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The Lies You Are Told About Gold

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The Lies You Are Told About Gold

For the last 5 years, most were caught on the wrong side of the gold market.  As gold was topping in 2011, most market participants, and analysts alike, were caught looking the wrong way.  Most were uber-bullish when the market was topping, and remained so almost the entire way down.

Why did so many get it wrong in 2011?  Why did most get it wrong for the last 4 years? Because most market participants and analysts do not understand gold.  Feel free to read that again: most market participants and analysts do not understand gold.  And, worse yet, most have bought into or sell you on the lies and fallacies about gold and are not burdened by the true facts presented through our recent history.

You Are Being Sold Lies

Just recently, I read the following in an article on Gold-Eagle.com:

“Gold is the final safe haven left to securely invest in which has stood the test of time over thousands of years. It has maintained its’ value throughout at least the last five thousand years. The sudden and most recent ‘break out’ in gold is proof that its’ safe-haven status is still intact. The price of gold is rising more on the expectation of the next financial crisis.  Imagine how high the price of gold could go when the real crisis impacts world economies.” (See the following link for complete article:  http://www.gold-eagle.com/article/price-gold-going-ballistic )

I want you to consider a couple of questions about this paragraph before we prove the faulty nature of such thinking.  First, is gold really a “safe haven” from a financial crisis?  If you are willing to remove your “gold-bug” blinders, you will soon see the answer is “no.” Second, how can anyone believe that the recent break out in gold is “proof of its safe haven status” when the equity markets have rallied alongside it?  It’s a safe haven from what – a market rally?  Do equity markets also rise on the “expectation of the next financial crisis?” Lastly, the final sentence of the above-quoted paragraph is nothing more than an emotionally charged play upon your fears, as well as your greed.

At the end of the day, this is nothing more than the same type of “gold-bug” thinking that got most of you in trouble in 2011.  Have you not learned your lesson yet?  If you believe in such erroneous thinking, then you should never see gold rally alongside the equity markets and it should absolutely never fall in price when we experience a financial crisis. But, is that true about gold?

No.  These are some of the fallacies presented in order to either sell you “analysis,” or to sell you gold.  It preys upon your fears and is not based in fact.  Do you want to make an investment decision based upon your fears or based upon the truth?

These fear mongers will not point out to you that, since early February, the metals and the miners have been rallying WITH the equity markets.  They will not mention this to you since it presents a fact in opposition to their underlying erroneous thesis.  Moreover, this is not the first time that we have seen gold rally along with the equity markets, nor will it be the last.  I believe this seeming “correlation” will eventually be recognized within our markets, and it can last for several years as we have seen in past history.  But, that is simply not what you are told will happen by most of those telling you to buy gold.  Based upon their faulty thinking, the market is about to crash, and gold is about to skyrocket.  Yet, history disagrees with their premise.

What Does History Teach Us?

Allow me to show you why only expecting an inverse correlation between equities and metals is just outright wrong.  Of course, we can always point to the fact that metals and equity markets have been rallying together, with over double-digit returns, for the last several months.  But, let’s put that aside for now.

The main premise of these fear mongers is that gold will certainly protect you during a major market crash.  So, let’s take a look at the 2007-2009 timeframe, which evidenced the most significant period of market volatility since the Great Depression, to see if the metals acted as a “safe haven” during the period of time a safe haven was most needed in modern times.

We all know that the S&P 500 topped in October of 2007 and began an estimated 300-point decline into March of 2008. Then we saw a corrective bounce in the equities for a couple of months before it continued to head down. During that same period of time, even while the markets were heading lower, the metals continued to rally strongly. Here we have “evidence” of precious metals rising during a period of market volatility. So, maybe they are a safe haven.

But, when we then look towards the May 2008-March 2009 decline in the equity market, not only did the metals not rally, but they experienced significant declines within that time frame. In fact, gold lost a little more than 30% during the massive equity market sell off. Yes, you heard me right.  Gold and the equity markets both experienced significant declines TOGETHER.

So, here we are presented with clear evidence that gold did not act like a supposed “safe haven.” Moreover, it failed as a “safe haven” during the worst financial crisis since the Great Depression, which was the most crucial time period that a safe haven was most needed.

When one is presented with these facts, can one truly have confidence in gold’s “safe haven” status, especially when it failed during the most critical time period since the Great Depression?  Should one rely upon an analyst or salesman who is selling you on the merits of gold’s “safe haven” status in light of the true, hard lessons of recent history?  As George Santayana said, “those that cannot remember the past are condemned to repeat it.”

If you need further evidence, consider this additional fact.  Back in 2008, the folks at Elliott Wave International published a study that showed that in 10 out of 11 recessionary periods since 1945 gold experienced a negative total return.  Maybe you should be rethinking what you have been sold about gold’s “safe haven” status?

On the opposite side of the market, if one simply looks back to the period of time from 2003-2007, we will clearly see that the metals market rallied along with the equity markets for those years.  So, is it really true that the only time gold will rally is when the equity markets are in decline?

Are you starting to question the perspectives you have been “sold” about gold?  If not, then you should.

Time To Consider The Truth

When one is presented with these facts, can you really believe that metals are the “safe haven” everyone claims they are during down markets?   Can one also come to the conclusion that gold and equities markets trade inversely to each other and the reason you should be investing in gold is its “safe haven” status from a financial crisis?  Clearly, the answer is “no,” if you are truly honest in your analysis.

Again, when one actually looks at the facts rather than the supposition, fallacy, and fear being sold by most of the article writers and sellers of gold out there, it tells you to ignore much of what is presented about this market and begin to think for yourself. Much of what you have been fed about this market is simply wrong, and until you are able to look objectively at the market, you will likely see long periods of time where you are on the wrong side of the market purely because you bought into these suppositions, fallacies, and fear.  Or, did you already forget the pain you felt during the decline between 2011-2015?

Why can’t we also believe in gold as a solid investment during periods of time when financial markets rally, as history clearly shows it can be?  One simply needs to develop an appropriate understanding as to when gold will rally along with the equity market or inversely to it.

Sadly, most analysts and investors do not truly understand the gold market, and just regurgitate the same fallacies over and over to prey upon your fears and greed.  Isn’t it about time you look for an objective perspective on gold which understands how the market truly works?

Avi Gilburt is a widely followed Elliott Wave technical analyst and author of ElliottWaveTrader.net (www.elliottwavetrader.net), a live Trading Room featuring his intraday market analysis (including emini S&P500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education. Visit his website:https://www.elliottwavetrader.net. You can contact Avi at: info@elliottwavetrader.net.

Metals Complex Pushes Us To The Limit

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Metals Complex Pushes Us To The Limit

Avi Gilburt
ElliottWaveTrader.net
First published Sat May 7 for members of ElliottWaveTrader.net
For those that understand how metals trade, it is quite clear that they move to extremes. And, the main reason this is so is due to the driver of the metals market being emotionally based. Yes, you heard me right. The driver is not market crashes, or world-wide debt, or inflation, as so many have tried to sell you upon. Rather, emotion is what drives this market, and when you can understand how to track such emotion, you can have a better handle on how it may move. This is the main reason why it often pushes us to the edge of our expectations, and is driven to extreme movements.

This past week, I noted how we were going to begin the week at an extreme, and the complex was on the precipice of either a break down or break out. Our primary expectation was that it was going to break down into a corrective phase, and, thus far, the market has followed through.

But, we are not out of the woods just yet. It is still “possible” that the markets may continue to break out, so let’s go through what we need to look for in the coming week.

Again, the GDX presents us with the cleanest picture of the market, so I will begin there. As noted last weekend, it would take a strong move through the 28 region to signal we are heading to the 40+ region sooner rather than later. But, the GDX turned down right at the top of the market pivot on our daily chart, and seems have begun a corrective retracement. What supports this perspective is that the rally off the low struck on Wednesday this past week began in corrective fashion, was followed by what seems to be a triangle consolidation, with an impulsive (c) wave rally continuing thereafter, all of which I am counting as a b-wave rally.

My preference is to see the GDX maintain below the 25.80 region in the upcoming week, and then drop down below 23, which I will count as the (a) wave in the blue wave ii.

As you can see, the alternative count would suggest that we are already in wave 2 of wave iii, but I will need to see confirmation of that perspective before being able to adopt it. If GDX would be able to strongly exceed the 25.80 region, and then rally through the 26.60 level, that would be an initial indication that this “correction” has completed, and we will be watching the all-important 28 region for cues as to whether we are heading directly to the 40+ region. Again, this is not my primary expectation, but I do have to respect the manner in which the metals move, having much experience in this arena.

As far as GLD, that too seems to be completing its b-wave rally, which may have one more push higher in the coming week before it “should” turn down. As noted last weekend, resistance is between 125-126, with only a strong break out through the 129/30 region suggesting the correction is over and another major leg up is in progress.

Lastly, with regard to silver, I am still in between several potential counts, as you can see from the chart, and which has been outlined over the last several weeks. The 16.90-17.10 region remains support and upside is still open as long as we do not break that support. Should that support break, then we are either in a i-ii, 1-2 structure (blue count), or the outside chance remains for a lower low (red count). And, as I noted before, should we see a break of support, I will discuss the other counts more extensively in a mid-week update.

See charts illustrating the wave counts on the GDX, GLD and YI.

May 11, 2016
Avi Gilburt
website: ElliottWaveTrader.net

Avi Gilburt is a widely followed Elliott Wave technical analyst and author ofElliottWaveTrader.net, a live Trading Room featuring his intraday market analysis (including emini S&P 500, metals, oil, USD & VXX), interactive member-analyst forum, and detailed library of Elliott Wave education.

Captin Ewave Major Markets Update

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Captin Ewave Major Markets Update

May 10, 2016

Email: admin@captainewave.com
Website: www.captainewave.com

Gold:

Short Term Update:
For the last few days we have been talking about the two options in gold.
Either all of wave *iii* is complete at the 1306.00 high or just wave !I! of our wave ^v^ thrust is. In yesterday’s trading session, gold was sharply lower, and reached a low of 1261.00.
In the overnight session, gold remained stable and reached a high of 1269.50, at the time that this Post was being written. Short term wave traders grabbed some great profits on the short side, and are hungry for another win, but we need to wait for a bit more wave clarity before placing our next power trade.
If wave *iii* is complete at the 1306.00 low, then we expect the current drop is wave *iv*, and our retracements for the end of wave *iv* are;
23.6% = 1247.10;
38.2% = 1210.70.
It is a bit early to conclude what type of pattern wave *iv* is going to follow, but if we are in wave *iv*, it is NOT complete at 1261.00, as it is much too shallow to be all of wave *iv*.
On the other hand, as we said in an Intraday Post yesterday, while travelling to NYC, gold has now completed the minimum requirements for a completed 3 wave pattern from the 1306.00 high to the 1261.00 low. So if we are still in our wave ^v^ thrust, and it is subdividing then the count would look like:
!I! = 1306.00;
!ii! = 1261.00, if complete, to complete all of wave !ii!
Retracements for wave !ii! are:
50% = 1267.30;
61.8% = 1258.10
Upon completion of wave !ii!, our wave !iii! rally is next.
WE should know in the next 24 to 48 hours which way gold wants to go!
Longer Term Update:
Based on the current count, gold is still working on its first impulsive sequence out of its wave (2) of 3 low, and we still have a little way to before this sequence is complete. We should now be falling in wave *iv*.
Active Trading Positions: Long 20 positions, with puts at 1085.00!

Crude Oil:
Short Term Update:

Crude reached a low of 43.04 in yesterday’s trading session. In the overnight session, crude was higher, reaching 43.98, at the time that this Post was being written.
There is no change to our current analysis as we still see further weakness, as we are still short of our 50% retracement level for all of wave !ii!, which is 42.89.
Upon completion of wave !ii!, we expect a sharp rally in wave !iii! and we will buy crude at 42.50 to try and grab this next leg up.
Our updated count is:
^i^ = 43.69;
^ii^ = 39.00;
^iii^:
!i! = 46.78;
!ii! = 43.03, if complete, but we expect further softness as our retracement levels are:
50% = 42.89;
61.8% = 41.97
Projections for the end of all of wave ^iii^ are:
^iii^ = 1.618^i^ = 52.67;
^iii^ = 2.618^i^ = 61.11
Our first projection for the end of wave *iii* is:
*iii* = 1.618*i* = 61.84.

Suncor made a slightly lower low in yesterday’s trading reaching 25.31. We are still looking for the end of wave .a. of -ii-. Retracement levels for all of wave -ii are:
50% =24.31;
61.8% = 22.98
If wave .a. is ending, then we should expect a wave .b. rally, a shown on the Weekly Suncor Chart, as the next big event.
Long Term Update:
We are now working on the assumption that a major low in wave b of B was reached at the 26.05 low. If this assumption is correct, then crude is now heading sharply higher, at least back to the all-time high of 147.27.
Active Big Wave Positions: Buying at 42.50, risking to 38.99
Short Term Positions: We’re long as of this morning, with a tight stop at $42.90!

S&P500:
Short Term Update:

Not much happened in the S&P in yesterday’s trading, and in the overnight session the S&P Futures are up about 12 points at the time that this Post was being written.
As you can see on the attached 120 Min S&P Chart, we have made a change to our count for wave -iv-. It now could be possible that all of wave -iv- is complete at the 2039.45 low. If that is the case, then we should now be starting wave -v- higher.
It is still difficult to say whether all of wave -iv- is now complete. or whether it will become more complex and even a bullish triangle. If it is becoming a bullish triangle then we just completed the first leg of that triangle at the 2039.4 low.
We should get a better picture tin this week’s trading.
Wave -iv- retracements levels are as follows:
23.6% = 2057.41;
38.2% = 2025.61.
Long Term Update:
Wave -i- of (v) is complete at the 1946.70 high, and wave -ii- at 1891.00. We should now be heading to our second projected target for the end of wave -iii- and once that wave is complete, we should expect drop in wave -iv-.
Our minimum target for the end of wave (v) is the all-time high of 2134.72.
Active Big Wave Trading Positions: Flat.
Short Term: We grabbed a short term long position this morning, risking to 2038!

USDX:
Short Term Update:

The USDX rallied to 94.33 in the overnight session, at the time that this Post was being written.
This rally has now eliminated our latest count and we are unsure of the short term count for this market. We will need to wait for more wave clarity before making a short term waves projection.
Long Term Trading Update:
The longer term picture is clear. It looks like all of wave ii was completed at the 100.71 high and we are now heading sharply lower in wave iii.
Active Trading Positions: Flat.

HUI/GDX and Selected Gold Stocks:
Short Term Update:
AS expected the GDX and our selected gold stocks were sharply lower in yesterday’s trading.
It looks like these markets are following our exact suggested paths, within their respective corrections.
GDX:

As you can see on the 60 Min GDX Chart, it looks like all of wave (b) ended at 25.44, and we are now falling in wave (c) of ii. Our minimum target for all of wave (c) is the wave (a) low of 23.29, but we do have much lower targets with our retracements levels, that are shown in the attached 60 Min GDX Chart. Traders can expect further weakness in the days ahead.
ABX:

As you can see on the 120 Min ABX Chart, wave .b. ended at 18.84, and we are now falling in wave .c. In this market wave .c. has satisfied the minimum requirements for a completed 3 wave drop as we have traded below the wave .a. low of 17.32. We doubt the all of wave (ii) is complete at the current low of 17.32, as we are still above our retracement zone. Expect further weakness here also.
Active Trading Positions: We are long the GDX, ABX, KGC, NEM, CRJ, and TSX:XGD with no stops!
Free Trades Offer For Web Readers: Send me an email to admin@captainewave.com and I’ll send you my next couple short term ewave trades for free!
Thank-you!
Captain Ewave & Crew!
Email: admin@captainewave.com
Website: www.captainewave.com
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Analyzing a Junior Mining Company

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Kal Kotecha PhD

Imagine buying the house next door for half price, would you? Junior mining stocks have been on a fire sale for some time now but why are we nervous about pulling the trigger and buying? Why doesn’t the colloquial statement ring true? “Buy low and sell high.” It makes sense, but then why do most of us buy high and sell low? Fear and panic sets in when we see our stock prices collapse. It seems counterintuitive but buying when people are panic selling generally leads to profitability.

My PhD thesis focused on the affective heuristics of the 2008 stock market crash. Basically that investors are emotional beings that invest emotionally – both in times of highs and lows in the market. Like many, I sustained a lot of personal losses and am starting to become more aware of my ‘emotional investing patterns.’ When do I invest? What makes me motivated to buy a certain stock? Am I panic buying/selling? Have I done my research?

Being a newsletter writer, I have ‘learned’ to do more investigation on the companies I write than I would if I invested purely for myself. But in saying that, it is prudent for the investor to perform in-depth research before buying a stock. In the junior mining field that includes:

  • Having an in-depth knowledge of the history of the management team. This is probably the one most crucial aspect. If the team has a track record of success, chances are they will continue in that course. I urge investors to call the President of the junior mining company, not just the Investor Relations rep. If he/she is too busy to talk to you then they do not deserve your investment. Ask him/her about the project, company goals, finances etc. Get a ‘feel’ of the company from its leader.
  • Know the project/property well. If there are any drill results, analyze them. Talk to an independent geologist and get an opinion on the project and surrounding property.
  • Analyze the balance sheet – is there debt, why? How much cash is on hand? Will there be another financing needed?
  • If the company is going into production, what are the start-up costs? Can they sustain it? How long is the mine life? What will be the projected net revenue?

And importantly, have an exit plan and stick with it whether the company’s stock falls or rises…once that goal has been realized, take your profit or minimize your losses. Do you due diligence so you won’t have to suffer from buyer’s remorse.

Happy investing!

Kal Kotecha PhD

The Big Short–Now the Big Long

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The Big Short–Now the Big Long

Kal Kotecha PhD
We live in an era of fraud in America. Not just in banking, but in government, education, religion, food, even baseball… What bothers me isn’t that fraud is not nice. Or that fraud is mean. For fifteen thousand years, fraud and short sighted thinking have never, ever worked. Not once. Eventually you get caught, things go south. When the hell did we forget all that? I thought we were better than this, I really did.

  • Mark Baum from the Big Short

The Big Short is turning into the Big Long and that is — being long on precious metals. The movie Big Short was based on a true story outlining two separate groups that understood the mortgage crisis and capitalized on it. How did they do this? They investigated who the banks were approving for subprime mortgages. They went to see the properties, interviewed the homeowners and realized that a bubble was forming. Mark Baum asked, “I don’t get it, why are they confessing?” (referring to the mortgage brokers approving just about anyone for a subprime mortgage). His associate replied, “they’re not confessing, they’re bragging.”

In the same light, there may have been some sort of a bubble in gold and gold stocks in 2010 and investors sold. Just like with the 2008 financial and real estate crisis, it overshot to an oversold position. A base in gold has been forming and a breakout looming. The fundamentals for gold look solid and if it can break the $1200 ounce resistance, we could see higher highs. But what are the banks buying now? Do they know something we do not?

In an article by Avery Goodman of Seeking Alpha   http://seekingalpha.com/article/3421396-the-big-long-goldman-sachs-and-hsbc-buy-7_1-tons-of-physical-gold he states: “On August 6, 2015, Goldman Sachs (NYSE:GS) and HSBC (NYSE:HSBC) took delivery of a sum total of 7.1 tons of physical gold. No, I have not made any typographical errors. And no, I am not talking about electronic paper claims. I am talking about shiny yellow metal stuff that you can touch and feel. The gold bars were not purchased for bank clients. They were purchased for the banks themselves. How do I know this? They are designated by the exchange as being for delivery to the bank’s “house” accounts at COMEX, not to client accounts. Goldman Sachs, alone, took 3.2 tons worth of physical gold bars. Yet, even as the firm builds its stockpile, Goldman tells clients not to do it. In spite of the antics in the paper-gold market, we know the physical market is on fire. Demand will exceed known supplies by at least 1,350 tons in 2015. More in 2016. But, that won’t stop someone from setting up the paper market in order to buy from the physical market very cheaply. This is because the mysterious gold “supplier of last resort” will fill COMEX physical delivery demand, for the moment at least, no matter how high it rises, and no matter how low other supplies may be.”

This points to some type of “gold manipulation”. Wasn’t there manipulation in the 2008 stock market crash as well as the subprime debacle? Weren’t the banks controlling us like little pawns? hmmmm

Avery Goodman continues: COMEX is designated by the US Financial Stability Council as a “Financial Market Utility” (FMU). The Council was set up by the Dodd-Frank Act, and views any failure of this “too-big-to-fail” entity as likely to lead to widespread contagion in multiple markets. Thus, logically, the US Treasury is willing to, and is draining physical gold from the US gold reserve to bail it out.

Still, regardless of what the US government is doing, why would these two banks make such a huge long-term investment in physical gold bullion bars? Perhaps, we are seeing a “Big Long,” similar to the “Big Short” Goldman Sachs is known to have taken in 2006/07. There are many who believe that we are soon going to see the collapse of a worldwide bond bubble, just as we saw a worldwide collapse of real estate values back then.”

So ask yourself, what side of the fence do you want to be on? The long or the short? Goldman Sachs and HSBC seem to know the answer and they are screaming long on gold. It might be a matter of time when someone will be writing about the Big Long that happened in gold.

 

Happy investing!

Kal Kotecha PhD

New Carolin Gold–A Golden Pick

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New Carolin Gold–A Golden Pick

Kal Kotecha PhD

In the fluctuating junior mining sector, there are few corporate characteristics that can help to foreshadow a company’s prolonged success in the market. The variations in the market, both in terms of commodity pricing and confidence investors have for the overall economy, tend to dictate the share prices of junior mining firms.

As I have discussed in previous articles, I believe that one of the most valid signals a company can display to forecast potential success is consistency. A consistent company is one that sets measurable objectives, takes logical steps toward their completion and as a result, reaches their goals in a timely fashion. The Junior Gold Reports looks upon these types of companies with great favour because they are the ones that will improve their share price across the life cycle of the company meaning there will steady and (relatively) predictable returns for investors.

New Carolin Gold Corp. (TSX-V: LAD and OTC: LADFF) (“New Carolin” or “the Company”) is a Canadian junior-stage exploration and brown field development company that has displayed consistency in the development of its 144 square kilometre land claim known as the Ladner Gold Project. The Ladner Gold Project houses 730,000 ounces of inferred gold resources, and is housed in the Coquihalla Gold Belt in southwestern British Columbia, which “is believed to have multimillion-ounce potential” (Taylor, 2015).

We profiled New Carolin Gold Corp. in February of this year (https://www.juniorgoldreport.com/newcarolingold/) , when at the time the Company was taking advantage of soaring gold prices by acquiring 100% of the Ladner Gold Project property from its previous owner. The acquisition showcased New Carolin’s commitment to the property and its potential as a bluesky gold producer. The acquisition of the property was based on a number of conditions the Company had to meet before the transaction could be finalized. As of March 31st, the TSX Venture Exchange provided conditional acceptance of the acquisition by the Company of remaining interest of the properties held by Century Mining Corporation. This acceptance cleared the Company to close the transaction and effect formal property transfers to take 100% interest and control of the Ladner Gold Project.

With this formalization of the transaction, the company is one step closer to attracting a major gold mining company to purchase the property, a benefit to all shareholders on board for the ride.

More importantly, however, is the Company’s recent completion of an Option agreement with Crucible Resources Ltd. whereby the Company acquired mining claims adjoining the Company’s Ladner Gold Project property – an expansion of New Carolin’s assets. The agreement consists of a total of twenty claims covering an area of 30 sq. km situated in the southern portion of the Project below the Coquihalla Highway.

Three of the new Crucible claims adjoin a prospective new gold zone which has been traced to a length of approximately 1 kilometer, where a sampling program was carried out in the 1980s. From the program, reported soil samples ranged between 20 and 1000 ppm, with one sample of 5900 ppm (close to 6 g/t). Industry standards suggest that gold returns of 20-50 ppm are considered high in soils and this recently optioned zone has wide areas with numerous samples between 100-1000 ppm. The development and production potential of this property is clear and adds significant value to the Company’s position in the market. New Carolin intends to engage Crucible to carry out a new sampling program in 2016 to confirm historic sample locations and assay results, and expand the sampling program on the three new claims with the expectation of extending the gold zone and locating the source.

The Company plans to step up efforts this year and explore lower claim zones where gold on surface is present. These type of holistic study samples will contribute to effective marketing by New Carolin, enabling promotion to investors and directly to majors. As of April 14th, the Company launched a new modernized website, an updated logo and hosts an active Facebook page. This type of progressive marketing from a junior mining brand is relatively unfamiliar to experienced investors in the mining space, and it should absolutely be seen as a proactive response to changing marketing requirements.

In the short-term, the company has the following plans:

  • Updating a 3-D geological model created in the fall of 2014 with detailed geological and structural mapping and surveying of the underground and surface areas. The preliminary 3-D model has provided a more thorough understanding of the Carolin mine gold mineralization and, with the additional work during this program, will provide clear exploration targets for drilling of new areas, as well as within the resource areas.
  • A diamond drill program with specific targets and objectives will follow the first phase of mapping and surveying at the Idaho zone (which includes the Carolin mine and former Aurum mine) and at the McMaster zone, which is 1.2 kilometres northwest of the Carolin mine along the Hozameen fault.
  • The company also plans to undertake exploration work at two of the several additional known mineralized gold zones located on the Ladner gold project.

Looking at New Carolin’s stock performance, there are apparent upward trends that should excite investors interested in both short and long term stakes within the Company.

Over three months, you can see more than a doubling of the stock’s value, moving from $0.04 in late January, to a peak of $0.10 where it currently sits at $0.085. The Company is expanding its property claim and has a planned exploration study to obtain an updated resource estimate. Once this is completed, we expect the stock’s value to improve significantly.

For those cautious investors wondering what kind of growth they can expect from the stock, lets take a look at its historical value over the past year:

In just under one year’s time, this stock has seen 500% growth in value. Expect the stock’s price to grow considerably in coming month’s as the Company works to execute its near term plans and market the results to interested parties.

The Company’s current investors are very confident in the management team’s ability to execute their strategy, as demonstrated by voting results at their recent Annual General Meeting which saw 32 million shares voting in favour of maintaining the team of directors with just 10 thousand voting against. For resource minded investors looking for a clearly undervalued company to make big gains from, we suggest reviewing New Carolin Gold Corp. (TSX-V: LAD) (OTC: LADFF) because we feel it is an excellent candidate due to its bluesky potential property that has already shown expansive inferred resources of 730,000 ounces of gold and has a significant range of land with promising soil samples that indicate solid gold returns.

Disclaimer

© 2010 Junior Gold Report

Junior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR).  No Guarantee as to Content:  Although JGR attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by our use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.

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