Tara Gold Resources (fka TRGD)

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from Pinnacle

In respect to Tara Gold Resources Corp. we are interested in learning more about their recent news, current objectives and direction moving forward. Our attention was warranted by the fact their next 5 drill holes are planned for the El Negro target area. A historical resource of 13.53 million tonnes grading 260 g/t Ag and 0.31 g/t Au has been defined. We are awaiting assay results and will be continuing our review upon Tara as they develop this property.





The value and demand of crude oil is an all consuming product which affects almost every aspect of the market. Crude oil rose for a third day on concern that two storms may disrupt supply in the Gulf of Mexico. Reports are stating that Dean may strengthen to a category 4 hurricane by next week as it crosses the Caribbean. Crude oil touched a record on August 1st trading up to $78.77. It traded to $71.88 a barrel Thursday. Concerns the US economy will slow has reduced the overall demand of oil as fuel supplies begin to grow. The Energy Department has reported that stockpiles dropped 2.24 million barrels two weeks ago after imports plunged and demand reached a two year high. We believe the summer driving season will continue to be a contributing factor to any rise in demand. Many oil and gas companies fluctuate with the value of oil. These companies will be a focus at our digest over the summer months and heading into the fall. On August 3rd oil stockpiles of 340.4 million barrels in the United States were reported. This is 11% higher than usual for this time of year.



PinnacleDigest is currently very focused on the mining and resource based sectors. The TSX Venture Exchange was torn down Thursday falling 215 points to close at 2445.23. There are many junior companies operating within the North American markets that we are tracking closely.



Commodities fell across the board yesterday as investors were driven to sell assets to raise cash. The dollar gained against the euro Tuesday reducing the appeal of both gold and silver. Continued speculation that the US economy will keep the Federal Reserve from raising rates has raised the appeal of gold. July proved to be gold’s first monthly gain since April. Gold futures for December fell Thursday to close at $646.40 an ounce. Many experts are predicting the dollar may continue to slide against the euro. Central Banks have been selling gold reserves to drive down the price and calm investors. We will be watching the selling levels very closely over the coming weeks and months. Silver futures fell on Thursday to close at $11.70 for September delivery.



Copper futures fell Thursday on fear that global losses in the financial market will curb economic growth. Global and domestic economic expansion moves the market. The general concern around the slowing US economy has also reduced demand. Global demand continues to pressure the current supply and we are not worried about a quick recovery by the metal. In the second quarter China’s economy reportedly expanded at the fastest pace in 12 years. Copper for December delivery fell to $3.123 per pound Thursday. Concern that the US housing slump will curb consumption is a major factor affecting the value of copper. The fundamentals are in place for the value of copper to increase. We believe that when the credit crunch passes, copper will be revalued upwards. One of our more recent weekly volumes describes the variables affecting copper in detail.



We believe very strongly in the current commodity boom and believe that the declines in copper and other base metals will be short-lived. We are closely monitoring companies with major molybdenum deposits as this metal approaches a two year high.



The TSX and Venture exchanges are heavily weighted in the mining and resource based industries. For that reason we monitor this index very closely. The mining industry will be a major focus at PinnacleDigest over the coming months as their main season takes command. There are many mining and resources based companies we are continually following and updating our review upon.