Weekly Trends: July 13, 2013

Palladium & Gold Movement | Premier Royalty Inc. is Stock of the Week

Commodity Talk

The precious metals posted solid gains this week on the heels of last week’s digestion. Last week we noted palladium’s resiliency to gold and silver selloffs, the 200-day moving average at $699, and the 50-day average at $714. Palladium broke through both upside levels and is currently trading around the $718 level. The shooting star candle formation on Thursday suggests investors should be weary of a reversal back towards the 200-day moving average at $702, which is now support. Gold had a solid week after taking out the inside day at $1237; upside resistance points are $1300 and $1350. The RSI for gold has not been above 50 since March and with positive On-Balance-Volume a retest of $1300 seems likely.

Gold Yearly Chart 2013

Gold Yearly Chart 2013


The TSX-Venture posted several positive sessions and reclaimed 890 thanks to a positive week in junior oil and precious metals stocks. The TSX-V new highs – new lows indicator is at -3 and is showing signs of going positive for only the third time since 2012. If a positive indicator reading and a RSI reading above 50 can be sustained through next week, we could see a constructive tradable bounce. A short-term target of 920 on the TSX-V is very feasible. The analyst team is seeing multiple oversold juniors begin to bounce and we hope to highlight some in our stock alerts next week.

Green week for the TSX-VTSX


premierShares outstanding: 78,427,236
Share price: $0.75
Market Cap: $58,820,427

Premier Royalty (NSR.T) is a small gold royalty player trading at 52-week lows, which offers great leverage to an upside move in gold. The company is well funded with $32 million in cash and is looking to acquire near-term or currently producing assets.

Premier currently owns a net smelter royalty stream on 8 producing mines, which account for approximately 6,300 gold ounces per year. Premier’s portfolio is well diversified geographically and has operational expertise among majors like Newmont and Yamana. Take a long-term perspective and remember how Franco Nevada (FNV.T) started small and has since grown into a $5.5 billion company. Insiders have been buying small amounts of shares in the open market recently.

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.