Aug 29

Geomega Resources Discovers Gold on Anik Property

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Geomega Resources Inc. (TSXV:GMA) has discovered gold on its Anik property in Québec, within an important structural zone of the Guercheville/Opawica deformation corridor. Several economic gold grades from a 4 m3 toppled block (sub-in-place) and blocks extracted mechanically from the underlying outcrop.

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Aug 29

Judicial Review Application for Rubicon’s Phoenix Gold Project Dismissed

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Rubicon Minerals Corp. (TSX:RMX,NYSEMKT,RBY) announced that the Ontario Divisional Court has dismissed an application for judicial review regarding the company’s production closure plan for its Phoenix gold project.

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Aug 29

Pilot Gold Completes Acquisition of Cadillac Mining

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Pilot Gold Inc. (TSX:PLG) announced the completion of its acquisition of Cadillac Mining Corp. (TSXV:CQX), which owns the past-producing, sediment-hosted Goldstrike gold project in Western Utah.

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Aug 29

Mines Management to Participate in the 4th Annual Global Investment Conference in New York

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Mines Management, Inc. (TSX:MGT,NYSEMKT:MGN) is set to participate in the Global Investment Conference in New York on Tuesday, September 9, 2014.

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Aug 29

"Buy Gold Now" Says the September Average

Gold Price Comments Off on "Buy Gold Now" Says the September Average
Fancy playing gold’s historical odds this fall…?
 

WE DON’T make price forecasts here at BullionVault, writes Adrian Ash, head of research at the world’s leading gold and silver exchange online.
 
If we knew where prices were heading by a certain date, we’d be in another business entirely…ruling the world most likely from a black basalt tower shrouded in thunder and lightning.
 
Or at least cleaning the office with an army of enchanted mops.
 
History can help point the way however. And as lots of coin-dealers and pundits will tell you today, the month of September historically sees the best average gain in gold prices.
 
“Gold has its best month of the year in September,” as UK bank and London market-maker Barclays put it in a note today, “as investors shy away from riskier assets such as equities.”
 
Whatever the reason (India’s Diwali demand? the end of gold’s typical summer lull as Western traders return from the beach?) the simple averages bear this out. Since prices began floating in 1968, buying gold has returned 2.3% in September (US Dollar prices) on average, gross of costs. That’s well ahead of the average 0.7% from the other months of the year.
 
More than that, according to BullionVault‘s own number-crunching today, September has been the best single month in 9 of the last 46 years. That beats March, May and July (5 each) as well as February (six).
 
But most important for active investors, perhaps, is looking beyond one month’s date. Because the last third of the year…from September to New Year’s Eve…has offered the best time to buy and then sell gold since 1968.
 
The last four months of the year, which 2014 will enter on Monday, has returned an average 5.1% to Dollar-gold traders. That beats the earlier two thirds both on the average return (Jan-April 3.1%, and May-Aug 2.5%) and also on frequency (best gain 17 times versus 14 and 15).
 
These are just historical gold data, remember. There’s no guarantee 2014 will play out like the “average” year. But if you fancy playing the odds, take note. Gold currently stands 7.3% higher in Dollar terms so far in 2014. It has matched or beaten that year-to-date gain 19 times since 1968.
 
In those 19 years, gold only fell to end the year lower 4 times. And where gold ended August within 1 percentage point of its current year-to-date rise (6 times in total), it only fell once by New Year. 
 
The average rise by year-end has been 8.9%.
 
These are just numbers, of course. And if you see active trading like playing roulette, then the wheel…like a pair of dice…has no memory. Choosing to buy gold because the historical averages suggest it, however, may just become self-fulfilling.
 
Imagine if everyone reading coin-dealer blogs, pundit columns and Barclays’ note today decided to act.
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Aug 29

Gold’s $1200-1400 Trading Range

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Gold fund manager talks technical and fundamental state of market…
 

JOE FOSTER is investment team leader for Van Eck’s flagship gold fund, the Van Eck International Investors Gold Fund.
 
He also serves on the investment teams for the Van Eck Global Hard Assets Fund and the Van Eck VIP Global Hard Assets Fund, and is an advisor to the Market Vectors ETF Trust – Gold Miners ETF (NYSEArca:GDX) and Junior Gold Miners ETF (NYSEArca:GDXJ).
 
Working in the gold mining and investment business for more than 25 years, Foster is now frequently quoted in the Wall Street Journal and Barron’s as well as being a frequent guest on CNBC and Bloomberg TV. Here he speaks to Hard Assets Investor‘s managing editor Sumit Roy about his latest outlook for gold…
 
HardAssetsInvestor: Gold zoomed higher during the first quarter, but it hasn’t really done much since then. Do you expect volatility to return to gold at some point this year?
 
Joe Foster: Gold has been range-bound. It’s basically been hanging around the $1300 level since March. Normally, we see strength in the fall for a variety of reasons. Seasonally, the price of gold seems to pick up as we move toward year-end. We could test the highs again later in the year, which would be around $1400 an ounce. If we do that, we’ll probably see a little more volatility. And then if something happens in the market that gets it through that $1400 level, certainly I would see it becoming more volatile.
 
HAI: Do you follow that technical picture at all? Is $1400 a key level?
 
Joe Foster: Yes, technically speaking, $1200 to $1400 is the range we’ve been in since the middle of 2013. We’ve been in this range for a year now.
 
HAI: Is it surprising to you that gold is holding in there despite the fact we’re seeing the US Dollar rally?
 
Joe Foster: No, it’s not surprising, because we saw gold collapse last year. That was a historic collapse in gold price. Any negativity in the market toward gold was already priced in last year. This year, even though we’re seeing Dollar strength, gold is standing up to that because pretty much everyone who wanted to sell got out last year.
 
That other thing that is supporting gold is the geopolitical risks we’re seeing around the world. And that’s also supporting the Dollar. Both gold and the Dollar are being used as safe-haven investments in this environment.
 
HAI: Seemingly every day we’re getting some headline about the geopolitical situation either in Iraq or Russia or Ukraine. Are these going to be drivers of gold going forward, or are they merely an excuse to trade on a day-to-day basis?
 
Joe Foster: I call them supporters, not drivers. They’re supportive of the market and they generate short-term gains in gold. But I don’t regard them as longer-term drivers.
 
HAI: You manage gold mutual funds for Van Eck, and of course Van Eck is also the issuer of the very popular ETF, Market Vectors Gold Miners ETF (NYSEArca:GDX). Of course, there’s also a host of other ETFs tied to physical gold out there. How should an investor decide what to buy to get exposure to the gold that they want?
 
Joe Foster: Whether it be physical gold, gold bullion ETFs or gold equities, they all give you exposure to gold. There’s a very high correlation between gold equities and gold. They really are proxies for gold itself; that’s why you invest in these things.
 
Gold equities have had a very tough time for several years, up through 2013. When you look at the fundamentals as far as what’s the right type of gold investment in this environment, we like equities because a lot of the things that caused the gold stocks to underperform have gone away.
 
The companies are better run now than they were several years ago. They’re hitting their targets, they’re meeting expectations and that’s allowing the gold stocks to outperform gold.
 
HAI: Given that they’ve done better than gold this year, could that be an early sign that perhaps the bottom is in for that sector?
 
Joe Foster: Yes, I think so. It’s not just a reversion to the mean, it’s based on fundamentals. The companies have had serious problems with controlling their costs, and now they’re bringing their costs under control. They’re much better businesses now, so fundamentally they’re a more attractive investment today than they were a year or two ago.
 
HAI: Is silver a metal you cover? Do you see it performing in line with what gold does?
 
Joe Foster: Yes, we invest in silver stocks too. Within the gold funds, we have a number of silver stocks. I invest in the silver for the same reason as gold. Silver is also a monetary metal and it moves on the same fundamentals as gold.
 
HAI: Finally, much has been written about the marginal cost of gold production, or the level at which gold mining becomes unprofitable for the industry. Analysts at Goldman recently said they thought that level was $1200. Do you have any thoughts on that?
 
Joe Foster: $1200 is definitely a critical level. We talked about the technicals, but looking at the fundamentals of the gold price, one of the reasons I think $1200 is a firm base is that that’s where these companies have geared their business. And if it were to drop below $1200, we would see a significant increase in the number of mine closures and cutbacks due to low gold prices.
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Aug 29

How Central Bankers Blew Up the World

Gold Price Comments Off on How Central Bankers Blew Up the World
$2.2 trillion here, a 3% jump there, and soon you’ve got S&P 2,000…
 

ALL OVER the world stocks are rising, writes Bill Bonner in his Diary of a Rogue Economist.
 
In the US, the S&P 500 rose over the 2,000 mark for the first time in history. The Dow is over 17,000.
 
And if you want to buy a share of online TV network Netflix, Inc. (Nasdaq:NFLX), you will pay $144 for every Dollar the company earned over the last 12 months.
 
If you bought the company outright, in other words, you’d have to wait until 2158 to earn your money back.
 
But this story is playing out from Timbuktu to Taiwan to Texas. Here’s the latest from Bloomberg:
“Shares worldwide added more than $2.2 trillion in value since Aug.7, according to data compiled by Bloomberg. Optimism that central banks will support economic growth sent the MSCI All-Country World Index up 3.8% from its low this month. The S&P 500 has risen for 10 of the last 13 days and the Nasdaq Composite Index is about 10% from an all-time high.”
Put them all together, and publicly traded equities are now worth more than $66 trillion – just shy of total world GDP. That’s $12 trillion more than they were worth in the beginning of 2013…and it’s $30 trillion more than they were worth 10 years ago.
 
What has happened during the last 10 years to make stocks so much more valuable?
 
We remind readers that shares are titles to ownership of real assets and the earnings they produce. And in a competitive economy, they shouldn’t be able to diverge too far from the cost of creating those assets.
 
Typically, investors have paid from 10 to 20 times annual earnings for shares. But when they are bearish, as they were in 1982 and again in 2009, they will want to pay less than 10 times earnings. And when they are bullish, the sky’s the limit…but seldom more than 20 times.
 
Currently – except for China and Russia – almost all major country stock markets are closer to the top of the range than the bottom. With the S&P 500 now trading on a Shiller P/E (which looks at the average of 10 years of inflation-adjusted earnings) of 26.5.
 
What would make investors so bullish? And why would this bullishness extend to practically the entire globe?
 
After all, corporate incomes depend on corporate sales. And one corporation’s sales can only increase if a) it takes business from other corporations (which would mean no net increase for the world’s sales) or b) the world economy is growing.
 
But that’s the curious thing. As stocks have gone up…growth rates have come down, from a high of nearly 5% in 2009 to just 2% last year.
 
Last year, in the US, stocks rose 10 times faster than the economy beneath them.
 
Go figure.
 
The old-timers tell us that “the stock market always knows more than we do.” If that is so, what is it that the market knows that we don’t? Is there another Industrial Revolution coming? 
 
Are birth rates exploding? Not as far as we can tell.
 
So, what’s behind the big run-up in asset prices?
 
Here’s our guess: Janet Yellen, Mario Draghi and Shinzo Abe.
 
At the recent central bank meeting in Jackson Hole, Wyoming, Janet Yellen let it be known she was in no particular hurry to let markets discover prices on their own again. Instead, she’ll put prices where she wants them.
 
And that means setting interest rates at vanishingly low levels…and asset prices at in-your-face new highs.
 
Mario Draghi, meanwhile, is faced with a triple-dip recession in Italy, a flat economy in France and negative growth in Germany. From Bloomberg:
“[S]aid Patrick Spencer, head of US equity sales at Robert W. Baird & Co. in London, ‘Draghi gave clear indication that he’s standing ready with further measures to stimulate growth and that’s helping overall sentiment’…”
As for Shinzo Abe, the Japanese prime minister, he seems ready for any sort of mischief in the name of increasing inflation and GDP – including encouraging women to cut down trees!
 
Shhh…No need to accuse us of male chauvinism, as though we had something against women doing hard labor. We don’t. In fact, we’re in favor of it. But if you could raise prosperity by increasing the number of female lumberjacks, half the world’s women would already be wearing plaid shirts.
 
Shinzo, Janet, Mario…Surely there is a clever magazine somewhere readying a cover story…
 
“The Committee to Blow Up the World,” is the headline we propose.
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Aug 29

Higher Than You Think Possible…

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…and then lower than you can possibly imagine…
 

“CLOSE ‘EM…CLOSE ‘EM…CLOSE ‘EM!” the other brokers screamed at me, writes Steve Sjuggerud in his Daily Wealth email.
 
I was huddled under my desk to get away from them, trying to hear my first-ever client so I could finish filling out his account information.
 
I was 22 years old and in the first week of my first “real” job.
 
The screaming was the typical hazing of a new recruit. The prospective client didn’t care about it, though – he barely asked me my name. He just wanted to buy two Hong Kong stocks – and he wanted to buy them NOW.
 
“Buy me Cheung Kong and Hopewell Holdings, RIGHT NOW!” he screamed.
 
“Sir, I can do that, but we need to fill out the account form first,” I said. The roar from the brokers continued. (“CLOSE ‘EM…CLOSE ‘EM…CLOSE ‘EM!”)
 
I did nothing special to open the account that day, except pick up the phone when it rang. As anyone in commission sales can tell you, the phone ringing like that almost never happens.
 
But it sure was happening back then! Emerging-market stocks were HOT. And fortunately for me, I was in the right spot at the right time…The brokerage firm I worked for specialized in buying foreign stocks and bonds.
 
My phone was ringing every day. And I was making more money than I ever imagined.
 
In the last six months of 1993, Hopewell Holdings (a Hong Kong infrastructure and property firm) soared more than 100%. It wasn’t just Hopewell – emerging-market stocks in general did well.
 
In the full year of 1993, the Templeton Emerging Markets Fund went up more than 100%. And in the month of December alone, the entire Hong Kong stock market (the Hang Seng Index) soared by more than 30%!
 
My friend, if you want to know what the ninth inning of a major stock market boom looks like – that’s it. And that’s what I expect will happen in US stocks.
 
That was the first time I’d experienced “The Ninth Inning” of a major stock market boom. I sure got the full experience…
 
The “bottom of the ninth” was the most amazing part…As I said, the entire Hong Kong stock market soared by over 30%…in December alone!
 
Since then, a few decades have passed, and I’ve gone through many Ninth Innings – mainly because I am willing to consider investing in just about any asset class, and in just about any country.
 
You have probably experienced at least one major stock market boom and one Ninth Inning in your investing lifetime…and that was probably the Nasdaq boom that peaked in March of 2000.
 
The bottom of the ninth inning was amazing in that boom – the entire Nasdaq stock index was up more than 60% in the final four months before the Nasdaq peaked on March 9, 2000.
 
In 1994, I learned firsthand just how painful the aftermath of a major stock market boom is. I was personally crushed…
 
My monthly income fell by roughly 90% – and stayed that way for the next nine months.
 
The phone didn’t ring anymore. It was a bad year for me. Fortunately, I learned a lot of life lessons from that experience.
 
I remembered reading a quote from legendary fund manager Jim Rogers in the 1988 book Market Wizards, where he said:
“Markets often rise higher than you think is possible, and fall lower than you can possibly imagine.”
“Boy, that’s an understatement,” I thought in 1994. That lesson has stayed with me since.
 
In Hong Kong in 1993, I learned that stocks can keep going up and up, beyond all reason. You probably learned that lesson with stocks in 2000, or real estate in 2006.
 
In 1994, I learned that Jim Rogers was exactly right – that stocks could fall lower than I could possibly imagine.
 
I urge you to commit that phrase to your memory. It will serve you well.
 
Fortunately, right now I think we’re still in the first half of that quote. Someday we will face the second half of that quote. Someday the high-flying stocks will come down to earth.
 
The thing is, we can’t know when that day will arrive. And importantly for your wallet, there could still be a lot of upside between now and when that day comes.
 
The biggest gains typically come in the final innings of a stock market boom. Remember, the entire Hong Kong stock market soared more than 30% in one month – December of 1993. And remember, the Nasdaq index soared more than 60% in the last four months before it peaked.
 
Many people worry that the US stock market is “in a bubble” or “approaching bubble territory.” Many people worry that the end is near for the US stock market boom.
 
I disagree. I expect we’ll see “fireworks” here soon, like Hong Kong in 1993 or the US in 1999, and that will signal the end of the boom. We are not there yet…
 
This year, US stocks are up just 5%. (If you add in dividends, they’re up 6%.) Does that sound like fireworks to you? That is not 30% in one month, or 60% in four months. That is not a Ninth Inning.
 
The Ninth Inning of this great stock market run, in my opinion, is ahead of us…not behind us. Now is not a moment to be timid. Stocks could still go on a big run! So be bold! Take a deep breath, puff your chest out! And take advantage of it!
 
I wish someone would have drilled the Jim Rogers quote into my head 20 years ago. Let me share it one more time, so you can really commit it to memory:
 
Markets often rise higher than you think is possible, and fall lower than you can possibly imagine.
 
Don’t forget it!
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Aug 29

Crocodile Gold Ends Month with Agreement to Sell Non-core Assets

Gold Price Comments Off on Crocodile Gold Ends Month with Agreement to Sell Non-core Assets

Rob Hopkins of Crocodile Gold explained how the transaction is a “win-win scenario” for both Crocodile and buyer Phoenix Copper.

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Aug 28

Crocodile Gold Announces Sale of Non-core Assets

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Crocodile Gold Corp. (TSX:CRK,OTCQX:CROCF) announced that it has entered into a sale agreement under which it will sell Phoenix Copper Ltd. (ASX:PNX) 100 percent of its Iron Blow and Mount Bonnie massive sulfide deposits for a 2-percent royalty for “any gold and silver production from the related tenements.”

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