US Dollar is over 0.82 and Gold is getting trashed to 825. Are they going to Cut over the weekend again? Today's action in General markets is like a turnaround point: Heavy Sell Off in the morning and retest in the afternoon, will the low hold? Some Juniors are showing signs of life. Once liquidity and Greed will be back we will look for 40-50% over day gains. Taking Calls positions on hammered today Silver Standard SSRI, Silver Wheaton SLW and Yamana Gold AUY. Juniors on my radar screen TNR Gold TNR.v (up to 0.15CAD with high at 0.17CAD today), Canada Zinc Metals CZX.v at 0.35CAD trashed with Zinc price, Silverstone Resources SST.v back to 0.7CAD.
Friday, October 10, 2008
US Dollar is at the Tipping Point.
Look at that Hockey Stick below the chart. Trees are not grow to the sky forever. US Dollar is close to important resistance at 0.82. Should the "flight to safety" stop US dollar will drop like a rock. Blanket guarantee for interbank market should they impose it over the weekend in USA means that all potential losses will be absorbed by the Treasury balance sheet. It is right thing to do now, but at a cost: this cost is devaluation of US Dollar and downgrade of USA Treasuries rating from AAA.
Thursday, October 09, 2008
SilverStone Resources SST.v - small brother of Silver Wheaton SLW.
Last time I was buying in October 2006 right into those levels at 0.65CAD. Silver was at 11USD. SilverStone was just a spin off from Capstone Mining CS.to, no any single silver revenue stream - only exploration potential. It is just to show how value has been disconnected from market prices by panicking Mr Market. If Gold is now in a Super Bull Mood, Silver will follow. Revenue in SilverStone will increase, will stock continue to fall? Nowadays you never know for sure when another hedge fund will go belly up. The only assurance is that stock is recovering from recent low and is not hitting new one with sympathy to general markets waterfall today. On TA bases will be nice to see Double Bottom confirmation on multi year scale.
Amex Gold Bugs Index HUI is bottoming out.
We have important divergence on PPO Gold Mining companies are not hitting new lows with DOW, S&P 500 and Nasdaq hitting new ones.
Gold at 912 and S&P 500 at 910 has finally crossed!
Gold at 912 and S&P 500 at 910 has finally crossed!
Treasury Bubble US Dollar Tipping Point
This is our baby to watch, couple of days ago flight to "safety" brought Yield even below 4%. Once Global Margin call will be cleared need in former reserve currency will diminish, how they gonna sell all those treasuries needed for bailout? Only giving out higher interest - Yield.Silver - Gold's small brother: love will come back.
Last time I have checked TA called it Double Bottom. General public has lifted Gold and forgot about Silver. Its time will come, more risk appetite will bring crowd into this tiny sector: SSRI, SLW, SST.v, MGN.
Wait for the Headlines: Price of Gold and S&P 500 Index has Crossed.
It will be a start of Mania phase in Gold Bull market with general public coming on.
TREASURIES-Bonds fall on supply concerns, lack of safety bid
Are you shocked that Inflation could be coupled with Stagnation? Just have a look at Zimbabwe...
* Pending debt supply again weighs on bonds
* Higher stocks also squash any safety bid for debt
* Bonds briefly pare losses after weekly jobless data (Adds analysts' quotes, byline, updates prices)
By Chris Reese
NEW YORK, Oct 9 (Reuters) - U.S. Treasuries prices fell for a third straight day on Thursday as debt supply issues weighed on the market, while Wall Street opened higher and sapped any safety bid for bonds.
A host of new debt programs intended to free up lending is expected to result in increased issuance of bonds from the Treasury, diluting supply and undermining prices.
"Yesterday we had a sell-off, and much of that was driven by supply -- supply is definitely a factor here," said David Coard, head of fixed income sales and trading at Williams Capital Group in New York.
Benchmark 10-year U.S. Treasury notes were trading 31/32 lower in price for a yield of 3.77 percent from 3.66 percent late on Wednesday, while 2-year Treasury notes _were trading 8/32 lower in price for a yield of 1.70 percent from 1.57 percent late Wednesday.
* Higher stocks also squash any safety bid for debt
* Bonds briefly pare losses after weekly jobless data (Adds analysts' quotes, byline, updates prices)
By Chris Reese
NEW YORK, Oct 9 (Reuters) - U.S. Treasuries prices fell for a third straight day on Thursday as debt supply issues weighed on the market, while Wall Street opened higher and sapped any safety bid for bonds.
A host of new debt programs intended to free up lending is expected to result in increased issuance of bonds from the Treasury, diluting supply and undermining prices.
"Yesterday we had a sell-off, and much of that was driven by supply -- supply is definitely a factor here," said David Coard, head of fixed income sales and trading at Williams Capital Group in New York.
Benchmark 10-year U.S. Treasury notes
China's Wen assures Australia of commodity demand
This is important, Demand is there prices will follow...
"Australia's Prime Minister Kevin Rudd said China has assured him that demand for Australian resources will stay strong, shielding the commodities-dependent economy from the global financial crisis.Mandarin-speaking Rudd said he telephoned Chinese Premier Wen Jiabao on Monday and was told commodity demand would hold up despite China's growth slipping from "11% and 12% down to 9% and 10%". "Part of the long-term strategy of this government, and the strategy for the period immediately ahead, is how to more deeply and broadly engage with the Chinese economy," Rudd told Australian media on Thursday.Australia is pinning its hopes on China to ride out the current turmoil on international financial markets. The country's central bank slash interest rates by one percentage point this week to try and maintain economic growth and liquidity."
Canadian Venture CDNX home of Juniors - Near Death Experieance
It is called The Total Extinction. Nobody needs any Resources any more. Where will Majors take all these needed Ounces and Pounds in five year time? They have cut to the bone all their exploration during the last cycle and depending on Juniors to deliver resources. For them it is easier and cheaper to buy out resources from the market of Junior mining and Exploration Companies then to develop their own exploration pipeline. Just return to normal Risk Perception will bring Index 3-4 times higher. Ten Baggers are back into the play.Different guys and similar destiny worth of DD: SST.v, OK.v, MGN, TNR.v, CZN.v, SAX.to.
Amex Gold Bugs Index to Gold Ratio at its low.
All Gold Miners were thrown out with general equities: the difference here is value - at current Gold prices they are printing money. With Greed coming in instead of Fear Index could double with Gold price holding at this level. SSRI, SLW, AUY, NEM, ABX, AEM.30 year Treasury Yield below 4% - what kind of joke is it? Us Dollar Tipping point.
As I have mentioned before Treasury Bubble is next to explode. TYX yesterday finally crossed back above 4% Yield. It is some kind of joke, who is buying it at below 4% for 30 year? As it was mentioned even on bubble Vision CNBC you can get higher Yield at 90 days paper backed by Treasury now. Once the tide changes it will be like gasoline on the fire for sliding US Dollar.
Death of the Equity or Dow plus 1000 points? Gold, Silver, Zinc and Copper.
I will not be surprised now with DOW plus 1000 rally, after everybody has announced death of the equities. Do not fight FED now, close your puts position. I have sold all my Google GOOG puts and will return back after earnings and possible rally. Fear is at its High - time is to Buy. Amount of money pumped into the system is unprecedented. If the earth not stopping to spin now, bargains in Juniors will bring new fortunes for those brave to buy at these levels. Now the real decoupling begins between overinflated artificial financial assets and commodities with scarce supply like Gold, Silver, Zinc and Copper which are my preference. Why should you touch any poisonous financial stick when you do not understand what is inside of that "value" proposition? Go for simple things regulated by economics of supply and Demand and not by FED or its Friends from the Wall Street. They will save the world - it is fine we need it, but what kind of world will it be? What will be valued? where is the next story of building Wealth? Real things, real people, know your story and invest accordingly. With Gold above 850 USD Gold mining stocks are back to valuations at levels below USD500. In Silver divergence between value and stock prices are even higher. Once all these waterfall of liquidity will find its way into the system sector will explode to the upside. My rebound squad: SSRI, SLW, AUY, SST.v, TNR.v, CZX.v
Canada Zinc Metals CZX.v drills 12.13 m of 10.17% Zn, 1.75% Pb
If you are still adept of efficient market thesis, stay away from the market and invest in 30 year Treasury with yield below 4%. You will be most definitely "safely" losing your money on inflation there. Small problem is now you can not be sure whether treasuries will be around in 10 years time.
Canada Zinc Metals CZX.v has fallen down to 0.4CAD just after completing financing at 0.9CAD. Zinc is at 0.65USD now and indicating a complete depression for another 10 years. Who is right: Mr Market in its hangover mood or those who are buying now - only time will tell.
"Private placement
The company is also pleased to announce that, further to news in Stockwatch on Sept. 15, 2008, and Oct. 3, 2008, due to continued strong interest, it will be raising an additional $1-million through the issuance of 1,111,111 flow-through shares at a price of 90 cents per share."
"EXPANSION OF CARDIAC CREEK DEPOSIT 12.13 METRES GRADING 10.17% ZINC, 1.75% LEAD, 12.45 G/T SILVER AND 10.35 METRES GRADING 12.72% ZINC, 2.04% LEAD, 14.45 G/T SILVER
Canada Zinc Metals Corp. has provided the first batch of assay results it has received from its 2008 drill program on the zinc-lead-silver-bearing Cardiac Creek (CC) deposit. The CC deposit is on the 100-per-cent-owned Akie property in northeastern British Columbia, approximately 260 kilometres north-northwest of the town of Mackenzie. "
Wednesday, October 08, 2008
Fed, ECB, Central Banks Lower Rates in Coordinated Reduction
Finally somebody is reading this blog, Gold, Silver and commodities will appreciate against all FIAT currencies:
"Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''
To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net "
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''
To contact the reporter on this story: Scott Lanman in Washington at slanman@bloomberg.net "
Tuesday, October 07, 2008
Canada Zinc Metals CZX.v financing is closed for 6.0 million CAD.
Divergence of value and a stock price in a capitulation phase is very apparent in this case of a small Junior - pure Zinc play in a safe Canada mining environment. Stock was trading today below 0.5CAD and financing was closed on Friday at 0.9CAD for more then 6 million CAD.
More on the company:
More on Zinc:
Time is to Cut Fed Rate and let the US Dollar sink instead of all economy.
If you feel Fear - you are not alone. This is The Fear index: it is above 50, total panic - serious damage has been done to the confidence and all babies are thrown out with the water and there is no End to this suffering. Even Google GOOG is taking my advise and tanking faster then Nasdaq QQQQ into more sensible valuation. Gold is holding well above 850, all Gold stocks and juniors are crashed as if Gold was below 350 again. It is called desperation and a life time opportunity. If you are still solvent, it is time to Buy. Help is coming, Rates will be Cut, time is for US dollar to sink, not for all economy. Once Greed raises its head you will be surprise how the mood could change: even yours. We are all animals after all... Friday, October 03, 2008
TNR Gold TNR.v Amends Legal Action to Seek Rectification Confirming 25% Back-In Right. MAI.v
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2008) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR - News; PINK SHEETS:TRRXF - News) advises that, on August 8, 2008, it amended its writ of summons in the action commenced on June 30, 2008 in the Supreme Court of British Columbia against MIM Argentina Exploraciones S.A. ("MIM") a subsidiary of Xstrata PLC. ("Xstrata"). In the amended action TNR is adding:
"Further, the Exploration and Option Agreement, to the extent that it purports to terminate Solitario's (TNR's Argentina subsidiary) right to buy back equity in mining and exploration tenures acquired by MIM pursuant to the Exploration and Option Agreement if MIM fails to complete a feasibility study on any part of the properties within 36 months of exercising its option does not reflect the true agreement and common intention of the parties and was the result of a mutual mistake of the parties. The true agreement of the parties was reflected in the Letter of Understanding which provided that Solitario's back-in right subsists until 120 days after completion by MIM of a feasibility study on any part of the acquired properties. The plaintiffs therefore seek rectification of the Exploration and Option Agreement to accord with the true intentions of the parties.
Further, or in the alternative, the 36 month provision in the Exploration and Option Agreement was inserted by MIM without consideration and is unenforceable.
Further, or in the alternative, Solitario says that MIM is in breach of the Exploration and Option Agreement by entering into an agreement or agreement with a third party to undertake exploration work on the acquired properties without requiring the third party to complete a feasibility study on any of the properties within any time frame."
LOS AZULES /ESCORPIO IV UPDATE
The following is a summary in chronological order of recent events, news releases, and developments from Minera Andes Inc. ("MAI") pertinent to the Los Azules property that had not been previously released by TNR.
On September 25, 2008, MAI announces excellent metallurgical testing results at Los Azules, recovering up to 96% copper. In addition a costing and operational cost scoping study is scheduled for completion in December 2008.
On September 8, 2008, MAI announces a mineral resource estimate of 922 million tonnes of 0.55% copper as Los Azules, totalling to approximately 11 billion pounds of copper.
For more information about specific news release details, please refer to MAI's news and investor section directly.
ABOUT TNR
TNR is a base and precious metals exploration company focused on aggressively identifying new prospective projects as well as fostering work on its large portfolio of 15 properties in Argentina. The company's focus over the next 12 months is the exploration and development of its El Tapau, El Salto, and Eureka projects in Argentina as well as overseeing the exploration and development of the Iliamna and Shotgun projects in Alaska through its wholly owned US subsidiary.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
"Further, the Exploration and Option Agreement, to the extent that it purports to terminate Solitario's (TNR's Argentina subsidiary) right to buy back equity in mining and exploration tenures acquired by MIM pursuant to the Exploration and Option Agreement if MIM fails to complete a feasibility study on any part of the properties within 36 months of exercising its option does not reflect the true agreement and common intention of the parties and was the result of a mutual mistake of the parties. The true agreement of the parties was reflected in the Letter of Understanding which provided that Solitario's back-in right subsists until 120 days after completion by MIM of a feasibility study on any part of the acquired properties. The plaintiffs therefore seek rectification of the Exploration and Option Agreement to accord with the true intentions of the parties.
Further, or in the alternative, the 36 month provision in the Exploration and Option Agreement was inserted by MIM without consideration and is unenforceable.
Further, or in the alternative, Solitario says that MIM is in breach of the Exploration and Option Agreement by entering into an agreement or agreement with a third party to undertake exploration work on the acquired properties without requiring the third party to complete a feasibility study on any of the properties within any time frame."
LOS AZULES /ESCORPIO IV UPDATE
The following is a summary in chronological order of recent events, news releases, and developments from Minera Andes Inc. ("MAI") pertinent to the Los Azules property that had not been previously released by TNR.
On September 25, 2008, MAI announces excellent metallurgical testing results at Los Azules, recovering up to 96% copper. In addition a costing and operational cost scoping study is scheduled for completion in December 2008.
On September 8, 2008, MAI announces a mineral resource estimate of 922 million tonnes of 0.55% copper as Los Azules, totalling to approximately 11 billion pounds of copper.
For more information about specific news release details, please refer to MAI's news and investor section directly.
ABOUT TNR
TNR is a base and precious metals exploration company focused on aggressively identifying new prospective projects as well as fostering work on its large portfolio of 15 properties in Argentina. The company's focus over the next 12 months is the exploration and development of its El Tapau, El Salto, and Eureka projects in Argentina as well as overseeing the exploration and development of the Iliamna and Shotgun projects in Alaska through its wholly owned US subsidiary.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
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