Capital Gold Corp

I’d like to offer Capital Gold Corp (CGC) as a stock suggestion for short and long term trading. CGC owns 100% of 16 mining concessions located in the Municipality of Altar, State of Sonora, Republic of Mexico totaling approximately 3,544 hectares (8,756 acres or 13.7 square miles). They also own 466 hectares (1,151 acres or 1.8 square miles) of surface rights at the El Chanate gold property in Sonora, Mexico.

CGLD began producing gold at El Chanate in August 2007 and, since that time, has produced over 75,000 ounces of gold, at one of the lowest operating costs in the industry. CGC’s production costs are around $255 per ounce while other gold companies like Newmont Mining (NEM) have production costs of almost double that at $480 per ounce.

CGC recently acquired Nayarit Gold Inc. and merged it into its wholly owned subsidiary. They themselves have had offers from larger companies to become mergers but have declined. This indicates that they believe that they have strong long term potential. They also recently annouced that their fourth quarter production represents a 40% increase from their prior year.

I think that they are a strong company and will do well with the risk of inflation ahead. I also have chosen to recommend them now because they’re share price is trading at a near 3 month low of $3.49 and rarely ever gets lower than where they are now. They’re short term trading range is normally between $3.60 and $3.80 and I have bought and sold this stock at those levels myself and took profits from it. So not only do I find it a good long term option, but I think it has a favorable trading range if you can get in at the right price.

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

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