Here is some important information and analysis for your consideration:

Jim Rogers: Gold Correction to Continue into 2015
Great interview done by my friend Collin Kettell. Jim's thoughts on gold stocks, Gold and the US$/Gold relationship are quite interesting. Seriously, they are.   

Traders Sell Stocks & Bonds- Buy Gold & Silver
The latest post from Market Anthropology. 

US Dollar Reversal
Post from Tiho Brkan.                                      

Market Anthropology: Going Up?
The latest from Erik Swarts at Market Anthropology. 

Precious Metals Video Market Update
This is a week old but gives our thoughts on the US$.

Balmoral Resources Options N1 & N2 projects

Premium Snippets

The HUI monthly chart is quite instructive as it details support (150) and resistance (205-210). Note that the support at 150 was formed after three months. And 150 as support/resistance dates back 12 years. Its very significant. The same can be said for 205-210 on a smaller scale. It marked the June lows in 2013 and 2014 and has been key resistance over the past few weeks. 

Next, here is a look at our Top 40 Index. The 80-week moving average has been key resistance for several years. Note the arrows. Over the past three weeks the index has tested but failed to takeout the MA. That's bearish. The index did put in a very strong double bottom at the end of 2014. Like the HUI, this index has clear resistance and clear support.  

The near-term trend has turned down but we've noted the well defined and strong support established at the end of last year. Another reason folks shouldn't get all bear'ed up is macro developments have turned more favorable for gold companies. Below we chart Gold in CAD$ terms, Gold against Oil and Gold against Industrial Metals.

The vast majority of companies we invest in and trade are domiciled in Canada. Most of their costs in CAD$. Thus the Gold price in CAD$ in many cases (not every) is just as important as the US$ Gold price. For companies operating and exploring in Canada its highly important. The Gold price in Canada has clearly bottomed and a few weeks ago touched a 21-month high. Meanwhile, energy can be 25% of costs for producers. Energy costs are coming down in a big way. That is another favorable thing for companies. Gold against industrial metals can be a proxy for other costs. 

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These are favorable developments that apply differently to different companies. Producers in the USA are being hurt by the strong US$. Its the opposite for producers in Canada. All producers are getting a huge break thanks to the crash in energy costs.

In TDG #399 we spent several pages reviewing our portfolio companies and our watch list. We are cutting our laggards as we review recent performance. Considering trend, upside potential and risk we have a clear top 6 right now. There is one simple indicator we use (for the most part) to define trend. For the watch list we noted one company that has seen big insider buying. That's always a good sign. We also noted two others which we could see in the portfolio in the future. One is a producer that is trading at less than 6x its enterprise value. The company is in a great jurisdiction and has potential to grow its production near 200K oz Au/yr in the coming years. We think it is likely to be acquired in the coming years. Its a company we've never discussed publicly.   

Now is a great time to consider a subscription as we will have new and updated reports coming over the next two months. Consider a subscription to our premium service as I believe we have one of the best services available. We are one of the only credentialed technical analysts who is the editor of a service. Secondly, we are one of only a few people who run a real money portfolio. That means our goals are 100% aligned with our subscribers.

Subscribers in the past few weeks commented:

Mr. J Roy-Byrne,
I really enjoy your newsletter, extremely informative as you have been great in calling Gold's turns. I happen to listen to several views, (yours being most accurate)..

Personally, I think your $149 subscription for half a year is probably the best deal I know of anywhere! Thanks again for your work and insights.

I think you have one of the 2 best paid web site's on the market right now, the other being …….. Of course he charges $1,600 for 16 months.

Weekly updates are sent on Saturdays while flash updates are sent when we make a trade. Reports are sent sporadically. Upon signup you receive all recent reports and updates which includes a recent Top 10 Company Report. This Top 10 Report is a full 35 pages and 15,000 words long and is available with a subscription. I am very confident in the future success of these companies. They meet a set of strict criteria. 

Thanks for reading. I wish you all great health and prosperity in 2015! 

-Jordan

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