Foundation Resources is a mineral exploration comp

first_imgFoundation Resources is a mineral exploration company focusing its efforts within the Coldstream Gold Property, located 115 Km North West of Thunder Bay, Ontario. The Company has a NI 43-101 resource estimate with 860,000 ounces of gold (763,276 ounces gold inferred and 96,400 ounces gold indicated) on the Osmani deposit, which represents one of five highly prospective targets that expands over a 16 km long gold trend. In addition to its Canadian projects, the Company is also exploring the San Rafael gold-silver property in Mexico which is located approximately 150 km northwest of Durango.These most recent drill results from Span Lake emphasizes the blue sky potential the Coldstream Property possesses and continues to demonstrate the impact that Foundations management team brings to the project. Over the remainder of the year Foundation plans to aggressively drill and expand the current resource on the Osmani Deposit and explore the numerous gold anomalies previously identified within the Coldstream Property. We look forward to providing our shareholders and the public with an updated NI43-101 in Q4 of 2012, which will include 15 holes and 4000 metres of drilling completed last year on the Osmani Deposit, that wasn’t included in the resource calculation. Please visit our website to sign up for continued updates. Sponsor Advertisement Well, was it free-market forces at work in the thinly-traded Friday afternoon market in New York…or was it JPMorgan et al?The gold price spent all of Far East trading and most of the London morning, floating around between unchanged and down five bucks.But at 12:35 p.m. in London, a somewhat more substantial selling pattern appeared…and by about 1:15 a.m. in New York, gold was down about ten bucks from Thursday’s closing price.Then, out of nowhere, the bid disappeared…and within forty-five minutes, gold was down another fifteen plus dollars.  The low price tick of the day [$1,647.90 spot] came just minutes after 2:00 p.m. in electronic trading…and from there recovered about ten bucks going into the 5:15 p.m. Eastern time close.The gold price finished the day at $1,658.50 spot…down $16.80…precisely one percent from Thursday.  Net volume was exactly the same as Thursday…around 121,000 contracts.Silver’s price path was almost a carbon copy of gold’s price action, except the price was more ‘volatile’.  The big difference was in the timing.  Although silver’s price decline began at the same 12:35 p.m. BST in London as gold did, it’s decline was more precipitous…and the really serious price decline began just a few minutes after the close of trading in London…which was 11:02 a.m. Eastern time.Silver’s low price tick [$31.23 spot] was in about 1:20 p.m. Eastern…ten minutes before the close of Comex trading…and just a few minutes after the bid disappeared in gold.  The silver price gained back 30 cents within minutes…and then proceeded to trade sideways until the 5:15 p.m. close of electronic trading in New York.Silver finished the Friday trading session down 88 cents from Thursday and, strangely enough, net silver volume was the same as it was on Thursday…around 37,000 contracts.Here’s the New York Spot Silver [Bid] chart that shows the Comex trading day…and the electronic session that follows…in far more detail.All of gold and silver’s gains from Thursday…plus a bit more…disappeared on Friday, April 13th.The dollar index was in a bit of a rally mode right from the 6:00 p.m. open in New York on Thursday night…but really took flight around 12:35 p.m. in London which, not coincidentally, was the precise moment that gold and silver price began their trips to the nether reaches of their respective price charts.Almost 100 percent of the subsequent rally in the dollar index was in by just minutes after 11:00 a.m. in New York, which was the precise time that silver began its big sell-off on the Comex.  From that point the dollar traded flat until 5:15 p.m. Eastern.Virtually all of gold and silver’s big dollar index-related losses were in by 11:02 a.m. Eastern time…and what happened to the precious metals after that time, was certainly had nothing to do with the dollar.If you look at the Kitco gold chart above you will note a recovery in the gold price between 10:30 and 11:02 a.m…and even though the gold stocks gapped down at the open, the low of the day was in around 10:00 a.m. Eastern…and bounced off that price many times until the gold price recovered about five bucks…and away the gold stocks went to the upside.That rally lasted until a few minutes after 11:00 a.m. Eastern time…and you know what happened to both gold and silver from there…especially silver.  And need I remind you that the rally in the dollar index ended at precisely the same moment.But, despite the drop in the gold price starting at 1:15 p.m. in New York, you’d be hard pressed to spot it on the chart below.  The HUI only finished down 1.69% on the day…and in the face of what happened to the gold price going into the Comex close, I consider that a big win.With silver down almost three percent on the day, the associated equities did not do well…and Nick Laird’s Silver Sentiment Index closed down 2.82%.(Click on image to enlarge)After Thursday’s big Daily Delivery Report from the CME, it was back to normal on Friday, as that report showed only 6 gold contracts posted for delivery on Tuesday.  Unless someone shows up out of the blue to take delivery of a huge chunk of Comex silver…silver deliveries are pretty much done for, with only a handful left in the April delivery month.  But there’s still miles to go in gold.There were no reported changes in GLD yesterday…but 873,837 troy ounces of silver were withdrawn from SLV.The U.S. Mint reported selling 1,000 ounces of gold eagles.  One has to wonder why they even bothered issuing a report yesterday.It was another busy day over at the Comex-approved depositories on Thursday.  This time they reported receiving 1,255,060 troy ounces of silver…and shipped 269,623 ounces of the stuff out the door.  The link to that action is here.Ted Butler told me that he expected that the Commercial net short position in silver was going to show a decline of about 5,000 contracts in yesterday’s Commitment of Traders Report.  The actual number was 4,950 contracts. Not a bad guess.  The Commercial net short position is now down to 131.9 million ounces, which is a really small number.As of the Tuesday cut-off, the ‘1-4’ largest short holders in the Comex silver futures market are short 171.1 million ounces.  The ‘5-8’ largest traders are short an additional 41.8 million ounces on top of that.  Once you remove the market-neutral spread trades from the Non-Commercial category, these ‘1-4’ traders are short 37.8% of the entire Comex futures market…and it’s a pretty good bet that JPMorgan is short about half of that on its own.  The ‘5-8’ traders are short another 9.2 percentage points as well, so the ‘1-8’ large traders holding short positions in silver are short 47.0% of the entire Comex futures market in that commodity.To put this into some sort of perspective…and to give you an idea of how concentrated this silver short position really is…there are 75 traders holding short positions in the Non-Commercial category…and that includes the 42 holding spread trades.  There are 45 traders holding short positions in the Commercial category…and in the Nonreportables, there are literally thousands.  Eight traders are short 47 percent of the entire Comex futures market in silver…thousands holding the other 53% short.If this is not a concentrated short position, I don’t know what is.  The CFTC know this all too well.  They should, as it’s their data from their own report as of yesterday.The situation is actually worse than this.  I use the legacy COT report for both silver and gold.  Ted [and others] use what is called the Disaggregated COT Report.  When you take out the additional spread trades reported in that, then the concentrated short position of the ‘1-8’ traders is even higher than the numbers I’m reporting above.In gold, the Commercial net short position only improved by 6,415 contracts.  Ted was expecting around a 15,000 contract improvement.  He said it didn’t happen because the rally on Tuesday punctured the 20-day moving average in gold with some authority…and a lot of technical funds bought when that average was broken to the upside.As of the Tuesday cut-off, the Commercial net short position in gold was down to 17.1 million ounces.  The ‘1-4’ largest short holders are short 11.0 million ounces…and the ‘5-8’ largest short holders are short an additional 5.4 million ounces.  Between all of the ‘big 8’ short holders, they are short 95.9% of the Commercial net short position in gold.  But in silver, the ‘big 8’ are short 161.4% of the Commercial net short position.Here’s Nick Laird’s wonderful chart…”Days of World Silver Production” of the ‘1-4’ and ‘5-8’ largest traders in all Comex-traded commodities.  The bars for silver and gold are visual representations of what I just spoke of above.(Click on image to enlarge)Here’s another chart from Nick Laird which he slid into my in-box just after midnight.  It’s his “Total PMs Pool” graph, which is now at a new record high in ounces.  Here was his accompanying commentary…”Hi Ed, Here we are at new highs in number of ounces held. Of note, the UBS Gold ETF put on 261,766 oz. of gold this week. Cheers. Nick”(Click on image to enlarge)So even though ‘da boyz’ are mucking about with the price, the smart money is still quietly socking it away…and that’s what you should be doing as well, dear reader.I have the usual number of stories for a weekend…and some I’ve been saving for today because of length or content, or both.  I hope you have the time to sift through them all.Crime once exposed has no refuge but audacity. – TacitusHere’s a song by a well-known American rock group that really never got the respect that I though it warranted.  Maybe because it’s impossible to play in concert unless there’s a full orchestral back-up.  It certainly deserved a better fate than what it got, as you never hear it on the radio anymore.  You’ll know it instantly nonetheless…and I hope you enjoy it.  So turn up your speakers and then click here.Well, was it free-market forces at work in the thinly-traded Friday afternoon market in New York…or was it JPMorgan et al?  You can decide on your own.  But to me, it was an “up yours…and have a happy Friday the 13th”…and I even recognized their footprints.Of course the breakouts above gold and silver’s respective 20-day moving averages got crushed on yesterday’s take-down…and I have no idea where that leaves us in the days and weeks ahead.But the Commitment of Traders Report yesterday was about as bullish as you can get.  Can we get more bullish from here…meaning can the prices be engineered lower?  You bet…but we’re far closer to a bottom than a top.There’s still the opportunity to either readjust your portfolio, or get fully invested in the continuing major up-leg of this bull market in both silver and gold…and I respectfully suggest that you take a trial subscription to either Casey Research’s International Speculator [junior gold and silver exploration companies], or BIG GOLD [large producers], with all our best (and current) recommendations…as well as the archives. Don’t forget that our 90-day guarantee of satisfaction is in effect for both publications.That’s it for the day…and for the week.  Enjoy what’s left of your weekend…and I’ll see you here on Tuesday.last_img

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