Gold is up $20 an ounce at $1,592 as of 6:45 am Pacific…Silver has gained 34 cents to $27.55…Copper is 4 cents higher at $3.47…Crude Oil is up 22 cents at $86.85 while the U.S. Dollar Index is off nearly one-third of a point at 83.41…
China Fears Overblown
China’s GDP grew at its slowest pace in three years in the second quarter, but other less-cited indicators are already signaling that the world’s second-largest economy may be starting to turn around…the economy grew 7.6% in the April-June quarter, in line with most analysts’ expectations and slower than the 8.1% in Q1 and 8.9% in the fourth quarter of last year…
The slowdown has raised concerns around the world that one of the largest drivers of global growth in recent years, and the world’s largest consumer of commodities such as oil and copper, may suffer a sharper downturn…however, several indicators for a reading on the economy – such as loan growth, power output, new investment projects and oil demand – are beginning to paint a picture of renewed strength for China which may indicate the second quarter will turn out to be the low point for growth in 2012 with a rebound picking up steam during Q3…the impact of recent interest rate cuts should really start to be felt by September, and the country has also initiated some fiscal stimulus that will help kick-start the economy…
Canadian Dollar Strength Is Positive For Commodities
The recent fear-mongering in the mainstream media regarding commodities doesn’t hold up when one examines what’s happening with the commodity-sensitive Canadian Dollar…as you’ll see on the chart below, the loonie “telegraphed” a pending collapse in commodities beginning in late 2007 when it started moving lower while the CRB was topping out…
Below is a 10-year comparative chart showing the Canadian Dollar (red) and the CRB Index (black)…the RSI at the top is for the CRB Index which has recently bounced off support at 40…the CRB also seems to have found support at the Fibonacci 61.8% retracement level…not shown in the chart is the 200-day moving average (SMA) for the loonie (currently at 99 cents) which, interestingly, is now reversing to the upside…we’ll continue to keep a close watch on the action in the loonie but so far it’s not raising any “red flags”…
Now, take a look at this chart specifically for the CRB (6-month daily) which shows – among other things – a bullish double bottom…this doesn’t tell us that commodities are about to tank…
Today’s Markets
JPMorgan Chase is up this morning after the financial giant beat Wall Street expectations despite the $4.4 billion loss from the “London Whale” trading debacle…Wells Fargo also posted higher-than-expected earnings, two factors – along with the China numbers – that are helping to make Friday the 13th not nearly as scary as many investors were fearing…
As of 6:45 am Pacific, the Dow is 83 points higher, the TSX has gained 51 points while the Venture Exchange is 7 points higher at 1176…
GoldQuest Mining (GQC, TSX-V)
GoldQuest puts news out into a weak overall market yesterday, and savvy investors picked up on the encouraging report and drove GQC 16 cents higher on volume of 3 million shares…the preliminary interpretation, based on the first few step-out holes, is that the Romero discovery is a flat-lying system and that’s what GoldQuest has been hoping for as this would have very positive implications for potential tonnage…assays on the step-out holes are pending…a second rig has been added and a third is on the way…below is an updated chart for John that reveals some interesting possibilities…as of 6:45 am Pacific, GQC is up another dime at 93 cents…
Rainbow Resources (RBW, TSX-V) Update
Part 2 of our interview with Rainbow President David Johnston will be posted early next week…the drilling rumors are intensifying and we wouldn’t be surprised if the company is able to start mobilizing a rig as early as sometime next week upon final approval from the Ministry of Mines…
Sandstorm Gold (SSL, TSX-V)
Graphite One Resources (GPH, TSX-V)
Note: John and Terry do not hold positions in GQC, SLL or GPH while Jon holds a position in GQC.
I really want to know GBB’s today’s trend … record low or stay at 8.5 cents… My buy order is now put on hold!
Comment by Theodore — July 13, 2012 @ 5:55 am
Theodore, let me be the first to tell you that in 12-18 months GBB will be
no more. Given it’s low market cap, it’s inability to raise money, it’s minimal
grade deposits coupled with the tough junior market….GBB is a tired sick dog
and will not survive the coming winter.
How many drills are turning on the property? What does the balance sheet look like?
Investors are officially tapped when it comes to these early stage ‘one armed bandits’
Look for a final rally to exit before the trampling starts.
Good luck all!
Comment by Paul — July 13, 2012 @ 7:01 am
EVG
All stocks are not dormant, take EVG for example, a stock i have shares in,
up .04 yesterday, on over a million shares & this morning up .07 on over 600K
shares. Good luck to me. R !
Comment by Bert — July 13, 2012 @ 7:18 am
Just wondering no comments on any stock from BMR. Are they gone on their sweet vacation.
Comment by Eric Benson — July 13, 2012 @ 7:40 am
EVG – perspective is that it tanked after news two days ago and is coming off a 3 1/2 year low. Look at PYN, intention to File a Proposal under the Bankruptcy and Insolvency Act, but if bought at its low it was an easy double. There are opportunities but its not a market to buy and hold in my opinion.
Comment by Andrew — July 13, 2012 @ 7:52 am
Andrew – There are opportunities but its not a market to buy and hold in my opinion.
Bert – The above statement is up for debate, even in a bad market, some have been
penalized for not holding. I believe it was GQC that some on this board
wished they had held… I am holding on some for sure, until they are
taken out or a good profit stares me in the eye. R !
Comment by Bert — July 13, 2012 @ 8:31 am
Not much from RBW lately. If the permits don’t come soon, the snow will be on the ground in that neck of the woods by the time they get the drill on the ground. I heard a rumor the permits were expected by the end of this week. Anybody else hear the same? BMR, do you have any further info to share? Thanks.
Comment by Dan — July 13, 2012 @ 10:57 am
The rumor I’m hearing today, Dan, is that news is “highly anticipated” by mid-next week……my hunch is they are VERY close to getting the final ok on the drilling, so get ready for some action…some things appear to be unfolding IMHO….
Comment by Jon - BMR — July 13, 2012 @ 11:06 am
Thanks Jon
Comment by Dan — July 13, 2012 @ 11:21 am
Patience is the name of the game, Dan…..given the markets, I actually think RBW is better off starting drilling in the last half of July as opposed to a month or more earlier had the Ministry of Mines granted earlier approval…..
Comment by Jon - BMR — July 13, 2012 @ 11:27 am
@Paul… I fully agree with you… I am trying to sell off my shares at 12 and 14 cents….. I am only a small investor and my average price is at 9 cents…. No more thoughts about this one. SG dropped 33% today… with a small volume… nothing to worry about. GQC shines again today… what can I say? I do not have any. RBW will go back to previous highs … soon … everybody is waiting … I am thinking about a total of 3 million shares are holding by small investors…. (my definition for small investors… holding less than 50,000 shares)
Comment by Theodore — July 13, 2012 @ 1:01 pm
Thanks boys, sell your GBB and head to the exits please! So what your saying is that a PEA and 2nd 43-101 due in Nov/Dec 2012 and perhaps a RE of 3.5- 4 M shares, and GBB will still be 10 or 9 cents? I dont think so, but I guess on this site everybody s opinion is welcome, I just dont agree with yours and think you ll be wrong, but time will tell who s correct? Peace everybody.
Comment by alec — July 13, 2012 @ 4:14 pm
sorry meant to say a RE of 3.5-4M ounces of GOLD.
Comment by alec — July 13, 2012 @ 4:15 pm
db – yes, I think it willbe november. Its a 3 month wait on assay results and a month to drill. Watch and see.
Comment by dave — July 13, 2012 @ 6:55 pm
furthermore – db was it not you that said the first week of April when RBW was at .24 that you questioned me and said it was in an uptrend. I informed the board that it was in fact in a downtrend. Keep dreaming but it will be November.
Comment by dave — July 13, 2012 @ 7:04 pm
Dave, a few comments and certain things to keep in mind regarding RBW.
November before assay results? I highly doubt it. The initial holes at the International are going to be short (to a depth of 100 metres), designed to test near-surface mineralization. They are drilling right into the heart of a known structure that contains massive sulphide bodies of galena, pyrite and sphalerite. This is also the type of scenario that could produce some superb “visuals” (artisanal mining and sampling have given assays of 20, 30, 40+ ounces of Silver per ton and crazy lead grades), and I wouldn’t be surprised if we get a report on visuals very early on. If they’re encouraging, look out. With these initial short holes, it won’t be time consuming to log them and get them off to the lab. So I’m actually expecting initial assay results from the International by the end of September at the latest. That makes sense. Plenty of speculation, I’m sure, leading up to that.
Gold Viking is a little different, and drilling will start there after the International (or at least after the first part of International drilling). Gold Viking holes are also going deeper, so it’s possible we may not see results from that property until November.
Johnston has promised lots of prospecting, so keep in mind we should expect to see some results regarding that over the summer during the drilling….
Add in some drilling at Jewel Ridge in September, and RBW has a “triple play”. Then there’s the graphite project which we expect will heat up. So DB and all of us have plenty to be excited about. IMHO, RBW has not yet seen its high for the year – far from it. A lot of potential upside here, during and following the drilling.
Technically, RBW remains in an OVERALL long-term UPTREND, confirmed by rising 200 and 300-day moving averages. The stock has fallen since the spring, though not nearly as badly as many other situations, but that’s merely a “sub” or “secondary” trend within an overall bullish primary trend. We fully expect that “sub-trend” to be broken very soon, likely at the onset of drilling. Once RBW clears .20, the race is on.
This is a tightly held speculative play that has the potential of going ballistic. Given the share structure, we could easily wake up one morning to a halt in the stock, and a 3-fold gap-up on discovery news or even really good visuals. That’s the potential of this as they begin drilling and when assays eventually come out. The International is an outstanding property and would have been drilled a long time ago if it weren’t for access issues.
Good luck to all. This should get even more interesting in a hurry.
Comment by Jon - BMR — July 13, 2012 @ 9:04 pm
Would be nice if BMR offered opinions on the current state of GBB, seems opinions are split right down the middle here.
Comment by Hugh — July 14, 2012 @ 12:37 am
Let me start by saying that technically BMR owes nothing to anyone. Now that this is out of the way, I feel that since they pumped GBB daily for a year there is something of an obligation to continue to comment on significant news, or conversely, to make a statement saying that they no longer feel this is a good investment. If you were wrong, come out and say it, you can’t boast about your picks when they go up, and not address the flip side. Maybe take a couple of hours off from pumping RBW and take care of a few loose ends. To me, your reluctance to do either of these things creates the impression that you less than sincere about your “biblical approach to investing”.
Comment by mike — July 14, 2012 @ 8:21 am
Hello Mike
You have given me another topic to yarn about. I feel BMR are not obligated to anyone. They
seem to be smart folks & no doubt, have all possibilities covered. They have set up a site
for our reading pleasure & have the usual disclaimer to cover themselves. If i was a Judge
& if they were brought before me, because they failed in their obligation to ? i would give
them a slap on the fingers, only because, in some cases, they seem to have been overly
promotional in their narratives & not seeming to have considered the difficult times the
market had been facing. I will state that in GBB’s case, it would have been appreciated i am
sure, if they had reminded shareholders, that once the courts became involved, to be overly
cautious, because no one can anticipate the outcome of any court case. Trying to help readers
save one’s cash is almost as important as making cash. Admitting one’s failure is no big deal,
silence is the killer, but i will admit, there’s no way to please all the people all the time.
(Note BMR: please consider this as constructive criticism). R !
Comment by Bert — July 14, 2012 @ 9:42 am
I sold out of my position in GBB well over a year ago. I did not like the manner of reporting by Frank from the moment That I bought @.11 cents per share when first BMR started to cover GBB> My wife still has shares. I have GBB on my watch list because I firmly believe that this will turn out to be a large low grade very minable situation and will probably be bought out by OSK. But it will take time. Not much money in the till and not enough drills on the property. But they have options. For example, start putting through more material as they did before they started the drills. Money in the bank,all infrastructure very close by.BMR have repeatedly started that GBB looks to be a possibility of becoming a large low grade deposit.Do you people not get it? The final chapter will be known at years end with rrelease of 43-101, with all drill holes. Patience is the key. Just my opinon. richard
Comment by richard l — July 14, 2012 @ 11:46 am