In this update...

Editorial

Editorial: Gold Holding Support Despite Extreme Negative Sentiment

I think you should read this to get the full view of the current sentiment. More important, here is a quote that sums up much of our thinking:

It’s clear that anyone who doesn’t believe in Gold for the long-term has sold and judging from the sentiment indicators, Gold is now in much stronger hands than when it was trading at these prices at the 2012 and 2011 lows. Thus, if Gold is able to hold this support and turn higher, it should approach $1750 to $1800 faster than one would think. 

Podcasts

Bear Creek is Advancing its World Class Corani project to Production

This is our first interview with new sponsor company, Bear Creek Mining and its founder and CEO Andy Swarthout. Bear Creek currently has a market value of less than $250M and has $70M in cash. Construction on Corani is likely to begin sometime next year and we could see some production in 2015. Click here to see the feasibility study on Corani which used $18 Silver in its base case. Corani's economics are very compelling at current prices. If Silver returns to $40, Corani would be fabulously profitable in that scenario.   

An update with Argonaut Gold & CEO Pete Dougherty

Quoting Pete's concluding thought:  
I see this as a potentially great acquisition time frame, not only for us but for investors. Never before in this cycle that we are in have we seen the multiples on gold mining stocks this low. That provides significant leverage to the future. I’m still bullish on Gold, I believe it has a place today and in the future will be stronger.
This quote comes from a CEO who has built a billion dollar company in less than three years on the back of smart acquisitions. 

Jordan Roy-Byrne interviewed by Financial Survival Network

In this interview we discuss the big picture, history, and outlook going forward for Gold, Silver and the mining stocks. 



Company News

Balmoral Resources Strike Extent of West Zone Style Gold Mineralization at Martiniere

“More than doubling the known extent of West Zone style mineralization and having a very high rate of success with such widely spaced, first pass drill holes in this type of high-grade gold system further reinforces the scale and upside potential at Martiniere” said Darin Wagner, President and CEO of Balmoral Resources.


Corvus Gold Reports Additional Drill Results from ZuZu Zone at North Bullfrog

Jeff Pontius, Corvus’ CEO, stated: “We anticipate that this additional zone of at-surface oxide mineralization on private land at ZuZu will expand the scope of the Mayflower project and should increase the resource base for the Mayflower project, thus enhancing the project economics.  We look forward to the completion of the Mayflower feasibility and the continued development of the project as well as the start of our 2013 high-grade and North Area exploration program planned for Q2 2013.”

Premium Sample

Two words: bullish hammer. It is a reversal pattern and Thursday night we mentioned to subscribers the high probability that the weekly charts would show bullish hammers. It is a very bullish reversal pattern. I see bullish hammers in just about every stock we follow. More important and in the case of GDX and GDXJ, the bullish hammers occurred in the second highest volume weeks, ever. The gold stocks hit major support and formed a bullish reversal and on huge volume.    

Last week we wrote: The HUI closed at 352 and has a strong confluence of support (trendline, retracements) at 337 and after that is 300 which stands out as support on the monthly chart. In our update to be published this weekend we will consider where are favorite names may be trading at HUI 337 and HUI 300.  

The HUI's low for the week was 337 and only time will tell if it becomes the MAJOR low. It looks good at this juncture. That's why we deployed some more cash near the end of the week.

As far as premium updates, we are focusing on updating our company reports and producing reports on a few new companies. We have also begun work on a Global update to provide our latest analysis and thoughts on the equity market, commodities, bonds, etc. This is a fascinating time with equities moving higher, Copper & Oil looking weak and the US$ moving higher while Bonds struggle.

Moving back to Gold & Silver stocks, last week we teased about two things. Well, two things I'd look for as far as starting my company research are 1) companies that have plenty of cash and 2) have not broken below their 2012 lows. In other words, look for companies that are well capitalized and showing relative strength. 

If you signup for a premium subscription you will get our Criteria Reports (provide our strict criteria for producer and exploration companies), our Rules Report (rules we have for investing in the sector and managing a portfolio), recent updates as well as a 50-page report file which contains the latest reports on the companies we follow.   

Subscriber comments received today:

Subscriber DE in Southern Cal: You are doing some stellar work

Subscriber JJ: Very nice call at HUI 337! Final bottom or not, very nice call. And thank you for putting yourself on the line...


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Wishing you good health and profits,

-Jordan

Disclaimer: Sponsor Companies are paid sponsor companies of TheDailyGold.com website and this free newsletter. Do not construe sponsorship with a recommendation. The author of this newsletter is not a registered investment advisor. This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and due your own due diligence. This email may contain certain forward looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.