Mega Precious Metals Inc MPRXF

Imo, quality jr. miners are the place to be...

[goldopportunity]

For the last week the u.s. sms have been in a free-fall.  Why? Well, it's my belief the markets believe the fed will indeed raise interest rates next year because they really do think the economy is improving (re: the latest jobs report and upward revisions on previous 2 mos.).  But I think the markets are saying quite the opposite, that the economy is still very weak and and simply cannot hold up in an environment of rising interest rates.  

Okay, so friday saw the dow park itself a titch above its 50dma.  So what comes next?  I think there's more downside risk with the dow perhaps touching its 200dma early this week. This likley with be followed by a Santa Claus rally of sorts beginning perhaps thursday.  Then I would expect some consolidation till the end of the year, followed by another test of the dow's 200dma early in the new year. 

And this brings me to the qualty jr. miners.  They have been steathily accumulated of late because they are going to rally in the new year quite substantialy imo.  Reason being, gold is also going to have a substantial rise.  And why is this all going to happen?  Simply put,  the world will be coming round to the idea that currencies need to be backed for something else other than debt.  And gold is, and always has been, the world's only true reserve currency.  So once again, what's old is new again.

As for mgp, it's one of the quality jr. miners that I follow.   The technicals indicate to me that if you like buying low, then this week would be a good time to buy and/or buy more.  Remember, nothing has changed with this fine company.  If anything, the low sp may hasten a potential future takeover bid.  I think we're at the low right now, but there could be a possible downside risk to c$0.040.  If that's the case it'll be quick and it will happen this week.    Jmvho.






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