In this issue...

- Editorials

- Sponsor News

- Premium Sample

Editorials...

Today's editorial: Near Term Targets for Gold, Silver & Miners

The precious metals sector has had quite a solid rebound. We look at the price action, technical resistance and sentiment to gauge where this rally may pause or correct.

Sponsor News...

Argonaut Gold reported an updated preliminary economic assesment for its San Antonio project, which in all likelihood will become the company's third mine. According to my math, the project capex would be repaid in about two years in the base case scenario of $1250 Gold. (Gold closed at $1695 today). Shares of the company are on the cusp of retesting the early 2012 high. 

Premium Sample...

Friday we published a 24 page update on the gold stocks which included our updated model portfolio, coverage of GDX, GDXJ and near-term resistance targets for Gold, and GDX. We also produced charts of our proprietary large producers index. This is a cap-weighted index of 13 of the best gold producers such as Gold Corp, Newcrest, Yamana, Rangold, New Gold, etc. Below we show the weekly charts.

The first chart shows the long-term trendline and markets the depth of the various corrections and cyclical bears.

The 2011-2012 bear market, which lasted about 18 months and from top to bottom and lost 43%, appears to be a retest of the breakout past the 2008 high.

As of our last update, the model portfolio was up 11% YTD while GDXJ was down 12% YTD.

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Wishing you health and profits,

Jordan