Last week we exhibited and presented at the Toronto Resource Investment Conference. In our presentation, we covered the top five gold mining stocks according to our Tickerscores system. In addition to our regular Weekly Trends e-mail, we have included the slides from that presentation to give you better depth into how the Tickerscores system works, and the breakdown of some of our highest rated scores in Toronto.
If you are in Toronto or at the Toronto World MoneyShow conference Oct. 24-26, we will be doing a similar presentation.
President, Visual Capitalist
It was a tough week for the precious metals as price action over the short-term remains quite bearish. The US unemployment data that came out Thursday showed an improvement in the job climate which is negative for gold, silver, and the PGMs. The move to deal with Syria’s chemical weapons program diplomatically instead of using the military also reduced the demand for safe haven assets.
For gold to remain in its short-term uptrend from July, gold needs to remain above the August 7th low of $1271. Gold briefly tested the $1300 support zone on Friday closing positive and in a candlestick formation known as a Hammer. This Hammer pattern normally forecasts positive price action but the sell side volume on Thursday outweighed the buy side volume on Friday chart which suggests it is likely gold is going for a re-test of $1271.
The capital markets and precious metals will focus intensely on the outcome of next week’s two-day Federal Reserve meeting to see if the Fed finally hints at a timeline for starting to reduce the stimulus program it has had in place for the past several years. Results of Wall Street Journal survey show that two-thirds of market participants expect the FOMC to announce tapering next week. Either way, next week will be a volatile week for the markets and the precious metals.
We previously recommended Bayfield to our Beta Test subscribers in early August. After attending the Toronto Resource Investment Conference and touching base with their team, we feel even stronger about the potential of Bayfield as a takeover target for New Gold (NGD.T).
Bayfield Ventures (BYV.V) is a gold exploration stock in Ontario. Bayfield Ventures issued a press release in August stating that drilling was set to resume on the Burns Block. 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 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.
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