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A Service You Should Consider

Posted by Peter Grandich at 4:54 PM on Wednesday, October 28th, 2009

After once being  a legend in my own mind, I’ve easily accepted the fact I will never be the smartest, second smartest, etc., guy in the world. Instead, I realized if I could find individuals and groups who have demonstrated to me a special skill, I could incorporate all of them into my thoughts and hopefully then have something good going for me. A case in point would be my belief that Mr. David Walker is a 21st century financial prophet and it paid handsomely incorporating that into my work.

Here’s two links to a super service I believe just about all readers can benefit from. You can begin receiving it free by just providing your email address. I fully support their comments on the gold and the U.S. stock market.

Posted in All Posts, Gold, US Stocks | 17 Comments »

Update

Posted by Peter Grandich at 3:18 PM on Wednesday, October 28th, 2009

Markets are quite interesting at the moment. The inevitable stock market correction appears to have finally taken hold. A 5%-10% decline would be the least one would look for as of right now. I wouldn’t yet bet against the “Don’t Worry, Be Happy” crowd so I’m quite content on watching this unfold from the sidelines.

Gee, gold options expired today and what do you know gold fell $30+ the last three days. What a coincidence. I suspect we’ll see a bounce in gold followed by some selling to see if the bears can finally do some real damage. Based on their track record up until now, I wouldn’t break into a sweat if you’re long term bullish like me.

The U.S. Dollar is once again trying to get some sort of a counter-trend rally going but needs to get a close above 78 on the U.S. Dollar Index to do so. Even if it does, any rally looks like it should be capped below 84.

I remain neutral on oil and screaming bearish on 10yr. and higher U.S. Treasuries.

I’m going to put a buy again on NSU as this sharp correction from $3.40 just last week seems to have been enough of a correction. I paid up to $2.60 today and will use that as a buy limit.

I’m adding a new recommendation to my model portfolio. Buy East Asia Minerals (EAS-TSX-V $1.78) up to $1.85

Keep a $1.55 buy limit on KMK until further notice. There’s a lot more to this situation than meets the eye so be careful of what you assume is real information from people who may be playing with one or two hands tied behind their backs.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Oil, Precious Metals, Silver, U.S. Economy, US Dollar, US Stocks | 18 Comments »

Things

Posted by jojo at 9:59 PM on Tuesday, October 27th, 2009

gold_10-23-09

As noted over the weekend, option expiration in the gold market led to weakness. What a surprise-lol! While risk remains to $1,015 – $1,025, and even as low as either side of $1,000 if the U.S. Dollar can get above 78 on the U.S. Dollar Index, don’t lose sight of the bigger technical picture. Richard Russell of The Dow Theory Newsletter has correctly noted how gold has once again broken out from a bullish triangle formation. We remain in a secular bull market that’s been stealth-like and dominated in the news by bears (who have been wrong over and over again) and weak-kneed bulls who missed the latest up move and desperately need a bigger pullback to get back in so not to lose face.

Crack In The U.S. Stock Market?

Did He Really Say This?

Sad But True

Israel, Sooner or Later

What’s Playing In Your Heart?

Posted in A Grandich Company, All Posts, Gold, Precious Metals, US Stocks | 7 Comments »

Special Update

Posted by Peter Grandich at 10:53 AM on Saturday, October 24th, 2009

I had a chance to run my technical market analysis last night and it suggested the U.S. stock market is now in its most vulnerable position for a correction since the March lows. This doesn’t mean it’s a certainty but does suggest the chances are significant we can see a 5%-10% correction so be alert. The fact that I had a chance to converse with one of the world’s best market technicians last night, Mark Leibovit, did a play a role in this thought as he also is now in a sell mode on the stock market. I very much look forward to his presentation later today.

It’s important to note that gold option expiration’s will occur early next week and they tend to bring short-term weakness with them. I continue to believe this is a period of consolidation/correction for gold with risk down to $1,015 – $1,025. But any big surprises should only be on the upside.

Have a most blessed weekend!

Posted in All Posts, Gold, US Stocks | 31 Comments »

Update From Vancouver

Posted by Peter Grandich at 11:58 AM on Thursday, October 22nd, 2009

No rain today (tonight is expected to be another story) so hoping to head up to Whistler for the day.

U.S. Stock Market – Yesterday’s late day sell-off was the first of its kind in quite awhile. The market has not had a 10%+ correction since the March lows. We’ll need to watch the next couple of days to see if one has finally arrived. Whether it does or not the market continues to “melt-up” and my target of DJIA 10,500-11,000 remains intact.

U.S. Dollar – In 25 years+ in this business, I can’t recall any single market having such an overwhelming number of bears (95% bears in U.S. Dollar Futures) and not see a reversal of some magnitude. There are just so many legitimate bearish factors continuing to pile up against the U.S. Dollar. The only hope for some counter-trend rally to begin would come IMHO if the U.S. Dollar Index could close above 78. Until such time, the path of least resistance remains down.

Gold – Sorry for the bad language but if you’re a bear you have to be poo-pooing in your pants right about now. Despite widespread bearishness not only from the usual wrong suspects, many former bulls became weak kneed or outright bearish and continue to see the market move away from them. Gold has shown tremendous internal strength by actually self-correcting intra-day by selling off only to come roaring back. Today so far has been no exception. We’re in a secular bull market that has been “stealth-like” and despite being a few dollars from it’s all-time nominal high, gold remains hated and/or ignored by most. I LOVE IT!!!!

Oil - Oil indeed broke out above $76 and has $85+ written all over it. If it can get there with the DJIA also hitting my target, both could become shorts so stay tuned.

U.S. Interest Rates – Going much higher over time!

I’ve met with a few companies so far on my trip and here’s a summary of those meetings as of now:

Effective immediately, I’ve resigned my position with ATW Gold. I’ve said over and over again that management is the key for a junior’s ability to be the one in ten that makes it. While I have considerable personal respect for Graham Harris of ATW Gold, I believe his management team has not done the job. While I believe Graham will try hard to right the ship, the bottom line is they lost the confidence of shareholders, myself and the market in general. I think there are too many others who offer better opportunity at this time and one should recognize this and move on.

I had a terrific meeting with the management of Evolving Gold. Yesterday’s drill results IMHO strongly suggest that they have true home-run potential. I no longer think the question is DO they have something but HOW BIG will it end up? Management agreed with me that they have room for improvement on the corporate communication side of things but don’t let that be a knock against them. Remember, they’re the very same management team which has discovered and is developing what 99% of all other management teams can only dream about. I CONTINUE TO BELIEVE ANYTHING UNDER A BUCK IS AN AGGRESSIVE SPECULATIVE BUY.

Met with Hunter-Dickinson management and had great updates on Farallon, Taseko, Northern Dynasty and Continental Minerals. With great bias I must tell you in all my years associated with HD, I never found them as confident in one of their deals as they are with KMK.

I had an in-depth update on Sunridge Gold. They have all the makings of becoming the next Nevsun. Company is on European road show. I’m told to look forward to lots of news flow.

Must Watch! For all those who make fun of people like me and others that speak openly about the U.S. government’s “Working Group”, I strongly suggest you watch this video.

God Bless!

Posted in A Grandich Company, All Posts, Base Metals, Copper, Exploration Shares, Farallon Resources, Gold, Mining Shares, Nickel, Northern Dynasty, Oil, Precious Metals, Sunridge Gold, Taseko Mines, U.S. Economy, US Dollar, US Stocks, Zinc, world economy | 24 Comments »

Grandich on BNN

Posted by jojo at 5:34 PM on Tuesday, October 20th, 2009

bnn

Peter Grandich today on BNN’s “The Close”  recorded October 20th at 4:15 pm.

Tags: , , , , ,
Posted in All Posts, U.S. Economy, US Dollar, US Stocks, world economy | 35 Comments »

Donner Metals Update

Posted by jojo at 8:23 AM on Monday, October 19th, 2009

The Mining Journal just covered the recent forum in London, including a bit they titled “Monopoly Rules; Winning is all about having the correct strategy.” Under the header “Passing ‘Go’,” Donner Metals Ltd.’s Dave Patterson refers to the opening speaker’s Monopoly analogy by applying it to the Matagami Project. : http://clients.westminster-digital.co.uk/minesite/microsite/events/62/video/index.aspx?companyid=62_5

  • In Monopoly, you need to have access to the railway, and utilities. Matagami has road, railway, airport, power, an onsite mill, and more infrastructure in place. It’s much easier to win when you can ride the railway without having to pay for building one from scratch.

don-10-17-09
This picture shows the proximity of infrastructure in the area currently under development in Matagami.

  • In Monopoly, when you Pass Go, you collect $200. In Québec, when you spend $1.00 on exploration, you get $0.40 back from the government. This is a huge incentive in a world-class mining district like Matagami.
  • Finally, in Monopoly it pays off both short- and long-term to own Park Place because you can collect on what you already have with the option of building more in the future. There have been 10 past producers in the camp, one current producer, and Donner/Xstrata’s new Bracemac-McLeod deposit is coming in as the third largest in the camp. Plus, there is potential for more new discoveries.

Pay close attention to the strategy in this game, and you should see that the Matagami Project is a quality property with low-cost, high-margin deposits in a camp that has proven economic in every metals cycle since opening in 1963.

In June 2010, Xstrata is expected to  finish the accelerated feasibility study. If it’s positive which seems likely since Xstrata skipped the pre-feasibility study to fast-track it, they should be breaking ground in July.

Posted in A Grandich Company, All Posts, Base Metals, Copper, Donner Metals, Exploration Shares, Gold, Mining Shares, Nickel, Precious Metals, Silver, US Stocks, Zinc | 3 Comments »

Things

Posted by Peter Grandich at 10:26 AM on Saturday, October 17th, 2009
  • Watch this video before joining the “Don’t Worry, Be Happy” crowd on Wall Street.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Dollar, US Stocks, world economy | 8 Comments »

Crescent Resources – Play Ball!

Posted by Peter Grandich at 10:00 AM on Friday, October 16th, 2009

Crescent Resources (CRC-TSX-V $.21 ) is an early stage exploration company and they have now become a second player in the emerging Rattlesnake Hills Gold District in Wyoming. Crescent announced (I participated in the private placement) that they have concluded the deal on their Rattlesnake Hills Project, a highly prospective gold project that has tremendous upside potential. The property is adjacent to another company that I like – Evolving Gold - and I believe that they have potentially found a very large gold deposit in Wyoming.

Since late in 2008, Evolving Gold has been drilling their property and reported some spectacular high grade intercepts, but more importantly, very long lower grade intercepts where they should be able to build a large gold resource. These results have driven their share price and market cap. But there still appears room for movement as they’re currently drilling with 6 drill rigs and this should create a steady flow of drill results that should likely be reported between now and well into 2010.

Crescent Highlights:

  • Acquisition of key claims (4,000 acres) adjacent to and in same geological environment as Evolving Gold’s Rattlesnake Hill’s property.
  • Neighbor Evolving gold has made major gold discovery on their property and has reported areas of high grade gold (10.8 grams per tonne over 67.1 meters) within a much larger envelope containing broad areas of lower grade material.
  • Many geological features including phonolite intrusions and breccia diatremesare found on Crescent’s land position, which are considered to be the focus of local gold mineralization at Rattlesnake Hills.
  • Strong geological comparisons between Rattlesnake Hills and Cripple Creek Gold District in Colorado where over 25 million ounces have been mined over the years.
  • Evolving Gold is current drilling with 6 drills. Crescent beginning ground work.

The Rattlesnake Hills gold mineralization appear to be an alkalic gold system and similar to the Cripple Creek Gold District in Colorado where over 25 million ounces have been mined to date. There is a string of other similar deposits through a belt going from Montana, Wyoming, Colorado, and New Mexico, which include the Zortman-Lundusky and Ortiz gold mines.

Crescent can now be considered a significant player in the Rattlesnake Hills as their 4000 acre property is located right next door and in the same geological system as Evolving Gold’s property.

Crescent’s exploration work has now started with the objective of finding drill targets as quickly as possible. The initial field work should consist of ground geological work and geophysics. They have staked additional claims and details of which should be forthcoming.

Management

I am a firm believer in following the flow of people, and the Crescent management team have had key roles in the past (and present) of exploration, discovery, and development of several well known companies that have gone from early stage exploration through to become developing mines. Michael Hopley, President and CEO, has proved himself with companies such as Bema Gold, Sunridge Gold, and Tournigan Gold. Earlier in his career, Mike held the position of exploration manager for Gold Fields at Cripple Creek, which is a very similar geological environment to Rattlesnake Hills. Also in the management team are Don Halliday, Executive Vice President and Greg Davis, VP Business Development who have been involved in Bema Gold, Nevsun Resources, Crosshair Exploration, and Sunridge Gold.

The share structure in Crescent is favorable as there are currently only 30.6 million shares outstanding and there will be less than 40 million after the company closes the current private placement financing.

What to Expect?

From now until well into 2010 we can expect to see drill results from Evolving Gold. Now that the definitive agreement is complete, Crescent can fully begin field work on its’ property and can begin to generate news of their own.  Crescent offers a chance to get in early on a highly promising gold district with tremendous upside potential.

Please note I presently own a very large equity position in CRC in addition to the compensation received.

Posted in All Posts, Base Metals, Copper, Crescent Resources, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Stocks | 14 Comments »

Brief Update

Posted by Peter Grandich at 8:55 AM on Wednesday, October 14th, 2009

The mini “melt-up” in the U.S. Stock Market continues. In 2008, professional money managers and the like were asked, “How come you didn’t get me out?” Now, they’re being asked, “How come you didn’t get me in?” Justifably or not, the U.S stock market continues to rise sharply without any major setbacks. This is causing more people in whether they like it or not. Hitting DJIA 10,000 is only going to intensify this need as the media plays up the event.

My target remains DJIA 10,500 – 11,000. If and when its hit, my plan is to put back on my perma-bear suit. But for now, sit back and watch the “Don’t Worry, Be Happy” crowd do their thing.

The very short-term key (like in hours or a few days) is – you guess it, the U.S. Dollar. It’s now below key support of 76 on the U.S. Dollar Index. A further sell-off should limit or avoid any metals correction but a reversal could bring on a sharper correction. I don’t like to hedge but it’s a coin flip right now so stay tuned.

Lots of emails about Continental Minerals (KMK-TSX-V $1.40). What I can tell you is this:

The latest deal has created lots of interest in Asia. This is a big deal having two different Chinese mining companies taking a major stake in the same company. Both have been playing up their interests in the financial media. I’m told by KMK that Asian institutional interest has gone bonkers since the announcement (You can see it in the big increase in volume). KMK management tells me they’re on a road tour promoting KMK for the first time in quite awhile and key management is heading for China as we speak. Hmmm…

I will be out of the office all next week. I will be interviewed on BNN next Tuesday at 4:15PM EST. I look forward to seeing many of you at Michael Campbell’s conference on October 24th. There will be a special “after-hours” workshop where I will expand on my latest thoughts.

Posted in All Posts, Base Metals, Copper, Exploration Shares, Gold, Mining Shares, Precious Metals, Silver, US Dollar, US Stocks, world economy | 25 Comments »

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