’t control,” Byrne stated.

Today’s Markets

Asia

China’s Shanghai Composite closed at its lowest levels since late August today due to concerns of tight liquidity…the Shanghai fell 43 points overnight to finish the week at 2085…Chinese money market rates rose for a third straight session with the benchmark seven-day bond repurchase agreement hitting its highest level since June 24…the move came even after the People’s Bank of China’s took emergency steps yesterday to inject liquidity into selected banks…

Japan’s Nikkei reversed earlier losses to close up slightly after the yen hit a new five-year low against the greenback following the Bank of Japan’s decision to leave monetary policy unchanged at the conclusion of its two-day meeting…

Europe

European stocks are up slightly but off their highs in late trading overseas…

North America

Stock index futures in New York as of 4:00 am Pacific are pointing toward a mildly positive open on Wall Street…the Dow tallied its 46th record close of the year yesterday, gaining 11 points to finish at 16179…

The TSX has surged more than 300 points since landing on important support just over a week ago…it closed up 57 points yesterday, despite weakness in commodities, to finish at 13392…the Venture fell 4 points to 887 and is off 5.1% for the month due to tax-loss selling pressures and lower Gold prices…a significant reversal over the final few trading days of the year is quite possibly in the cards given current and historical trading patterns…

Christmas Stocking Stuffers

If the Venture is going to stage an end-of-year, Q1 2014 turnaround, as we believe it will, look first at the leaders of 2013 as they have the greatest likelihood of starting 2014 with a bang…below are just five situations we’ve been tracking that look very healthy fundamentally and technically…as always, perform your own due diligence…we’ll have more on some of these plays and others in an expanded Week In Review And A Look Ahead on Sunday…

Garibaldi Resources Corp. (GGI, TSX-V)

More positive voices are lining up behind Garibaldi Resources (GGI, TSX-V) which has significantly outperformed the Venture since the summer of this year due to positive developments on the ground, a clean share structure, and a healthy financial position that even features royalty income from a pilot coal program in Mexico…that’s a good situation for any junior to be in…Investor’s Digest of Canada has just come out with a very positive piece on GGI for its subscribers…“The company has already scored some impressive successes, while husbanding the potential to morph into a much more compelling story,” states writer Mike Kachanovsky…“For speculative investors who want some action in the junior mining sector, Garibaldi is one name that deserves a look.”

GGI has several potential catalysts on the horizon including the intriguing La Patilla Gold Property where current drilling is following up on high-grade channel samples…we’ll explore La Patilla in more detail Sunday and why this property was such a savvy acquisition for the company…GGI has other interesting scenarios brewing in Mexico, and it has much to offer investors in terms of its opportunities in British Columbia…we expect GGI to be more active than ever in B.C. in 2014 with news likely just around the corner concerning its flagship Grizzly Property…the Sheslay region will heat up, and GGI has identified targets including a pipe-like structure along a 15-km corridor from Grizzly West to Grizzly Central…

Technically, GGI is well-positioned for a potential major breakout in 2014 which may come sooner rather than later given the dynamics of this 6-month daily chart from John…moving averages are in powerful alignment, a bullish flag has formed on the long-term chart as John has pointed out, and an immediate breakout above an ascending triangle is also possible…what the technicals suggest is that there are some important fundamental forces developing that could take GGI to a new level as a company in 2014…

Madalena Energy Inc. (MVN, TSX-V)

Madalena Energy (MVN, TSX-V) has performed exceedingly well in recent months and also just raised an additional $12 million, mostly through a bought-deal financing at 47 cents…Madalena is very active with a large land base of over 150 net sections (100,000+ net acres) in the Paddle River area of west-central Alberta with increasing production and reserves on three horizontal plays…the company also has very attractive assets in Argentina where it’s focused on the multi-billion barrel potential of three large blocks within the “sweet spot” of Argentina’s prolific Neuquen basin…

MVN’s 2.5-year weekly chart shows impressive accumulation throughout the year, setting the stage for what could be a very strong first quarter of 2014 in particular…

Azincourt Uranium Inc. (AAZ, TSX-V)

We like the uranium sector, and one of several interesting juniors in that space at the moment is Azincourt Uranium (AAZ, TSX-V) which will be drilling its Patterson Lake North Property (50-50 JV with Fission Uranium) this winter…Azincourt also recently acquired the advanced-stage Macusani Property in southeastern Peru along with some nearby early-stage opportunities comprising 9,600 hectares…

Since April, AAZ has been trading in a horizontal channel between 20 cents and the mid-30’s…it closed yesterday at 25 cents…despite the recent pullback, the overall trend remains very bullish as shown in this 15-month weekly chart…

Reservoir Minerals Inc. (RMC, TSX-V)

Legitimate discovery plays will perform well, no matter what the Gold price is doing…Reservoir Minerals (RMC, TSX-V), in its JV with Freeport McMorRan Corp., continues to intersect spectacular grades from drilling at its Timok Project in Serbia…RMC also has 100%-owned opportunities in that prolific region…RMC closed at $5.53 yesterday but has just 42 million shares outstanding and a strong cash position…this is a solid play that hasn’t received the attention it deserves given the current state of the junior resource market…

Wanted Technologies Corp. (WAN, TSX-V)

A recent pullback in Wanted Technologies (WAN, TSX-V) was a buying opportunity as John’s charts were saying, and indeed WAN has taken off to a new all-time high…Wanted is headquartered in Quebec City with subsidiary offices in New York…it provides real-time business intelligence for the talent marketplace…it’s also the exclusive data provider for the Conference Board’s Help-Wanted OnLine Data Series™, the monthly economic indicator of hiring demand in the United States…only 24 million shares outstanding, and the company is making money…who know how much higher it can go, but WAN clearly has momentum on its side…this kind of technical situation will usually test at least the $2 level…

Note: John and Jon both hold share positions in GGI.

Gold has traded in a range between $1,193 and $1,226 so far today…as of 7:35 am Pacific, bullion is off $23 an ounce at $1,196 in the aftermath of the Fed’s decision to finally begin scaling back its bond buying program with a modest $10 billion reduction beginning next month…the market consensus was for the Fed to not start tapering until perhaps the spring of next year, although this week’s meeting was considered a growing possibility following the U.S. budget agreement and recent encouraging economic data including two straight U.S. jobs reports showing gains of 200,000 in non-farm payrolls…Gold had already largely priced in a “taper”, so immediate major downside is likely limited (strong support around $1,200) though a test of the June low could be in the works…”big money” may attempt to push Gold below the June low in an effort to trigger stop loss orders and flush out some more weak hands, but short positions are high and that may create some interesting dynamics…year-end volatility is very possible given short positions, typical liquidity issues and portfolio “window dressing” in late December…Silver is off 57 cents at $19.16…Copper is down a nickel at $3.26…Crude Oil is up 46 cents at $98.26 while the U.S. Dollar Index has added one-tenth of a point to 80.65…despite yesterday’s rally, the Dollar Index is still on very shaky ground technically – a supportive factor for Gold…

The Fed noted that its “highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends,” and that it intends to keep the Fed Funds rate where it is (near zero) “well past the time when unemployment drops below 6.5% especially if inflation continues to run below the committee’s 2% longer-run goal.”

About inflation, Bernanke stated, “The Committee is determined to avoid inflation that is too low as well as inflation that is too high, and it anticipates keeping rates low at least until it sees inflation clearly moving back toward its 2% objective.” The PCE inflation measure the Fed watches rose 0.7% in the 12 months through October 2013…that means inflation must more than double before the Fed will even consider raising interest rates…ultimately, this has to be considered supportive of Gold and negative for the dollar…

“What happens in the next few days could also determine to some extent how the Gold price performs in the longer term,” Commerzbank said in a note.  “If the Gold price should succeed in forming a stable and long-term bottom at above $1,220 per troy ounce, investor interest is likely to pick up again – after all, the considerable uncertainty over QE3 is gone, meaning that the spectre of ‘tapering’ has lost its ability to scare the Gold market. On the other hand, if the Gold price were to fall below $1,200, this could provoke a renewed wave of selling.”

Investors continue to sell out of Gold-backed ETFs which have seen outflows of some 800 tonnes this year…SPDR Gold Shares said its holdings fell another 4.2 tonnes yesterday…

Updated Copper Chart

With economies in the U.S. and Europe on the rebound, and China holding its own, demand for base metals in 2014 could be stronger than expected which would certainly help the Venture Exchange…with regard to Copper, the question is whether it will hold strong support at $3 a pound or push above a descending triangle as shown in this 13-year monthly chart…Copper’s “moment of decision” in that regard will come at some point next year…

Today’s Markets

Asia

Asian markets were mixed overnight…Japan’s benchmark Nikkei closed at its highest level since 2007, surging 271 points or 1.7%, as the yen hovered near a five-year low of 104.37 against the greenback…China’s Shanghai Composite closed at a new one-month low for a third straight session on a spike in money market rates…the People’s Bank of China (PBOC) skipped open market operations today for a fifth session and that saw the seven-day repo rate hit its highest level since June for a second straight day…

Europe

European markets are significantly higher in late trading overseas in the wake of yesterday’s big move on Wall Street…

North America

The Dow is down 18 points through the first 65 minutes of trading today...the number of Americans filing new claims for unemployment benefits rose last week to the highest level in nearly nine months, casting a shadow on the labor market…initial claims for state unemployment benefits increased 10,000 to a seasonally adjusted 379,000, the Labor Department reported this morning…that was the highest level since March and marked the second straight week that claims have risen…

The TSX is up 19 points as of 7:35 am Pacific while the Venture is off 5 points at 886…

TSX Updated Chart

The TSX has been performing according to script…it met resistance at 13500, retraced to the Fib. 61.8% level, and now appears to be gearing up for a strong finish to 2013…below is a 4-year weekly chart from John…

Contact Exploration Inc. (CEX, TSX-V)

As we’ve mentioned on numerous occasions, an Alberta energy play worthy of our readers’ due diligence is Contact Exploration (CEX, TSX-V) which is looking forward to continued growth in 2014…for more than a year the stock has traded in a horizontal channel between 18 and 28 cents, but that trend now appears to be changing as you can see in John’s 2.5-year weekly chart below…keep on the “watch list” going into 2014…CEX closed at 29 cents yesterday and has yet to trade so far this morning…

Global Cobalt Corp. (GCO, TSX-V) Update

Global Cobalt (GCO, TSX-V) came out with news this morning, announcing that it has completed 7,400 metres of drilling in 45 holes at its Karakul Cobalt Project in Russia…“Visual estimates over a number of sections suggest the mineralized zone appears to be gaining width and exhibits strong mineralization at depth,” the company stated in its release…“Overall, visual and assay results appear to demonstrate good continuity and correlation with historic results adding confidence to the resource.”

Anticipation of results will keep this play active – very good results followed by a resumption of drilling at Karakul early in the New Year will be critical to maintain momentum in the stock…the company is also working on completing a financing at 20 cents (recently boosted to $2.25 million)…technically at the moment, GCO has solid support around current levels (see John’s chart, RSI and the uptrend line) that it really needs to hold…there’s also a rising 50-day moving average (SMA) at 15 cents…GCO will need a significant catalyst to push through stiff resistance at the Fib. 24-cent level…as of 7:35 am Pacific, GCO is unchanged at 18 cents…

Note: John, Terry and Jon do not hold positions in CEX or GCO.

Gold has traded between $1,228 and $1,239 so far today…as of 6:00 am Pacific, the yellow metal is up $2 an ounce at $1,233…Silver is unchanged at $19.95…Copper is off a penny at $3.30…Crude Oil is up 14 cents at $97.36 while the U.S. Dollar Index has climbed one-tenth of a point to 80.14…

Those who are expecting the Fed to start scaling back its bond buying program later today are likely to be disappointed, in our view, though Chairman Ben Bernanke could potentially be a little more hawkish in his tone…today’s policy statement, due at approximately 11:00 am Pacific, will be followed by what will likely be Bernanke’s final news conference as Fed Chairman about 30 minutes later…

While Bernanke will find comfort in the recent U.S. budget agreement, there are likely more reasons than not for the Fed to wait until sometime in 2014 before starting to scale back QE due to the fragility of the economic recovery…inflation is still running well below the Fed’s target level (the Fed is actually faced with the problem of too little inflation), recent improvements in the labor market are encouraging but really need to be confirmed in the months ahead, a U.S. debt ceiling battle is still looming early in the New Year which could cause some chaos on Capitol Hill, and emerging markets would prefer not to see any tapering from the Fed just yet…the performance of emerging markets is critical to a more robust U.S. economic expansion…

The outcome of today’s Fed meeting will no doubt have an impact on Gold prices and will set the tone for the U.S. Dollar Index going into 2014…technically, we prefer how Gold is behaving at the moment…the set-up for a strong finish to the year appears to be in place, especially given the high level of short positions which could leave some traders scrambling going into year-end…the Dollar Index, meanwhile, continues to look weak and vulnerable…contrary to the expectations of many, the dollar has not seen a broad-based surge even as market expectations for when Fed tapering will begin have been bought forward recently in the face of some upbeat economic data…while the dollar hit a five-year high against the yen last week, it has weakened almost 8% against the euro in the past three months…the Dollar Index is not far from where it ended last year, and a now-declining 200-day moving average (SMA) is applying downward pressure on the Index (a very strong resistance band exists between 81 and 82)…

U.S. Dollar Index – CDNX Comparative Chart

Below is a chart going back to 2004, comparing the U.S. Dollar Index (red) with the Venture Exchange (black)…there is clearly an inverse relationship between the two…key turning points have been early 2006, mid-2008, early 2009, and early 2011 with another one likely in the making…the Dollar Index has broken below a 2+ year uptrend while the Venture continues to find support at its downtrend line which it finally broke above in October…key support for the Dollar Index is at 79 – expect that support to be tested in the near future…if it’s breached, then watch Gold take off and the Venture breakout through resistance in the 970’s…a 20% Venture rally from current levels is a distinct possibility, and within that environment a select group of stocks would perform exceedingly well…

Today’s Markets

Asian markets were mixed overnight…China’s Shanghai Composite slipped 3 points to close at 2148…Japan’s Nikkei, however, roared ahead with a gain of 309 points or 2% to finish at 15588…rumors surfaced that Prime Minister Shinzo Abe may flesh out growth strategies related to highly-anticipated structural reforms at a scheduled speech tomorrow…

European shares are up moderately in late trading overseas…

In New York, stock index futures are pointing toward a positive open on Wall Street…in economic news just in, U.S. housing starts surged to their highest level in nearly six years in November…the Commerce Department reported that housing starts jumped 22.7%, the biggest jump since January 1990, to a seasonally adjusted annual rate of 1.09 million units, the highest level since February 2008…

The Venture closed at 886 yesterday and has lost ground in 8 out of 12 sessions so far this month, shedding 49 points or 5.2%…that’s typical behavior for the first half of the month given tax-loss selling pressures during a down year…the Venture’s average gain for the month of December going back more than a decade is 5.4%, so expect a much better market over these last 8 trading days of the year…

Fission Uranium Corp. (FCU, TSX-V) Returns More Solid Results From PLS

Fission Uranium (FCU, TSX-V) released impressive assay results pre-market for three holes drilled in the R945E zone, the easternmost high-grade zone drilled at Patterson Lake South where a nearly 2-km-long mineralized trend has been outlined…hole PLS13-096 is of particular note as it returned 85.5 metres of total composite mineralization including intervals of 5.5 metres of 18.2% triuranium octoxide within 14 m of 7.9% U308 and also 3 m of 14.2% U3O8 in 40 m of 1.6% U3O8…holes PLS13-096 and PLS13-084 both returned mineralization in nearly half of the entire intervals, highlighting the broad system of mineralization in this zone…the R945E zone remains wide open in all directions…over 30 m of strike length has been tested in four holes in this area with results from the fourth hole pending…

Xmet Inc. (XME, TSX-V) Updated Chart

Is technical analysis a valuable tool in an investor’s tool box?…absolutely it is…not the only tool one needs, of course, but a valuable one nonetheless…John’s Xmet Inc. (XME, TSX-V) chart Monday showed a long-term resistance band between 15 and 17 cents and the first Fib. retracement level at 10 cents where the stock landed yesterday at the close…the Fib. “sweet spot” is between 6 and 10 cents, and keep in mind the rising 20-day moving average (SMA) is currently at 7 cents which should also provide very strong support…importantly, the overall trend is bullish, but a lot of volatility can be expected…as the saying goes, buy into weakness and sell into strength…

LX Ventures Inc. (LXV, TSX-V) Updated Chart

LX Ventures (LXV, TSX-V) , a recent social media high-flier, closed at important support at 46 cents yesterday but is prone to additional weakness based on John’s 2.5-year weekly chart below…Fib. levels aren’t price targets, they’re just theoretical levels based on Fib. and technical analysis, but what we see here is Fib. support at 30 cents which also coincides with LXV’s rising 100-day SMA…as always, perform your own due diligence…

Revolver Resources (RZ, TSX-V) Update

Revolver Resources (RZ, TSX-V) has commenced a 1,000-metre drill program at the Summit B Property near Iskut, contiguous to Colorado Resources’ (CXO, TSX-V) North ROK Property…this initial diamond drilling program is designed to test a 3-D IP inversion model that reveals a strong 2-km-long-by-500-m-wide, 35-millivolt/volt, northwest-oriented ovoid chargeability anomaly accompanied by low resistivity and magnetic signatures…that’s a mouthful, and it sounds good, but the “truth machine” will determine if it’s of any significance…RZ can earn a 60% interest in Summit B from Pistol Bay Mining (PST, TSX-V)…given the time of the year, and if the Venture does indeed go into rally mode in the near future, speculation could clearly ramp up in RZ, and even PST, over the next few weeks even though the North ROK Property is not looking as promising as it did earlier this year…below is a map of the area followed by an updated RZ chart from John…astute traders will attempt to profit just from the speculation game, and then reassess after results come out…

RZ 2.5-Year Weekly Chart

Since early November, RZ has been trading between strong support at its rising 100 and 200-day SMA’s, just above 2.5 cents, and key chart resistance at 4 cents…as always, perform your own due diligence…

Note: John, Terry and Jon do not hold share positions in FCU, XME, LXV or RZ.

Gold has traded between $1,230 and $1,249 so far today…as of 6:45 am Pacific, the yellow metal is down $1 an ounce at $1,240…Silver is up 2 cents at $19.98…Copper, at a 6-week high, is flat at $3.31…Crude Oil is relatively unchanged at $97.52 while the U.S. Dollar Index is up slightly at 80.16…

Investors are dumping Gold-backed exchange-traded products at the fastest pace since the securities were created a decade ago, mirroring the steepest price drop in 32 years…holdings in the 14 biggest ETPs have plunged 31% to 1,813.7 metric tons since the start of January, the first annual decrease since the funds started trading in 2003, according to data compiled by Bloomberg…the removals erased $69.5 billion in the value of the assets as prices fell by the most since 1981…ETP investments reached a record $148 billion last year, helping sustain the bull market that drove a more than sixfold increase in prices since 2001 by offering a way to own bullion without needing to store it…a further 300+ tons will be withdrawn next year, according to the median of 11 analyst estimates compiled by Bloomberg…it’s important to keep in mind, though, that China has effectively absorbed all of this year’s ETP selling…

Reuters reported this morning that India plans on keeping a tight leash on Gold imports despite a recent improvement in its trade deficit and lobbying by a bullion industry struggling with high premiums and a supply crunch…the government is worried that the country’s trade gap could worsen again and the already battered currency could weaken further if the Federal Reserve looks start tapering in the near future…wind of political change are blowing in India, however, and this could prove helpful to Gold in 2014…

The Fed and Taper Talk

The Fed’s two-day policy meeting begins today amid increasing speculation among many investors that the Fed is now more inclined to start scaling back its bond buying program given the budget deal in Washington and a labor market that continues to heal…Wall Street has indeed tightened its view of Fed policy in the months ahead and is now looking on average for the taper, or reduction in Fed stimulus to the economy, to come in February, according to the CNBC Fed survey for December…the expectation for February is two months earlier than the average in the CNBC survey in October, but most of the 42 respondents are actually more hawkish…a full 55% see the Fed tapering its bond purchases in January or December…that was the forecast of only 16% of respondents in October…

Today’s Markets

Asian stocks were mixed overnight…China’s Shanghai Composite fell 10 points to close at 2151, while Japan’s Nikkei jumped 126 points or nearly 1% to finish at 15279…

European stocks are modestly lower in late trading overseas despite some stellar data out of Germany…the closely-watched German ZEW Indicator of Economic Sentiment showed an uptick to 62.0 for December – its highest level since April 2006 and way above estimates of 55.0…

The Dow is flat after the first 15 minutes of trading this morning…the TSX is down 3 points while the Venture is also off 3 points at 888…the Venture has fallen on 8 consecutive Mondays, but with tax-loss season now virtually out of the way expect this market to strengthen as the week progresses…

Brigus Gold (BRD, TSX) Update

Brigus Gold (BRD, TSX) jumped 33% yesterday, closing at 84 cents on total volume of nearly 30 million shares, after Primero Mining Corp. (PM, TSX) launched an all-share, friendly $220 million bid for Brigus in which BRD shareholders will receive 0.175 of a Primero share for each Brigus share held, plus 0.1 shares in a newly incorporated company…this kind of activity is yet another example of the bargains that exist in this beaten-down sector…

CRB Index Updated Chart

A couple of key takeaways from this long-term CRB Index chart…first, have a look at the Slow Stochastics indicator…it’s in a bullish low position, similar to where it was when the CRB fell to important lows in 1999, 2001, 2009 and 2012…history tells us that a turnaround is imminent, and a rising CRB Index typically equates to a rising Venture Exchange…in early 2011, when everyone was bullish on the junior resource sector and buying everything in sight, the CRB SS indicator was flashing a warning sign as it was at an all-time high…right now it’s below 20 for just the fourth time in the last dozen years…RSI(14) is also bouncing up from support…

Barisan Gold Corp. (BG, TSX-V) Updated Chart

Barisan Gold (BG, TSX-V) has been very volatile since announcing an impressive drill hole result from its Upper Tengkereng prospect in Indonesia November 5…904 metres grading 0.41 g.t Au and 0.25% Cu, including 262 metres of 0.81 g/t Au and 0.49% Cu, deserves some serious attention – even if it’s in Indonesia…drilling continues as the company attempts to intersect the potassic core where even higher grades could exist…more results are expected early in the New Year, so speculation will keep this play active…strong technical support exists in the low 20′s…this one is not for the timid or the faint of heart, but certainly has the potential to produce some stellar returns if additional results are even better…as always, perform your own due diligence…the pullback from the recent high of 44.5 cents should be viewed in the context of a normal, healthy correction in the early stages of speculation…

Below is an updated 2+ year weekly chart from John…the technically overbought conditions that emerged in November, after the spectacular rise from under 10 cents, have gradually been unwinding – a positive development…very strong Fib. support exists between 15 and 21 cents, the “sweet spot” for accumulation as John pointed out earlier (as always, keep in mind that the Fib. targets aren’t price targets, just theoretical levels based on Fib. and technical analysis)…BG is off half a penny at 22 cents as of 6:45 am Pacific…

True Gold Mining (TGM, TSX-V) Update

True Gold Mining (TGM, TSX-V) has released encouraging results this morning from an independent feasibility study of its Burkina Faso Gold Project in West Africa, an area that has seen some interesting recent merger and acquisition activity…the study supports a technically simple open-pit heap leach project that offers low capital and operating costs, rapid payback (43.1% IRR) and strong financial performance at $1,250 Gold…

“The Karma Project stands out in the world of heap-leach Gold development projects,” explained Dwayne Melrose, TGM’s President and CEO…“With strong Gold grades, excellent infrastructure, low power and water requirements, strong recoveries from simple metallurgy and soft, free digging material, our operating and capital requirements are modest and our margins are high.  In addition, by design, the Karma Project has been engineered to provide flexibility to scale up and take advantage of the potential to deliver additional ounces as demonstrated by our exploration team’s efforts this year. The building blocks for a growth oriented gold producer are in place today, with a proven management team to lead us forward.”

The feasibility study supports a heap leach mine scenario from currently defined open-pit deposits containing 949,000 ounces of probable mineral reserves…the proposed Karma Project implementation schedule is over a period of 18 months with pre-stripping beginning 12 months prior to the first Gold pour, which is anticipated at the end of 2015…the project requires initial capital of $131.5 million (including onsite working capital and contingency) to support the construction of a mine and associated facilities…the mine would produce an average of 97,000 ounces of Gold per year over 8.5 years, with direct cash operating costs of approximately $591 per ounce…

Below is a 2.5-year weekly TGM chart…key resistance is 40 cents, and TGM is attempting to push through that today…as of 6:45 am Pacific, TGM is up 1.5 cents at 40 cents…

Wanted Technologies Corp. (WAN, TSX-V)

Many technology plays have been red-hot, and Wanted Technologies (WAN, TSX-V) is no exception as you can see from this 2.5-year weekly chart…WAN broke above a Fib. level yesterday and at some point seems destined for a vertical move but exact timing is uncertain as some consolidation may need to occur first…Wanted is headquartered in Quebec City with subsidiary offices in New York…it provides real-time business intelligence for the talent marketplace…it’s also the exclusive data provider for the Conference Board’s Help-Wanted OnLine Data Series™, the monthly economic indicator of hiring demand in the United States…only 24 million shares outstanding, and the company is making money…the market is developing an appetite for this stock and a strong year-end/Q1 move is certainly possible…as always, perform your own due diligence…WAN is up 6 cents at $1.38 through the first 15 minutes of trading…

Note: John and Jon both hold share positions in BG.

Gold has traded between $1,227 and $1,238 ahead of tomorrow’s start of the important FMOC meeting, the last for outgoing Chairman Ben Bernanke…as of 4:00 am Pacific, bullion is down $9 an ounce at $1,230…Silver (fresh charts below) is off 24 cents at $19.44…Copper is flat at $3.29…Crude Oil is 54 cents higher at $97.14 while the U.S. Dollar Index (see new chart this morning) has fallen one-fifth of a point to 80.00…

A December 6 Bloomberg survey showed 34% of economists believe the Fed will scale back QE this week, a jump from 17% who felt the same way last month…while the Fed will find comfort in the proposed U.S. budget agreement, there are likely more reasons than not for the Fed to keep its pedal to the metal…inflation is still running well below the Fed’s target level, recent improvements in the labor market are encouraging but really need to be confirmed in the months ahead, a U.S. debt ceiling battle is still looming early in the New Year, and emerging markets don’t want to see any tapering just yet from the Fed…

Gold has been showing resilience in the low $1,200’s and the start of Fed tapering has likely already been baked into the current price…hedge funds – notoriously on the wrong side of the trade at key points – are the least bullish on Gold at the moment than they’ve been since the yellow metal was trading at $700 in 2007…so we see strength in Gold going into year-end, due in part to possible short covering…as John’s chart yesterday showed, Gold has been trading within a downsloping wedge since mid-July and it’s currently resting near support with an encouraging RSI(14) trend…bullion does need to break above this downsloping wedge (aggressively through the low $1,300’s) at some point in the near future in order to put the bears on the defensive…the immediate resistance band Gold faces right now is between $1,260 and $1,280…

Tracking The Greenback

As Frank Holmes pointed out in his weekend Investor Alert at www.usfunds.com, the U.S. dollar will no longer be among the best performing currencies in 2014 according to Thomas Stolper, Goldman Sachs’ Chief Currency Strategist…“Stolper, who correctly predicted this year’s dollar weakness against the euro, is challenging the strong consensus built around a stronger dollar next year,” Holmes wrote. “According to Stolper, the dollar will continue to weaken, as any Federal Reserve tapering will be offset by interest rates being kept at about zero. In addition, Stolper is of the opinion that tapering is already priced in, and there seems to be no other source of dollar strength in sight. The dollar strength talk and expectation of higher interest rates has weighed heavily on Gold and commodity prices throughout 2013, and a reversal in consensus will likely result in Gold strength.”

U.S. Dollar Index 2.5-Year Weekly Chart – The Dollar is Doomed

The Dollar Index has performed according to script since breaking below a 2+ year uptrend in September…a technical event that appears increasingly likely, which should help both Gold and the Venture, is a near-term re-test of the 79 area, and an eventual breakdown below that key chart and Fib. support level…the 200-day moving average (SMA) is now in decline and the resistance that has built up between 81 and 82 is severe…the RSI(14) trend is also negative – at 44% on this 2.5-year chart, it still has further to go on the downside…dollar bulls are hoping for some help from the Fed this week, but we doubt they’re going to get it…

Today’s Markets

Asia

China’s Shanghai Composite and Japan’s Nikkei average were each down 1.6% overnight, likely reflecting anxiety over a possible Fed taper…the Shanghai shed 35 points, hitting a one-month low, to close at 2161…HSBC’s flash purchasing managers’ index (PMI) for December fell to 50.5, compared to 50.8 in November…still, the index was above the key 50 line for a fifth straight month…the Nikkei slid 250 points to finish at 15193, close to a one-month low…business sentiment in Japan among large manufacturers rose to its highest level in six years in the three months to December, the closely-watched Tankan survey showed…

Europe

European shares reversed early losses and have turned strongly positive…flash PMI figures released by Markit today showed that business activity for the euro zone as a whole in December was above expectations…

North America

Stock index futures in New York are pointing toward a strong open on Wall Street…

CDNX 3-Year Weekly Chart

We’ll see if the Venture today can reverse an interesting trend since late October…the Index has declined on seven consecutive Mondays (it has also posted gains on six consecutive Fridays)…below is John’s updated 3-year weekly chart that we’ve been tracking consistently the last few months…the downtrend line which served as powerful resistance for more than two years (the Venture finally overcame this barrier in October) continues to provide support, a very encouraging sign…we have every reason to believe that this will continue, especially since we’re very close to entering a period of seasonal strength for the Index – mid-late December plus January and February…any weakness the first two or three days this week will likely be the last gasp of tax-loss selling, a great opportunity to pick up bargains in advance of what we expect will be a strong finish to the year…despite the 5% drop this month, the Venture’s CMF indicator is showing significant accumulation…shares are moving from weak hands into strong hands…

Madalena Energy Inc. (MVN, TSX-V)

One energy play that we have been consistently putting forward in recent months continues to look very strong entering 2014…Madalena Energy (MVN, TSX-V) hit a new 52-week high of 68 cents Friday, the first of three Fib. resistance levels John has shown…below is an updated 2.5-year weekly chart…Madalena is very active with a large land base of over 150 net sections (100,000+ net acres) in the Paddle River area of west-central Alberta with increasing production and reserves on three horizontal plays…the company also has very attractive assets in Argentina where it’s focused on the multi-billion barrel potential of three large blocks within the “sweet spot” of Argentina’s prolific Neuquen basin…as always, perform your own due diligence…

Garibaldi Resources Corp. (GGI, TSX-V) Update

Garibaldi Resources (GGI, TSX-V) last Wednesday announced impressive channel sampling results and the start of drilling at its La Patilla Gold Property in Sinaloa State, Mexico…upon a detailed review of the assay results (up to 28.4 g/t Au) and the geological maps released by the company, we’re in the midst of preparing a special report that we’ll be posting later this week…the numbers are solid and suggest a potentially robust volcanic package featuring a mineralized breccia and stockwork system in strongly fractured rhyolite and andesite…this property has never been previously diamond drilled, and artisanal miners have had success finding high-grade Gold…between La Patilla, pending assay results from a recent hole completed at the Locust target at the company’s Tonichi Project, and an anticipated “big overview” picture from GGI that should provide very interesting fresh insight into the Grizzly Property in northwest B.C., investors should have plenty to chew on and speculate about in the coming weeks…we’re also checking into reports that Carlos Slim’s Minera Frisco is carrying out an extensive drill program to follow up on a discovery at its Venus Property contiguous to the eastern border of GGI’s Iris Project which is strategically located next to two operating mines (Pinos Altos and Ocampo) in Chihiahua State…GGI has drill-ready targets at Iris…

Xmet Inc. (XME, TSX-V)

We’re blessed with some astute readers at BMR, and some of them found a gem in Xmet Inc. (XME, TSX-V) which has rocketed from 1.5 cents at the beginning of November to Friday’s close of 14.5 cents…volume Friday totaled 7.4 million shares (all exchanges)…the geological and structural features of XME’s claim blocks appear to be similar to nearby Zenyatta Ventures’ (ZEN, TSX-V) Albany hydrothermal graphite deposit…

Below is a 3.5-year weekly XME chart from John at the request of some readers (Fib. levels, of course, aren’t price targets, just theoretical levels based on Fib. and technical analysis)…a long-term resistance band exists between 15 and 17 cents, while the first Fib. retracement level is 10 cents…expect continued volatility but this will be interesting to watch…

Silver Short-Term Chart

Silver has been testing support around $19.50, and the RSI(14) pattern on this 6-month daily chart is encouraging – suggesting that this support will hold…

Silver Long-Term Chart

Historically, Silver has been a terrific buy anytime RSI(14) levels on this 13-year monthly chart have been this low…has a “Wave #1” started?…

Note: John and Jon both hold share positions in GGI.

More tax-loss selling pressure was evident on the Venture last week, but much of that should now be behind this market as it enters the final half of the month and the last 10 trading days of the year.  Importantly, the Venture has managed to weather the usually “choppy seas” of the first couple weeks of December, and has held support at the 2+ year downtrend line that it finally broke above in October (we’ll post the updated 3-year weekly chart tomorrow morning).  So get ready for what we believe will be a strong finish to 2013, and a much brighter-looking 2014.

The Venture fell as low as 884 intra-day Thursday (a 5.5% drop for December) but bounced back to close Friday at 894, a 23-point loss for the week.  RSI(14) on the 3-month daily chart appears to have bottomed around 30 and is now pointing up.  The challenge for the Venture between now and the end of the month is to reverse course, push through the resistance areas noted and at least close above its 100-day SMA, currently at 936.  There’s every reason to believe that will occur.  The consolidation pattern since mid-April has laid the foundation for a coming sustained advance with an important breakout through stiff resistance in the 970′s.

The Seeds Have Been Planted (And Continue To Be Planted) For The Next Big Run In Gold Stocks

There’s no better cure for low prices than low prices.  The great benefit of the collapse in Gold prices this year is that it forced producers (at least most of them) to start to become much more lean and mean in terms of their cost structures. Producers, big and small, have started to make hard decisions in terms of costs, projects, and rationalizing their operating structures.  Exploration budgets among both producers and juniors have also been cut sharply.  In addition, government policies across much of the globe are making it more difficult (sometimes impossible) for mining companies to put Gold (or other) deposits into production, thanks to the ignorance of many politicians and the impact of radical and vocal environmentalists.  Ultimately, all these factors are going to create a supply problem – think about it, where are the next major Gold deposits going to come from? On top of that, grades have fallen significantly just over the past decade.

It doesn’t take a rocket scientist to figure out that the next huge bull market in Gold stocks is just around the corner due to demand-supply dynamics, much leaner producers who will suddenly become earnings machines, and a junior market that will be healthier simply because a lot of the “lifestyle” companies sucking money out of investors will simply disappear or get taken over by individuals or groups who are actually competent and serious about building shareholder value.   A healthy “cleansing” in the market has been taking place.  As this continues, more and more seeds are being planted for an incredible future move in well-managed Gold producers and explorers that could make the dotcom bubble look like a tea party.  As for the juniors, focus on the small universe of companies that have the ability to execute both on the ground and in the market.  Companies that are strong financially, have superior exploration prospects, competent management and clean share structures.

Gold

Gold prices swung in a range of about $40 last week as traders tried to gauge how mixed U.S. economic data and a congressional budget deal would affect the Federal Reserve’s decision on whether to curb its stimulus. Bullion shot higher early in the week, thanks in part to some short-covering, but ran into resistance around $1,260.  It gave up most of those gains, though it still finished up $8 for the week at $1,239.  Gold’s direction this coming week will have a lot to do with the outcome of the FMOC meeting Tuesday and Wednesday.  A potential “taper” has likely already been baked into the Gold price, so we’re looking for an upward bias in bullion prices following the Fed’s policy decision (whatever it is) going into year-end.  The U.S. Dollar Index continues to look weak and vulnerable, technically and fundamentally – a supportive factor for Gold.

Gold has been trading within a downsloping wedge since mid-July – bullion needs to break above this at some point in the near future in order to put the bears on the defensive.  The first significant resistance band is between $1,260 and $1,280.  The current RSI(14) trend in this 9-month daily chart from John is encouraging.

Keep An Eye On India

Gold premiums continue to soar in India – they reached $180 per ounce over London prices last week for immediate delivery, as jewelers argue there is no Gold available anywhere in the country following a severe slowdown in the recycled Gold trade, coupled with the government’s import restrictions.  Meanwhile, the winds of political change are blowing in that country.  Prime Minister Manmohan Singh’s government suffered a resounding setback a week ago as voters handed victories in three state polls to the opposition Hindu nationalist Bharativa Janata party, led by prime ministerial candidate Narendra Modi.  India’s general election is looming early next year.  Many investors are pinning their hopes on Modi who has campaigned as a pro-business, reform-minded leader.  He is not only a staunch Hinduist, where rites and ceremonies are abundant, but he is also the head of India’s most prolific Gujarat province, where he has led economic growth of 10% per year over the last decade on a platform of eliminating red tape and limiting government interference with private enterprise.  About 300,000 jewelers and bullion dealers are demanding the government ease import rules on Gold with many jewelers being forced to shut down shop. The hope for change appears in the form of Modi.

Silver gained 14 cents last week to close at $19.68 (John will have updated Silver charts as usual Monday morning).  Copper climbed 8 cents to finish at $3.29.  Crude Oil fell by about $1 a barrel, after a big jump the previous week, to close at $96.60.  The U.S. Dollar Index lost nearly one-tenth of a point to finish at 80.18.

The “Big Picture” View Of Gold

As Frank Holmes so effectively illustrates at www.usfunds.com, the long-term bull market in Gold has been 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, has had a huge impact on bullion.  Despite this year’s drop, the fundamental long-term 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, a Fed balance sheet now in excess of $3.5 trillion and expanding at $85 billion a month, money supply growth around the globe, massive government debt from the United States to Europe, central bank buying, flat mine supply, physical demand (especially from China), emerging market growth, geopolitical unrest and conflicts…the list goes on.  However, deflationary concerns around the globe and the prospect of Fed tapering by the end of the year (not likely now) had a lot to do with Gold’s plunge during the spring below the technically and psychologically important $1,500 level, along with the strong performance of equities which drew money away from bullion.  June’s low of $1,179 may have been the bottom for bullion – time will tell.  We do, however, expect new all-time highs as the decade progresses.  There are many reasons to believe that Gold’s long-term bull market is still intact despite this major correction from the 2011 all-time high of just above $1,900 an ounce.

Welcome to our site, or at least the initial version of it!  BMR has been online for more than four years and strictly through word-of-mouth we have built a loyal following.  We encourage reader feedback and the exchange of helpful opinions and ideas among investors in our forum. 

We’re continuing with our plans to ultimately construct a very unique investment and money-management resource site that goes considerably beyond what we have now.  We focus a great deal on the Gold, Silver and Copper markets as well as trends in the global economy, in addition of course to the technical health of the TSX Venture Exchange (CDNX).  An important component of this site, as well, will always be original research on high quality junior exploration companies or small producers 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, and we are being more selective than ever in the current market environment.  We look for companies with the ability to execute both on the ground and in the market, who are determined to build shareholder value, which actually excludes most Venture stocks.  However, investors must understand that the companies we do put forward for our readers’ due diligence are still highly speculative situations and entail considerable risk, volatility and unpredictability.

Our intent is to provide you with information that you can use as part of your own due diligence.  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.  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 perspective (His money that we have been given stewardship of), He will bless you.  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 has traded between $1,220 and $1,240 so far today…as of 7:30 am Pacific, bullion is up $12 an ounce at $1,237…Silver has added 22 cents to $19.71…Copper is flat at $3.28…Crude Oil is off 92 cents at $96.57…news that a U.S. budget deal that would avoid a government shutdown in January sailed through the House of Representatives overnight lifted the greenback to a five-year high against the yen…the Dollar Index is up slightly this morning but still looks vulnerable, technically, to a significant decline…next week’s Fed meeting will be critical to the dollar’s near-term direction…

Holdings in SPDR Gold Trust fell the most in nearly two months yesterday…the fund has not seen inflows in more than a month, possibly a bullish contrarian sign…yesterday’s weakness in Gold did bring back some Asian physical buyers, especially in China as the shift in Gold holdings from west to east continues…premiums on the Shanghai Gold Exchange for “four nines” Gold (99.99% purity) picked up to $10 an ounce from $7 in the previous session…

Meanwhile, Bloomberg reported this morning that Cyprus said it has no plans to sell any Gold reserves to fund its 10 billion euro ($13.75 billion) bailout…the island had said in April it would look into the possibility of selling its Gold reserves to raise 400 million euros to help finance part of its EU-IMF bailout…

Updated Copper Chart

Copper has shown some recent strength but this 13-year monthly chart from John demonstrates the metal’s big challenge in 2014 – breaking out above a bearish descending triangle in place since 2011…it’ll come down to a simple demand-supply dynamic – if economic growth in China, Europe and the U.S. exceeds expectations, then Copper has a good chance to make some noise in 2014 despite continued modest increases in supply…

Today’s Markets

Asian stocks were little changed overnight…China’s Shanghai Composite slipped 7 points to close the week at 2196 while Japan’s Nikkei gained 61 points to finish at 15403…

European shares are mixed in late trading overseas…

In North America, the Dow is off just 2 points through the first hour of trading after back-to-back 100+ point days to the downside…U.S. producer prices fell for a third straight month in November, pointing to a lack of inflation that could give the Federal Reserve pause as it weighs the future of its monthly bond purchases…the Labor Department said this morning that its seasonally adjusted producer price index slipped 0.1% as gasoline prices maintained their downward trend…wholesale prices excluding volatile food and energy costs nudged up 0.1% after rising 0.2% the prior month…in the 12 months through November, the so-called core PPI rose 1.3%…

The TSX is down 8 points while the Venture is up 4 points at 890 as of 7:30 am Pacific…tax-loss selling has contributed significantly to the Venture’s 5% drop so far this month…most of this has likely dried up, setting the stage for a much better second half of the month and hopefully a very positive finish to a difficult year…

Sante Fe Metals Corp. (SFM, TSX-V)

We were impressed with the aggressiveness of Sante Fe Metals Corp. (SFM, TSX-V) yesterday which filled up a room with about 30 people for an investor presentation at Vancouver’s Metropolitan Hotel…this shows there’s still interest in the junior exploration sector, especially if companies put some effort into their approach…Sante Fe has an interesting deep target they’re continuing to chase in southeast British Columbia, a “$40 billion Sullivan-type target” as they describe it, and if nothing else they’re likely to generate some market excitement early in the New Year when another round of drilling is planned…geologically, they’ve done their homework and we hope they hit because if they do, this kind of discovery would give the junior market as a whole a much-needed injection of confidence…we’ll comment further on this situation next week…in the meantime, we suggest investors check out the latest SFM news releases as part of their own due diligence…

SFM closed at a nickel yesterday and has about 26 million shares outstanding…expect them to raise some additional capital – they don’t require much – for this next phase of drilling…below is the current SFM “technical picture” from John…

Probe Mines Ltd. (PRB, TSX-V)

Some December weakness has crept into Probe Mines Ltd. (PRB, TSX) but plenty of technical support has formed around the $2 level…Probe’s Borden Lake Gold Project in northeastern Ontario has been one of the top plays this year in the exploration space with the company identifying a higher-grade system contiguous to the southeast of the original bulk tonnage deposit…how Borden Lake continues to develop in 2014, with winter drilling planned, will be interesting to watch…an updated resource estimate is expected in the near future…preliminary metallurgical results for the potential underground high-grade mineralization extending  southeast from the proposed open-pit show excellent extraction of Gold using standard processing techniques, as reported by the company a few weeks ago…

Below is an updated 2.5-year PRB chart from John…buy pressure remains strong, and RSI(14) may have found support right around 50…as always, perform your own due diligence…

Garibaldi Resources Corp. (GGI, TSX-V) Chart Update

Garibaldi Resources (GGI, TSX-V) came out with very encouraging news yesterday on a couple of fronts, in particular its La Patilla Property where immediate drilling will follow-up on high-grade channel sample results up to 28.4 g/t Au…we’ll take a closer look at what might be unfolding geologically at La Patilla on Monday after further review of the detailed maps released by the company which show widespread near-surface mineralization along a strike length of 225 metres and open in all directions…artisanal miners have been working parts of La Patilla, but this system has never been previously tested by diamond drilling…the way Garibaldi acquired this property, and how they’ve managed to already secure a long-term agreement with the local community for any future potential metal extraction from the property (the community is behind this project which is important), underscores our confidence in how this company is moving forward…they are in healthy financial shape – even generating royalty income from near-surface coal extraction at Tonichi – and speculation should build in the weeks ahead regarding La Patilla, Tonichi and the Grizzly which of course is their B.C. flagship property that could have a dramatic impact on GGI‘s fortunes in 2014…

Below is a 3.5-year weekly GGI chart from John, for our readers’ due diligence, which is also very encouraging…there are several bullish features that point to underlying strength and the possibility for some drama in this play in the weeks ahead…

Note:  John and Jon both hold share positions in GGI.