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BMR Morning Market Musings... - BullMarketRun.com

May 25, 2016

BMR Morning Market Musings…

Gold hit a 7-week low this morning and has traded between $1,217 and $1,229 so far today on continued speculation regarding a Fed rate hike in June…some investors have given the Fed’s “test balloon” more credibility than it deserves…as of 9:00 am Pacific, bullion is down $5 an ounce at $1,222…Silver is up 8 cents at $16.28…Copper has added 2 pennies to $2.12…Crude Oil is 34 cents higher at $48.96 while the U.S. Dollar Index is off one-fifth of a point at 95.48

Gold has fallen more than 4%, hitting the top of a strong support band from $1,220 to $1,200, since Fed meeting minutes last Wednesday revived expectations for an imminent rate increase…however, with U.S. rates barely off historical lows, the environment for Gold remains exceedingly positive and no major central bank in the world has been able to maintain a rate hike cycle since the 2008 financial crisis…why should the Fed be any different when it has already shown an inability to accurately discern inflation expectations, the negative impacts of a stronger U.S. dollar, and GDP growth?…the hawkish rhetoric of certain Fed members over the past couple of years has been almost constant, yet only once have they implemented a rate hike…actions speak louder than words which is why Gold is not about to fall out of bed…this unpredictable U.S. election year, with both Presidential candidates threatening the status quo for international trade, is also not conducive to a tightening cycle and if anything will put downward pressure on the greenback during the 2nd half of 2016

Holdings in the world’s largest Gold-backed exchange-traded fund, SPDR Gold Trust, fell 3.9 tonnes yesterday to 868.66 tonnes, its first decline in a month…meanwhile, data from the International Monetary Fund showed regular official sector Gold buyers China, Russia and Kazakhstan raised their bullion reserves again last month, while Venezuela sold off more of its holdings earlier this year – not surprising as socialist Venezuela is in such a mess even toilet paper is in short supply…

The Drone Revolution In Agriculture And How Investors Can Profit

In today’s Morning Musings, Part 2 of our discussion with a company insider on the exploding AgTech industry and a near-term opportunity investors need to be aware of…

AgDrone

Oil Update

Crude approached $50 a barrel today for the 1st time in 7 months, driven by expectations that shrinking supply will help erode any overhang of unwanted Oil, particularly after industry data showed a sharp fall in U.S. inventories…a series of outages around the world, sparked by wildfires in Alberta and Islamist terrorism in Nigeria, has helped cut global Oil supply by nearly 4 million barrels per day this month…although these hitches are temporary, they have contributed to a drop in the supply glut that has plagued the market for nearly 2 years…

Oil Drilling

The threat posed by the Fort McMurray wildfire that shut down 1.2 million barrels of daily Oilsands production has not completely passed, but Oilsands companies have started sending crews back up to northern Alberta to prepare to restart their facilities.  “This is the first time that we’ve completely shut down our operations since we started production in 1978, so it is something without precedent and this is why we’re assessing it very carefully because we want to do it safely and we want to do it right,” Syncrude spokesman Will Gibson said yesterday…

In today’s Morning Musings…

1. Three new juniors added to the BMR Top Opportunities List

2. Tracking the Dow – topping pattern or aggressive breakout on the horizon?…

3Venture pullback presents new accumulation opportunities…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

32 Comments

  1. updated fact sheet ggi, an update imminent?

    Comment by Laddy — May 25, 2016 @ 9:38 am

  2. Apparently DBV is to put out a PR today regarding yesterdays court hearing, no indication of results.

    Comment by ChetBaker — May 25, 2016 @ 10:01 am

  3. Let’s hope it wasn’t another liberal Canadian judge afraid to rule against the natives.

    Comment by Jon - BMR — May 25, 2016 @ 10:10 am

  4. Yes Jon, let’s hope…indications that the news might not come out until after the market closes, which doesn’t sound promising but hard to say I guess.

    Comment by ChetBaker — May 25, 2016 @ 10:13 am

  5. DBV – Sit tight!

    Comment by Reno — May 25, 2016 @ 10:25 am

  6. Can’t sit much tighter, Reno! Haha…

    Comment by ChetBaker — May 25, 2016 @ 10:44 am

  7. Injunction granted! Finally can put this mess behind us!

    Comment by Sameer — May 25, 2016 @ 3:22 pm

  8. Not bad of a news 😉

    http://web.tmxmoney.com/article.php?newsid=7607011914222939&qm_symbol=DBV

    Comment by Reno — May 25, 2016 @ 3:23 pm

  9. Nice pop to PRG today!! BMR coverage? HRA coverage?.. maybe both!!!

    Comment by GregJ. — May 25, 2016 @ 3:38 pm

  10. Doubleview pleased with court injunction over Hat

    2016-05-25 19:18 ET – News Release

    Mr. Farshad Shirvani reports

    DOUBLEVIEW OBTAINS INJUNCTION

    Doubleview Capital Corp. has been successful in its application, obtaining an injunction order from the Supreme Court of British Columbia on May 24, 2016, preventing interference with drilling activity at Doubleview’s gold-copper porphyry Hat project, located in northwestern British Columbia. The order restrains Chad Norman Day, president of the Tahltan Central government; Heather Hawkins, vice-president of the Tahltan Central government; and certain other named first nation elders (the defendants). In addition, the order restrains any persons acting under the instruction of the defendants or anyone with knowledge of the order.

    In the near future, Doubleview plans to carry out further drilling activities on its gold-copper porphyry Hat project.

    Since 2011, the Hat project has been Doubleview’s lead exploration project. Working with the co-operation of Tahltan Drilling Company and other members of the Tahltan First Nation, Doubleview has conducted geophysical and geochemical surveys, a preliminary archeological evaluation, and 8,300 metres of diamond drilling in 25 drill holes. Doubleview’s technical surveys and drilling in a small part of the Hat project have discovered the Lisle zone, an important gold-copper target that has not been delineated. Several target areas, including possible extensions of the Lisle zone, remain to be investigated.

    We seek Safe Harbor.

    Comment by Jamie — May 25, 2016 @ 3:57 pm

  11. A just decision…Chad Day rightfully loses injuction after last summer’s circus show. Finally some common sense in the courts.

    Comment by Jon - BMR — May 25, 2016 @ 4:52 pm

  12. Awesome news! So Jon, can we expect some DBV coverage from BMR to start again?

    Comment by Steve A. — May 25, 2016 @ 5:22 pm

  13. When there is action on the ground, Steve, that’s when it’s obviously much easier to write something about a company. The political and legal mess that dragged on these last months surrounding the Hat and Chad’s Circus has been a deterrent to saying anything, especially when there has been so much positive stuff going on in the markets as a whole.

    What Chad Day and his gang did last summer at the Hat was clearly wrong and it’s great to see that recognized as it was today.

    Comment by Jon - BMR — May 25, 2016 @ 5:44 pm

  14. Jon: when do you think the pp for CXO might close? good opport at 32?

    Comment by STEVEN1 — May 25, 2016 @ 6:10 pm

  15. When they (CXO) said it would, Steven1 – on or before next Tuesday, May 31. Oversubscribed – nice.

    Comment by Jon - BMR — May 25, 2016 @ 6:23 pm

  16. Gbb halted at the open. Here’s hoping the finally announce the long awaited cofa

    Comment by Matt — May 26, 2016 @ 4:24 am

  17. Yes, let’s hope, Matt…odds are good. Frank had to get aggressive with the Ministry because the delay on this project was simply unacceptable—-a case, actually, of some environmental radicals/climate change fanatics who had infiltrated government departments – particularly during the period of the PQ…what better way for anti-mining radicals to achieve their goals than gaining positions in the Ministry to really clog the wheels?…

    Comment by Jon - BMR — May 26, 2016 @ 4:45 am

  18. GBB- Halted this am. pending news, likely the arrival of CofA,
    (certificate of authorization) to commence mining.

    Comment by bob — May 26, 2016 @ 4:45 am

  19. For those who may have followed PHM, their revenue beat by 2 million bucks… 34 mil… thats 136 mil per annum.. if they dont grow.. a real company with real management and a real biz model..

    Comment by Jeremy — May 26, 2016 @ 4:53 am

  20. Re PHM .. just reviewed the Financials.. to my untrained eye they look weak… and I am a shareholder.. Jon
    http://sedar.com/new_docs/all_new_pc_filings_en.htm

    can you take a quick peek???? the goodwill entry is puzzling!!:) TIA

    Comment by Jeremy — May 26, 2016 @ 5:17 am

  21. GBB – the company also suggested some time ago that the mining officials lived in the GBB area, which also increased their DD a lot as they became part of NIMBY. If their property hadn’t been quite so close to bureaucrats, it may have taken less scrutiny! hopefully this all a footnote.

    Comment by david — May 26, 2016 @ 5:51 am

  22. That’s perhaps part of it, David, but the bottom line is that these bureaucrats were flat-out environmental fanatics philosophically opposed to the industry wherever it’s operating…probably Oil haters as well…the strategy, of course, of the anti-resource groups who are out there is just that sort of thing—-get into positions of influence and power at government levels and infiltrate ministries…it’s time to fight back against that…

    Comment by Jon - BMR — May 26, 2016 @ 6:16 am

  23. Just came out on Stockwatch – GBB got their COFA!!!!!

    Comment by DBReese — May 26, 2016 @ 7:36 am

  24. yep, GBB got their certificate.

    A question for Jon. Was wondering why CXO is doing so well and they have not even drilled yet, and GGI is so much more advanced and drilled, yet GGI stock suffers in price.

    I have limited time to watch, but able to see a little today.

    Lima Peru, the food is out of this world here.

    Comment by dave — May 26, 2016 @ 7:45 am

  25. Gold Bullion receives Granada authorization certificate

    2016-05-26 11:27 ET – News Release

    Mr. Frank Basa reports

    GOLD BULLION DEVELOPMENT GRANTED ENVIRONMENTAL CERTIFICATE OF AUTHORIZATION PERMIT FOR GOLD PRODUCTION AT GRANADA

    Gold Bullion Development Corp. has obtained the certificate of authorization from the Quebec government’s Ministry of Environment for gold mining at Granada as set out in the company’s 2014 preliminary feasibility study (PFS) for 75,000 ounces of near-surface high-grade gold at a cash cost of $797 (U.S.) per ounce. The details of the PFS can be found in the company’s news release and technical report, both dated June 19, 2014, available on SEDAR.

    The Ministry of Environment of the province of Quebec is now satisfied the company has answered all prerequisite questions and submitted all requested studies, all of which has now been reviewed with the file deemed to be in order.

    The technical content of this news release has been reviewed by Claude Duplessis, Eng., a geological engineer from GoldMinds Geoservices Inc. and an independent qualified person under National Instrument 43-101 standards.

    We seek Safe Harbo

    Comment by bob — May 26, 2016 @ 7:48 am

  26. Gbb cofa approved!!! How much will this fly today???
    4-traders.com/GOLD-BULLION-DEVELOPMENT-227790/news/Gold-Bullion-Development-Granted-Environmental-Certificate-of-Authorization-Permit-for-Gold-Produc-22426068/

    Comment by Matt — May 26, 2016 @ 7:50 am

  27. Well one thing for sure is that Frank Basa is NOT one of THOSE CEO’s who squander and wander… no roll back… and kept going.. forward.. with patience..
    like wow!! hats of to one the better ming CEOs out there… hope it stays that way!

    Comment by Jeremy — May 26, 2016 @ 8:10 am

  28. GBB.. lots of selling on news but all shares being mopped up!!

    Comment by Jeremy — May 26, 2016 @ 8:13 am

  29. Jon

    hearing anymore rumors on who MTS was approached by? do you think it is going to take results by CXO to really get MTS moving,. going to be very hard to get shares in MTS once it does in my opinion, it is hard to get filled now, can’t imagine what it will be like if CXO hits good results?
    thanks Jon

    Comment by GREG — May 26, 2016 @ 8:23 am

  30. GBB – the Cofa wasn’t unexpected . so maybe it sits in this range till the next NR saying how things are progressing on the mining startup. they have a lot done already in terms of site prep, but when trucks are mobilized to truck to a mill,is what we want to know now

    Comment by david — May 26, 2016 @ 8:46 am

  31. Not specifically, Greg, but there’s no question there’s a lot going on behind the scenes with numerous companies in the Heart of Gold Camp at the moment…we may have a little more on that by tomorrow…MTS doesn’t need CXO results to pop IMHO…

    Comment by Jon - BMR — May 26, 2016 @ 8:47 am

  32. Interesting article this morning in line with what BMR has been saying too.

    Throw every “norm” out the window. This Keynesian, central banking world has everything so distorted that nothing makes sense anymore.

    There are currently more than $7 trillion in bonds, worldwide, offering a negative interest rate. Wrap your head around that! People are actually paying trillions of dollars to give their money to mostly bankrupt governments with the promise they will receive less at a later date.

    Treasury Bonds used to be described as having a “risk-free return.” Now they are “return-free risk”.

    This system is so backwards, inside-out, manipulated and bankrupt that what once used to be seen as “prudent and sound” is very obviously risky.

    For example, Moody’s reported last Friday that Apple, Microsoft, Alphabet (Google), Cisco Systems and Oracle are sitting on $504 billion in cash and “cash equivalents.”

    Moody’s Investor “Services” (and we put “Services” in the proverbial air quotes, because these are the same people who called bundles of mortgages loaned to dead and jobless people Triple-A) made this statement in their Friday report: “Corporate America’s rising pile of cash is becoming increasingly important to investors as profit growth and the stock market stalls.”

    They are right that profit-growth is slowing. The economy is stalling as we rest on the precipice of complete collapse.

    In more normal times it would be prudent for companies to hold a large amount of cash to get through an economic downturn. Not now!

    Holding large amounts of cash – or even worse, cash “equivalents” (basically bankrupt government bonds paying a negative interest rate) is now increasingly unwise.

    Consider currency risk. A company like Apple, with subsidiaries worldwide, likely holds numerous currencies including euros and Japanese yen.

    The Eurozone, as admitted by almost everyone, is on the verge of collapse. And Japan too.

    Both the euro and the yen may not even exist a few years from now. And, even if they do, they’ll likely be so hyperinflated as to be on their way to becoming worthless.

    The US dollar is in no better shape. Countries around the world are moving away from using the dollar and the petrodollar system itself is failing. The dollar could be quickly headed towards the dustbin of history.

    And, Apple, meanwhile, has $215 billion in cash and cash equivalents. Much more is actually in held in the debt of bankrupt governments (which is even worse)!

    Apple’s market cap is currently about $500 billion, Nearly half of that is held in pieces of paper that could be valued at zero in just the next few years.

    This, in fact, should be an investors biggest concern. You have nearly half the market cap of Apple being held in highly risky instruments. And then there is the bonus risk of having 30% more being absconded by the Internal Rape Service (IRS) if Apple were to even repatriate that money to the US based parent company.

    In other words, these large cash holdings are a major risk… and most people don’t even realize it.

    If companies like Apple had any sense, they’d be diversifying out of fiat currencies into metals. But, they are not… mostly because the CFOs of these companies went to Keynesian business schools. They watch CNBC, and think that the Federal Reserve is here to “help”.

    And, to be fair, even if they did understand, most other people also have no idea what is going on. Apple and the others would likely receive a backlash from investors for “risking” their assets in barbarous relics like gold if they tried to make the transition.

    Of course, when the hour comes, the entire economic fabric of Western civilization is going to be ripped asunder. That’s the plan. That’s the intention of those at the very top of the economic structure. But try telling that to the average investor.

    Gold rallied against the dollar by nearly 30 percent in the first four months of this year. And that would have provided quite a boost to Apple’s bottom line if the company had “cash” holdings in the yellow metal. It should have, but it didn’t.

    Gold and silver are now the assets of choice for those who are awake to what is happening as we move further into Jubilee Year 2016. Billionaires like George Soros, Stanley Druckenmiller and Carl Icahn have all taken considerable positions in gold of late. We’ve reported on these moves and we understand exactly why they’ve taken place.

    The Fed has indicated rates might rise in June and that has strengthened the dollar against gold. But the stock market rally is seven years old. Sovereign, corporate and personal debt are scaling heights not seen since 2008. And there are so many black swans out there that it is impossible to tell which ones will come home to roost.

    Even the US government is beginning to prepare for calamity. Only a few days ago, Congress introduced the “No Bailouts for State, Territory, and Local Governments Act.” The new bill prohibits any federal agency from funding ANY bankrupt city, state, or territory. The bill also prohibits the Federal Reserve from “financially assisting State and Local governments.”

    Congress is well aware of a massive wave of defaults about to hit cities and states. Puerto Rico is just the beginning. We can see from this new bill that the federal government wants to make sure that every dime available ends up in its pockets. Nothing for cities or states. But the US federal government is just as bankrupt as they are.

    This coming collapse will be one for the history books and very few see it coming and even less know how to prepare.

    Those invested with Apple and other large corporations may think they have insulated themselves from the worst of the volatility because of their large cash holdings. In fact, in a way, Apple is now mostly a money market fund and they may have just risked billions on a failing system.

    Comment by GREG — May 26, 2016 @ 8:49 am

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