Issue link: http://resourceworld.uberflip.com/i/99312
TSX: ELG little conviction. It will be important to watch this pattern closely to see if it continues in the wedge formation and whether it continues to bounce off of the current trend lines. A break through the blue trend line will be a negative signal. Finally, let's look at the charts for gold via the SPDR Gold Trust ETF and silver via the iShares Silver Trust ETF (see page 20-21). Gold had a long downward trend (red trend line) that started in September 2011, but that was broken by a convincing upward break in September 2012 and has gone somewhat sideways since. From the lows in February 2011, the market has actually been in a long term continuing upward trend, by looking at the blue line, and still continues on this trend today. I have drawn a third trend line (green) on this chart to highlight the price convergence between the blue and green trend lines. This will be very important to watch in the coming months as a break through either of these trend lines will be an indication as to the future price of gold. With regards to silver, the downward red trend line has remained intact since May 2011. A bottoming in July 2012 is a sign of short term optimism as shown by the blue upward trend line. A break in the consolidation between $30 and $32 is an important sign as to the future direction of the silver market. (US$/oz) Using the five charts as evidence, it's clear that the markets have shown negativity over the long term, but there is varying degrees of optimism in all five charts shorter term, making the point that interpretation of whether we are in a bear or bull market comes down to timing. For those looking to a more fundamental analysis approach to the direction of the markets, we have asked a couple of industry experts to weigh in. LAWRENCE ROULSTON – RESOURCEOPPORTUNITIES.COM Tremendous uncertainty in the global financial markets has led to a severe sell-off in resource stocks. With so much uncerDECEMBER 2012/JANUARY 2013 Production, Development and Growth Elgin Mining is a Canadian based company focused on production at the Bjorkdal Gold Mine in Sweden, which has produced 1,060,000 ounces in the last 24 years, and the exploration and development of the Lupin gold Mine and Ulu gold project, both located in the Nunavut Territory, Canada. Elgin Mining also selectively reviews opportunities to add advanced stage development projects to its portfolio. The Company has a strong balance sheet, generates significant cash flow from gold sales, and remains un-hedged. #201 – 750 West Pender Street Vancouver, BC V6C 2T8 Tel: 604-682-3366 Email: info@elginmining.com Website: www.elginmining.com GCR: TSX-V Exploring the untapped potential of the Gaspé region. The largest land position (over 600 sq/km) ever put together in an under-explored area of Québec. Sylvain Laberge 514 380 5610 514 702 9841 slaberge@gespegcopper.com www.gespegcopper.com www.resourceworld.com 19