Gold exploded to a new all-time high this morning, reaching $1365.70, before pulling back quickly and sharply on profit taking…as of 9:15 am Pacific, the yellow metal is near its low of the day, off $15 to $1,334…this type of pullback, $35 in a matter of hours as Gold hit a low of $1,331, is normal and healthy…it actually helps sustain this incredibly strong run…the U.S. unemployment report comes out tomorrow and those numbers will be watched closely by the markets…the U.S. Dollar’s weakness continues…at 77.38, the greenback is closing in on critical support at 76 on the Index…we definitely appear to be in the midst of a slow but steady devaluation of developed countries’ currencies vs. emerging world currencies such as China, India, Brazil and Russia…appreciating the growing importance of these emerging markets is critical to understanding what’s driving this bull market in precious metals and commodities in general…the CDNX followed Gold’s pattern this morning, reaching a fresh 52-week high of 1789 before pulling back…the Venture is currently at 1761, down 13 points for the day…we expect the Venture to make a run to approximately 1950 before year-end, and perhaps even within a month, which would put it in the immediate vicinity of its 200-week moving average (the crash of 2008 began in earnest after the Venture fell through its 200-week SMA in early July that year)…the TSX Gold Index hit an all-time high of 412 this morning and has since dropped back to its 20-day moving average at 400…interestingly, the Gold Index is far from being technically overbought and a very powerful move to the upside appears imminent from a technical perspective…Gold Bullion Development (GBB, TSX-V) is unchanged at 58 cents on relatively light CDNX volume of just over 200,000 shares…we’re not expecting news from GBB until after its financing closes…using GBB’s March financing as a guide in terms of timelines, we expect this financing to close the week of October 18…GoldQuest Mining (GQC, TSX-V) is already up 41% since we introduced it to BMR readers last week at 19.5 cents…we are extremely excited about GoldQuest as this is a company, like GBB, with all the right ingredients to be a huge winner as this historic bull run continues in Gold and the CDNX…GoldQuest truly has a highly prospective portfolio of advanced stage and grass roots exploration projects in the Dominican Republic where it has been active for nearly a decade…the company also has a zinc-lead-silver deposit in northwest Spain (Lundin Mining is a partner) that has been targeted for production…Micon International is currently performing a 43-101 on the Toral Project (historical estimates are 5.4 million tonnes grading 9% zinc, 6% lead and 45 g/t Ag)…it remains open along strike and at depth…GoldQuest has also secured a 2nd polymetallic deposit just a 20-minute drive from Toral…details are forthcoming…in June, 2006, GoldQuest got as high as $1.80 without the projects in Spain and with even less than it has now in the DR…we encourage BMR readers to think “big” on this one as GoldQuest has some great opportunities on several fronts…the company has all of its ducks in a row and has a modest current market cap of only $25 million at 27.5 cents…Richfield Ventures (RVC, TSX-V) has pulled back to $2.75, its 20-day rising moving average which it has essentially remained above since starting its big move in early July…Richfield continues to make excellent progress in developing its Blackwater Gold Project in central British Columbia which has multi-million ounce potential…
October 7, 2010
10 Comments
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One of your past stocks Greencastle Resources (VGN, TSX-V) might be worth having a look at again, gained 14.286 % today. Charts look good. Traded today at .16 a share.
Comment by sidevalvebob — October 7, 2010 @ 1:05 pm
Thank you. Greencastle is looking good and the only reason we deleted it from the BMR Portfolio in August was because of the uncertainty regarding when the company would actually start putting some of its cash to work. The stock closed at 16 cents today and its cash value is 13 cents per share (nearly $6 million). Volume has been picking up recently so something could be up. The chart looks very strong. The company is bringing in $125 K per month in oil royalties. But they need to sink their teeth into a project of some sort for the share price to really take off.
Comment by Jon - BMR — October 7, 2010 @ 3:18 pm
Hi Jon,
Appreciate all the input and knowledge you so generously share. I asked the other day about v.eag beside Noront. You then brought up Noront was one to watch the following day. Do you by chance have any input you can give me on v.eag. I think the drills were great and the value seems good. I would appreciate your opinion if you have the time.
I am an avid reader of your blog and cannot thank you enough for all you give.
Andrea
Comment by andrea — October 7, 2010 @ 3:46 pm
Thank you, Andrea. I’m familiar with EAG but give me a couple of days to look more into the current fundamentals. Technically, the stock is trading in an area of strong support, so it’s certainly not a bad time to be accumulating at these levels IMHO – safe entry point I would think, but how long it will take to take off will hinge a lot on the fundamentals. Maybe some others here can share their opinions on EAG.
Comment by Jon - BMR — October 7, 2010 @ 7:31 pm
Hi Jon,
I was just wondering if you thought it was significant that Sidon’s private placement was underwritten by Raymond James. A private placement by a company this small would normally have a tough time obtaining a brokered offering, let alone a fairly reputable broker. Do you think that RJ did this because they believe there could be much bigger business in the future?
Comment by Jim — October 7, 2010 @ 8:49 pm
Hi Jon
Have been holding EAG since spring. The stock got attention with 52meters of 14.2 g/t in Mar.and has followed up with further good results recently
with 12meters of 14.2 g/t, amongst other good intercepts. I have also been holding GBB and my feeling is that EAG management is the complete opposite of
GBB- who are very willing to share what their concept and goals are for Granada. Also with such good results,I ask myself why EAG is not going to the
market for a large financing while the brokers are receptive. Patience is required here…………Bob
Comment by Bob — October 8, 2010 @ 3:21 am
Hey BMR. So I was just looking at the RSI chart for GoldQuest and I notice that it has just gone slightly into the overbought territory. Now, you guys have been praising this stock and I have seen the chart and it does look impressive. I just don’t want to make a mistake and jump in at the wrong time again (like I did when GBB was at a feverish 0.70 back in June), so my question is: do you guys think that GQC may be headed for a small correction anytime soon? Thanks.
Comment by Muiz — October 8, 2010 @ 5:13 am
We’re in a different overall market now than we were in June, so the fact GQC is slightly overbought is not a concern….there is room for it to get even more overbought before it pauses for a bit and consolidates….if you look at the support levels, the downside risk from here is very limited (maybe 10%)……..on the upside, there is resistance at .35 and more of it at .50….my thinking on GQC is that this is a stock you want to put away for 3-6 months and forget about it…….it’s dangerous to try and “trade it” because it has so much explosive potential……..they have some terrific gold properties in the DR and the chance of a major discovery is very real……plus there’s the Toral zinc-lead-silver project in Spain which has been targeted for production – a 43-101 compliant resource estimate is being worked on right now….they’ve also secured a second property a short distance away from Toral with similar characteristics….GQC is not a stock to play for pennies…..think big here because this has the possibility of becoming a huge winner….we jumped on this first recently before the Coffin Brothers and Roulston….
Comment by Jon - BMR — October 8, 2010 @ 5:58 am
Hi Jon,
You mention Coffin Brothers and Roulston above. Any thoughts as to why (as far as I know) none of these people have anything to say about GBB? They must have heard of it by now!Thanks.
Comment by dave — October 8, 2010 @ 7:37 am
I’m extremely confident that GBB is going to get its own strong following of newsletter writers, and probably very soon as the exploration program continues and more results come in from the LONG Bars Zone…and the general market continues to heat up. As far as the Coffins go, they picked up on the story to their credit in March and I think it’s still very much on their radar screen. They’re likely waiting for more data to comment. They don’t highlight a lot of plays, so the very fact GBB has been mentioned by them is significant I think.
Comment by Jon - BMR — October 8, 2010 @ 7:56 am