WNBD Winning Brands does a nice gesture

I think this bodes well for the company. I like the CEO’s philosophy and it could pay off for shareholders eventually.

Crude Reality Attracts Barrie Company

Canadians take the initiative to get involved when it comes to International causes. Earthquakes, hurricanes, and now oil spills.

This past week, following news reports coming out of the Gulf of Mexico where the BP Oil spill has become one of the worst environmental disasters in recent years; Barrie, Ontario, Winning Brands Corporation expedited a shipment of its Winning Colors Stain removing agent to volunteer groups on the ground in Mississippi.

British Petroleum’s problem is presently unstoppable and cannot be capped off. The explosion has revealed possible systemic issues within BP’s corporate culture with regard to risk management.

As the gushing, spewing well continues to unleash crude from its bowels some 5000 feet below the surface, communities along the gulf coast of the United States brace themselves for what could have a “Katrina” effect but with a very different loss factor.

Winning Colours has built a successful business developing Eco-friendly products which they currently market in Canada, the USA, Australia and South Africa, so sending off a shipment to help-out seemed like a natural solution to an un-natural disaster.

“Canadians like to help out their American neighbours whenever we can,” suggests Winning Brands, CEO, Eric Lehner.

“When our team heard about the catastrophic runaway oil well, we knew that our expertise could come in handy somehow, in some productive way,” said Lehner.

This revelation prompted them to research potential spill clean-up volunteer groups in the State of Mississippi. Their goal was to suggest ways their eco-friendly products could arrest the effects of the spill on possibly wildlife, the volunteer workers themselves, their apparel, and on anything they saw fit to use it on.

“Your friends in Canada would like to adopt you and this is our gift. And you can have as much as you need—even if it runs into the thousands. The response to the offer was touching,” said Lehner.

This is not the first “wet cleaning” expedition for Winning Brands. They have recently made an agreement with Holland America Cruise Lines to switch out their solvent-based dry cleaning products onboard cruise ships for their Solvent Free Solutions non-toxic dry cleaning solutions otherwise known as “Wet cleaning”. So they are strong supporters and promoters of anything ECO.

Committed To An Eco-Friendly World

“It makes sense that everything we do, everything we use and everything we wear, from now on, should be eco-friendly. As long as there is human ingenuity people will keep finding ways to use what we do to make better choices for themselves and their families. The spectrum is wide. Whether it’s an oil spill, or a toddler’s sippy-cup accident, our products will continue to be “strong as solvents…but gentle like soap”. (Who could ask for anything more?)

Clean With A Clear Conscience

Lehner believes in people, worthy causes, humanitarianism, and, of course, Winning Colours Stain remover…but then that goes without saying.

However, I had to track him down. And I firmly believe that his unselfish willingness to take what he has, which he believes is useful and give it to someone who actually needs it, will be thank you enough for him.

Photo: Water fowl are extrememly vulnerable to oil spill disasters

And if it saves a thousand ducks or ten ducks or one duck, and helps with the clean-up, Winning Brands will have WON another fight…and so too, will everyone else involved in this environmental calamity.

Here’s to success in the Gulf Region. Good work Winning Brands!

This is a very interesting Story on Michael Ware

This really has nothing to do with investing (or maybe it does at some level hidden between the lines), but none-the-less I stumbled across Michael’s story while doing some stock research (don’t ask me how…I don’t know myself). Anyways, I really enjoyed reading this and thought that anybody (if anybody is still reading this) that checks up on the blog might want to read. It also allows me to find it if I want to in the future.

http://www.mensjournal.com/cnns-prisoner-of-war

OAS Bakken IPO coming soon….this is something we should watch for

I am not sure when this company is suppose to go public but it seems like they could have some potential. They have nearly 300,000 net acres under lease in the Bakken regions. They are currently producing around 3,000 boepd. The management team seems solid, coming from a team of guys at Burlington Resources.Given the current run up in oil prices and the attention that the Bakken is getting, this seems like perfect timing for the IPO.

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Bakken Shale Benefits From Natural Gas Fears

Posted: Apr 06, 2010 09:00 AM by Eric Fox

The Bakken Shale has started to get even more attention from investors as the market displays a pronounced tilt toward companies that are exposed to oil-oriented basins due to the weakness in natural gas prices.

Going Public
Oasis Petroleum is an exploration and production company with nearly 300,000 net acres under lease in the Williston Basin, and with some prospective for the Three Forks and Bakken formations.

The company is planning an initial public offering (IPO), hoping perhaps to take advantage of investor enthusiasm towards exploration and production companies that have production and reserves weighted more toward oil. Oasis Petroleum hopes to raise as much as $350 million in the offering.

Oasis Petroleum is currently backed by EnCap Investments L.P., a private equity firm with dozens of investments in private oil and gas companies.

Production and Reserves
Oasis Petroleum has proved reserves of 13.3 million barrels of oil equivalent (BOE) as of 12/31/2009. This reserve base is 93% oil, split about evenly among three areas: the Western part of the Williston Basin, the East Neeson Anticline and the Sanish Formation.

Oasis Petroleum currently produces just over 3,000 BOE per day, almost all of it from its Williston Basin properties. Oasis Petroleum has allocated $220 million in capital to develop its acreage in 2010, targeting mostly the Bakken Shale. The company will use $179 million of this to drill 91 gross and 31 net wells during the year.

Although Oasis Petroleum is new to the public markets, the company was founded several years back by an experienced management team at Burlington Resources, a large independent exploration and production company that was purchased by Conoco Phillips (NYSE:COP) in 2006.

Competition
Investors that might want a more established company in the Bakken might take a look at Whiting Petroleum (NYSE:WLL), which has more than 88,000 net acres in the Williston Basin.

Continental Resources, Inc. (NYSE: CLR) is a major operator in the Williston Basin and was one of the first exploration and production companies to take the position that the Three Forks and Middle Bakken zones were separate formations.

The company provided additional evidence of this when it released the results of the Bice 2-29H well. This well was drilled and completed to the Middle Bakken formation, about 600 feet above the Bice 1-29H, a Three Forks well drilled in 2008.

Continental Resources, Inc. said that the Middle Bakken well produced at a higher rate than the earlier and lower Bice 1-29H, and had no pressure depletion.

Bottom Line
The Bakken Shale and other “oily” basins are getting more play as investors worry about the falling price of natural gas, and back away from companies that are oriented toward this formerly favored commodity.  Investors seeking to take a broad bull position in oil should consider such exchange-traded funds as the United States Oil Fund (NYSE: USO). (For further reading, check out What Determines Oil Prices?)

RMBS Settles AT case with Samsung

Yesterday afternoon, Rambus settled all of its AT issues with Samsung. The deal which called for $200 million in cash + $25 million a quarter for 5 years +$200 million invested in Rambus stock, and a MOU to work together on future product licenses. According to most people familiar with the situation (including me), the deal was a lot less favorable than anticipated, with the high estimates around $4 billion dollars. The AT issues regarding the other two defendants: Micron and Hynix will continue as scheduled, however it is likely that any settlement with these companies will not be nearly as large as the Samsung settlement thus the total settlement (if made) would still be under what many were hoping for. The deal now shifts the investment view for being a shareholder in RMBS. While we initially invested in the company because of the high probability that this legal settlement would occur, now it is about the actual operations moving forward. Will they sell more licenses? Will their products be adopted by the tech industry? Will they finally earn a profit (less settlement funds)? These are all questions that are now being asked whereas before it was all about the legal prospects of their cases. Rambus still has very important ongoing trials that should provide some catalysts for the stock but none as big as this. The stock is trading just over 9% today….very disappointing for what we were anticipating. I guess I will just continue to feel this one out till rulings are made on Thursday regarding the AT issues with the other two defendants. It is likely that this settlement will now open the door to more settlements with the other defendants thus I think I will plan to hold on for now.

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By Susan Decker and Ian King

Jan. 19 (Bloomberg) — Samsung Electronics Co., the world’s second-largest chipmaker, agreed to pay $900 million to end all legal claims with Rambus Inc. and reach a new licensing deal over computer-memory technology. Samsung will invest $200 million in Rambus stock, make an additional payment of $200 million and then pay $25 million a quarter for the next five years, the companies said in a joint statement. The agreement ends litigation that began in 2005 after efforts to renew an expired license failed. Samsung, based in Suwon, South Korea, is the world’s largest maker of computer- memory chips. The agreement may prompt other chipmakers to end their disputes with Rambus and begin paying royalties, said Jeff Schreiner, an analyst at San Diego-based Capstone Investments. “Any agreement with Samsung is a good agreement because it’s going to force other companies to sign,” Schreiner said in a telephone interview. “We are looking at this as a very positive development.” Rambus, based in Los Altos, California, jumped $2.96, or 14 percent, in extended trading to $24.09 following the announcement. It rose 36 cents to $21.13 in Nasdaq Stock Market trading. “We have a tremendous opportunity to renew a partnership which has created solutions that have benefited consumers worldwide,” Rambus Chief Executive Harold Hughes said in the statement. Collaboration Reviewed The companies will focus on graphics and mobile memory and review a possible collaboration on server and high-speed Nand flash memories, according to the statement. Nand is a type of semiconductor used to store files in portable devices such as Apple Inc.’s iPhone and iPod. The accord “is a comprehensive license agreement that covers all of Samsung’s technology, including the interface,” said Chris Goodhart, a Samsung spokesman. The $25 million payments from Samsung would almost double Rambus’s quarterly revenue. Rambus, which had a market value of $2.2 billion based on today’s closing share price, reported $27.9 million in third-quarter sales. Rambus has been embroiled in patent litigation for a decade with companies that refused to license its patents. Rambus has claimed in an antitrust case that Samsung, Micron Technology Inc. and Hynix Semiconductor Inc. plotted to artificially inflate the price of Rambus computer-memory chips to drive its technology out of the market.

Micron Sees No Impact

“We do not anticipate this settlement will have any impact on our ongoing litigation with Rambus,” Micron spokesman Dan Francisco said in an e-mailed statement. “Micron has always been committed to providing our customers with memory solutions that optimize cost and performance.” A hearing on that case is scheduled for Jan. 21 in San Francisco. The case relates to dynamic random access memory chips, which are the main memory in computers. Samsung’s settlement won’t affect Hynix’s litigation with Rambus, Park Seong Ae, a spokeswoman for the Ichon, South Korea- based company, said by telephone. Rambus also has accused Nvidia Corp. of infringing patents related to computer-graphics chips in a case pending before the U.S. International Trade Commission in Washington. An ITC judge is scheduled to release his findings in the case on Jan. 22. Intel Corp. is the world’s biggest chipmaker

DBA More bullish signs for Agriculture

I have continued to monitor the crop forecasts as I think they will play an important part in determining the outlook for next years agricultural plays. With several farming regions deferring fertilizer purchases this year and crop yields potentially falling short of the USDA’s record forecasts, this could be extremely bullish for the fertilizer companies as well as DBA which follows crop prices. OVerall I feel that these continue to be bullish signs for agriculture in general and really fits with our outlook for the industry. The USDA is reporting tonight on crop harvests this will be an important thing to follow to see if they will cut estimates again.

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By Rudy Ruitenberg and Luzi Ann Javier
Nov. 16 (Bloomberg) — Corn and soybeans rose in Chicago on speculation rain in parts of the U.S. may delay the harvest and cause yield losses in the world’s biggest exporter of both crops.
Rain will soak areas from southeast Iowa to central Illinois through tonight, AccuWeather said in a report today. Above-average rain is forecast in corn- and soybean-growing states Iowa, Illinois, Nebraska and Indiana between Nov. 21 and Nov. 25, the U.S. Climate Prediction Center said in a Nov. 15 report. Prices also rose as the dollar fell for a second day.
Grains “are strong, and not only is the dollar to blame, but so too is the weather,” economist Dennis Gartman said in his daily report. “The rain has again brought the remaining harvest, if not to a halt, then certainly to a slowing-down.” Corn for March delivery gained 1.5 percent to $4.12 a bushel in electronic trading on the Chicago Board of Trade at 8:22 a.m. local time.

“The return of troubled climatic conditions, with rain expected this week for the Corn Belt, could quickly increase the concerns in Chicago,” Paris-based farm adviser Agritel said in a market comment. The Dollar Index, a six-currency gauge of the greenback’s performance, slipped as much as 0.6 percent, making U.S. exports and commodities priced in dollars cheaper for buyers using other currencies.

Soybeans Advance

Soybeans for January delivery rose 0.9 percent to $9.955 a bushel in Chicago. Sixteen of 29 traders and analysts from Tokyo to Chicago surveyed by Bloomberg News on Nov. 13 forecast corn would rise this week on speculation rain will slow harvesting of the U.S. crop, boosting yield losses and reducing quality. Seventeen of 32 respondents said soybeans would drop on speculation that overseas demand is declining. About 37 percent of the corn crop in the 18 largest growing states had been harvested as of Nov. 8, compared with an average of 82 percent in the past five years, the U.S. Department of Agriculture said.

The USDA on Nov. 10 cut its forecast for this year’s U.S. corn harvest to 12.921 billion bushels, from an October estimate of 13.018 billion bushels, after heavier-than-normal rainfall and freezing temperatures reduced yield potential.
About 75 percent of the soybean crop in the 18 producing states had been collected as of Nov. 8, compared with the five-year average of 92 percent, the USDA said Nov. 9. “Given that the soybean crop harvest is so far behind its historical average harvesting time, a material portion of the soft red winter wheat crop will not get planted, or if planted, shall be planted so late as to put the crop at risk,” Gartman said. Wheat for March delivery rose 1.4 percent to $5.675 a bushel, after rising 1.4 percent on Nov. 13. Milling wheat for January delivery traded on Euronext in Paris added 1.5 euros, or 1.1 percent, to 133.5 euros ($200) a metric ton, the fourth consecutive gain.

GDXJ Market Vectors Launches Junior Mining ETF

I posted something awhile ago on a new ETF that Market Vectors was trying launch. Today the fund was traded for the first time. This could be a great way to gain a more divesfied exposure to the junior mining industry. If gold continues to climb, this fund should see some solid returns. I own one of the names within this fund: Novagold (NG). While I like this opportunity it is still hard to value this thing based on its NAV at the present moment. I will keep an eye on this for now but I could end up possibly selling my stake in NG and using the proceeds to purchase some shares of this ETF. I must also admitt that while I think gold will continue to rise, I do not want to buy into this fund while it is breaking new highs. I think the launching date of this ETF is kind of unfortunate in that many people do not want to commit capital at these levels. Regardless this is definitely something to watch.

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Van Eck Launches Market Vectors™ Junior Gold Miners ETF (GDXJ)

Focuses on small- and mid-cap companies. Many are early-stage miners developing new gold deposits and new approaches to prospecting.

Business Wire

NEW YORK — November 11, 2009

New York-based asset manager Van Eck Global today launched Market Vectors™ Junior Gold Miners ETF (ticker: GDXJ) on the NYSE Arca.

GDXJ is the first Exchange-Traded Fund (ETF) in the country to provide investors with concentrated access to “juniors,”—small- and mid-cap mining companies which generally represent a dynamic subset of the global gold-mining industry as many are companies actively engaged in developing new sources of gold either through greenfields exploration or use of new geologic models to prospect for gold in overlooked or abandoned properties.

“Junior miners represent an early stage opportunity similar to a venture capital investment, the potential exists for high growth, but significant risks exist as well,” said Jan van Eck, Principal at Van Eck Global. “At a time when global gold production has been dropping while demand has been on the rise, nimble young companies with attractive projects are potentially both a key source of new gold production and attractive takeover targets for more established players in the field.”

As they are typically early–stage companies, there are several risks associated with investing in junior miners. Many juniors operated at a loss in 2008 and approximately a third of the companies in the Fund’s underlying index had negative cash flow on a trailing 12-month basis as of June 30, 2009. Juniors are particularly vulnerable to the price trend of gold as a drop in gold prices could affect their profitability as well as their ability to secure financing to develop new and existing properties, among other things.

GDXJ seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors™ Junior Gold Miners Index (ticker: MVGDXJ), a rules-based, modified market cap-weighted, float-adjusted index comprised of a global universe of publicly traded small- and mid-capitalization companies that generate at least 50% of their revenues from gold or silver mining. The Fund carries a gross expense ratio of 0.68% and a net expense ratio of 0.60%.

As of September 30, 2009, the weighted average market capitalization of the index’s constituents was $850 million. As of the same date, the six countries in GDXJ’s underlying index by weighting were Canada (62.6%), United States (21.8%), Australia (11.2%), South Africa (2.4%), China (1.3%) and United Kingdom (0.7%).

GDXJ joins its “big brother,” Market Vectors Gold Miners ETF (NYSE Arca: GDX), which seeks to track an index that focuses on the larger companies in the global gold-mining industry. As of September 30, 2009 the weighted average market capitalization of GDX’s constituents was $15.2 billion. GDX, which launched in 2006, has gathered more than $5 billion in assets and is one of the 100 largest ETFs in the United States as of September 30, 2009.

Van Eck Global has been a leader in commodity-related investment products and has been managing gold-related investments since 1968, when the firm launched the nation’s first actively managed gold fund, the Van Eck International Investors Gold Fund (INIVX). The Fund’s manager, Joe Foster, who currently allocates a portion of his portfolio to juniors, said “higher gold prices and new geologic models are helping bring new discoveries, many of which were made by junior-mining companies around the globe.”

“We believe the two key themes driving the gold market right now are gold as an alternative to paper currency and gold as a hedge against potential inflation,” said Foster. “While there have been no onerous levels of inflation so far in this gold cycle, firming commodities prices and the liquidity being created by current monetary policies could eventually bring much higher levels of inflation.”

In addition to the two gold-mining ETFs, Van Eck Global also offers other Market Vectors ETFs focused on hard assets, emerging markets, and municipal bonds. Market Vectors ETFs had a total of approximately $9.7 billion in assets under management as of September 30, 2009, making Van Eck the 6th largest provider of ETFs in the U.S

CRESY BLERF POT MOS Argentina’s Soy Yields in Trouble?

More weather problems are threatening the global food supply. I recently read an article (HERE) detailing some weather problems in the Midwest and southern United States that could potentially threaten past estimates of crop yields in the US. This chart pretty much sums up those articles:

In a year where the USDA is forecasting record yields, droughts throughout the world in Ukraine, Latin America, Russia, and China are causing problems for farmers. This news could be bullish for names like CRESY, BLERF, DBA, and even the fertilizers such as POT and MOS. The USDA just raised their forecast of global output by 4.2m tons, I must note that if they had not raised this forecast, global stocks at the end of the year would have been negative instead of positive…see chart: (2.6m – 4.2m from below). I remain skeptical of the USDA’s estimates and think that there is a very good chance that yields could disappoint. This would in turn cause prices of these crops to rise (as supply falls, prices rise -basic economics), which in turn will cause all agricultural stocks to rise as well.

USDA soybean forecasts, 2009-10 (change from Oct estimate)

US output: 90.3m tonnes: (+1.9m tonnes)

Brazil output: 63.0m tonnes (+1m tonnes)

Argentine output: 53.0m tonnes (+0.5m tonnes)

Global output: 250.2m tonnes (+4.2m tonnes)

Global stocks at year end: 57.4m tonnes (+2.6m tonnes)

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Argentine Exchange President Says May Lower Soybean Forecast By Rodrigo Orihuela

Nov. 10 (Bloomberg) — Argentina’s soybean growers may plant less than the forecasted 19 million hectares because of drought in parts of the world’s third-largest producer, the president of the Buenos Aires Cereals Exchange said.

“We will probably maintain our forecast in tomorrow’s estimate, but will be following the drought closely over the next 15 days and may revise it downwards if the situation doesn’t improve,” Ernesto Crinigan said today in an interview in Rosario, during the Argentine Agroindustrial Conference.

Last week the Cereals Exchange estimated that farmers will plant 19 million hectares (51 million acres) in the 2009-2010 season, in what would be an all-time record crop. The Cereals Exchange releases weekly estimates on Wednesdays.

Sowing of soybeans in Argentina takes place from September through January. Harvesting starts in February. The 2009 harvest was devastated by the worst drought in a century, which reduced the crop to 32 million metric tons.

“Drought in La Pampa and Cordoba provinces and in western parts of Santa Fe and Buenos Aires provinces are worse than were originally expected,” Crinigan said.

To contact the reporter on this story: Rodrigo Orihuela in Buenos Aires at rorihuela@bloomberg.net.

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Here is another short interesting article…I bolded some key words

Global soybean output to jump 19%, US says

Global soybean production is set to jump by nearly 19% this year thanks to record production in all of the world’s big-three producing nations.

Washington has added more than 4m tonnes to its forecast for world soybean output in 2009-10, citing improved hopes for America, Brazil and third-ranked producer Argentina.

The upgrade to the US harvest estimate – which is now expected to set records for both production and yield – followed findings of higher pod counts in crops major producing states.

Argentine and Brazilian hopes were raised on expectations of a rise in plantings.

Argentina question

The revisions – which were reflected in a 3.6m-tonne rise to 428.9m tonnes in the US forecast for total global oilseed production – were viewed as bearish for prices.

Soybeans for January stood 10.25 cents lower at $9.54 a bushel in early deals in Chicago.

However, analysts expressed some surprise at the 500,000-tonne upgrade to 53.0m tonnes in Washington’s forecast for Argentine soybean production.

“There is some concern in Argentina about the dry conditions prevalent in some of the major growing areas,” Vic Lespinasse, at GrainAnalyst.com, said.

“Meteorlogix Weather is forecasting mostly dry conditions the next five-seven days in the main grain areas.”

Analysts at Oil World on Tuesday restated their concerns over the drought, which prompted them last week to slash by 2m tonnes, to 50m tonnes, their forecast for the country’s soybean crop.

Crop losses could prove even worse unless weather conditions improve over the next three to six weeks, the German-based analysis group said.

Gold Breaks New Record

Gold has continued its upward momentum breaking a new all time record of over $1080 per oz in the spot market. This rally really confirms (at least in the short term) what I mentioned on Friday’s post about how we could see a trend where gold rises even when the market is weak. It will be interesting to see if this trend can continue which I think it has the ability to. Several important factors contributed to today’s move including speculations of the Fed meeting tomorrow and the IMF announcing a $6.4 billion dollar gold sale to India’s reserve bank. I really like gold in this environment thus I continue to allocation a large proportion (I am currently roughly 20% gold) of my portfolio towards gold stocks.

Here is a pretty good overall picture of what is happening here:

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By Claudia Carpenter and Pham-Duy Nguyen
Nov. 3 (Bloomberg) — Gold jumped to a record after India’s central bank bought 200 metric tons of the metal from the International Monetary Fund, heightening speculation that there
may be more official purchases. Gold futures for December delivery rose to a record $1,081.70 an ounce on the New York Mercantile Exchange’s Comex
unit and traded at $1,080 at 12:10 p.m., up $26, or 2.5 percent. The previous record was $1,072 an ounce, on Oct. 14. “This will encourage other countries and other investors,
especially Indians, who are big buyers anyway, to jump into the market,” said Leonard Kaplan, the president of Prospector Asset Management in Evanston, Illinois. The Reserve Bank of India bought the bullion, for $6.7 billion, from Oct. 19 to Oct. 30. It was “the biggest single central-bank purchase that we know about for at least 30 years in such a short period,” said Timothy Green, the author of “The Ages of Gold.” “The only comparable event was the U.S.’s steady purchases in the 1930s and 1940s.” Prices also rose to an all-time high in gold traded in Indian rupees. Central banks, the biggest holders of gold, may diversify out of the dollar and buy bullion as ballooning U.S. debt and low interest rates weaken the greenback. “It is but a matter of time until China and the IMF announce much of the same,” said Dennis Gartman, an economist and the editor of the Gartman Letter in Suffolk, Virginia.

Rising on Dollar
Before today, gold gained 19 percent this year as the U.S. Dollar Index, which measures the greenback’s performance against six major currencies, slid 6.2 percent. The index rose to a four-week high today. “The fall in the U.S. dollar seems to be pushing all the central banks to strengthen their portfolios with gold,” said N.R. Bhanumurthy, a professor at the National Institute of Public Finance and Policy in New Delhi. “Gold is a safe store of value compared to the U.S. dollar.” India’s purchase buoyed gold as industrial metals slumped on concern that governments will remove economic-stimulus measures, crimping demand for raw materials. Copper and lead both fell as much as 2.8 percent on the London Metal Exchange.
India held 350 tons of gold at the end of 2008, making it the 12th-largest government owner, according to the GFMS Ltd. 2009 Gold Survey. The additional 200 tons propels the country past Russia into ninth place, according to GFMS figures. India is the largest buyer of gold for jewelry and investment.

Unusual Move

“You usually associate Indian consumers buying gold more than you do the central bank,” said Mario Innecco, an MF Global Ltd. broker in London. Gold averaged about $1,049 in the two weeks when the IMF gold sale occurred. Prices may rise to $1,125 by year-end, Innecco said. The IMF’s executive board on Sept. 18 approved the sale of 403.3 tons of the metal, pledging to avoid disrupting the market. The board sought to use the sales of about an eighth of the organization’s total stockpile to help shore up its finances. China has increased its gold reserves by 76 percent since 2003, to 1,054 tons, the official Xinhua News Agency reported in April. Gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, have risen 41 percent this year. President Barack Obama has increased the nation’s marketable debt to an unprecedented $7 trillion as the government borrows to revive economic growth. The Federal Reserve has kept the benchmark U.S. interest rate between zero and 0.25 percent since December. Gold may average $1,125 in 2010, “with strong investment demand anchored by a negative real-interest rate environment and probable central bank purchases,” analysts at Toronto-based Desjardins Securities Inc. said in a report. Among other precious metals, silver futures for December delivery rose 46 cents, or 2.8 percent, to $16.90 an ounce on the Comex. Before today, the most-active contract climbed 46 percent this year.

GDP growth came in better than Expected…Market Rallies

We had two key economic releases today that has really given the market a boost (DANG! Yesterday would have been a good day to buy!). GDP growth came in at 3.5% growth. This is pretty good on a comparable basis but I think it has some several underlying flaws.  First, I think these GDP figures were inflated by continued government fiscal injections (especially with programs like cash for clunkers and other money printing techniques). While this is good for this quarter it could be bad when comparing the next few quarters to this. Bottom line: with unemployment still high (even though that tends to lag GDP growth, large companies are still making massive layoffs (US Airways just announced today jobs cuts of over 1,000 employees click HERE for article). The GDP growth; which I feel was a direct result of government stimulus, only adds to the future prospects for gold and as such, gold is really doing well today. According to one article, “government spending increasing at 7.9 percent in the third quarter.” I still think we could see more pullback here moving into the end of the month but the market as proven me (and many others I might add) wrong before by continuing its upward momentum. I remain on the sidelines for now.

TLR Expands Gold Prospects

Timberline just announced that they have expanded their land position at their Butte highlands Project by acquired the mineral rights to an adjacent property. This is really good news as the company has had a successful track record at finding quality mineral prospects at low costs. It also speaks to the prospects of more expansion around their Butte Highland area and are currently continuing to explore in that region.

Here is the press release:

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Timberline Expands Land Position at Its Butte Highlands Gold Project

COEUR D’ALENE, Idaho, Oct. 29, 2009 (GLOBE NEWSWIRE) — Timberline Resources Corporation (NYSE Amex:TLR) (“Timberline”) announced today that it has acquired the mineral and surface rights to additional mineral claims adjacent to and nearby its Butte Highlands Gold Project joint venture.

Timberline executed a lease agreement with an option to purchase four patented claims at its Butte Highlands Gold Project. The additional claims are contiguous to the company’s existing claims and along strike with the mineralization that is expected to be mined by the company and its joint venture partner. Timberline intends to conduct geologic mapping, analyze surface samples, perform geochemical and geophysical analyses, and develop a drill program for the exploration of these claims. If additional mineralization is discovered, the company would expect to access the ore from the underground workings currently being developed at the Butte Highlands Gold Project.

Paul Dircksen, Timberline’s Vice President of Exploration, stated, “These additional claims are important as we assess the potential around our current resource area. It appears that the mineralized lenses we intend to mine on our existing claims at Butte Highlands may extend into these additional claims. This agreement gives us the ability to explore the potential of those claims and to purchase the property if we believe an economic resource exists.”

Timberline also staked 49 additional claims (approximately 930 acres) to the southwest of their Butte Highlands gold project. These claims cover ground that is in a similar geologic setting to Butte Highlands and hosts historic placer workings. These claims are part of the company’s strategy to assess the potential of the district as development and mining proceed at the Butte Highlands gold project.

Timberline also announced that an S-3 Shelf Registration Statement was filed with the SEC last week. In relation to this filing, Randal Hardy, Timberline’s CEO, stated, “The amount of the registration statement is intended to provide the company with flexibility and greater certainty should we choose to raise capital over the next three years. The primary objective of this filing is to put us in a better position to more quickly take advantage of strategic opportunities, including the possibility of replacing our long-term debt with equity, without the potentially lengthy and costly delays associated with SEC reviews of future registration statements. We remain very protective of our share structure and will continue to be prudent with transactions involving equity.”