Gold has traded between $1,320 and $1,341 so far today…as of 9:15 am Pacific, bullion is down $13 an ounce at $1,329…Silver is also off its lows, down just 9 cents to $20.22…Copper is flat at $2.23…Crude Oil is up 75 cents at $45.50 while the U.S. Dollar Index is down one-fifth of a point to 96.11…
Silver investment has soared in 2016 as investors see the metal as a safe haven and leveraged exposure to the sharp rally in Gold, says the Silver Institute. “Investors actively accumulated Silver in the first 6 months of the year, including both the physical and paper markets,” the organization stated in a news release yesterday…exchange-traded-product holdings rose by 44.3 million ounces, or 7.2%, to a record high of 662.2 million…investors have also raised their net-long positioning in Comex Silver futures and options to a record high of 80,522 contracts as of July 5th vs. just 6,282 contracts at the end of 2015…
Coming on the heels of record global Silver coin demand in 2015, Silver coin sales increased in Q1 of 2016 by 29%, says the Institute, citing the GFMS Thomson Reuters quarterly coin sales survey. “Regionally, North America has continued to be the bright spot in Silver investment product demand. In the coin market, coin sales grew at double digit paces in all the major regions – North America, Europe, Japan, Asia, Africa and other – as coin demand has remained elevated since the 2nd half of last year,” the Silver Institute says…
Bank of England Holds Rates Steady – For Now
The Bank of England surprised investors by keeping rates unchanged today….however, it said it was likely to deliver stimulus to the economy in a few weeks, once it further assessed how Britain’s vote to leave the EU has affected the economy…
Citibank strategist David Wilson commented, “Britain has got a new Prime Minister, which, alongside expectations of more stimulus from the Bank of England, has brought a sense of relief to markets, so Gold is easing and everything else is rising on that. But the whole process of Brexit negotiations, which hasn’t started yet, implies financial risks that will be supportive for the metal in the medium term.”
Irish Eyes Are Smiling!
Did you notice that Ireland’s Central Statistics Office told the world this week that the country’s economy (GDP) grew a whopping 26% in 2015? (and we thought numbers from China were questionable!)…
Ireland has become a favoured destination for fiscal restructuring deals involving large multinationals which has skewed GDP numbers (assets moving to Dublin from some big-time corporate “inversions”), but the country has certainly been doing better in recent years…the World Bank’s “Doing Business” report rates Ireland as the easiest EU location to start a business, while the same report rates Ireland’s tax regime as the most business-friendly in Europe or the Americas…
U.S. Producer Prices Edge Higher
The U.S. Labor Department said this morning that its Producer Price Index rose a more-than-expected 0.5% in June, up compared to May’s rise of 0.4%…on an annual basis, producer prices have moved into positive territory, up 0.3% for the year, “the largest 12-month increase since moving up 0.9% in December 2014,“ the report said…
Kirkland Lake Gold (KGI, TSX) Update
Kirkland Lake Gold (KGI, TSX) is holding up well today despite the weakness in the Gold sector…the company this morning reported total Gold production of 68,338 ounces for the 2nd quarter of 2016 and 130,613 ounces for the 6 months ended June 30th from the Macassa mine complex and East Timmins operations…the high grades at Macassa are impressive…a total of 89,436 tonnes of ore (excluding low-grade material) was produced at a head grade of 13.8 g/t with recoveries at 96.7% (producing 38,215 ounces of Gold)…the company also has nearly $160 million cash on hand…
In today’s Morning Musings…
1. Pretium Power! anchors the Heart of Gold Camp…
2. New addition to the BMR Top Opportunities List…
3. Important new TSX chart – how high could this go on the global “stimulus” push?…
4. Deveron UAS (DVR, CSE) set to start trading as early as Monday…
Plus more…click here to read the rest of this article, and all BMR exclusive content, by taking advantage of our July Special, or login with your username and password.
ALSO…click here for a free BMR eAlert on a 9-cent junior ($2.3 million market cap) that’s set to SOAR on higher Silver prices.
news out on MNY.v
Comment by Mmurphy — July 14, 2016 @ 9:34 am
Devron starts trading Monday on the CSE
Comment by dave — July 14, 2016 @ 9:47 am
Deveron- i like the 50 cent opening price, got a small postion in the high 20″s before the halt
Comment by kelly — July 14, 2016 @ 10:03 am
That could be low-balling it, Kelly, we’ll see…and if it does open there, it won’t be there for long…one of the nice things about DVR is the tight float – we’ve seen with Tudor Gold just recently what that can mean…and DVR is about as tight as they get with roughtly 18 million O/S and less than 3 million in the public float…Drone Delivery Canada (FLT, CSE) went to a $45 million market cap when it started trading June 16 on the CSE…in the drone sector but very different sphere than DVR, and FLT has nothing compared to what DVR has put together….plus FLT has 90 or so million O/S vs. the tight structure of DVR…this is the best deal Tony Roodenburg has ever been involved in – it will do extremely well…
Comment by Jon - BMR — July 14, 2016 @ 10:57 am
Thx Jon, in advance for bringing this company (DVR) to our attention.. I was one of the lucky ones to get in on the PP… BLO is another one which I would not have known about and participated in that PP as well..
This could be my lucky year!:) thank you!! the cloud is lifting:)
Comment by Jeremy — July 14, 2016 @ 11:45 am
OK so I checked on FLT.. market cap is now 13 mill.. stock opened at 45ish and is now 15…
wonder what happened???? how can DVR maintain the opening stock price?? Just asking:)
Comment by Jeremy — July 14, 2016 @ 11:48 am
great, the house im using down here wont let me buy “C” exchange stock. No gain on Devron for me.
Comment by dave — July 14, 2016 @ 11:52 am
More info on FLT… they didnt deserve to be at 45c in the first place.. they have 25K of operating capital and th president of the company actually got PAID a finders fee for leading placement people to the deal. Hmmmm my company, I raise money for my company and I take 8% oout of the company for me.. nice… real nice!!!
Comment by Jeremy — July 14, 2016 @ 11:55 am
That was my point, Jeremy…if you look into FLT, it has NOTHING compared to DVR, and is in a totally different sphere in the drone sector…DVR is also already generating revenues and should have tremendous news flow as they’ve been building this business for months…there is no comparison between the two, yet FLT actually hit a $45 million market cap with an ugly share structure (one reason it couldn’t maintain momentum)…what the FLT example points out is the interest in the sector, and gives some clue as to a potential DVR valuation…
Comment by Jon - BMR — July 14, 2016 @ 12:04 pm
John… what is the significance of a spinning top doji candle pattern?? ff.v is the chart I was looking at. I understand the 2 individually but the 2 together not so much:)
TIA mate
Comment by Jeremy — July 14, 2016 @ 12:06 pm
Jon – well put:) and yes it makes sense sir:)
Comment by Jeremy — July 14, 2016 @ 12:26 pm
Another terrorist attack in France tonight, at least 70 killed…
Comment by Jon - BMR — July 14, 2016 @ 4:09 pm
Jon, would you still suggest another way to get into Deveron is buying VGN? I recall you saying they own 70 percent of DVR so would that be about 12.6 million shares? If DVR reached a market cap of about 18 to 20 million (buck a share) next week that would boost VGN an extra 9.45 million dollars (dvr already sitting @ 25 cents). That’s about an extra 23 cents in the share price to VGN. Would you mind commenting if my numbers make sense? Also, I’ve noticed in the past trying to buy shares in new companies debuting on CSE, a delay on day 1 and difficultly in getting orders filled. That’s one reason why I’m considering VGN instead. Appreciate your feedback
Comment by Roger — July 14, 2016 @ 4:31 pm
Jeremy
The spinning top doji identifies indecision and often occurs at a top or a bottom. When I see this I immediately look at the level of the RSI(10).
If the RSI is O/B then there is a good chance that it could be signalling a top. This is the case for V.FF. Whenever you see a doji have caution…they all mean indecision.
Hope this helps.
Comment by John - BMR — July 14, 2016 @ 5:18 pm
VGN is certainly one way to play DVR, Roger. VGN also has a couple of Nevada Gold plays that make it attractive as well, and $4 million cash. The market will discount VGN’s holdings in DVR (this is typical), so keep that in mind…in other words, if DVR is trading at $1, for an approx. $16-$18 million market cap, that would represent $8.5 million in value for VGN but in the market VGN may only get 50% on that…with the DVR financing and the shares issued for the tech deal, VGN still owns a majority of DVR but that percentage has slipped to 56% at the moment with VGN holding 8.5 million shares of DVR’s current 15.4 million O/S following the PP (some DVR shares will also be going out for the private company it has acquired)….at $1 for DVR, even if you cut the value of VGN’s holdings in half, and add in the cash, that projects to about 20 cents for VGN…doesn’t include the Nevada assets. $2 DVR, 31 cents VGN using that same valuation. We’ll discuss where DVR could be headed in Morning Musings (hint, probably higher than u think. and we’ll explain why)…
Comment by Jon - BMR — July 14, 2016 @ 5:29 pm
Thanks Jon, appreciate it. Not sure which way to go yet. If I can get in early on DVR Monday morning, probably go that route
Comment by Roger — July 14, 2016 @ 5:39 pm
What is DYG telling us today? Anybody can tell me?
Comment by Theodore — July 14, 2016 @ 6:37 pm
John
Your a genius when it comes to the charts you have a special gift , uncanny how you get it right do often!
Comment by Greg — July 14, 2016 @ 11:29 pm
John – Thanks mate… appreciate the guidance:)
Comment by Jeremy — July 15, 2016 @ 3:02 am
Wouldn’t a Colorado halt late today make for some exciting weekend drama? (doesn’t hurt to wish)…
Comment by Jon - BMR — July 15, 2016 @ 6:09 am
CXO – Jon, what date is the analyst tour happening? Date of arrival and departure if you can provide. Wondering about all the coordination that is involved with accommodations etc. in a remote location. Is CXO picking up the tab on all this? Also, what are your spidy senses telling you as far as new release goes. I’m really on the fence with selling before news and locking in some profit.
Comment by Vepper — July 15, 2016 @ 6:26 am
CXO late day halt was my wish last week. Maybe it will happen today Jon. Wouldn’t it be exciting!
Comment by Dan1 — July 15, 2016 @ 6:31 am
Next week, Vepper, beginning Thursday for the site tour…we’ll be there, among others…
Comment by Jon - BMR — July 15, 2016 @ 6:59 am
I heard Adam is vibrating off the walls. In a positive way. He is heading to site this weekend.
Comment by Mmurphy — July 15, 2016 @ 7:06 am
GGI – TD keeps thumping it at 11 cents this wk. either a PP underway (a lid, but not likely) or a disgruntled /tired sellor.
Comment by david — July 15, 2016 @ 7:51 am