*** Local Mining News ***
Midway Gold Announces US$25 Million Bought Deal Offering Of Common Shares (Press release, May 29, 2014)
Midway Announces Filing Of Technical Report For Gold Rock Project, Nevada (Press release, May 29, 2014)
Midway Announces Substantial Resource Increase At Gold Rock Project, Nevada (Press release, May 28, 2014)
Latest Nevada Gas Prices (click this link)
My latest Kitco commentary:
Gold’s June Surprise? (Kitco News, June 2, 2014)
My latest column in the Mining Quarterly:
Major McCoy and the Rebellious Ores of Eureka (p. 83-87 online, MQ Spring Edition 2014)
Or in the Elko Daily Free Press: Major McCoy and the rebellious ores of Eureka: How one man helped a small Nevada mining town boom (March 18)
Paintings by Mariana Titus, The Three Anas & The Three Moon Anas, are presently at Lafitte Guest House & Gallery, New Orleans
Mariana's fine art prints are featured in Fine Art America: Mariana Titus
Friday's AM prices used for this morning's early analysis:
COMEX Gold price = $1,253.7/oz (August contract most active)
COMEX Silver = $18.965/oz (July)
COMEX Copper = $3.1500/lb (July)
NYMEX WTI crude = $102.83/bbl (July)
ICE Brent crude = $109.45/bbl (July)
Eureka Miner’s Gold Value Index© (GVI) = 85.99 (gold value relative to a basket of commodities that include oil, copper and silver; 100 is a high gold value)
Value Adjusted Gold Price© (VAGP) = $1,218.2/oz
COMEX - VAGP = +35.50/oz; gold is trading at a declining premium to key commodities
As of 9:29AM PDT:
Barrick Gold (ABX) = $15.86 up 0.57%
Newmont Mining (NEM) = $22.74 down 0.09%
Midway Gold (MDW) = $0.834 down 6.76%
General Moly (GMO) = $1.03 down 1.90%
Timberline Resources (TLR) = $0.115 up 3.23%
Some mornings you just can't write fast enough to keep up with falling gold prices. When I did my early morning analysis Comex gold was trading around $1,250 per ounce; now at 9:06 a.m. the yellow metal plumbs $1,242 - nuts. Both of these numbers are several levels lower in the shaft than Friday's close of $1,291.7 (June contract) and my prediction of $1,300 for this week.
I thought the Ukraine weekend elections would return some shine to the Lustrous One but perhaps it's because I come from the "Duck n' Cover" generation that never trusts the Russians. Alas, the Pentagon announced very early today:
ABOARD A U.S. MILITARY AIRCRAFT (AP) — U.S. defense officials said Thursday that Russia has pulled most of its forces away from the Ukraine border, a withdrawal that the U.S. has been demanding for weeks (AP, Friday May 29, 2014 2:27 AM)
Without a little geo-political tail wind, gold is lately in a world of hurt as I explain in my input to the Kitco Weekly Gold Survey (full analysis below):
Gold price faces a double-threat: record-breaking U.S equities and a strengthening U.S. dollar. As the unloved step-child in the commodity family for the last 6 weeks, the family now finds itself under pressure with downturns in oil and copper and ominous warning signals coming from tumbling iron ore prices in China. The yellow metal is likely oversold and some technical relief may come in the new month. Russian troops pulling away from Ukraine’s border removes most geo-political reasons to rally back to the $1,300-level but gold could challenge this week’s high of $1,267 per ounce.
With gold now at $1,242 will I change my prediction for next week? Heck no! We've got the Elko Mining Expo coming, let's have an uptick in gold price for Pete's sake! See you there, pardner.
I still don't trust the Russians.
Midway Up & Down - Undervalued?
With no less than three press releases this week (below headline photo), Midway gold (MDW) has had a roller coaster ride in share price: from a weekly low of $0.80 per share it shot up to $1.07 and then fell back to $0.82 earlier this morning, presently trading at $0.834.
Some folks are quite optimistic about Midway's future now that the Pan Project is gathering steam. Here's an excellent article that posted this week in Seeking Alpha:
Undervalued Midway Gold Poised To Bounce Back: Financing Arranged And Fast-Tracking Towards Production (May. 28, 2014 5:00 AM ET)
The ole Colonel presently holds no shares of MDW but I'm watching these developments like a hawk.
The best of luck to the Midway team!
Please do your own research; markets can turn on you faster than a feral cat.
Market Anxiety Low
The following is an update from last week's look at market anxiety - or lack thereof!
As the U.S. stock markets attempt to break all-time highs, market anxiety is approaching new lows. The Eureka Market Anxiety Index is derived from S&P 500 and its volatility index (aka VIX) together with the Comex price of gold and copper, U.S. dollar index and 10-year U.S. Treasury note. It is a measure of fear in the marketplace with a threshold value of 100 as shown in the following plot from mid-2011 (click on image for larger view):
During the 2011 U.S. debt debacle and resulting debt downgrade, the Anxiety Index peaked at 271 (i.e high anxiety) and then fell to a complacent low of 39.3 last May. Fortunately since 2012, anxiety has remained below threshold (100) except for the flurry of uncertainty that followed the Federal Reserve's announcement that their bond buying program, or QE3, would taper from its $85B per month pace. The Index touched 100.9 on June 24, 2013 on what was then described as a "taper tantrum."
Interestingly, the Index is again approaching a low in the month of May scoring 42.0 in morning trading (green arrow). Will history repeat with a June surprise? Stay tuned, pardner - still pretty quiet out there in the sage.
Kitco Gold Survey