Gold traded as high as $1,887 overnight but turned decidedly lower shortly after 3:00 am Pacific…as of 7:45 am Pacific, the yellow metal is down $25 an ounce at $1,845 after hitting a low of $1,822…Silver is off 75 cents at $41.59, Copper has retreated 11 cents to $4.03, Crude Oil is $2.48 lower at $86.57 while the U.S. Dollar Index continues to show strength and has pushed decisively through the 76 barrier…it’s up two-thirds of a point at 76.88…President Obama’s American Jobs Act speech last night contained no new bold ideas to stimulate the economy…it was essentially a 2012 campaign kick-off address and a re-packaging of “Obama’s Greatest Hits” which certainly haven’t worked up to this point…a small number of measures, including payroll tax cuts, make sense and deserve bi-partisan support but the bottom line is that this is a President who has a love affair with the sound of his own voice and has failed miserably on the economic front…he has simply lost credibility on the jobs issue…he made one statement last night, though, that we do agree with 100%…”Some of you have a different theory on how to grow the economy“…Obama made this much-anticipated jobs speech last night but never even mentioned the word “entrepreneur” once during the first half of that speech (he referred to “entrepreneurs” twice in the last half)…the United States has a growth deficit as much as a fiscal deficit…the key to creating growth is to appeal to the incredible inherent entrepreneurial spirit and genius of the American people that goes back to the founding of this great nation…Ronald Reagan, undeniably one of the greatest Presidents in American history, understood and exemplified that entrepreneurial spirit and was able to inspire the country out of a deep economic crisis in 1981 and 1982…even Bill Clinton, a moderate Democrat, appreciated the need to deregulate and get government off the backs of American business…Obama, who comes from the far left of the Democratic Party, almost seems like a foreigner who doesn’t really understand America…his speech last night was more like a lecture that was telling Americans that government is the solution, that government is “your partner”…he has had a Democratic Congress for 24 out of 32 months in office, so he certainly can’t complain about an “obstructionist” Congress – he had his chance during 2009 and 2010 and made the pitch that by bringing in large “stimulus” measures and expanding the role of government, he could could get unemployment to 8% or lower…he has engaged in class warfare, prompting him to even say last night that “this isn’t class warfare”…groups on his target list include the “wealthiest” of Americans (those making $250,000 or more per year) and the oil and gas industry, just to name two…American businesses aren’t hiring, in part, because they face numerous burdens including an uncertain regulatory environment…now, compare Obama’s speech last night to Reagan’s Inaugural Address January 20, 1981…some of Reagan’s remarks were as follows (emphasis is ours):
“In this present crisis, government is not the solution to our problem; government is the problem. From time to time we’ve been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else? All of us together, in and out of government, must bear the burden. The solutions we seek must be equitable, with no one group singled out to pay a higher price.”
“It’s not my intention to do away with government. It is rather to make it work – work with us, not over us; to stand by our side, not ride on our back. Government can and must provide opportunity, not smother it; foster productivity, not stifle it.”
“Those who do work are denied a fair return for their labor by a tax system which penalizes successful achievement and keeps us from maintaining full productivity.”
“The crisis we are facing today does not require of us the kind of sacrifice that Martin Treptow and so many thousands of others were called upon to make. It does require, however, our best effort and our willingness to believe in ourselves and to believe in our capacity to perform great deeds, to believe that together with God’s help we can and will resolve the problems which now confront us.”
– President Ronald Reagan, January 20, 1981
Obama is in Richmond, Virginia, today, pitching his American Jobs Act on Day 2 of his unofficial re-election campaign…next year, when unemployment remains at 9% or gets even worse, he’ll blame Congress for not enacting his American Jobs Act…he stated last night that “millions of Americans watching right now don’t care about politics”…unfortunately, last night was all about politics for this President…if “Obama” were a stock, it would be a great short right now…one big advantage of having this President in office, however, is that Gold will ultimately blast through $2,000 an ounce and take many Gold stocks with it…
G7 nations are meeting in France over the weekend…France has called for a coordinated response from the Group of Seven nations after anxiety in the markets over Europe’s debt crisis, though differences between the economic problems facing the United States, Britain and euro zone states are complicating the task…Federal Reserve Chairman Ben Bernanke yesterday warned that quick deficit reduction may hurt the U.S. recovery and reiterated that the central bank later this month will consider steps to bolster growth and spur hiring….the FMOC meets September 20 and 21 and there seems little doubt it will introduce new stimulus measures after bringing “QE2” to an end in June…analysts say it’s most likely the Fed will shuffle the duration of the securities it holds, replacing shorter duration holdings with longer duration Treasurys…
The CDNX, as of 7:45 am Pacific, is off 3 points at 1801…being a Friday, news is scarce today but things should heat up next week…a lot of exploration news is expected over the next several weeks and that has the potential of giving the CDNX a nice lift…the TSX Gold Index touched a new all-time high of 455 this morning, a 29% increase from the June 16 low…Richmont Mines (RIC, TSX), one of our favorites among producers, hit a record high of $12.10 this morning – just 6 cents shy of John’s $12.16 Fibonacci target which he gave quite a while ago…he’ll do an updated chart on RIC in the near future…RIC has gained a whopping 71% in just one month…much of the reason for that increase has to do with continued positive exploration news out of Wasamac, which is why we’re also so bullish on Visible Gold Mines (VGD, TSX-V) – the most active company in the Wasamac area besides Richmont…next week, during our visit to northwest Quebec and Rouyn-Noranda, we’ll be explaining the geological importance of what’s developing at Wasamac and in the immediate area where VGD is getting positive early results from Wasa Creek as well as Wasa East, two promising land packages on either side of Richmont’s Wasamac Property…in our view, the likelihood of another significant deposit in the general area between Wasamac and Francoeur has to be considered strong given this rich geological environment that has clearly gone under-explored over the years…Wasamac has become much bigger than even Richmont probably expected, and that has to force geologists to come to the conclusion that the potential of this general area is a lot greater than previously thought…to its credit, Visible Gold Mines has become very aggressive around Wasamac as they seem to “get” the big picture that IS unfolding there…the chance of a discovery for VGD is very real, just like it was for GBB at Granada when we first introduced that play in late 2009…meanwhile, we’re also bullish on Cadillac Mining (CQX, TSX-V) which of course has the Wasa Creek/Wasa East/Lucky Break and Cadillac Break option with VGD in addition to its strategic 100% owned 7 claims adjoining the northern boundary of the north-dipping Wasamac deposit…Cadillac’s very modest market cap of $4 million gives it strong upside potential (near-term as well as long-term) and those 7 claims are going to come into play for this company in one way or another…the CQX chart shows the stock is on the cusp of a breakout and given the action in VGD and the bullish fundamentals of the overall Wasamac situation, the greater probability in our view is that CQX will break out in the very near future…it’s currently down half a penny at 14.5 cents…below is John’s chart update for CQX…
Adventure Gold (AGE, TSX-V) is unchanged at 57 cents…it holds another property we like a lot in northwest Quebec that the market hasn’t fully appreciated yet – Pascalis-Colombiere which is immediately adjacent to Richmont’s Beaufor Mine just east of Val-d’Or…Richmont has made no secret of the fact it’s looking for another potential producing property in the general area and it seems Pascalis would be a nice fit, though RIC will certainly wait until AGE’s 43-101 resource estimate on Pascalis is released later this year…based on strong Phase 1 drill results (initial Phase 2 results are pending), it’s our belief Pascalis is a classic situation where a former producer was overlooked…Pascalis includes the past producing L.C. Beliveau Mine that Cambior extracted nearly 170,000 ounces from between 1989 and 1993…we’ll be looking at Pascalis in some detail next week…we suggest our readers perform due diligence on Cascadero Copper (CCD, TSX-V)…more on CCD next week…
BER shines again this morning…. up more than 50% at one point, now at 31 cents… up over 30% and my sixth sense works again. It is not over yet, guys…. wait for the next wave……
Comment by Theodore — September 9, 2011 @ 6:59 am
good job on working your sixth sense Theodore
Comment by jimmy — September 9, 2011 @ 8:55 am
WOW… did investors finally see the light with GQC today?
any commentary would be appreciated!!
Marc
Comment by marc — September 9, 2011 @ 12:13 pm
A word in my favorite stock BER – this stock has a very good swing during jumping and therefore, there is a risk that you buy it at a higher price. Although my sixth sense is telling me that there are lots of room to move up, you have to do your due dilgence. I did mine and come up with my own guess – why this stock will still jump but I cannot write it here as this is totally guessing. BER going forward will still move up …. my buy low and sell high price is now adjusted to 26 cents at buy and 38 cents to sell. I sold all at 30s today which I scooped at average of 20 cents. GBB has gone down to 35.5 cents and I am still waiting for some more dumping if someone has lost patience in this stock. I have placed a buy at 32 cents and sell at 45.5 cents. TYP 75 cents is my buying point and sell at 90 cents… . NAR , I am collecting at 15 cents. In respond to Marc, GQC – it may not go too far beyond 19 cents – my sixth sense tells me it will float between 16 – 20 cents range. The 52 week high may not happen again and it may reach half of the peak which can be the maximum at this time.
Comment by Theodore — September 9, 2011 @ 1:56 pm
Just listened to the interview with Martin D. of Visible Gold Mines on the Jay Taylor talk radio show. Martin mentioned that they had now finished over 20000 meters of drilling so far as of september and just over 6000 came from SilIdor project. Does that mean they have now completed approx 14000 meters of drilling at Wasa Creek Lucky break project? That would be quite abit more then what was reported in august. Martin also mentioned that they plan to do about half of the 40000 meters of drilling at the Break projects, I dont think they would be drilling this much without hitting something relatively big.
Comment by Ed — September 9, 2011 @ 8:50 pm
Hi Ed, good work…you’re on the right track and I’ve just done some quick math and fact checks. VGD already announced they had completed 8,000 metres at Silidor (all assays were released). In their Aug. 11 news release, they also stated that 7 holes had been completed at Wasa Creek, 3 elsewhere on the Lucky Break Project (south of Wasa Creek) and 3 at the Cadillac Break Project near Vantex’ property. I’m estimating that would total about 17,000 metres and that was as of August. So since then they’ve drilled another 3,000 metres or so at Wasa Creek (giving them the 20,000 metres Martin spoke about) which likely means another 4 holes or so at Wasa Creek. That’s my scorecard – probably around 11 holes at Wasa Creek which could be 8,000 metres or thereabouts. You’re right, Ed, he suggested a lot more drilling at the Lucky Break Project – I assume most of this would occur at Wasa Creek and Wasa East. You do not drill 20,000 metres in an area (half of the 40,000 total for 2011) unless you’ve hit something. This leads me to believe that VGD has hit at Wasa Creek, beyond hole #3.
Comment by Jon - BMR — September 10, 2011 @ 3:49 am