Grandich's Blog

With the U.S. Stock Market approaching my upside target of DJIA 10,500 – 11,000, I’ve now begun to look closely for a selling point. Given next week begins a seasonally strong period for the stock market, I may not be saying Ba Hum Bug until after Christmas. Stay tuned.

The U.S. Dollar is showing signs of a doable short- to intermediate-bottom but needs to get above 78 on the U.S. Dollar Index to confirm, IMHO. Such a move could lead to a significant bear market rally so we shall watch closely.

If and when such a dollar rally takes hold, one should not assume it’s curtains for gold (as much as the mortally wounded perma-gold bears are praying for). Gold has so many long-term bullish factors going for it which I hope to discuss as we move closer to year-end. For now, it continues to demonstrate an ability to self-correct intra-day and my target of $1,200 for this year still remains a strong possibility. As I’ve stated often, $1,000 gold has gone from being a ceiling to floor so those looking to buy on weakness should not expect to buy gold again  for three digits for quite some time.

This has to be one of the worst-written articles I’ve ever read. I point this out for a couple of reasons:

• Look at the author’s past articles and you will find a big slant against “goldbugs.” This is not uncommon in financial journalism. Simon Constanable comes to mind as someone who can’t help himself but knock gold and those who believe in it. We all know several commentators on CNBC-TV have over the years “panned” gold whenever they can. BNN, a five star network in my book, also has some gold bear anchors. Frances Hurodelsk and Martin Cej can’t help themselves whenever they have a guest on gold. They always take the-cup-is-half-empty line. As I have said numerous times, gold will never be accepted by the masses as it flies in the face of owning financial assets, a factor most in the financial services industry and financial media need to do okay in order to prosper.
• Gold bears always point back to $850 gold, an event that, by the way, was a one day affair (gold fell quickly back to under $700 so very few people bought at $850). What they fail to do is to point back to the tops in the asset they love and live off of – stocks. The author of the article I refer to fails to note how much worse the masses are who bought stocks at their all-time highs. At least gold is back above its high nominally. Good luck to those who wait for the NASDAQ to hit 5,000 to do the same.

Now here’s a journalist who deserves a medal! If it was up to me, he would get the “John Crudele” medal of honor.

PLEASE NOTE – You must assume my opinions remain the same from my last commentary on a market or stock until such time I publish an update.

In the case of Northern Dynasty Minerals, no change in opinion therefore no new update. However, here’s a copy of a comment on it by me for an upcoming article in a mining publication:

Northern Dynasty Minerals (NAK-NYSE/Alnet, NDM-TSX) – Since acquiring the Pebble Project in 2001, Northern Dynasty has delineated and advanced one of the world’s greatest stores of mineral wealth.

Located on American soil in southwest Alaska, the Pebble deposit is remarkable for both its size and composition. Current estimates indicate a total resource of 5.1 billion tonnes measured and indicated and 4.0 billion tonnes inferred, containing 72 billion lb copper, 94 million oz gold and 4.8 billion lb molybdenum. Quantities of silver, palladium and rhenium also occur in the deposit.

In 2007, a wholly-owned affiliate of Northern Dynasty entered a 50:50 partnership with a wholly-owned subsidiary of Anglo American plc to permit, construct and operate a modern, long-life mine at Pebble. Based on Anglo American’s staged investment of $1.425 to $1.5 billion, both companies share equal ownership, board representation and rights in the Alaska-based Pebble Limited Partnership.

Under the leadership of the Pebble Partnership, the Pebble Project is on a path to development. Key project strengths include:

• a known mineral resource with the tonnes, grade, metallurgy and geometry to support a modern, long-life mine;
• favorable terrain — low elevation;
• a stable and predictable regulatory environment;
• ready human and financial resources; and,
• broad public support for responsible resource development in Alaska.

Theirs is a rather loud anti-pebble crowd that has clearly spooked some investors into believing the project will not be able to even make it to the formal permitting application stage and receive due process of law. While one can never say this crowd can’t win, I remain confident because so far government regulators haven’t shown to be anything but fair and I trust they will allow the process itself to determine whether Pebble can go forward into mine development.

End of update