As we enter the weekend, we’re seeing metals weaken into the weekend. This is actually rather exciting, even though it’s causing our positions to drop against the dollar.
As I mentioned the other day, Novembers are historically good for metals. With us pressing recent lows, it’s likely that this is setting up a great buying opportunity going into the holidays.
It is entirely possible that, regardless of who wins on Tuesday, metals will climb dramatically into Thanksgiving. The technical are lined up well, as are the fundamentals.
Of course, we maintain that long-term positions are likely a buy at any level right now, it’s nice to have lower prices to give us the ability to jump in for greater gains.
In fact, we may be at an across the board fulcrum in precious metals right now. By that I mean that every aspect of metals seems ready to pop. Palladium is setting up for what appears to be a last push down before resuming its upward momentum. Platinum is much the same. Gold, of course, seems to have consolidated very nicely.
In addition, I’m getting a lot of reports that miners are looking like they’re ready to take a turn as well. This undervalued sector has taken an incredible beating over the past year, to the point that many analysts think it might represent some of the best trades available.
Newmont (NEM) reported a drop in year over year profits, but still did admirably. Part of their contraction was due to repositioning as well though, which should help them to look good going forward.
Freegold (TSX: FVL) just announced their resource estimate on their Golden Summit Project near Fairbanks. Results are very positive, encouraging them to have two rigs drilling in January.
Balmoral (OTCQX: BALMF) reports exploratory drilling is very positive. The drilling helps them define where to put forth the most effort. As it turns out, they’ve discovered three high-density zones in Quebec that appear to be part of a larger corridor that could turn our tons of gold for many years to come.
These are just a few examples of what’s going on in the industry. The overall picture is quite bullish. And it appears that mining companies agree. Yet, for some reason, the public isn’t paying any attention to them.
Ponder these thoughts and do your own research over the weekend. Then, if we can be of any service at all, give us a call.
For your prosperity,
J. Keith Johnson
The Gold Informant