Weekly Trends: August 10, 2013

Bayfield Ventures Corp. is “Stock of the Week” | Platinum Looks To Be An Attractive Investment In The Short and Long Term

Commodity Talk

Platinum posted a very strong Thursday breaking through $1460/oz and topping out at $1500/oz on the heels of strong economic data from China and Europe. Improving demand coupled with supply concerns continues to make platinum a very attractive investment over both the short and long term. Morgan Stanley projects that demand will exceed supply by 1.33 million ounces this year. Credit Suisse expects the deficit to last through at least 2016, while the CPM Group believes mines will not meet demand for another decade.

The next resistance zone is $1525-$1537; $1537 is the 200-day moving average.

Platinum Yearly Chart 2013

Platinum Yearly Chart


The TSX-Venture held above the 50-day moving average at 915 this week. This represents an important technical level as it represents a 50% retracement from the May 2013 high of 970 and low of 859. Volume is light heading into earnings season, which will make things more volatile as prices gyrate more in thin markets.

TSX-V Chart

TSX-V Chart


BayfieldVenturesCorpShares outstanding: 74,172,961
Share price: $0.255
Market cap: $18.9 million

The dog days of summer are now in full swing on the TSX Venture. With not much going on this is an excellent time to be doing some extra due diligence and finding new investment opportunities.

This week we take a look at Bayfield Ventures, a gold exploration stock in Ontario. Bayfield Ventures issued a press release on Friday stating that drilling is set to resume on the Burns block in mid-August. The Burns block is strategically located adjacent to the Rainy Rivers property (in the process of being taken over by New Gold). The Burns block has had several high-grade intercepts.

Bayfield Ventures Map

Bayfield has 100,000 meters of drilling planned for 2013 after which time we are likely to see an initial resource estimate. The resource estimate will contain over 275 holes. New Gold is a likely candidate to step in, consolidate the area, and purchase Bayfield.

Disclaimer: Visual Capitalist is not a registered investment advisor or broker/dealer. Readers are advised that the material contained herein should be used solely for informational purposes. Site users should always conduct their own research and due diligence and obtain professional advice before making any investment decision. Visual Capitalist will not be liable for any loss or damage caused by a reader’s reliance on information obtained in any of our material special reports, email correspondence, or on our web site. Our readers are solely responsible for their own investment decisions.