Gold has traded between $1,085 and $1,095 so far today…as of 9:30 am Pacific, bullion is down $2 an ounce at $1,087…Silver is off 9 cents at $14.34…Copper is up a penny at $2.25…Crude Oil has shed more than $1 a barrel to $43.10 while the U.S. Dollar Index is relatively unchanged at 99.02…

There are signs of physical Gold demand picking up, according to two banks. “The drop below $1,100/oz has stimulated Indian buying, which has been very sluggish for weeks,” HSBC stated in a research note late yesterday.  “We also suspect demand is increasing from China and other emerging markets. The most recent data from China show deflationary trends persisting, but this should not impact the demand for Gold jewelry bars and coins noticeably, we believe.”

Meanwhile, Commerzbank stated today,  “Physical Gold demand in China still appears to be robust and indeed to be picking up, given that the premiums on the Shanghai Gold Exchange have risen to $4–5 per troy ounce as compared to world market prices.”

Platinum Purge

Investors have cut holdings in exchange-traded funds backed by Platinum for a record 13th day, with tumbling prices of the precious metal also driving shares of Lonmin, the world’s 3rd-largest producer, to an all-time low (the stock has lost 95% of its value over the past year)…the company employs 35,000 people and its survival is in question given its financial difficulties…

Holdings in Platinum ETFs have dropped 7.6% since October 21, according to data compiled by Bloomberg as of Monday, as Platinum bumps along around the lowest prices in 6 years…

Oil Update

WTIC is under pressure today after industry data showed an increase in U.S. stockpiles, as analysts said U.S. output had been surprisingly resilient in the face of lower prices…U.S. Crude stocks jumped by 6.3 million barrels in the week to November 6 to 486.1 million barrels, data from industry group the American Petroleum Institute showed late yesterday, compared with analysts’ estimates for an increase of 1 million barrels…the U.S. government’s Energy Information Administration will release official inventory data tomorrow morning due to Veterans Day…

A Long-Term Perspective On Gold

This long-term Gold chart shows the two major waves to the upside in bullion going back to 2001 – the nearly 300% price increase from around $260 to a high of $1,034 in 2008, and the second wave that took Gold from a low of just under $700 in late 2008 to an all-time high of $1,924 in September 2011 (a jump of 183%)…

Waves 2 and 4 to the downside produced declines of 34% in 2008 and 44% between 2011 and this past summer…Wave 4 is near its end, in our view, though it’s quite possible Gold may briefly have to touch the $1,000 level before Wave 5 commences…a Fib. level of note (a 50% retracement) is $1,028…Wave 5 has the potential to take bullion as high as nearly $3,000 an ounce (no timeline), a percentage move (176% from $1,000 to $2,760) that would be comparable to Wave 3…

Interestingly, sell pressure (CMF) in Gold at the moment, based on this long-term monthly chart, is the most intense it has been since 1982, just prior to when Gold skyrocketed from a low of $298 to a high of $520…RSI(14) is holding support close to 40%…

In today’s Morning Musings…

1.   After 5 straight losing sessions, chart shows strong support for TSX around 13400…

2.  Nearly 3-year high this week for Nemaska Lithium (NMX, TSX-V)

3.  Long-term chart shows powerful trajectory for Garibaldi Resources (GGI, TSX-V)

4.  Updates on Equitas Mining (EQT, TSX-V) and Gold Standard Ventures (GSV, TSX-V)…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

Gold has traded between $1,085 and $1,096 so far today…as of 10:30 am Pacific, bullion is down $3 an ounce at $1,089…Silver is off 16 cents at $14.42…Copper has slipped 2 pennies to $2.24…Crude Oil is 39 cents higher at $44.26 while the U.S. Dollar Index has jumped one-quarter of a point to 99.19…

Moody’s today warned of lackluster global economic growth, as well as authorities lacking “buffers to protect their economies from potential shocks”…

Gold assets held in the world’s biggest exchange-traded product backed by the metal have fallen to their lowest level since the financial crisis…holdings in SPDR Gold Shares slid 0.4 percent yesterday, the 7th straight daily decline, to 666.11 metric tons, the lowest since September 2008…of course that’s the month that Lehman Brothers collapsed, spurring a rout across global markets…last week, global holdings in bullion ETPs fell 26.9 metric tons, the most since July…

UBS analyst Joni Teves is pointing to declining demand in China as a headwind for Gold’s at the moment.  “Conversations with local market participants in China revealed that sentiment towards Gold remains broadly negative in line with global trends, Teves said in a reesearch note today.  “The sense is that lower Gold prices appear to be the path of least resistance for now, and few were willing to step in front of that trend in the near-term,” she said.

Physical demand from India, the other significant consumer apart from China, has also been relatively muted during the current peak season for festival-related demand, which will culminate with the festival of lights, Diwali, tomorrow…purchases by India’s farmers have been hit by scanty monsoon rains, leaving them with less spare cash to spend on Gold…buying support from that country in the weeks ahead will be a key factor in determining whether bullion can hold above its summer multi-year low…

In a report issued this morning, the International Energy Agency (IEA) stated that Oil is unlikely to return to $80 a barrel before the end of the decade, despite unprecedented declines in investment, as annual demand growth struggles to top 1 million barrels per day…the IEA estimated that investments in Oil will decline more than 20% this year and the trend would continue into 2016…Oil majors have cancelled a total of 80 projects across the world this year because of low Crude prices, and have cut capital expenditures by as much as $22 billion, according to BP’s head of exploration and production…the decline in investment, however, has not been enough to reverse Oil’s price weakness…

In today’s Morning Musings…

1.   China’s equity rebound, and how soon may we see 20000 on the Dow?…

2.  The drill keeps turning as a Grizzly finds a sweet source of nutrition in the Sheslay district…

3.  Nemaska Lithium (NMX, TSX-V) breakout…

4.  Canopy Growth (CGC, TSX-V) updated chart and an interesting new Forum Research survey on the potential size of a legal marijuana industry in Canada…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

5:00 am Pacific – Breaking News Including Interview Clip

Confirmed.  At the very least, Garibaldi Resources (GGI, TSX-V) now has a thrilling grassroots drill play that’s rapidly gaining momentum in a prolific area that the Association for Mineral Exploration British Columbia (AMEBC) calls the province’s “#1 greenfield district.”

Potentially, what this could lead to is a critical game-changing 3rd discovery on the 3rd property drilled in the Sheslay district, a region that really came to life in early 2014 when Doubleview Capital (DBV, TSX-V) spectacularly turned into a “10-bagger” and sparked a staking rush with its Gold-rich Hat Copper porphyry discovery.

In the case of Garibaldi, this morning’s update suggests that the fertile Kaketsa pluton and “heat engine” – just 2 km west of GGI’s current drilling at Grizzly Central – has created not just a porphyry environment on its margins, but perhaps a high-grade Gold system in association with a porphyry deposit.  That is speculative until proven by assays, but what’s unfolding in the early going is unquestionably profoundly interesting.  Especially considering that Grizzly Central has never been previously drilled.

Last Tuesday, GGI reported that the first 2 holes along the western, fault-bounded side of Grizzly Central revealed a “robust, widespread hydrothermal system with abundant pyrite, finely disseminated chalcopyrite, and magnetite.”

This morning, the company released specifics regarding GC-15-03 which was collared 200 meters due south of the first hole.

This third hole returned 3 sections over 277 m from 31 m to 308 m:

• Fine-grained disseminated chalcopyrite from 31 m to 86 m;
• A 16-m zone of intense quartz with sulfides in rock that’s “dark red to maroon, magnetic and fine-grained” between 86 m and 102 m;
• A 206-m intersection from 102 m to 308 m where “pyrite occurs as very fine-grained polished shear surfaces in a black, strongly magnetic unit.”

We know the expansive Sheslay Corridor and the general region very well, having conducted extensive research (including an area visit) going back to 2013 before the 50 or so combined drill holes at the Hat and the Star (about 10 km apart) demonstrated the world class potential of this under-explored district.

The past producing and exceptionally high-grade Golden Bear mine is just 20 miles from the western border of the Grizzly, and Garibaldi is examining that model more closely as first-ever drilling progresses at the Grizzly (at Golden Bear, mineralization was “strongly associated with very fine dark grey sulfides, primarily pyrite, that occurs in very strongly altered and often gougy volcanic rocks” according to a 1995 North American Metals Corp. technical report). 

We’d be shocked if Garibaldi’s 3rd hole doesn’t represent a discovery of significance, and that’s on top of 2 promising holes already.

These early developments at the Grizzly bode extremely well for the entire district which recently got a new neighbor in Centerra Gold (CG, TSX).  The mid-tier producer reported just over a week ago that surface samples returned up to 151.2 g/t Au and 2,786 g/t Ag at the Hearts Peak Property, 20 miles north of GGI’s Grizzly West porphyry target.

At the Hat, as we all know, Doubleview is into a major porphyry system that is so significant, the property got caught up in political gamesmanship over the summer over broad discussions between the Tahltan’s Chad Day and the provincial government concerning a new and expanded Shared Decision Making Agreement between the two parties.  It’s critical to keep in mind that almost the entire Sheslay district is protected for exploration and potential resource development under the historic 2011 Atlin Taku Land Use Plan.  Armed also with a multi-year drill permit from the Ministry of Energy & Mines, Doubleview is in a strong position to quickly return to the Hat now that the smoke has cleared from that summer “camp out” controversy.

Audio Clip – Regoci On Progress To Date At Grizzly Central

Click on the arrow below to listen to a 1-minute excerpt from our interview with GGI President and CEO Steve Regoci.

The Kaketsa Factor

It’s a geological fact that around the globe, some world class deposits are found immediately adjacent to a fertile pluton.  That’s what initially attracted us to Garibaldi when we carried out extensive due diligence on this company and the Sheslay district more than 2 years ago.   A very valid theory is that “Area 3” was actually originally attached to Kaketsa, and split off and shifted to the east by a couple of km.

Just imagine the kind of dynamic geological forces that would have been involved in a process such as that, and how intense heat and fluids may have created something very large and unique at Grizzly Central.  That’s one theory that’s being postulated by some very bright geologists.

However it has occurred, Kaketsa has undeniably impacted this area being drilled.  We’re about to learn a lot more in the coming weeks.

Note:  John and Jon both hold share positions in GGI.  Jon also holds a share position in DBV.

Gold has traded between $1,088 and $1,096 so far today…as of 8:15 am Pacific, bullion is flat at $1,089…Silver has shed 14 cents to $14.60…Copper has slipped a penny to $2.26…Crude Oil is off 22 cents at $44.07 while the U.S. Dollar Index has retreated one-fifth of a point to 90.05 after last week’s sharp rise…

Frank Holmes, Chief Investment Officer for U.S. Global Investors, pointed out in his weekly update how the global PMI reading for the month of October climbed to 51.4, almost a point higher than September’s 50.7…not only does this represent the strongest monthly surge in nearly 2 years, but the index shot above its 3-month moving average for the 1st time since March…Holmes’ research has shown that in the 3 months following previous breakouts such as this one, Copper had an 81% probability of rising approximately 7%, while Crude Oil jumped 7% three-quarters of the time…so this bodes well for the Venture leading into the early part of next year…Holmes believes the real commodity liftoff should occur when the U.S., Europe, China and global PMIs all score above 50, with the 1-month readings above the 3-month trends…of those regions, China is the only one whose PMI still trails below the 50 level…for the month of October, it came in at 48.3, up from 47.2 in September…

China Boosts Gold Reserves Again In October

China likely boosted central bank Gold holdings yet again in October, raising them by about 14 metric tons, as it continues to diversify its foreign exchange reserves…the value of the bank’s Gold assets was $63.26 billion at the end of last month, up from $61.19 billion at the end of September, according to Bloomberg based on data released Saturday on the People’s Bank of China website…that works out to 55.38 million troy ounces or about 1,722.5 tons, based on the London Bullion Market Association afternoon price auction on October 30, Bloomberg calculations show…the stash was 54.93 million ounces a month earlier…

China’s Gold reserves rose by about 15 tons in September, 16 tons in August and 19 tons in July…it disclosed on July 17 that its holdings had surged 57% since 2009 (an average of just over 8 tons per month, so they’ve doubled their monthly purchases)…while the country has overtaken Russia to own the world’s 5th-largest hoard, it still has only about 2% of its reserves in Gold, compared with 74% for the U.S. and 68% for Germany, World Gold Council data show…

In today’s Morning Musings…

1.   Venture long-term chart provides great insight into current conditions and where this market is likely headed…

2.  Updated Gold chart in CDN dollars…

3.  A Lithium play with increasing momentum…

4.  Fresh Silver charts…

Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…

Three of our highlighted stocks Sunday, Nov. 1, gained 36%, 38% and 56%, respectively, in trading last week.

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