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One of our favorite mining equities has been the ongoing advance of New Gold (NGD). On several occasions we have made doubles in this ongoing saga since we first highlighted it in early 2009. Click here to see original recommendation. The chart is extremely powerful. This could well be the hallmark of an ongoing powerful advance. It refused to violate its 200 day moving average despite sector weakness.

This relative strength may be telling us that New Gold may well be one of our leaders as we return to an equity that has shown consistent strength in volatile markets.

Remember they have one of the best cash flows in the business. Additionally, they represent a strong presence in gold and silver as well as copper.

This abundance of riches increases with the little noticed but all important and fully funded New Afton Project in the friendly jurisdiction of British Columbia. The bride becomes increasingly more beautiful when one considers that New Afton is fully funded, permitted and ready to be carried across the threshold of productivity.

New Gold is strategically positioned to profit from this new upward leg in precious metals. They have a strong balance sheet in the hands of experienced management represented by Oliphant, Gallagher and Lassonde, who have a proven track record of building major mining companies.

Careful monitoring of the uptrend is required.

Jeb Handwerger
Editor http://goldstocktrades.com

Full story at http://www.kitco.com/ind/Handwerger/aug162011.html