Gold has traded between $1,255 and $1,265 so far today…as of 10:15 am Pacific, bullion is up $7 an ounce at $1,262…Silver is 17 cents higher at $17.61…Copper is flat at $2.11…Crude Oil has edged up 15 cents to $50.09 while the U.S. Dollar Index is flat at 97.76…
According to analysts at Comerzbank, Gold’s net length has hit its lowest point in more than 4 months, but it’s the speed at which money managers are shedding their Gold bets that is the biggest surprise for the bank…
“In the last 2 reporting weeks, net long positions were decimated by around 42% or 106,000 – the most pronounced position reduction within the space of 2 weeks since the data series began 10 years ago,” Commerzbank stated…
While “weak” longs are being shaken out of the Gold market, ETF buying of the metal remains impressive…overall Gold holdings in ETFs now stand at 57.433 million ounces which is up more than 2% since the middle of September, despite the recent weakness in bullion and the drop below $1,300 an ounce…
TD Securities‘ analysts on Gold: “We still see a place in many portfolios to hold Gold, with expectations of historically low global real yields, debt prospects remaining high, and the potential for some type of risk off move still threatening the equity markets, as the main attractors for maintaining the metals as a hedge,” TDS says. “And from these levels, even more-so if prices tripped down to $1,200/oz, the case for getting long grows, as we still expect that prices are headed toward $1,350/oz in 2017 under the current environment.”
Oil Update
Officials from Saudi Arabia and Kuwait, key players in shaping OPEC policy, said Oil at $50 to $60 (U.S.) a barrel would ensure adequate global supply, setting out a potential price band for the cartel before its meeting in Vienna next month. “A $50 – $60 Oil price – absent a supply accident – is sufficient to develop the low-cost resources to provide increases that will be necessary over the next 3 to 4 years,” Andrew Gould, board director at state-owned giant Saudi Arabian Oil Co., said yesterday at the annual Oil and Money Conference in London…
Meanwhile, Analysts at Bernstein Energy said that beyond estimating Oil production and consumption, one way to gauge the supply and demand balance is to analyze fuel inventory changes. “Global Oil inventories (industry and government) increased by 17 million barrels to 5.618 billion barrels in 3Q16. This is the smallest build since 4Q14, confirming that inventory builds are slowing as the market comes back into balance,” it said…
Shanghai Composite Index
Interesting new trend…China’s Shanghai Composite and commodities have been moving higher in tandem this year, breaking the pattern of 2014 and 2015…both are also closing in on breakouts above downtrend lines as you can see in this 2.5-year weekly chart…
Chinese stocks certainly look like they want to start accelerating to the upside (they were very strong overnight), in which case we’ll see if commodities continue to closely track the Shanghai…
In Today’s Morning Musings…
1. Cannabix Technologies (BLO, CSE) trades within a penny of new all-time high…
2. Last call for rejuvenated Nova Scotia Gold junior under a nickel?…
3. Callinex Mines (CNX, TSX-V) surges on high-grade VMS hit at Pine Bay…
4. Seabridge Gold (SEA, TSX-V) releases fascinating results on new hole at KSM Project in the Heart of Gold Camp (implications for Eskay Mining, ESK, TSX-V)…
5. A look at massive sulphides from Garibaldi Resources‘ (GGI, TSX-V) E&L Ni-Cu-Au deposit 12 miles southwest of Eskay Creek…
6. Mutliple reasons for owning Orca Gold (ORG, TSX-V)…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…
BLO super sweet next up BTH rolling on big volume yesterday and today
Comment by TheSkipper — October 18, 2016 @ 9:53 am
also, ghg, and cyx
Comment by dave — October 18, 2016 @ 10:41 am
non mj’s – amy and exo
Comment by dave — October 18, 2016 @ 10:44 am
I thought about buying blo in the upper 20’s when Jon mentioned it and didn’t. I thought about buying it around 30’s but stuck to my dicipline of buy low, sell high. Now, I am kicking myself. Win some, lose some.
For the investors, not the traders like me, here are 3 to keep a watch on for entry.
CNZ, VIV, TNY (TNY is very volitile and can have big daily swings, I suggest only enter on a healthy correction. Do your DD.
Comment by dave — October 18, 2016 @ 11:00 am
MXL did its bounce as I expected, Warrants are coming free, trade with caution.
Comment by dave — October 18, 2016 @ 11:02 am
I forgot to mention LIC, we may go into the 20’s here shortly.
Comment by dave — October 18, 2016 @ 11:19 am
Jon – canopy growth .. am I nuts or is the market cap for it 600 mill????????
Comment by Jeremy — October 18, 2016 @ 12:15 pm
GLH on the cse …
Comment by Jeremy — October 18, 2016 @ 12:18 pm
Jon
Any updates on Alliance Mining “alm” as I’ve noticed decent volume over past few trading days.
Thank you Sir Jon!!
Comment by Jeff — October 18, 2016 @ 12:19 pm
Investors are buying into the growth story with leader CGC, Jeremy…8 consecutive quarters of double-digit percentage growth in revenue, product sold and registered patients…
Comment by Jon - BMR — October 18, 2016 @ 1:00 pm
LIC – trade quickly , just over a month before 31MM shrs @0.55 + 31MM wts at 0.075 are freee trading. yee ha!
Comment by david — October 18, 2016 @ 1:12 pm
That’s a good point, David, but fortunately a very high percentage of those 31 million shares are in the hands of one person according to our research. Anyway, that’s why we encouraged accumulation under .10 because that’s where the power players positioned themselves. They’re not interested in just 2 or 3 times their money, either. Cobalt should get hot.
Comment by Jon - BMR — October 18, 2016 @ 2:02 pm
Orex Exploration 30-million-share private placement
that’s a boat load of dilution.
Comment by Mmurphy — October 18, 2016 @ 3:06 pm
Again, Mmurphy, it’s how a financing like that is structured and strategized. In the case of OX, $1 million of the $1.5 million was taken by OB Investments IV LLC, an affiliate of Falcon Capital that will hold 20 million units and is now an official insider of the company. They certainly won’t be selling in 4 months’ time. A significant portion of the balance of the PP – the other $500,000 – was subscribed for by management. The financing represents 18% dilution but in this situation, you have a junior with a 730,000 ounce Gold resource and an advanced project that will be shovel ready by the end of 2017, so it can support this sort of dilution and a total of 200 million O/S. Gold in the ground valued at only $8 per ounce. These are smart, wealthy individuals getting positioned at a nickel because they know how this is going to unfold over the next 12 months—–follow the money…this stock will perform extremely well.
Comment by Jon - BMR — October 18, 2016 @ 3:16 pm
Gezz , even a updated fact sheet, ggi, my my , maybe we’re getting somewhere now.!!
Comment by Laddy — October 18, 2016 @ 4:24 pm
Their engine appears to be revving up, finally and thankfully, Laddy…more news again soon, I have a feeling.
Comment by Jon - BMR — October 18, 2016 @ 4:40 pm
If GGI reported those numbers on a drill assay with lets say 200 meters, we have our major discovery. I think Diamond Fields best numbers matched those if I am not mistaken. BUT, it is GGI ya know. Soooo, what to do. hmmmm.
Comment by dave — October 18, 2016 @ 5:32 pm
What about TKK for their silver gold cobalt property. With cobalt heating up this could become a bigger play. Pretty cheap at 6-7 cents with such a low float.
Comment by ed — October 18, 2016 @ 9:42 pm
Indeed, TKK is well positioned to benefit from a heightened interest in Cobalt plays as they’re sitting on a past producer of high-grade Silver and Co.
Comment by Jon - BMR — October 19, 2016 @ 3:50 am
Re: OX. Living here in Nova Scotia, I have to say it is nice to see some action in my part of the world LOL. Including recent news re: CLE and lithium down here.
Made some nice money in WRR, thanks BMR for your information and knowledge on that one!
Comment by Foz1971 — October 19, 2016 @ 4:43 am
Nova Scotia is a great part of Canada, Fox1971, and my uncle who’s a geologist also lives there. Things are heating up on the Nova Scotia Gold front, up and down that corridor where Orex has its Goldboro Project, so it’s an area we’ll continue to monitor very closely.
Comment by Jon - BMR — October 19, 2016 @ 5:45 am
Thanks Jon, but I will give Ox a miss. To many shares for me.
Comment by Mmurphy — October 19, 2016 @ 12:53 pm
TKK got a little bit of interest today.
Comment by Ed — October 19, 2016 @ 1:11 pm