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I'm an avid trader and stock market analyst. I'm always on the hunt for a great day trade or swing trade and of course look for the next stock to hit a home run and make it from the OTC to the big boards. Fundamentally, I'm a trader and my decisions are day to day 60% of the time. I look over... More
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  • How Junior Mining Could Offer Opportunity And Impact The Market 0 comments
    Jul 1, 2013 11:33 PM | about stocks: GLD, GOLD, JPM, DB, UBS

    Earlier this year I did an article regarding metals mining specific to that of silver. In "A Silver Lining to Silver's Bear Trend", I noted a correlation to silver and gold moving in unison as far as trend is concerned. After the recent uproar with the Fed and uncertainty in the markets, sentiment seems to have an undertone of bullishness as the slower summer months continue to roll in. But are these months slower this year? Many would disagree in favor of a new bull market, which has echoed into many segments including, of course, commodities.

    Spot prices for metals, specifically gold, have rallied for the 3rd day in a row moving from 1,235 to 1,257 with today's activity:

    (click to enlarge)

    But it wasn't just gold which rallied in the markets; mining companies and ETF's specific to the precious metal also saw a rise in price. Spider Gold Trust (NYSEARCA:GLD) has seen a sharp spike in price, now up a little over 4% from the end of June. African gold mining company Rangold Resources (NASDAQ:GOLD) has also seen a surge in bullish momentum over the last 5 days. After today's close at $64.13, this stock has rallied nearly 6% from Friday's open. Yet bellowing in the small cap market are some of this sectors biggest movers, in my opinion.

    Junior mining company Mission Mining (OTCPK:MISM), for example, closed out June with a price of $0.045 but after Monday's July 1 open, this micro-cap had sprung up more than 42%, seeing above average trading volume and with close of +33%. MISM has been undergoing many new developments over the last few months. Not only has Mission Mining acquired 100% ownership in the Gold Star Mine (a claim reported to contain Several Hundred BILLION DOLLARS in estimated in-ground resources), but just recently, MISM announced that the Company executed this agreement with Colten Metals, LLC to lease, mine, and operate the El Dorado Mine in California.

    Aside from the major revenue potential of the Gold Star Claim, this El Dorado Mine is a 20 acre claim that is estimated to be 1500 feet long, 600 feet wide, and 500 feet deep, and containing approximately 16.7 million cubic yards of metal-bearing rock. The current balance sheet reports that the company has increased Assets from the previous year, going from $2.2 Million to more than $400MIllion at the end of 2012. Could this micro-cap be ready for the big leagues? Not only in today's press but also in a radio interview on Sully Sulivan's Big Biz Show, company CEO Carlton Wingett went into detail on the company's mission and overall advatage of owning its claims.

    (click to enlarge)

    In addition to this, the company emphasized its goal to not only become fully reporting through a non-dilutive Form 10 Filing but also aims to uplist in the near future. Having an asset valuation of $400 million+, according to Mr. Wingett, places MISM well above many junior mining ventures.

    While Gold is seemingly riding a new bull trend, segments in many different markets are feeling the ripple. The question now may be,"Where do you find your value?"

    A recent article published by Bloomberg Business suggests that amidst a "bullion route", gold storage services continue to grow. In the article UBS AG (UBSN), Switzerland's biggest bank, started storing gold for wealth-management clients at a facility in Singapore, citing interest from investors in the region even after the metal slumped into a bear market. UBS joins Deutsche Bank AG (NYSE:DB) and JPMorgan Chase & Co. (NYSE:JPM) in offering storage services in Asia, where China may surpass India as the largest user this year.

    I think there is plenty of opportunity to make both long & short money. Being the SmallCapReporter, my money is where the biggest percentages are offered; in the OTC. Additionally, a stake in something like GLD or GOLD may offer a long term reward with a savvy placement now to take advantage of "bargain bin pricing" through a more direct investment. Time will tell but opportunity might come knocking sooner than the perma-bears may think.

    Themes: Gold, Spot Gold, prices, Metal Mining, Silver, SLV Stocks: GLD, GOLD, JPM, DB, UBS
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