This is an early pre-market edition of Morning Musings (5:40 am Pacific) due to a property visit again today and important developments in the last few hours…Gold and stock index futures, as well as European markets, reversed abruptly around 3 am Pacific when China surprised with its first cut in banks’ reserve requirements for nearly three years…futures had been lower before the Chinese move, with Gold dipping as low as $1,700 (a couple of hours later, the U.S. Federal Reserve, the European Central Bank, and the central banks of Canada, England, Japan, and Switzerland announced plans to coordinate their actions to boost liquidity in the global financial system)…these strategic moves come amid increasing concern among policymakers worldwide that the global economy is on a slippery slope as the euro zone struggles to decisively tackle its increasingly worrisome debt woes and even stay intact (the next two weeks will be crucial)…China’s central bank is lowering the reserve ratio by 50 basis points, effective December 5, reducing the ratio for the biggest banks to 21% from a record high 21.5%…this helps to free up funds that could be used for lending to cash-strapped small firms…the cut in the reserve ratio was the first since December, 2008, marking a policy shift after a spate of tightening measures since last year aimed at fighting inflation which hit a three-year peak in July of 6.5%…however, inflation has since eased to 5.5% in October while economic growth has weakened for three straight quarters due to tight domestic credit and sagging demand overseas…
This morning’s developments have very bullish implications for Gold which is entering a critical month as John’s recent charts have shown…
The situation in the euro zone has become outright dangerous…a 10-day whirlwind of high-level meetings, parliamentary votes and diplomatic gatherings has started that could prove pivotal to Europe’s increasingly frantic efforts to prevent a breakup of the euro zone which some businesses are already planning for according to reports from the Financial Times…markets will be intensely focused on a summit meeting in Brussels December 8-9 when European leaders may agree to overhaul EU treaties treaties for an historic leap forward in the bloc’s economic and political integration…
The CDNX is off 6.8% so far this month after a 10% jump in October…support right around 1500 needs to hold from a technical perspective, and that’s a daunting task considering the time of year (tax-loss season) and the risk aversion in this market right now, but central bank action this morning will certainly help…Gold producers (and near-producers) have significantly out-performed the CDNX in recent months and that trend can be expected to continue…below is John’s update on the TSX Gold Index which closed at 398 yesterday…it’s sitting at resistance entering the final trading day of the month, but a breakout is a certainty today with trading commencing in 50 minutes…as of 5:40 am Pacific, Gold is up $27 an ounce at $1,742…
Richmont Mines (RIC, TSX) is one of favorite smaller producers and has the potential to absolutely explode to the upside in December if Gold continues to move higher…Richmont came out with fresh drill results from Wasamac yesterday and we’re eagerly looking forward to an updated 43-101 resource estimate for the deposit which the company expects to release by mid-December…an additional 37,000 metres have been drilled at Wasamac since the February estimate of 1.4 million ounces (all categories) which was released after an initial 10,000 metres of drilling in 2010 and a review of historical data…given encouraging results from 2011, we expect the revised December estimate will upgrade and expand resources significantly, taking Wasamac to the 2 million mark or better in all-category ounces…with two mines already in operation, and a third one (Francoeur) coming on stream by mid-2012, Richmont’s current market cap of $382 million has to be considered a bargain…at yesterday’s close of $11.57, RIC is trading at approximately 15 times estimated 2011 earnings…2012 production is expected to increase by at least 30% to 100,000 ounces or more…Wasamac will eventually take RIC’s annual production beyond 200,000 ounces…below is John’s updated chart for Richmont with a Fibonacci target level 40% above yesterday’s close…
Being in denial, i can’t believe good things can happen.
Another positive, pending home sales in the U.S. up 10.4% &
that’s signed contracts.
Now all we need is a cure for Europe’s ailments.
Things are looking up. R !
Comment by Bert — November 30, 2011 @ 7:24 am
Nice call on CJC, Dave! The asks keep getting taken out and volume now over 100k. 🙂
I wonder if we will test resistance .49?
Comment by Andrew — November 30, 2011 @ 8:28 am
More charts please!! GBB GDX SFF CUI ALL at or NEAR their 52 week lows, all the BMR pumping or charts cannot DISGUISE the FACT that these stocks are in FREE FALL!! As tax loss selling continues ALL theses can be bought for even LESS than the LOWS they are now at. I have my bids in for SFF at .12 and anyone wanting to sell, I will take all you have at that price. Of look, EPO is up ANOTHER 6% today hhhmmmm who was it that mentioned it?? Mike, BUY EPO very soon before the stock takes off to NEW highs. BMR can pump on RIC all day, but it doesn’t EXC– USE the FACT that EVERY OTHER stock they mentioned is in the TOILET! Lets all go to Tanzania and look for a Golden Elephant HAHA Long bars?? show me ONE bar!! All these people HYPING the POTENTIAL that GBB COULD have 5 million ounces of Gold??? Does a company that has the POTENTIAL to have that much gold trade at .15?? BMR, the CHART on GBB shows a VERY STEADY DECLINE in share price, why dont you ever mention that??? How much is BMR UP on SFF, ABI, GDX, CUI, GBB, SD since they 1st introduced them to your readers??? THOUGHT SO!!!!!!
Comment by John — November 30, 2011 @ 8:39 am
Hey Pumper John, where is VGN at now? Could you do a chart for us on VGN please? Maybe give your buddy Tony a call and feed us some more bs about VGN’s big news release! Glad you post every day on here. I wake up and can’t wait to read the insightful comments of pumper John. So helpful, thanks for coming out!
Comment by Tim — November 30, 2011 @ 8:49 am
Maybe he is Andre’s alter-ego?
Comment by Hugh — November 30, 2011 @ 9:02 am
VGN?? You will see very shortly what Im talking about. Instead of acting like a 3 year old child, take my advice, BUY VGN wait 30-45 days, make a very handsome return, and thank me later. I have a short term price target of .45 for VGN within that time frame. Can you say Mexico?? hhmmmmmm…… EPO moving UP very nicely today, as I SAID it would and GBB, SFF. CUI, GDX, SD??? THOUGHT SO!~! If you have not bought Goldbrook Ventures hurry up, Im already UP 50% oops, make that 55%
Comment by John — November 30, 2011 @ 9:17 am
Don’t throw a little fit now. All I asked for was a chart…. maybe give me the URL to your website? Maybe he didn’t like the pumper title….
Comment by Tim — November 30, 2011 @ 9:20 am
Thanks to the FOOL(s) who just GAVE me shares in VGN for .135 and .14 I have another bid in for another 35,000 shares to go with the 40,000 I added today. This trading pattern tells me that Tony is close to revealing WHERE the NEW ADVANCED GOLD/SILVER property with PROVEN ounces in the ground will be.. You think the sudden spike in volume is for nothing?? People KNOW and you will too, only you’ll be paying much more.
Comment by John — November 30, 2011 @ 9:28 am
You’ve been saying VGN was going to explode since May now…
Comment by Tim — November 30, 2011 @ 9:30 am
You notice the volume NOW on VGN coming from out of NOWHERE?? DONT CRY LATER, I have told you now MANY times what is unfolding, TONY has NOT sold 1 single share, he personally owns 4.5 million shares and 2.75 million options he was a BUYER last Nov-DEC in the .25 cent range do some DD people… Jien Canada offers .30 for GBK, only trading at .23, still a 30% profit to be had there. VGN closes in the GREEN today.
Comment by John — November 30, 2011 @ 9:39 am
@ John
Maybe you’re right regarding VGN, maybe not. I still think you’re lame!
Comment by Kalkan — November 30, 2011 @ 9:57 am
CJC – This is just the beginning – Anyone who sells a single share has not done their DD. And its never too late to add.
Comment by dave — November 30, 2011 @ 9:59 am
Look at the Bid and ask NOW for VGN, bid is at .145 ask is at .16 moving on UP like I said!!!! Keep an eye on Sedar in the next 2 weeks to see HOW MANY SHARES TONY has been ADDING at these prices…. Follow the SMART money folks.
Comment by John — November 30, 2011 @ 10:14 am
John, your constant VGN pumping is laughable to an extreme. It is “moving on UP!” today? Please get a hold of yourself. The volume is 114,000 — that in monetary terms is all of $16,000 changing hands. So we should “Follow the SMART money”? Is this 16 grand all the smart money there is? But thanks for the comic relief. Now that Theodore has apparently gone broke, his “sixth sense” having failed him, you have clearly adopted the mantle of Board Clown. Too funny.
But do give Tony and the boys our regards. Do they carry violin cases?
Comment by Roger — November 30, 2011 @ 10:36 am
Dave, CJC had a piercing arrow up to .495 but now TA shows it’s quite oversold. Where does your TA indicate it may retrace too (.39 – .41)? Thanks
Comment by Andrew — November 30, 2011 @ 11:31 am
overbought, sorry – not over sold
Comment by Andrew — November 30, 2011 @ 11:31 am
hello BMR,
just wondering, if it is possible to ban ppl posting on this site?
tx
Comment by alec — November 30, 2011 @ 12:57 pm
I believe there is that possibility…
Comment by Jon - BMR — November 30, 2011 @ 1:43 pm
Hey John. I see the mighty VGN is down 3.12% on the day while GBB is up 3.5%. Could the reason for this be that one is a company that has done nothing whatsoever this year while the other is busy getting ready their multi million oz, near surface, resource in one of the best mining locations in the world. Looks like that to me. GBB will hit new highs in 2012. OSK is playing games with the SP because they want to buy the company on the cheap. As for VGN nothing going on as usual. Ring Tony and tell him to get off his rear and earn his considerable wages.
Comment by Patrick — November 30, 2011 @ 2:47 pm
You’ve right Patrick about OSK. Take a look on their NR Nov. 11, 2011. As Mr Roosen said :”Our flagship Canadian Malartic Mine will provide us with a strong financial base for our future growth as we seek opportunities to enhance shareholder value.” Don’t forget OSK Canadian Malartic mine is located 100 km east from GBB!
Comment by Sylvain — November 30, 2011 @ 4:14 pm
Hello BMR,
I remember reading somewhere the guidelines you posted for buying/selling stocks, when your down or up. Could you repost those. Those rules are golden, especially for when your trading loss/gain!!
thanks
Comment by alec — November 30, 2011 @ 5:36 pm
I am always laughing when I read about Osisko manipulating GBB share price . Fist of all…it’s illegal … So why Osiko would jeopardize a multi bullion dollar business for some small ventur company that can’ t even come out yet .., after over 30 millions dollars invested since 2006 , a 43-101. Please If you don t know what your talking about …. Keep quiet. Now silvain …100 km is a very long way between concession.
Comment by Andre — November 30, 2011 @ 6:28 pm
By the way I also find john a pain in in the ass but starting to ban posters would be a big mistake.
Comment by Andre — November 30, 2011 @ 6:36 pm
andre, i find myself laughing when i read simple comments like yours, im not saying osisko is manipulating gbb sp but for you to say they certainly are not because it is illegal is the funniest most uneducated comment i have ever read on here i think,,,worse than that john guy even. you are either lacking common sense or just havnt been in this game long. the venture is basically nothing but crooked manipulation,,,goes on everyday and thats fact. so please before coming on here again to spout off do some dd and get your facts straight my man
Comment by heath — November 30, 2011 @ 6:53 pm
PJ er I mean Pumper John….One of the biggest gain days this year and where did VGN finish? Just a question…?
Comment by Tim — November 30, 2011 @ 6:54 pm
The ventur is and always will be a shaddy enterprise. I have been dealing with it over 20 years… And met many of the actors threw my work at Canaccord. But I rarely saw a multi bullion dollar company jeopardize there activities for a 15 cents stock. Over 90 % of people loose there money on the ventur and just by your comments i am sure you are one of them…..Heath. Well…it,s true the pros nead the amateur to make money… Keep investing health… We need you.
Comment by Andre — November 30, 2011 @ 7:33 pm
Oh Heath… Many have paid out large amounts of money from the courts fo giving out false accusations… Do you give me your permission to send your post to Osisko legal departement or do you take back your comments. Your choice.
Comment by Andre — November 30, 2011 @ 7:49 pm
Andrew – CJC – showing support at .43,.42,.41, but the strongest support is at .39. It could hit .38 intraday, but should bounce back and close at .39 or higher. On Oct. 12, CEV had the same trading day and look where she is today. everything looking good.
Comment by dave — November 30, 2011 @ 8:57 pm
Excellent comments on RIC. I tend to only buy producers now out of safety and this is one I own.
Comment by Michael — November 30, 2011 @ 8:58 pm
andre tell me your kidding!! i really hope you are not that slack, i love how you never let an intelligent thought interupt the flow of your conversation.
Comment by heath — November 30, 2011 @ 9:31 pm
i also dont agree with banning posters, but sometimes its a necessary evil!
Comment by alec — November 30, 2011 @ 10:24 pm
Poor heath…. Keep listening to idiots like burpit on stockhouse . I hope one day after learning the hard way instead of listening to experience on how to invest on the ventur , you will have the decency to give a apology to me. But I am sure a hard head like you a apology is never a option for you.
Comment by Andre — November 30, 2011 @ 10:38 pm
Just one question Andre. Did OSK buy 7 million shares in GBB at around 70c.? If they did why did they buy those shares and what are they doing with them? Just a simple civil question and I never insult people to make a point.
Comment by Patrick — December 1, 2011 @ 3:12 am
Patrick , yesterday you asked me if Osisko bought 7 millions shares … Well no. It was Van Eck funds from New York. This year they bough 4 millions shares from december to before february results. Everyday during that period they had a bid of 250 000 shares between 70 and 76 cents. All there trades were done threw Canaccord. After february results they stop buying. I notice since a month heavy selling threw Canaccord….it could be them reducing there position into GBB.
Comment by Andre — December 1, 2011 @ 7:18 am