Peter Grandich today on BNN’s “The Close” recorded October 20th at 4:15 pm.
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Grandich on BNN
Posted by
at 5:34 PM on Tuesday, October 20th, 2009
Update – Time for Reflection
Posted by
at 6:43 PM on Thursday, February 12th, 2009
One of the biggest complaints from investors over the years is “financial advisers always tell us when to buy but not when to sell.” My answer is always the same and in two parts:
Part one – They will tell you when to sell if they have something else for you to buy.
Part two – There’s one way to know when to sell each and every time. Forget what you paid for what you’re thinking about selling and the reasons you first bought it. Just ask yourself this question, “Knowing what I know today, would I first buy it with the capital it’s currently worth?” If the answer is not a firm yes, then selling is definitely the answer. (more…)
APELLA RESOURCES INC. – Has It’s Time Come?
Posted by
at 1:01 PM on Wednesday, February 4th, 2009
Apella Resources, a junior resource firm specializing in vanadium exploration, is well-positioned to be at the forefront of this revitalization. With three vanadium properties held in the province of Quebec, Apella rightfully lays claim to possessing the largest array of potentially viable vanadium deposits in North America. The company is also invested in exploration for uranium, gold, and copper in both Quebec and Ontario. However, Apella’s primary focus moving forward is exploring and developing its vast vanadium holdings.
WHAT IS VANADIUM?
Vanadium is an element with dozens of applications. Best-known as a mineral used in high-strength steel alloys, it imparts strength and hardness while resisting corrosion. Vehicle axles, crankshafts, gears, surgical instruments, oil pipelines and high-speed tools are all real-world examples of applications utilizing steel tempered with Vanadium.
Vanadium is also a catalyst for sulfuric acid, plastic dyes, pigments, and glass; is used in superconducting magnets; and is utilized in next-generation high-capacity batteries that can be charged and recharged indefinitely while remaining environmentally friendly. Hybrid automobiles and wind/solar/nuclear energy sources will all benefit from vanadium batteries, as they are brought into the marketplace in the near future.
In addition, the resource is employed in the manufacture of high quality metal alloys that are used in everything from aerospace engines, airframes, rockets, and nuclear power plants to golf clubs.
Currently, South Africa, China, and Russia are the world’s primary producers of vanadium.
APELLA’S VANADIUM HOLDINGS
Apella has three vanadium properties, all located in the province of Quebec. The potential of these properties to move into full production can’t be underestimated.
Iron-T Vanadium-Titanium-Iron Project
The Iron-T Vanadium-Titanium-Iron property is located in the Bell River Complex near the town of Matagami, in the west-central region of Quebec. The property currently consists of 27 designated claim cells totaling 1,485 hectares, and covering one block of contiguous claims among Lozeau and Comporté townships. An additional 94 staked claims were also applied for in 2008 and remain subject to a processing period before approval.
Channel sampling on Iron-T Vanadium project
A recent examination of vanadium grade assays obtained from channel sampling on mineralized oxide zones shows that magnetite-bearing horizons with at least 33.6% Fe2O3 could return an average economical grade of 0.50% V2O5, which represents the typical grade of vanadium deposit. Excitingly, geological setting and mineralization encountered on the property indicates many similarities with typical world-class magmatic Fe-Ti-V oxide deposits associated with a layered intrusive complex. Most of these deposits are associated with mafic-ultramafic layered complexes such as the Lake Doré Complex in Chibougamau, Quebec; the Windimurra Complex in Australia; the Panzhihua layered intrusion in China; and the Bushveld Complex in South Africa.
The similarities between the Iron-T-Vanadium-Titanium-Iron property and typical world-class vanadium deposits justify an exploration program. Apella is planning to push ahead with a two-stage exploration program, budgeted at $1,250,590. The proposed program is oriented toward geological, geophysical and geochemical data acquisition which can lead to the discovery of an economic vanadium, titanium and iron deposit.
The nearby town of Matagami can provide housing, servicing, supplies, and consumable and transport facilities, including railway access, for an efficient mining operation.
Apella has optioned 100-percent of the Iron-T Vanadium-Titanium-Iron Project, under the terms of which the Company will pay $250,000 and issue 900,000 shares to the vendors, who retain a 3-percent Net Smelter Return (NSR) that can be purchased for additional consideration. The Company also agreed to spend at least $500,000 on exploration within the first two years. The Company and the vendors have since entered into an Area of Influence Agreement and have acquired or applied for additional nearby claims in order to expand the Iron-T Vanadium-Titanium-Iron Project.
Lac Dore North Vanadium-Titanium-Iron Project
The Lac Dore North Vanadium-Titanium-Iron Project is 100-percent owned by Apella and encompasses 18 claims covering an area of approximately 300 hectares (741 acres), covering the Northeast extension of the renowned Lac Dore Vanadium-Titanium-Iron Deposit, over a strike length of 2.6 kilometers (1.6 miles).
Historic stripping and channeling on the Lac Dore deposit
Recently a channel sampling program was completed with a total of 60 samples taken, representing a total length of sampling of approximately 90 meters. The results are as follows:
• Vanadium values from 0.05% to 0.610%, which after conversion to V205, returned values from 0.089% to 1.089%; the average grade of Vanadium Pentoxide (V205) is 0.55%.
• Titanium (Ti02) values range from 1.33% to 12.30%; The average grade of Titanium (Ti02) is 6.40%.
• Iron (Fe) values range from 13.23% to 56.50%. The average grade of Iron (Fe) is 32.81%.
This mineralization exposed appears to have striking similarities to that which surfaces at the adjoining 102-million-tonne/5.5-billion-pound Lac Dore Vanadium-Titanium-Iron deposit that Apella staked in August, 2007.
Lac Dore Vanadium-Titanium-Iron Project
In the summer of 2007 Apella staked 57 claims covering a large portion of the Lac Dore Deposit, the largest vanadium deposit in North America and the second-largest in the world. The company staked the claims after discovering they had become open. A competing staker launched a challenge for 21 of the claims, which remains unresolved. However, Apella is confident that its staking was of the highest standard and has presented eyewitness, video, and audio evidence to the Mining Recorder, who has since recommended that 10 of the competitor’s claims be rejected at the outset for non-compliance of the Mining Act.
Channel sampling on Lac Dore North Vanadium-Titanium-Iron Project
Accessible by both road and rail, and close to power lines, the Lac Dore Deposit has been extensively explored and developed since its Vanadium content was recognized in the mid-1960s. It is believed to hold 5.5 billion pounds, or 2.27 billion kilograms, of Vanadium Pentoxide. In 2002 a feasibility study recommended development of a mine and processing facilities, with capital costs estimated at $364-million, including equipment and infrastructure.
Once the staking issue is resolved, Apella plans to move forward in bringing the Lac Dore Vanadium-Titanium-Iron Project up to current NI 43-101 standards, and moving the project toward the next stage of development.
LOOKING AHEAD
Apella’s vanadium properties hold tremendous promise. Despite the current economic crunch, the potential for vanadium to pick up steam in a hurry should not be discounted. There are several possible scenarios that could see vanadium demand spike, thereby propelling Apella’s stock price into the stratosphere:
The Coming Automobile Revolution
With nearly all major auto manufacturers set to unveil hybrid and/or fully electric vehicles by 2012, the demand for durable batteries is increasing. Vanadium has been proven to double the energy density of conventional lithium ion batteries (the type of batteries used in most electric vehicles currently under development). Suburu has already decided to choose vanadium lithium ion batteries for their concept electric vehicle, the G4e. As vanadium becomes a key ingredient in the process of manufacturing electric vehicles, demand for the resource should increase dramatically.
The Advent of Green Energy
U.S. President Barack Obama has pledged to double the production of alternative energy in the next three years. Wind, solar, and nuclear energy sources require batteries that can retain large amounts of energy, while being capable of being recharged thousands and thousands of times. High capacity industrial Vanadium Redox Flow batteries are eco-friendly, can be charged and recharged more than 10,000 times, and are capable of maintaining their charge almost indefinitely.
The move towards electric transportation should also enhance the appeal of Vanadium Redox Flow batteries, as power providers rush to find feasible and cost-effective ways to store vast quantities of electricity required for application overnight to charge thousands of parked electric vehicles.
Political Instability
The world’s current primary vanadium sources are South Africa, China, and Russia. All three have the potential to be viewed as unreliable suppliers of the resource:
• South Africa is currently embroiled in a massive political crisis involving the ruling ANC and a new breakaway party, COPE. With presidential elections around the corner, the potential for violence cannot be ruled out.
• Russia’s recent dispute with the Ukraine over natural gas revenues resulted in a major gas shortage in Europe. Russia’s willingness to use resources as instruments of foreign policy is calling into serious question the country’s reliability as a trading partner.
• Although a rising giant, China still has huge social and political challenges ahead.
With all of Apella’s vanadium properties located in Canada, the question of reliability of supply is non-existent. Canada is one of the most politically stable and thoroughly industrialized nations on earth, with a qualified and productive workforce.
BOTTOMLINE
Apella has a very bright future as vanadium becomes a resource of choice for the “green” revolution set to occur all around us. When the economy picks up, other uses for vanadium, primarily involving steel, should also help propel the value of the mineral forward.
Apella has an experienced management team led by Patrick O’Brien, President/CEO; Adrian O’Brien, Vice President; and Dr. Christian Derosier, Vice-President of Exploration. Their expertise is supplemented by an Advisory Board composed primarily of geologists and mining engineers with extensive industry experience in eastern Canada. The newest addition to the Advisory Board is Dr. Mehmet Taner, a world renowned Vanadium expert credited with the discovery of the Bell River Vanadium Deposit which is part of the Company’s Iron-T project in Matagami, Quebec.
Despite the current economic crisis, Apella has potentially secured the largest combined source of vanadium in the world. This is a company poised to make a serious and dramatic push forward in the weeks and months ahead.
Shareholders Could Say “Bravo” in 2009
Posted by
at 8:59 PM on Tuesday, January 13th, 2009
The carnage amid the junior resource sector in 2008 was unrelenting, catching most everyone off-guard and impacting just about every issue, no matter where the listing. Among the few companies that bucked the prevailing trend on results was Bravo Venture Group, BVG on the TSX Venture Exchange and B6I on the Frankfurt Stock Exchange.
On October 2nd of last year, Bravo was trading at its year low of 18 cents. The next day the company released excellent results from its Homestake Ridge project in north western British Columbia: 52 meters true width of 21 grams of gold including 5.5 meters of 181 grams of gold per tonne in Hole 87. Outstanding numbers! And the market responded by gapping that day to close at $0.53 on 3.3 million shares. Over the next several trading days BVG gave up some of that strong gain closing in the mid-30’s range and then, as more results began to filter in, slowly marched up to close at year end in the mid 50’s.
Crosshair and Target – Come Together, Right Now
Posted by
at 5:36 PM on Wednesday, January 7th, 2009
During the last quarter of 2008, I spoke about an expectation of mergers and consolidations in the junior resource market. Crosshair Exploration and Target Exploration announced on January 6, 2009, that they have entered into a Letter Agreement to merge. This comes as good news to both companies considering it gives Crosshair an additional uranium asset that is both outside the Central Mineral Belt of Labrador and inside an existing uranium producing region, while providing Target with the necessary capital to continue to advance its flagship Bootheel project in Wyoming towards production.
Growing Demand
Although recent months have seen most sectors (and especially the junior exploration and mining sector) take a serious beating, it shouldn’t end up being a permanent situation. The spot price of uranium has increased by about 20% since the end of October and although it levelled off during the holiday season while activity dropped, it is expected to continue its upward trend in 2009. With a continually growing demand for uranium, and the supply side seeing several companies putting their projects on hold, Crosshair and Target appear well positioned with a project that is near-term and appears to have low capital and operating costs.
A Great Project
In June 2008, Target began drilling on their Bootheel Property in the Shirley Basin, Wyoming. Not only is Wyoming a uranium-mining-friendly state, but it has already produced close to 200 million pounds of uranium and currently has two producing ISR (In-Situ Recovery) mines with several more in the permitting stage. Because Bootheel is located in an area where the uranium is hosted by sandstones in roll-front settings, the company should be able to use ISR mining techniques which are a more environmentally-friendly and less expensive way to mine uranium.
Bootheel is also slated to be producing uranium in as little as four years. This relative short timeline is due in part to the fact that an ISR mine can be constructed far more rapidly than a conventional mine and also because you only need approximately 5 million pounds in the ground to go into production. With a historic uranium resource of nearly 11 million pounds, Target possesses a project that has strong potential. With the cash that Crosshair can supply, this merged company promises to be one of the survivors that makes it through these tough times. For more details on the project, please visit the project page on Target’s website: http://www.target-mining.com/s/ShirleyBasin.asp.
Keeping Busy
Crosshair currently controls just over 17 million pounds of uranium in the Central Mineral Belt of Labrador. In March of this year, the Nunatsiavut Government passed legislation placing a three-year moratorium on uranium mining within the Nunatsiavut’s self-governed Labrador Inuit Land (LIL). Although all of the company’s principal assets fall outside of LIL, “it has affected market sentiment and this cannot be ignored,” says Mark Morabito, President and CEO of Crosshair. With this new acquisition, the company will not only increase its overall uranium resource base, but will also control a project located in a region already producing uranium. And make no mistake about it, one day the Central Mineral Belt should be back. Crosshair has a firm hold on its assets there with much of the licenses good through 2017.
Deal Details
The merger will occur on the basis of 1.2 common shares of Crosshair being issued for each outstanding share of Target. Crosshair will issue approximately 14.6 million shares for 100% of the outstanding Target shares representing 15.4% of Crosshair’s shares outstanding. The transaction remains subject to regulatory approval for both companies as well as shareholder approval for Target and is expected to be completed by the end of March 2009.
Bottom Line
The merger works for both companies. It will create a uranium exploration and development company with a timeline to production. Crosshair will acquire an excellent project in a highly sought after area for much less than it would be spending to explore for uranium. Target will have the money to fully complete its earn-in and the much needed 43-101 resource to put the Bootheel project on the path to production. Although several uranium deposits have been put on hold or are being shut down, it is actually a good time for these types of deposits (ie. ISR), since they are much cheaper to get up and running and also much cheaper to operate. This new company has the money and the project to be one of the few to make it through these rough times.
Please Note – TEM and CXX are clients of Grandich Publications See disclosure
Geologix Explorations – One More Hurdle to the Promised Land?
Posted by
at 1:27 PM on Friday, November 14th, 2008
Last week, Geologix delivered what the market and investors had been anticipating for several weeks, and though some onlookers grew anxious with the slight delay, it appears it was well worth the wait. On November 6th, the Company released the results of a much anticipated new NI 43-101 compliant resource estimate from its San Agustin project in Durango, Mexico. The new estimate brings the project’s resource up to over 210 million tonnes with 2.7 million ounces gold, 85.6 million ounces silver, 304 million pounds lead, and 2.3 billion pounds of zinc (Indicated and Inferred) in contained metals. These numbers certainly elevate the San Agustin project into the top tier of advanced-stage exploration projects in Mexico.
A Growing Resource:
Delineating a resource of this scale is impressive for any junior company, but perhaps more remarkable is how quickly and systematically the Geologix team expanded this project. Two years ago when Geologix first optioned the San Agustin from Silver Standard Resources, the project hosted an admirable but unimpressive resource of just over 400,000 ounces gold equivalent, and prior operators seemed to have exhausted the project’s potential. The technical-savvy minds at Geologix, however, saw the potential for something more and in just over 20 months as operator brought about a tenfold increase in the project’s resource – from the 400k to over 5.0 million ounces gold equivalent announced in June 2008. Less than five months later, management has done it again, doubling the Indicated tonnage and bringing the total gold equivalent resource up to today’s 8.7 million ounces.
Furthermore, a mere 20% of the project area has been drill tested to date, so there are multiple key target areas yet to be tested for additional mineralization. It’s easy to see why management believes there’s significantly more to this deposit than the current estimate reports, and that ongoing exploration and drilling could lead to yet another resource expansion.
Understanding the Resource:
The experienced Geologix team is made up of individuals who have not only made previous discoveries and advanced projects, but have successfully taken projects through to profitable production. This is not an overly promotional “pump and dump” group. They know the appropriate “acid tests” necessary to determine the project’s realistic potential before expending excessive capital. To date, even under the conservative parameters, the Company is optimistic about the potential for an eventual profitable large-scale mining operation at the San Agustin. I’m told based on the level of interest being expressed (on a possible deal at San Agustin), it appears the majors agree.
Following the latest resource announcement, some onlookers questioned the metal prices used in the estimate, which were four year averages (this is the criteria imposed by regulators for all NI 43-101 reporting). It’s worth noting that the Company conducted internal studies aimed at assessing the Project’s sensitivity to metal prices. In the internal studies, the Company used 7 year trend prices, increasing the price of gold and silver and reducing the price of zinc. The results clearly indicated that the Project’s viability is not significantly impacted by fluctuations in metal prices.
A rough estimate based on the numbers given in the latest resource report indicates the Project’s NPV (Net Present Value) could be upwards of $1.6 billion (before capital cost and expected discounts). The Company has a high degree of confidence it can expand this significantly.
The Final Hurdle:
With this latest resource estimate now completed, the next hurdle for Geologix is the outstanding option payment due to Silver Standard in the coming months. Though the actual dollar amount remains unknown, it’s widely believed to be in the tens of millions of dollars. I am, of course, very confident in the competence of this experienced management team and board of directors, and believe that the question is not “if” a deal will be completed, but “how. ”
The Company’s leverage lies in the underlying value of the San Agustin project. The appetite for large-scale gold and silver projects like the San Agustin, with economically viable ounces in the ground, should provide leverage in structuring a deal. To put the “price tag” in perspective, it’s worth noting that Geologix only pays for a portion of the overall gold and silver, and pays nothing for lead and zinc. So, even if the purchase price is as high as $50 million, this equates to a mere $5.81 per ounce of gold equivalent. For most companies, the cost to find a deposit is somewhere between $35 and $100 per ounce.
Goldcorp, for instance, paid top dollar for reserves during the merger with Glamis. The payback for Goldcorp, however, came from doubling the reserves at Penasquito which in the end made the original cost seem like a bargain. Geologix’s San Agustin project which is untapped at depth and open in three directions certainly appears to have the necessary upside potential.
Getting Across the Finish Line:
So, how will Geologix get over the hurdle of the final option payment and guide the Company across the finish line in a manner that best serves the company and its shareholders?
With the latest resource estimate now completed and the internal sub-set resource related to Silver Standard’s gold and silver resource expected soon, the Company is becoming better equipped to engage in more detailed negotiations with interested parties. In these volatile and uncertain markets, the Company is looking to explore a number of scenarios and position itself to strike with the best deal at the appropriate time. Current options being explored include, but are not limited to, equity financing under favorable terms, possible private equity stake in the project, merger with a cash rich junior, or a joint venture/earn in arrangement with a major mining company.
In today’s uncertain markets, I believe all of the above noted options have merit, and I anticipate management to successfully secure the deal that gives Geologix and its shareholders the greatest value and leverage from this significant property asset.
To view compensation disclosure, please click here. .
Sunridge Gold (TSX-V:SGC): All About the Numbers
Posted by
at 1:28 PM on Wednesday, November 5th, 2008
_______________________________________
Share Structure as of November 4, 2008
Share price – CDN$ 0.175
Shares Outstanding – 62,183,013
Fully Diluted – 73,605,513
_______________________________________
All mining companies out there, both juniors and majors and all sizes in between, have been hit hard in the recent mass sell-off in the markets. This has indeed created a great opportunity to take advantage of key companies that have been greatly oversold.
Many companies will tell you that they are now way under-valued, however the road to recovery will not be the same for all companies. The fundamentals for recovery in the junior mining sector will be three-fold;
1) cash
2) defined economic deposits, and
3) strong management.
Sunridge Gold has all these fundamentals and is positioned for a strong recovery:
• Well financed – almost $CDN 8 million in cash
• Strong Established assets – Total Indicated 43-101 Resources to date from 4 deposits on the Asmara Project in Eritrea contains combined metals of:
-1.28 billions lbs copper,
- 2.5 billion lbs zinc,
- 0.955 million oz gold,
- 31.2 million oz silver.
• Strong management – experience at all levels of exploration, development, and mining with a long history of success.
In addition to the above, there are a couple of key events to keep your eye on which could have a significant positive effect on the share price of Sunridge Gold:
• Nevsun Resources announced last week that they have a a $89 million commitment in the form of debt financing from a major South African bank for the development of the Bisha Project in Western Eritrea. This is great news for the Eritrean mining industry (and Sunridge) as it demonstrates that companies are able to raise debt for development capital of Eritrean projects.
• Sunridge’s “world class-sized” Emba Derho Copper-Gold-Zinc deposit is currently the subject of a Preliminary Assessment Study (scoping study). This study should be complete by the end of the year and will provide a framework of the economics of the project.
Emba Derho
The largest of the deposits on the Asmara project is Emba Derho. The Emba Derho deposit is a very large copper-zinc-gold VMS deposit and a preliminary assessment study (scoping study) will soon be completed on the deposit. This will provide an outline of the economic framework for the deposit. The deposit would be mined by open pit and it is located on excellent infrastructure, as it is located approximately 15 km by paved road from the capital city of Asmara.
Also, as part of the upcoming Scoping Study, Sunridge recently issued an updated resource estimate on their Emba Derho deposit in Eritrea. The resource numbers were already very impressive when I first covered Sunridge Gold back in February, however as I said then, there was much room for expansion.
The new resource estimate reports at Emba Derho reports a “world class-sized” indicated resource of 59 million tonnes, containing:
• 990 million pounds of copper (35% increase since my first coverage in February 2008)
• 1,900 million pounds of zinc (11% increase)
• 485 thousand ounces of gold (20% increase)
• 19.5 million ounces of silver (31% increase)
The resource update was announced on September 18 – Smack in the middle of the world wide market meltdown – and the market has yet to take advantage of these impressive numbers.
Emba Derho – Photo of surface
Debarwa VMS Deposit
Work also is continuing at the Debarwa VMS deposit which has an indicated resource of 4.4 m/tones, including a rich copper zone with 1.3 m/tonnes 5.36% Cu, 1.54 g/t Au, 33.87 g/t Ag. Sunridge is conducting metallurgical testing on the high grade copper zone. The company is examining the possibilities of a low capital cost mine that will pull out the high grade copper zone and this is likely the next of the deposits to undergo a scoping study.
Adi Nefas VMS and Gupo Gold Deposit
Both, the Adi Nefas VMS Deposit and the Gupo deposit are in close proximity to the Emba Derho deposit (both with 6 km). When feasibilities studies are conducted at Emba Derho both will be considered as part of the mining plan as ore could be shipped the short distance to a common concentrator located at Emba Derho. The indicated resource at Adi Nefas is 2.7 m/tonnes grading 2.85 g/t Au,99.30 g/t Ag, 1.39 % Cu, & 8.38% Zn and the Gupo Gold deposit contains an inferred resource containing 189,000 ounces of gold averaging 2.99 g/t.
Red boxes indicate 43-101 Resources
Blue boxes indicate High Priority Drill Targets
Future Exploration Potential
Sunridge has only been exploring the 825 square kilometer Asmara property for less than 5 years and have had great success. With the current situation in the markets, Sunridge is focusing on advancing it’s key projects towards production and has slowed down exploration work to conserve capital.
When market conditions do change however – and they will -they will continue to explore the numerous other high priority targets in the same systematic process that so far discovered Emba Derho and Adi Nefas deposits.
Sunridge has so far 9 high priority new drill targets along proven VMS trends containing numerous strong gossans with geochemical and geophysical anomalies. These include: Adi Musa, Dairo Paulus, Shooting Star, Kodadu, Adi, Lamza, Shiketi, Adi Rassi, and several yet to be named targets (see map).
Bottom Line
Many companies will tell you that they are undervalued. The key difference is that I believe Sunridge’s deposits will prove to be deemed economical. With the impressive amount of contained metals in “Indicated” category (see table below) and a beaten up current market cap of approximately only $10 million, I see a tremendous opportunity right now in Sunridge Gold.
Sunridge Gold is committed to conservation of capital while focusing on moving their resources towards feasibility for when markets do rebound – which of course they will. Management understands the need to do this balancing act of watching their finances closely while forwarding their projects towards production.
| Property | Million lbs Cu | Million lbs Zn | K oz Au | M oz Ag |
| Emba Derho | 990 | 1.900 | 485 | 19.5 |
| Debarwa | 203.6 | 57 | 220 | 3 |
| Adi Nefas | 83.7 | 503.6 | 250 | 8.7 |
| Totals | 1,280 | 2,466 | 955 | 26.6 |
Thought you’d be intersted in reading this article that came out Friday morning. Click on the link to read the entire story. I am quoted in the discussion of gold on the second page.
Myra Saefong’s Commodities Corner
Taking refuge in commodities takes on new meaning
Commodity staples don’t do as well as they should; gold’s in world of its own
Last update: 7:31 a.m. EDT Oct. 10, 2008
Meanwhile, the paper market for gold is “not representing how truly well gold is holding up as a safe haven,” said Peter Grandich, chief commentator at Agoracom, an online marketplace for the small-cap investment community. “Physical demand is so strong worldwide that dealers can’t get gold coins and/or mints have announced they can’t mint enough or stopped selling them.”
Adversity Created Opportunity-Now It’s Time to Cash In
Posted by
at 10:03 AM on Friday, October 10th, 2008
9:35AM EST DJIA 7,950
Back on October 14th, 2007, just a few days after the stock market reached an all-time high, I wrote a newsletter entitled “Man Your Battle Station” http://grandich.agoracom.com/2007/10/. I noted I was waiting for a time to sell everything but precious metals-related stocks and to short the overall market. My downside target then was 10,000 on the DJIA. Then, on September 20, 2008, I said one could short again and noted a target of 7,500-8,000 on the DJIA http://grandich.agoracom.com/2008/09/. Well in just a few weeks, we have melted down to that area.
While I do believe the worse is not yet over, especially for the economy. I think it’s time to lock in tremendous profits and stand aside. I’m seeing classic signs of a capitulation bottom. An excellent article on this can be found at http://www.321gold.com/editorials/hoye/hoye100808.html
I believe this weekend the G7 will make additional moves to stem this meltdown and we’re close to a major bottom. I don’t want to go long anything yet, but I’m close. I know that seems impossible but let me remind you few thought this meltdown could occur just a few months ago. Stay tuned to this blog and this weekend we should have all of our previous subscribers in our new database to receive an email each time I post to the blog.
So again I repeat, cover all shorts right now.
God Bless
Peter
Radio Interviews
Posted by
at 1:30 PM on Wednesday, October 8th, 2008
Dear Readers
An interview I did today can be heard at www.Trunews.com after 5PM. Please be aware that the host and I discuss economics as well as Christian views.
I will also be interviewed “live” on Michael Campbell’s “Moneytalk” radio show heard throughout Canada this Saturday, October 11th, at 12:00PM (Noon) EST. The show will be archived afterward and everyone can then hear it at http://www.moneytalks.net/radio.php
