Gold has traded between $1,234 and $1,245 so far today…as of 2:30 am Pacific (this is an early edition of Morning Musings due to travel), bullion is up $6 an ounce at $1,239 as it attempts to overcome key resistance at $1,240…Silver has advanced 30 cents to $16.91…Copper, sucked into the Oil sell-off, is off a nickel at $2.72, its lowest level in more than 5 years…Crude Oil has slipped another $1.31 a barrel to $44.76 while the U.S. Dollar Index (see updated charts below) is up one-fifth of a point at 92.25…
Gold continues to perform well in the face of a strong greenback, and Gold priced in euros is now at its highest level since September…investors in exchange traded products, however, remain cautious…ETP products backed by physical Gold (of which the SPDR Gold Shares is the biggest, with a market share of 44%) have seen 8 consecutive quarterly reductions…the current holding of 1600 tonnes is the lowest since April 2009, at which time Gold was trading at only $900 an ounce…looking at this from a different perspective, a lot of future buying power continues to build…what would happen if many of these investors who have gotten out of bullion suddenly decided to get back in?…
Gold buying in India is expected to gain traction post-January 15 when the next wedding season starts…
Oil Update
Key OPEC members have no interest in trying to prop up the Oil price…OPEC will maintain its decision to keep output unchanged regardless of current prices, the United Arab Emirates’ Oil minister stated today…he said producers outside the group need to be “rational” and adjust their output according to the market…
Alberta Premier Jim Prentice admits the collapse in Oil prices below $50 U.S. a barrel is going to make things tough in the province. “The circumstances that we are in are the most serious financial circumstances we have seen in this province in 25 years, if not 50,” Prentice said. “Certainly they will affect every Albertan … it’s inescapable.”
A Senate bill to build the Keystone XL pipeline passed a preliminary but key vote yesterday, setting the stage for final passage and a likely showdown with President Obama over the legislation…the bipartisan bill passed 63 to 32 – more than enough to pass the 51-vote majority but 4 votes shy of the two-thirds majority needed to override a likely presidential veto…leaders of the Republican-led Senate acknowledged before the vote that they didn’t have the super-majority but expressed hope that amendments would sweeten the deal enough to swing 4 additional Democrats for the final vote…
TSX Gold Index Chart Update
The TSX Gold Index, aided by rising bullion prices and new multi-year lows in Oil, has surged 28% over the last 11 trading sessions since Christmas Eve…the Gold Index overcame important resistance in the mid 150’s, and a reversal to the upside has occurred in the 50-day SMA for the first time since June of last year…
Next key resistance is 175…below is a 6-month daily chart from John, showing that more gains are likely on the way after the Index closed at 174 yesterday…
TSX Gold Index-Oil Comparative Chart
We’ve been stressing this point over the last couple of months…historically, the TSX Gold Index has staged some big moves in an environment of plunging Oil prices…we’re witnessing a major change here in the relative performance between Gold producers and Oil…
Argentina Makes It Tough On Goldcorp (G, TSX)
Goldcorp Inc. (G, TSX) reported last night that it expects to record a massive write-down of up to $2.7 billion U.S. on its new Cerro Negro mine in Argentina due to ongoing political and economic challenges in that country…commercial production began at Cerro Negro at the beginning of this month with the mine expected to produce 475,000 ounces this year…however, as Goldcorp stated, “The Argentine government continues to support various actions and programs, aimed at conserving its foreign exchange reserves, including restrictions on importation of goods and services and limitations on the exchange of Argentine pesos into U.S. dollars. The financial consequences of these programs, as well as the continuing inflationary environment in the country, are negatively impacting operations at the Cerro Negro mine. Additionally, the market valuations of future exploration potential have declined.”
Today’s Equity Markets
Asia
China’s Shanghai Composite added 7 points overnight to close at 3236, while trading in Japan resumed after a holiday yesterday with the Nikkei average falling 110 points to close at 17088…
China imported record volumes of commodities last year, taking advantage of lower prices to maintain its position as a massive buyer of global resources despite a slowdown in its broader economy…import volumes of Iron Ore, Crude Oil, Copper and Soybeans hit an all-time-high in 2014, according to official data released today…imports of Iron Ore, Crude Oil and Soybeans for the month of December alone also reached record volumes in a late-year surge of shipments…
Europe
European markets are in positive territory today despite a sell-off in the energy sector…
North America
Stock index futures in New York as of 2:30 am Pacific are pointing toward a modestly higher open on Wall Street after 2 straight losing sessions…the TSX and the Venture are also looking to rebound today…
Fission Uranium Corp. (FCU, TSX) Update
Fission Uranium (FCU, TSX) shot up 12 cents to close at $1.13 yesterday on huge volume as investors cheered a phenomenal maiden resource estimate for its PLS Property in Saskatchewan…the “Triple R” deposit, as it’s now referred to, contains an estimated 105.5 million pounds of uranium resources, of which almost 80 million are in the “indicated” category (the rest are in the “inferred” category)…significantly, more than half of the resource comprises a high-grade zone that makes this deposit one of the best uranium finds in decades…
The shallowness of “Triple R” is also a key feature…a majority of the deposit, located in basement rock which makes it easier to mine, is defined from approximately 60 m to 250 m depth, exceptionally shallow measured against comparable large deposits in the Athabasca basin region…this deposit also still has strong growth potential with mineralization open in multiple directions…Fission will commence a $10 million, 63-hole winter drill program later this week…
Fission is destined to be taken out by a large player – the only questions are who, when and at what price…
Not only are the fundamentals here powerful, but FCU appears to have broken out technically…it finally closed above a downsloping channel yesterday that we’ve been watching closely for several months…in addition, this still has a lot of upside potential as you can see in this 2+ year weekly chart…
Cannabix Technolgies Inc. (BLO, CSE; BLOZF, OTC) Update
One of our favorite companies in the non-resource space remains Cannabix Technologies (BLO, CSE), a first-mover in marijuana breathalyzer technology…the company is rapidly moving toward the unveiling of “Version 1.0” of its breathalyzer prototype…once investors can actually see this feature-rich device, it’ll be “gloves off” in the market, so to speak, with BLO expected to create a stir by garnering even more North American media exposure…
Technically, the stock is already beginning to firm in anticipation of what’s to come…below is an updated U.S. chart for BLO (Stockcharts.com doesn’t yet provide charts for CSE-listed stocks)…buy pressure as shown by the CMF indicator is increasing rapidly, and a confirmed breakout above the Fib. 50% level could come today…importantly, the 50-day SMA also reversed to the upside in late December…the bullish trend is very pronounced…
BLO closed at 14.5 cents on the CSE yesterday and 12.7 cents U.S. on the OTC…the chart below is based on U.S. trading…
Doubleview Capital Corp. (DBV, TSX-V) Update
Doubleview Capital (DBV, TSX-V) has clearly hit some interesting mineralization in the deepest hole ever drilled in the Sheslay district…below are just 2 of a couple of dozen core photos from HAT-23 that have been posted on the DBV web site…
HAT–23, with a total length 650 m, intersected Copper mineralization in Sheslay red stock and dioritic porphyry of the Lisle zone, and initial assay results are pending…
Visual analysis is always very tricky, even with the best geologists and Doubleview is blessed with an outstanding team, but our thinking is that the DBV crew must have had good reason to continue to drill to the depth they did…it’s interesting to note that in December 2013, DBV reported that it had drilled 5 holes for a total of 1,276 m and collected 386 core samples for the lab…in this instance, they drilled 650 m and took 263 core samples…so they drilled half as much (but all on 1 hole) and took two-thirds of the samples they did on 1,276 m when they produced 2 discovery holes…needless to say, this latest drilling gives reason for optimism…core photos on the DBV site show plenty of pyrite and chalcopyrite…the question is, will this good-looking core run?…
Drill core sample – HAT-23
Drill core sample – HAT-23
U.S. Dollar Index Updated Chart
The near-vertical ascent of the U.S. Dollar Index since last summer can’t last forever but the trend is exceptionally strong as you can see in this updated 2.5-year weekly chart…
The key level to watch at the moment is 93 – that constitutes Fib. resistance and where the Index may react and consolidate for a period of time…overbought RSI(14) conditions have prevailed for more than 5 months…any pullback will have very strong support between previous Fib. resistance at 88 and the rising 50-day SMA, currently at 90…
U.S. Dollar Index 34-Year Weekly Chart
At this point, it’s reasonable to assume that the Dollar Index is gearing up to test its long-term downtrend line which means a move to the mid-to-upper 90’s this year may occur before a significant consolidation phase sets in…as a trader, this is not a trend you want to be in the way of as it may run you over…when it turns, though, the pullback will be sharp…
Note: John and Jon both hold share positions in BLO. Jon holds a share position in DBV.
Crocodile Gold has to be one of the best buys on the market today at 0.18.The uptrend has just begun with strong production and cash.
Comment by Jim Niles — January 13, 2015 @ 5:40 am
All arguments for a turnaround in the Venture would fall on
deaf ears this a.m., considering it is bleeding red the first
1/2 hour of trading & taking into consideration, that Gold is
up, as well as all other indices. So we wait as all the so called
predictors fall by the wayside. Good luck anyway.
Comment by Bert — January 13, 2015 @ 7:03 am
Jon and John, any comments on GGI. This has been quiet for quite a while now. Thanks.
Comment by Felix — January 13, 2015 @ 8:43 am
Still holding CXO, DBV and PGX. Heavily under water with all three of them. You had high hopes for these and so did I. Unfortunately things haven’t materialized. What do you guys expect for the area they are in this year. Price of gold and silver may be helping a bit if the trend continues. Personally I’m hoping for a buy out of KTN (Kootenay) this year. I’ll keep my fingers crossed. !!
Comment by Bert — January 13, 2015 @ 9:05 am
When will we see assay results from Rodadero? The samples have been on the website for a while now. If they were sent for assay before Christmas, it shouldn’t be much longer. GGI continues it’s slow drag down; albeit on low volume. Come on Regoci, light her up!
Comment by Dan — January 13, 2015 @ 10:23 am
It’s a new year and I hope lady luck takes a liking to us this year. It’s been a vicious bear market… but those who are still in the gold/silver sector will reap the rewards once this thing turns around. It’s too early in the year to throw in the towel…
Comment by chris — January 13, 2015 @ 11:29 am
And in all fairness, the companies the BMR guys have been covering are good companies. Yes, the share price is not moving, but these are the companies that are going to run hard first once the bull market resumes its march higher.
Comment by chris — January 13, 2015 @ 11:34 am
Whoops, i see another Bert posting. Post # 4 is not from Bert, Nfld.,
which will be my signature from now on…
Comment by Bert — January 13, 2015 @ 12:07 pm
A word from John Embry……
Read at Stockhouse website…
Comment by John BMR — January 13, 2015 @ 1:18 pm
Good read john, thx, very interesting.
Comment by Tombc — January 13, 2015 @ 3:36 pm
I don’t want to take away from Mr Emery’s predictions, but do you
really believe that anyone can precisely predict what Gold, Silver,
Copper & Zinc will be trading at next week, next month, next year
or as he stated, 5/6 years from now. The world is in shambles & the
markets, in particular the Venture, trades on every happening
goings on in the world, on a daily basis. I feel Gold will either
go up this week, go down this week or stay the same. I have 1 in 3
chances of being correct. I tried for thousands of dollars in profits
once upon a time, today i grab $100.00 when i can & feel fortunate
when able to do that. I posted about PGX being a good buy at 0.08
sometime ago, I have sold it 2/3 times since then. My average today
is 0.09, the records will show that i sold 5k shares today at 0.125,
for a profit of approximately $160.00, after $9.95 commission. I’m
only stating this because trading in & out is a way of getting some
sort of enjoyment out of this dreadful market. Anyway good luck !
Bert, NFLD
Comment by Bert — January 13, 2015 @ 3:45 pm
hello bmr boys update on heron resources(her.tsex) jan 13 ” G lens delivers strong results and potential new lens discovered” regards walter emond
Comment by walter emond — January 14, 2015 @ 1:41 am
The one thing i can brag about is, because of time difference,
i am first with the news. Remember when headlines read, Gold
will reach $2,000.00 & yes, some even predicted $5,000.00 gold,
well i guess it is possible, but not in my lifetime. Gold has
taken on a pattern of trading just the opposite of man’s way
of thinking. We will be lucky to see it trade & stay above
$1,240.00. It’s down over $6.00 again this a.m. & would you
believe, copper has moved from $3.00 recently, down to $2.50
this morning. I am not trying to be negative for the sake of
being negative, but when the rest of Canada wakes up, they can
read it themselves. On the positive side, there’s still money to
be made out there, there are stocks that trade up to, or down by
0.03 daily. Watch the patterns & 10,000 shares can give you
from $100.00 to $300.00. I often do it & if i can you can & i
don’t claim to be the brightest light bulb out there, so there
you go. Have a good day & it’s actually possible that things will
change & of course, so will our mood. Have a good day..
Comment by Bert — January 14, 2015 @ 4:26 am
Post # 13
Comment by Bert,, Nfld — January 14, 2015 @ 4:28 am
An hour later & we have Gold up almost $6.00 so there
you go, very volatile. I mentioned in my previous
post that there’s still a dollar to be made. I have been
playing DPM/T for awhile now, take a look at the chart &
you will notice it almost always trades up/down with Gold.
I have done well, but with far less than 10K shares & much
higher/lower fluctuations. Anyway, just trying to be
helpful. Good luck & it’s possible that we will eventually
turn around.
Comment by Bert , Nfld — January 14, 2015 @ 5:54 am
VGD to start drilling next week. founder and former Chairman and CEO of Goldcorp has atleast 8.5 million shares in the company
Comment by doublejay — January 14, 2015 @ 6:21 am
DBV.v popped up 39%
Comment by ChartTrader — January 14, 2015 @ 8:15 am
Special note to readers: We’re conducting an important site visit this morning and Morning Musings will be a post-market (evening) version as a result.
Comment by BMR — January 14, 2015 @ 8:17 am
Jon, do you have a chart on GGI? No volume yet today. Very low volume the past week or so. No news in a long time (Assay Results)will do that to a company SP.
Comment by Dan — January 14, 2015 @ 8:18 am
17.Special note to readers: We’re conducting an important site visit this morning and Morning Musings will be a post-market (evening) version as a result. Comment by BMR — January 14, 2015 @ 8:17 am
Hopefully Rodadero?
Comment by Dan — January 14, 2015 @ 8:23 am
Dan, Im guessing they are at GBB site. Anyway, GGI strong resistance now at .18
Comment by dave — January 14, 2015 @ 9:10 am
Also Dan. If your still in TLT, just so you know. Strong resistance – .49 , strong support – .38
Comment by dave — January 14, 2015 @ 9:15 am
Chart Reader
Because of lack of activity after that particular trade,
i would assume that whomever, placed a market order either
intentionally or by mistake, more than likely, the latter.
Comment by Bert , Nfld — January 14, 2015 @ 10:23 am
Chart Reader
More than likely, the same thing applied to last trade, when it
traded down to 0.08.
Comment by Bert , Nfld — January 14, 2015 @ 10:28 am
DBV popped allright but the volume’s pretty low so any size on the ask can drop it right back. We need volume and that will happen if gold surges.For who’s interested: ANV might be worth a gamble
By the way. Changed my name to BURT. Bert , you can then leave out the NFLD !!!
Comment by Burt — January 14, 2015 @ 10:41 am
Some of the craziest trading I’ve ever seen is happening right now with DBV. Wow!
Comment by chris — January 14, 2015 @ 10:42 am
ALERT….ALERT….ALERT
BMR is conducting an important site visit and regular Morning Musings will be posted later today, likely this evening. We’ll keep you posted.
thank you
Comment by John BMR — January 14, 2015 @ 11:04 am
DBV.v open .11 High .16 Low .08 current .10
what’s going on??
Comment by ChartTrader — January 14, 2015 @ 11:29 am
Burt
Thanks !
Comment by Bert — January 14, 2015 @ 11:44 am
chartrader – It looks like someone with RBC meant to buy a different stock that was at .16. – They put in the wrong symbol and got filled on DBV all the way up to .16 – If you look at level 2, he realized his mistake and then sold the shares bringing it right back down. I would imagine he is in the head office right now with a jar of vasoline.
Comment by dave — January 14, 2015 @ 12:53 pm
How did that site visit go BMR? Will you be posting this evening?
Comment by Dan — January 14, 2015 @ 6:33 pm
Thanks Dave. Yes still in TLT.
Comment by Dan — January 14, 2015 @ 6:33 pm
Hi Dan, I hurt my back tripping over a Gold bar, got up and then fell over a Silver bar…we’ll have more to say soon. We’ll be posting Thursday evening as well due to an early AM start.
Comment by BMR — January 14, 2015 @ 7:56 pm
Hmmmm…..wonder what junior has gold and silver on there property?
33.Hi Dan, I hurt my back tripping over a Gold bar, got up and then fell over a Silver bar…we’ll have more to say soon. We’ll be posting Thursday evening as well due to an early AM start.
Comment by BMR — January 14, 2015 @ 7:56 pm
Comment by Dan — January 14, 2015 @ 8:18 pm