Gold has been under slight pressure overnight but has bounced off its lows…as of 6:05 am Pacific, the yellow metal is down just $2 an ounce at $1,615 after falling as low as $1,603…Silver is 35 cents lower at $23.79…Copper is off 4 pennies to $3.37 after some weak Chinese economic data…Crude Oil is down $1.30 a barrel to $92.06 while the U.S. Dollar Index is up one-tenth of a point to 82.76…
It has been a little while since we’ve looked at Silver – below is an updated chart from John that shows some steady progression. Patience is the name of the game. The EMA-20 is rising and now provides support, just one of several positive indicators. A major breakout at some point during this third quarter – the next six weeks – appears highly probable…
Weak Chinese Economic Data Likely To Draw Immediate Additional Stimulus Measures
Expect more action from the Chinese to give their economy a fresh jolt…export and import growth slowed markedly in China last month, flashing warning signals about both the domestic and the global economy (July is normally a weak month in China, however, so August and September data will be critical to watch)…coming on the heels of weak industrial production data for July, the trade figures underlined China’s sluggish start to the second half of the year and were seen as making it more likely that the government would intensify its measures to stimulate growth…exports rose 1% year-on-year in July, a six-month low and down from an 11.3% pace in June…imports were up 4.7%, dipping from June’s 6.3% pace and pointing to a slackening in China’s appetite for commodities…since late last year China has been easing monetary policy by slashing reserve requirement ratios (RRR) for banks three times…the country’s central bank has also cut interest rates twice this year to bolster an economy that has slowed for six consecutive quarters…some analysts believe, given this latest economic data, that another cut in the RRR could come as early as this weekend…China has taken steps on the fiscal side as well in recent months, including a ramping up of infrastructure projects…we’ll see if that intensifies in the coming weeks…
Japan Doubles National Sales Tax
Governments are money-sucking monsters and the latest example that no amount of money is ever enough, unless the monster is tamed, comes from Japan where the Japanese parliament today approved a doubling of the nation’s sales tax to 10% by 2015…Japan is one of the world’s most quickly aging nations and for years politicians have looked to the sales tax to rein in the country’s mountainous debt load – double its gross domestic product – and help finance its ballooning social welfare spending…they have finally succeeded, but of course the wiser alternative would have been to deny the government that additional revenue and reduce expenses instead…as the euro zone has shown us – and there are other excellent examples including Quebec – governments around the world need to shrink in size, not expand, or they will simply go bankrupt…no one (not even Mitt Romney) is selling that message effectively on the world stage and telling the people the truth – that citizens must exercise more personal responsibility and expect less from government, not more…
Today’s Markets
Asian markets were mildly lower overnight with China’s Shanghai Composite falling 5 points to close a positive overall week at 2169…European shares are modestly lower this morning while stock index futures in New York as of 6:05 am Pacific are pointing toward some weakness on Wall Street to begin the trading day in North America…the Venture Exchange climbed 7 points yesterday to 1193, putting it above its EMA-20…confirmation of a new Venture uptrend in our view would be a close above the 1200 level…
Rainbow Resources (RBW, TSX-V) Chart Update
Rainbow Resources (RBW, TSX-V) staged a powerful intra-day reversal yesterday, falling to support at 20 cents early in the day and then recovering – following very positive news – to close at the high of the day (23.5 cents) on total volume (all Canadian exchanges) of over half a million shares…with drilling slated to begin at the International Silver Property this weekend, expecting trading in Rainbow to continue to be very robust…John’s updated chart shows strong and increasing buying pressure…
Great Atlantic Resources (GR, TSX-V)
In addition to chasing down Rainbow’s President for an interview, BMR attended an excellent investor presentation put on by Great Atlantic Resources (GR, TSX-V) at Traders Restaurant in Vancouver yesterday…we’ve mentioned GR several times in recent months and we strongly believe it’s a situation our readers should be watching closely…the company has assembled a powerful package of early and advanced-staged exploration projects in Atlantic Canada – mostly New Brunswick which was ranked by the Fraser Institute earlier this year as the world’s #1 mining jurisdiction…President and CEO Chris Anderson is a bright leader and successful entrepreneur who is on the right track in our view to turn GR into a major success story…we’ll be interviewing Anderson in the near future…trading at just a dime with only 40 million shares outstanding, the risk-reward ratio with GR is attractive to say the least…John Kaiser recently initiated coverage on the company in his Bottom Fishing Report…
Richmont Mines (RIC, TSX)
Speaking of bottom fishing opportunities, one probably exists right now in Richmont Mines (RIC, TSX) which is trading right around book value at $3.70 a share…the stock was above $12 in February before some disappointing news regarding its Wasamac Project (a lower than expected initial estimated IRR) and its Francoeur Mine…however, RIC remains in a strong financial position with solid projects and all the bad news appears to be priced into the stock…the company is also on the acquisition hunt for another quality property at the right price…technically, extreme oversold conditions exist based on RSI(2) and other indicators in this 3.5-year monthly chart from John…Richmont will need time to turn the corner but investors with a longer-term view could do extremely well on this one around current levels…
Note: John and John both hold share positions in RBW.
GQC
Appears something positive going on with GQC. It wouldn’t be moving
up this fast, just on a bounce. Time will tell. R !
Comment by Bert — August 10, 2012 @ 6:22 am
GOLD BREAKING OUT OVER $1620!
Comment by STEVEN — August 10, 2012 @ 6:37 am
gqc
According to Eric Coffin, The price of gqc must be held down until the pp closed on August 21st. He stated that this must occur for the regulators to allow it to go through. There seems to be range bound trading opportunities however.
Comment by Natalie — August 10, 2012 @ 6:50 am
That is significant, Steven (need a close above $1,620)……next resistance is $1,640…..those are the two key areas John has identified….Silver is looking great as well this morning with a nice reversal….
Comment by Jon - BMR — August 10, 2012 @ 6:56 am
Natalie
I felt it would be held down earlier, but when it moved up, it made me ponder. Maybe moving
down is a deciding factor. R !
Comment by Bert — August 10, 2012 @ 6:58 am
I feel that I owe to this board to metion, once again, and for the last time my pie in the sky stock pick which I have held a small core position in since it first came on to the VSE.It now trades on the over the counter american market symbol ORNI. The name of it is ORAGENICS.This company has struggled (still is) but there is bright daylight at end of the tunnel. This stock will list, once again, on NASDAQ. It was .60cents when I first mentioned it. about $3.00 now. Very low float.Their science is sound.It has the potenial to be $200 upwards. The productthat they are developing can be game changers in the worlds health. If interested search Yahoo financial blogs on oragenics. richard l
Comment by richard l — August 10, 2012 @ 10:03 am
As of 28 February, RBW had 307K in cash. Does anyone know how long they can last?
Comment by Alexandre — August 10, 2012 @ 11:05 am
Natalie can you provide a link to Coffin’s comment?
gqc
“According to Eric Coffin, The price of gqc must be held down until the pp closed on August 21st. He stated that this must occur for the regulators to allow it to go through. There seems to be range bound trading opportunities however.”
Thanks, I am just wondering about the logic behind this.
Comment by George Wohanka — August 10, 2012 @ 5:27 pm
They actually had $580,000 in cash and receivables at the end of February, less $90,000 in bills, so $500,000 roughly. Keep in mind some warrants were exercised later. They’re in good shape. They’ve been conservative in issuing stock which is a positive thing, and they have the backers as they need it. Johnston told me they turned down more money in February – they could have raised $2 million – but didn’t want 14 million free trading shares hitting the market in the summer (instead it was a more manageable 7 million). Personally, I like this approach as it does show consideration for the market. Also, they’re convinced they’re going to hit – they want to raise the big money from the brokers at much higher prices. This is one of those rare deals when the retail guys like us are in cheap and the brokers come in a later at a premium (usually it’s the retail guys who get screwed).
Comment by Jon - BMR — August 10, 2012 @ 6:03 pm
Thanks Jon.
Comment by Alexandre — August 10, 2012 @ 6:33 pm
Jon
In my experience, it’s very seldom the brokers get screwed and the “retail guys” win…..
Comment by Brillo — August 10, 2012 @ 6:43 pm
Bert and George
Please find link below. Around page 8 is the info I was referring to.
comstock-metals.com/_resources/pdfs/HRA_Dispatch_2012-07-31.pdf
Comment by Natalie — August 10, 2012 @ 6:44 pm
sorry…pages 6-7 and the term used is Placement Related Weakness in this particular newsletter. I did hear him interviewed elsewhere but have not located it yet. The newsletter will support the concept.
Comment by Natalie — August 10, 2012 @ 6:56 pm
That’s my experience, too. However, what’s different about the Rainbow situation is that up until this point it has been a “retail” deal. The retail crowd has loaded up between 10 and 30 cents, and brokers have mostly not been involved – by design on RBW’s part largely. When this explodes (and I use the term “when” because I’m convinced it will), that’s when you’ll start to see the brokers piling in (and being urged to pile in), and that’s when some of the early retail crowd may choose to cash in. Doesn’t mean the brokers at that point will be getting in at the top – just that they’d be getting in at significantly higher levels than the original retail crowd, which is usually not the case. Typically it’s the brokers who are the ones loading up cheap. So I see Rainbow as unique in that sense.
Comment by Jon - BMR — August 10, 2012 @ 9:30 pm
Natalie, thanks for going to the trouble to clarify your post. Yhe interview is great and can be found at beneath the surface.
Sort of think there is a misunderstanding on how an offering impacts share prices. Brokers are allowed to stabilize the market price, “manipulate” it to keep it near the offering price. that is about it. The concern is that the new shares depress the price. So the intent is to prop it up. But this involves shorting it at higer prices to provide the funds or ability to buy it when it dips.
Comment by George Wohanka — August 11, 2012 @ 5:41 am
More exposure for RBW – good morning, everyone. And it’s a REALLY good morning! A friend who’s a subscriber of Jeb Handwerger (well-known Florida newsletter writer) just sent me a note that Handwerger has recommended RBW, initiating coverage this weekend…..Handwerger is apparently a big silver bull, and the International has caught his attention. This will certainly help RBW build its audience in the U.S.
Comment by Jon - BMR — August 11, 2012 @ 7:08 am
Thx Jon….good news! So is it a 100% that drilling is starting today or tomorrow at International?
Comment by db — August 11, 2012 @ 8:10 am
Johnston said by sometime Sunday, and the news release said this weekend, so we can safely assume that by the time we wake up Monday morning, the first hole is already well under way. Going down 100 or 120 metres, I suspect it will take 2 days on a 24-hour shift to drill one hole (50 to 60 metres per day). When I was up at the International, I saw three specific drill sites marked along that 100-metre stretch of exposed mineralization. They are going to drill along that structure with angled and vertical holes. That’s the “honey zone” for starters. If they see good-looking core, I suspect they’ll move north or south along strike (even though some areas are covered by minor overburden). That would be an important clue or signal to look for I think (that the drilling is going well).
Comment by Jon - BMR — August 11, 2012 @ 9:12 am
Just for your reading pleasure:) from Ed STeer
But what I’m not happy about is the monstrous short position in silver that JPMorgan has now built up in the Comex futures market once again and, like Ted Butler, I’m not a happy camper about the new short positions in both GLD and SLV. Obviously if these events hadn’t occurred, we’d be looking at a startlingly higher price for silver…and for gold, too, I would think. As I’ve said many times before, this blatant price management scheme is now so obvious, that even Stevie Wonder could see it.
I must admit that the possibility now looms larger that JPMorgan et al may engineer another price decline before the summer is out, despite the fact that the Commitment of Traders is wildly bullish for both metals.
Comment by Jeremy — August 11, 2012 @ 10:36 am
J.P. Morgan has made a few bad bets recently……the COT structure as you say is bullish for both Gold and Silver, and the charts are looking favorable. We’re also now into a period of seasonal strength for Gold and Silver, supported by likely action from the Fed and the ECB.
Comment by Jon - BMR — August 11, 2012 @ 10:41 am
Hello Jeremy
I don’t feel that Investors will have the Silver price in mind, when buying RBW.,
not in the immediate future anyway. At 0.24, we are only in the speculation mode,
and for an extended period of time, it will trade on speculation & the possibility
of turning a profit. As we move into the future & if the results become compelling,
the silver price may then be a factor. Anyway, good luck ! R !
Comment by Bert — August 11, 2012 @ 10:57 am
With each & every stock, one must be cautious, suspicious, delve into
everything, question everything, why not ? it’s our cash & we want it
back, with a profit that is. With Rainbow, i have been cautious, i have
been suspicious, i have delved and i have questioned & although i have,
what i consider, a large position, i am not there yet, completely confident
that is. I have faith in the BMR boys, but when reading their musings, it
has been evident, that their words express, in some cases, guessing on their
part. Of course, if they were privy to inside information, they would be dang
fools to let that be known & that i understand. Because they have written,
it may happen, it could happen, it looks like, we have a feeling, is why i
am not there yet, completely confident that is. What i need now is some very
positive news, something concrete & as a result, the stock price moves’ up,
placing me in a profit position. If something negative should then happen,
i am able to get out without a loss. I don’t use stop losses, so anytime i
find myself in a profit position, i become more confident.. Regarding stop
losses, that’s another story, which bothers me. Level II no doubt, has it’s
advantages, but there’s also disadvantages, it gives everyone a view of the
different positions’ & that’s all the sharks need to know, especially if they
are privy to inside information. Once upon a time, on a friday, i bought what i
considered a safe stock, i immediately placed a stop loss. Monday morning, as
i watched & in disbelief, the price moved down, all the stop losses were taken
out & guess what ? shortly after, news came out & there i was, again watching
in disbelief, as the price moved up & without me may i add. Enough said, but
there’s a million similar stories in the naked city ! ‘WISH ME A RAINBOW’. R !
Comment by Bert — August 12, 2012 @ 4:55 am
Jon, will part 2 of the Audet, Everton Resources be released today? tia
Comment by George Wohanka — August 12, 2012 @ 6:36 am
Hi George, Part 2 is coming early this week, likely Tuesday…
Comment by Jon - BMR — August 12, 2012 @ 10:03 am
Bert – you have a lot of time in your hands to post on this wall more frequently than the administrators themselves – the BMR Boys. I completely understand this is an open forum for readers to post freely, but you seem to have taken quite an affinity to this site and post your thoughts far too often. One must wonder if it makes you feel better when you think out loud here to re-assure yourself of your investments.
Please try to post useful and factual info for some of the readers here, not your opinion of how confident you are or aren’t in your investment portfolio. No disrespect, but that’s kind of personal and more so, lame.
Anyway I hope RBW goes to $10 for your sake, because this has evidently really consumed your life, though you seem to continually have second thoughts. Again no disrespect, but you don’t need to give us the play by play on what happened to RBW, we all have access to the internet.
Good luck pal.
Comment by alex — August 12, 2012 @ 10:18 am
Hopefully rbw drill conrtracters don`t get chased out of the bush fire rating now extreme
Comment by BRIAN — August 12, 2012 @ 11:07 am
BMR – Please don’t reject this post.
Alex
I stated the next time someone takes’ exception to my posts & is nasty, i
will fight back, here i am. Grrrrrrrrr, you know my name & you know how i
post, so i would suggest you stop reading me, it’s that simple. If you are
looking for respect, go look elsewhere. Grrrrrrr !
As for the time on my hands, it’s none of your business & for posting too often,
it’s none of your business. As for the other readers, how they think, don’t
speak for them, it is none of your business. As for posting is consuming my life,
it is none of your business, as for my play by play, don’t read me, because it is
none of your business. I can afford to lose on RBW, if i don’t, it is none of your
business.
Comment by Bert — August 12, 2012 @ 11:41 am
Bert – 1 .. Alex – 0 🙂 nice work Bert!!
Comment by Jeremy — August 12, 2012 @ 6:44 pm
Yeah – nice work Bert! you tell that Alex what you think 🙂 Well, actually you tell everyone what you think so guess what, it has become everyone’s business what goes on in your personal life. This said, please continue your daily narrarations. Hey what are you and Jeremy having for breakfast?
Comment by Alex — August 13, 2012 @ 5:14 am
I rarely leave a response, but after reading a few of the responses on BMR Morning Market
Musings
Comment by gold watches — December 17, 2013 @ 5:25 am