A Daily, Vibrant Voice Focused on Speculative Opportunities, Commodities, and Economic & Political Trends Impacting
The Resource Sector & Equity Markets
"Market-Trouncing Returns Through Unbeatable Technical & Fundamental Analysis of Niche Sectors"
The Venture’s amazing run – the first race in a new bull market – continues. The Index is now up in 12 out of the last 13 weeks and posted a stellar 13.9% gain for the month of April after 6.7% and 8.6% jumps in March and February, respectively. On Friday, the Venture cut through resistance in the 660’s like a knife through butter, though this potential fresh breakout requires confirmation Monday.
If the 660’s are history, what’s the next near-term target level? And what’s the wisest approach an investor can take at the moment in this market?https://bullmarketrun.com/wp-admin/edit.php
Click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only.
To view the rest of today’s Week In Review And A Look Ahead, plus tomorrow’s Sunday Sizzler Report and the upcoming Top 50 Opportunities Review, login with your username and password.
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 and features, and receive our upcoming special report, “How To Build A Fortune & Protect It As You Invest On The Venture”.
Gold has hit a new 2016 today, trading between $1,271 and $1,297…as of 9:45 am Pacific, bullion is up $24 an ounce at $1,290…Silver is 29 cents higher at $17.82…Copper has jumped a nickel to $2.29…Crude Oil was up earlier this morning but is now off 21 cents to $45.82 while the U.S. Dollar Index has fallen below important support at 94…it’s off more than half a point to 93.16…the U.S. unit posted its biggest daily loss against the yen in more than 5 years yesterday…
U.S. data yesterday, including Q1 growth of only 0.5%, supported views the Fed will take a cautious stance in hiking rates this year…
Today’s move in Silver rounds off 5 consecutive sessions of higher highs and lower lows which puts the bulls firmly in control…the metal has risen more than 15% this month and is on track for its biggest monthly increase since August 2013 as it plays catch-up after lagging Gold during the yellow metal’s 1st quarter surge…the Gold/Silver ratio, which measures the number of Silver ounces needed to buy an ounce of Gold, fell to a 6-month low today of 71.8, down from 81.3 at the start of the month…
Agnico Eagle Mines (AEM, TSX) reported earnings last night that were roughly stable compared to a year ago and said it looks for 2016Gold output to be around the upper end of its previous guidance…the company listed net income of $27.8 million, or 13 cents per share, the same as Q12015……AEM is up more than $3 a share to nearly $58, passing another key Fib. level…
Goldcorp (G, TSX) has fallen victim to a data breach by anonymous hackers – these are criminal scumbags with a radical anti-corporate agenda – who posted reams of the miner’s private information online…the breach includes 14.8 gigabytes of data, according to the Daily Dot web site…the leaked data includes payroll information, private budget documents, bank account specifics, employee passport scans and much more, the site said…the Daily Dot noted the hackers said they are planning “several” more data dumps of Goldcorp’s private information. “The next dump will include 14 months of company wide emails, emails containing some good old fashion corporate racism, sexism, and greed,” the hackers wrote, according to the web site…
Signs of the times…Atlantic City has so little money left that it could miss a $1.8 million bond payment due Sunday, a step that would make it the first New Jersey municipality to default on debt since the Great Depression…
In today’s Morning Musings…
1. Why Crude Oil could be headed quite a bit higher in 2016…
2. Get ready for an explosion in the Iskut River Gold Camp…
3. Gold Bullion Development (GBB, TSX-V) – the Venture bellwether…
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 you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
Gold has traded between $1,247 and $1,268 so far today…as of 9:45 am Pacific, bullion is up $18 an ounce at $1,264…Silver is 27 cents higher at $17.48…Copper is up a penny at $2.24…Crude Oil has edged up 31 cents to $45.64 while the U.S. Dollar Index has tumbled nearly half a point to 93.90…
Gold is benefiting from a weak U.S. dollar today…the Bank of Japan unexpectedly held monetary policy steady overnight, boosting the yen versus the dollar, while the Federal Reserve signaled yesterday that it was in no rush to tighten…meanwhile, the greenback came under further pressure this morning following news that U.S. economic growth braked sharply to its slowest pace in 2 years during Q1…
U.S. GDP increased at a weaker-than-expected 0.5% annual rate, the slowest since the 1st quarter of 2014, the Labor Department reported this morning in its advance estimate…consumer spending softened (slowest pace since Q1 2015) and a strong dollar continued to undercut exports…businesses doubled down on efforts to reduce unwanted merchandise clogging warehouses, while the economy was also blindsided by cheap Crude which has hurt the profits of Oil companies like Schlumberger and Hallibuton…business spending contracted at its fastest pace since the 2nd quarter of 2009…
It’s hard to imagine that given the current economic climate in the U.S., combined with the upcoming British referendum on the EU in late June and then the U.S. elections in November, that the Fed will be in a position to raise rates again until at least December – Gold and Venture bullish, dollar bearish…
Commerzbank on yesterday’s Fed policy decision: “The made cautious remarks about how it plans to proceed in the future, and gave no indication of any rate hike in June. We believe that the Fed is not likely to raise interest rates further until the second half of the year. The longer interest rates remain low, the longer the opportunity costs of holding Gold also remain low.”
Gold analysts polled by Reuters have hiked their forecasts for the precious metal by nearly $100 an ounce since the start of the year after it posted its biggest quarterly rise in nearly 30 years in the 3 months to the end of March…the survey of 30 analysts at banks and trading houses carried out this month returned an average 2016Gold price forecast of $1,209 an ounce, up from $1,118 in a similar poll in January…last year, prices averaged $1,159 an ounce…they are expected to rise steadily this year, peaking at an average $1,250 an ounce in the 4th quarter, the survey showed, before extending gains to average $1,300 an ounce in 2017…that would be its highest annual average since 2013…
Oil Update
Is it possible that Crude Oil could be back in a bull market?…we’ll take a close look at that possibility tomorrow…
The recent trend of rising Crude prices received another boost after U.S. output was shown to have fallen again last week…U.S. Energy Information Administration (EIA) data showed that Crude production fell to 8.94 million barrels per day last week, down almost half a million bpd from last year…elsewhere, there are immediate supply risks from Venezuela, which is facing a severe electricity crisis, and other countries that could face supply disruptions over the coming months are Algeria, Iraq, Libya, and Nigeria…
In today’s Morning Musings…
1. Part 5 of our interview with Colorado Resources‘ (CXO, TSX-V) President and CEO Adam Travis…
4.Look out below! U.S. Dollar Index has further to fall – great news for the commodity sector…
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 you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
Geochemical sampling is one important way to effectively assess the potential of a property and target new discoveries.
And the soils are unusually rich over parts of Colorado Resources‘ (CXO, TSX-V) KSP Property in the Iskut River Gold Camp in the heart of world class current deposits (Valley of the Kings, KSM) and high-grade past producers (Eskay Creek, Snip).
At Inel, a compilation of 1,215 soil samples (492 taken by CXO) in an 8.5 sq. km area averaged 800 parts per billion Gold (0.80 g/t) and also highlighted a 1,000 m x 1,500 section with 628 soil samples averaging a remarkable 1,270 parts per billion Gold (1.27 g/t ) with a maximum value of 31.2 g/t Au.
This 1.5 sq. km anomalous Gold-in-soil area is considerably larger than the areas tested by historical drill holes, and those results included numbers such as 424 g/t Au over 3.5 m (IS130) and 41 g/t Au over 7.4 m (IU171).
Keep in mind, of the hundreds of Golddeposits in the world with demonstrated reserves and resources, the average Gold grade is only just above 1 g/t. The soils at Inel are equivalent – imagine what could be in all the rocks below.
Click on the arrow to listen to a short excerpt (2 minutes) from our interview with Colorado President & CEO Adam Travis as he discusses the significance of the geochemical results from Inel ahead of the company’s 5,000-m drill program at that high-grade target.
Later today or tomorrow, as part of BMRMorning Musings, Jon has a fascinating discussion with Adam concerning the ramifications of last week’s announcement that Seabridge Gold (SEA, TSX) is proposing to acquire SnipGold (SGG, TSX-V) – another indication of how this prolific Gold camp is rapidly heating up.
Adam Travis on the geochemical anomaly at Inel – click on the arrow
Something with dramatic possibilities has started to unfold on the exploration front in northwest British Columbia, concurrent with a new bull market in both Gold and the Venture Exchange that we correctly called back in February.
Last Tuesday, April 19, Seabridge Gold (SEA, TSX) – a company with a nearly $1 billion market cap and 38 million ounces of proven and probable Gold reserves at its KSM Project in the heart of B.C.’s prolific “Golden Triangle” – announced a friendly takeover of small junior SnipGold (SGG, TSX-V) in an all-stock transaction valued at around $10 million. If you were a BMRsubscriber, you would have had a heads-up on the attractiveness of SnipGold which more than doubled in price to 30 cents on the morning of April 19.
Why would Seabridge, cruising along at KSM with one of the world’s largest resources of Gold, Copper and Silver, plus critical provincial and federal approvals in hand, find it necessary to step in at this particular time and bother itself with the acquisition of SnipGold, a company that also has reclamation obligations with respect to the past-producing Johnny Mountain mine? There are two reasons in our view, and they both suggest Seabridge may have cut the deal of the year.
First, the macro picture. SnipGold, an easier immediate target for Seabridge than another company we’re about to mention, holds a large land position in a key part of the Golden Triangle north of Stewart and adjacent to prolific emerging mines and past producers. Overall, this core block (1,000 sq km) within the massive Golden Triangle is rapidly attracting intense new interest due to the advancement of two large mining projects, major infrastructure improvements including power, roads and bridges, very significant glacial retreat that has exposed rocks and soils never seen before, and bullish new geological interpretations aided by extensive reviews of historical data going back to the 1980’s boom driven by the Eskay Creek and Snip discoveries.
Second, and this is where the critical sense of urgency comes in, Seabridge made this move now, the evidence suggests, in order to strategically position itself ahead of a potential major new drilling discovery by Colorado Resources (CXO, TSX-V) at the high-grade Inel target, on strike to the southeast of Snip and part of some key ground Colorado optioned from SnipGold in December 2013. Upon the appropriate approvals of Seabridge’s acquisition of SnipGold, Colorado’s KSP option will be with the big fish, not the little one.
Given historical (1988) high-grade near-surface drill intercepts such as 424 g/t Au over 3.5 m (IS130), 41 g/t Au over 7.4 m (IU171), 38 g/t Au over 5.3 m (IS148) and 30.3 g/t Au over 4 m (IU040), and a remarkable geochemical anomaly averaging 1.27 g/t Au over an area 1,000 m x 1,500 m as reported by Colorado February 29, Inel is a significant new deposit-in-the-making and could generate Eskay Creek hole 109-type excitement this summer. CXO is making final preparations for the start of a 5,000-m drill program at Inel after two successful seasons of field work at KSP (Inel is part of KSP under the SnipGold option – most of KSP was staked by CXO).
“We’re off to the races here and it’s going to be an incredible drill season,” stated Adam Travis, Colorado President and CEO in a wide-ranging interview with BMR which we’ll be sharing more of in the days ahead. “I’ve never seen such low-hanging shallow targets in my career that are just waiting to be drilled…what an incredible opportunity we have.”
Excellent regional view of a core section of the “Golden Triangle” encompassing Pretium’s Brucejack, Seabridge’s KSM, and the past producing Eskay Creek and Snip mines. Colorado’s KSP is 15 km on strike to the southeast of Snip, directly above their recently added KingPin Property which has doubled CXO’s land position to more than 60,000 hectares.
Travis was a young geologist who had just arrived on the scene when the Iskut River Gold Camp lit up like a thousand Christmas trees in the mid-1980’s, thanks to the likes of Murray Pezim and Ron Netolitzky. The discoveries sent some stocks through the stratosphere from pennies to many dollars per share, creating instant millionaires.
Eskay Creek, one of the richest ore bodies ever found, and Snip became world class high-grade producers but the election of an NDP government in British Columbia in 1991 quickly destroyed the exploration momentum in the district and ushered in a “lost decade” for B.C. exploration. Two subsequent revival periods got interrupted by external events, first by the 2008 global financial crisis and then the unprecedented industry and commodities bear market from 2011 through 2015.
A couple of heavyweights, though, kept punching aggressively the last several years while most juniors, with Colorado being one of the exceptions, were fighting just to stay alive.
Pretium Resources’ (PVG, TSX) recent success with Brucejack, one of the world’s highest-grade Gold deposits set to commence commercial production next year, Seabridge’s continued development of KSM, and important field work completed by Colorado during 2014 and 2015, are key factors that have created the foundation for the birth of another rip-roaring area play within this core block of the Golden Triangle. God has richly blessed this part of B.C. with incredible ore deposits of different styles, super high-grade and bulk tonnage. More large discoveries seem inevitable.
You heard it here first, so prepare. The Seabridge takeover announcement of SnipGold, and the recent death of the Venture and Gold bear markets, means THE GAME IS NOW ON in the Iskut River Gold Camp. If this heats up like the late 80’s, watch out.
Colorado leads the pack among juniors in this district, and has a chance to enjoy a spectacular summer, but there also other companies active in this area (and more to come) who investors need to be familiar with.
For the most insightful and dynamic coverage of this area, plus the exciting new Venture bull market, make sure to visit BMR regularly and as a subscriber in order to get critical investor information and the latest company charts on a daily basis you won’t find anywhere else.
Subscribe NOW and take advantage of our Spring Sizzler subscription special and our unmatched 100% money-back guarantee. You’ll gain immediate access to our Iskut River Gold Camp coverage and unparalleled fundamental and technical analysis that has delivered spectacular returns from our Top 50 Opportunities List.
Note: John and Jon both hold share positions in CXO. Jon also holds a share position in SGG.
Disclaimer: BullMarketRun.com (BMR) is reader-funded and completely independent from any companies it covers. We accept no advertising either. Our stock coverage is for informational and entertainment purposes only and must not be viewed or interpreted as “buy”, “sell” or “hold” recommendations. No investment opinion or other advice is being rendered on any stock or company. We strongly recommend that you consult with a qualified investment adviser, one licensed by appropriate regulatory agencies in your legal jurisdiction, and do your own due diligence and research before making any investment decisions. The stocks we cover, by definition, are highly speculative and potentially very volatile. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase or short sale in these speculative stocks. We are not Registered Securities Advisers.Our opinions can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Adviser operating in accordance with the appropriate regulation in your area of jurisdiction. It should be assumed that BMR personnel, writers and their associates may hold or dispose of or trade in positions in any securities mentioned herein at any time. Owner/Publisher of BullMarketRun.com is Terry Dyer of Langley, British Columbia.
Forward Looking Statements: All statements in BMR’s reports, other than statements of historical fact, may be forward-looking statements. These statements relate to future events or future performance. Forward-looking statements are often but not always identified by the use of words such a “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions.
Gold has traded between $1,243 and $1,252 so far today…as of 9:30 am Pacific, bullion is up $6 an ounce at $1,249 ahead of a Fed policy statement within the next 90 minutes…Silver is 12 cents higher at $17.25…Copper is off slightly at $2.23…Crude Oil is up 33 cents at $44.37 while the U.S. Dollar Index has retreated one-tenth of a point to 94.38…
The Fed won’t be hiking today, and June (1 week before Britain’s referendum vote on the EU) is probably not an option either…will they then try to increase rates immediately leading into November’s U.S. elections which by themselves could create considerable market volatility in an unpredictable showdown between Hillary Clinton and Donald Trump?…economic data released yesterday showed orders for long-lasting U.S. manufactured goods rebounded far less than expected in March, implying that business spending and economic growth were weak in Q1…another report showed an ebb in consumer confidence in April…the Fed is in a difficult spot and it may not feel comfortable lifting rates until more damage has been done to the U.S. dollar…
There’s no Fed press conference with this meeting and no new economic forecasts to be released…the reaction of the markets will hinge entirely on the policy statement to be issued at 11:00 am Pacific…
Tomorrow, the Bank of Japan is expected to expand stimulus measures…
Ontario “Stimulus” = $300 Billion Debt
If government spending is the answer to economic growth, why hasn’t that strategy worked in so many parts of the world including Canada’s largest province, Ontario?…all that Ontario has to show for years of “stimulus” is a massive debt that one day may crush the province…taxpayers there are dishing out $1 billiona month just to pay the interest on that debt…this is “progressive”?…nationally, we now have a government that seems to have forgotten about the private sector, including the resource sector, and is trying to lead a global campaign to get the world to boost growth via government spending…indeed, Finance Minister Bill Morneau himself is claiming to be at the forefront of the global anti-austerity campaign. “If we can steer people (at the IMF/G20) away from taking austerity measures that might have negative implications for global growth, that’s a really good first step,” Morneau told the Financial Times…most governments across the globe today have all got it wrong as they have created structural deficits while also over-regulating, over-taxing, and engaging in “climate change” fanaticism…this leaves a huge opening for an anti-establishment voice such as Donald Trump who thinks outside the box and can turn the status quo upside down after 8 years of Obama’s efforts to grow the influence of government…
China’s Gold Accumulation Remains Steady
China increased bullion imports from Hong Kong in March as a global price rally stalled and local investment demand showed signs of recovery…net purchases climbed to 64.1 metric tons from 42.9 tons in February and 61.8 tons a year earlier, according to data from the Hong Kong Census and Statistics Department compiled by Bloomberg…a jump in physical deliveries from the Shanghai Gold Exchange and higher imports from Switzerland were signs of steady demand…withdrawals from the bourse climbed to 183 tons in March from 107.6 tons a month earlier, exchange data show…Swiss exports to China climbed to 29.5 tons from 27.2 tons the month before, according to the Federal Customs Administration…
iShares Silver Trust Turns 10 Tomorrow
The iShares Silver Trust (SLV, NYSE), the first Silver exchange-traded product, celebrates its 10th anniversary tomorrow…it’s now the world’s largest Silver-backed investment product with 330 million ounces and net assets of more than $5.5 billion…the ETP was launched on April 28, 2006, a couple of years after the first one in Gold…the Silver Institute notes that the majority of Gold ETP holdings are from institutional investors, whereas Silver ETPs have a higher proportion of retail investors…investment in Silver products was less than 100 million ounces in 2006…at the end of the 1st quarter of this year, Silver held by global ETP’s stood at 640 million ounces…
Oil Update
Oil prices reached a fresh year’s high today with U.S. prices breaking above $45 for the first time since November following data that showed a surprise fall in U.S. Oil inventories…data by the American Petroleum Institute, an industry group, released late yesterday showed that U.S. Crude inventories decreased by 1.1 million barrels last week…the Energy Information Administration will release its official data later today…U.S. production has fallen to below 9 million barrels a day in recent weeks, down from a peak of 9.7 million barrels a day last April, according to the EIA…
CRB Index: Commodities Are Going Higher
This 2-year weekly chart shows a continuing upward bias in the CRB Index, not surprising given the strength of the Venture which is often a very reliable leading indicator for commodities…note the breakout above the downtrend line and Fib. resistance at 177…the Index is now grappling with its still-declining 200-day moving average (SMA) at 181, but that decline is slowing considerably…we do expect the CRB to overcome this resistance at the 200-day just as Crude Oil, Gold, Silver and the Venture have…RSI(14) and SS have strong up momentum while a bullish +DI/-DI cross has also occurred…DI crosses on longer-term charts such as this are infrequent and often very significant…the last cross was a bearish one in the summer of 2014…
The CRB is headed higher, a call we have strong confidence in given the dynamics of this chart and the behavior of the Venture…
In today’s Morning Musings…
1. Dramatic photos from Colorado Resources‘ (CXO, TSX-V) KSP Property show the effects of glacial retreat, enhancing the possibilities of another major discovery in the Iskut River Gold Camp – Part 3 of our series with Colorado President & CEO Adam Travis…
2. Equitas Resources (EQT, TSX-V) secures a 100% interest in 6 Brazilian Gold properties…
3.Pan American Silver (PAA, TSX) acquires more Kootenay Silver (KTN, TSX-V) stock…
4. Yet another Lithium play looking strong…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only…
SAVE 25% with a risk-free subscription as you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
Gold has traded between $1,231 and $1,246 so far today…as of 9:30 am Pacific, bullion is up $3 an ounce at $1,241…Silver is 8 cents higher at $17.07…Copper has slid 2 pennies to $2.26…Crude Oil has surged $1.36 a barrel $44.00 while the U.S. Dollar Index is off one-third of a point to 94.47 after some weaker-than-expected economic data…
CPM Group’s Silver Yearbook 2016 suggests that Silver prices may see stronger support as fundamentals seem to be lined up in the metal’s favor. “Prices are forecast to benefit from slowing mine supply, modestly rising fabrication demand, and ongoing strength in investment demand,” the New York research firm stated, adding that it anticipates Silver will trade as high as $18 an ounce this year (that forecast underestimates Silver’s increasing long-term momentum according to our exclusive charts posted yesterday)…
The firm’s findings suggest that Silver mine supply is expected to decline for the first time since 2011, mainly due to scheduled closures and planned production cutbacks. “Major contributors to this forecast decline in Silver output include Mexico, Australia, Chile, Guatemala, and Russia. Production losses are expected to be a mix of both primary as well as byproduct mines,” the firm said…
Canadian Hostage With Ties To Mining Sector Decapitated By Islamist Terrorists
Islamist terrorists in the Philippines have beheaded a Canadian, one of three Western hostages taken captive months ago…68-year-old John Ridsdel of Calgary was the former Chief Operating Officer of TVI Resource Development, a subsidiary of TVI Pacific (TVI,TSX) which runs Gold, Silver, Copper and Zinc mines in an area of Mindanao where extremists have been seeking to create an Islamic state for decades…the Abu Sayyaf terror group had issued public threats to kill one of the hostages, demanding $6.5 million for each of them by yesterday afternoon…Prime Minister Justin Trudeau confirmed the death ofRidsdel, saying, “This was an act of cold-blooded murder”…
The terrorists were thought to be holding more than a dozen hostages, including another Canadian, a Norwegian and a Filipino woman, as well as 14 Indonesian and 4 Malaysian crewmen who were abducted at gunpoint from three tugboats starting last month…Ridsdel’s head was recovered on Jolo Island in the jungle province of Sulu…the kidnappers reportedly took him last September from a marina on southern Samal Island, considered to be a safe part of the Philippines…
Would You Have To Borrow Or Sell For An Expected $400 Expense?
A Federal Reserve Board survey has found that 47% of Americans couldn’t meet an unexpected $400 expense without borrowing or selling something. National Post columnist John Robson noted yesterday, “Government is sucking the life out of the economy with excessive taxes to fuel spending that sucks the life out of society. It runs trillion-dollar deficits to fund trillion-dollar social programs. And with all this free money flying around, nobody has any. The welfare state model is busted. And so are Americans.”
Canadians can be added to that list now, as well…
Alberta’s Credit Rating Takes Another Hit
How the mighty have fallen – Ralph Klein, the greatest premier Alberta ever had, is probably rolling over in his grave…
Moody’s Investor Service announced yesterday that it has downgraded Alberta’s long-term debt rating to double-A1 from triple-A and has given it a negative outlook…it’s the second downgrade from a rating service since the province released its budget on April 14 that included removal of its debt ceiling and a forecast of $58 billion in debt by 2019…Moody’s says the downgrade “reflects the province’s growing and unconstrained debt burden, extended timeframe back to balance, weakened liquidity, and risks surrounding the success of the province’s medium-term fiscal plan given the outlook for subdued growth.” It also says the province forecasts Oil prices to be higher than what Moody’s is predicting…
Oil Update
The International Monetary Fund estimates the Middle East’s Oil-dependent economies missed out on $390 billion in Oil revenues last year alone and face up to $150 billion in income losses this year as a result of cheap Oil prices…the drop in revenues stemming from the export of Oil is the direct result of the plunge in Crude prices from a peak of around $115 a barrel in the middle of 2014 to below $30 at the start of this year and now above $40, the IMF said…
Market fundamentals continue to suggest that the combination of steady demand and weak supply growth will move global Oil markets closer into balance by the end of the year…the biggest bear risk to the Oil market at the moment is that Iran’s ramp-up accelerates and causes Saudi Arabia to respond in kind…
In today’s Morning Musings…
1. More Gold intercepts above 2,000 g/t Au at Pretium’s (PVG, TSX) Valley of the Kings…
2. A new opportunity under a nickel…
3. A look at a company with a growing Zinc resource + Tin…
4.Bonterra Resources (BTR, TSX-V) hits more high-grade Gold at its Gladiator Project in northwest Quebec…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only…
SAVE 25% with a risk-free subscription as you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
Gold has traded between $1,231 and $1,243 so far today…as of 8:00 am Pacific, bullion is up $8 an ounce at $1,240…Silver has added 7 cents to $17.02…Copper is off a penny at $2.27…Crude Oil has eased off 46 cents to $43.27 after a big jump last week while the U.S. Dollar Index has retreated one-third of a point to 94.71…
Precious metals, led by Gold, enjoyed the 2nd-largest quarterly inflows on record at $15.7 billion, according to Barclays…this was exceeded only by $16.5 billion in the 2nd quarter of 2009 when the global financial crisis spurred substantial buying of Gold…
Speculators continue to bet on rising Gold prices…data on Friday showed that hedge funds and money managers raised their bullish positions in COMEX Gold contracts to the highest in 3-and-a-half years last week…
“The direction taken by the Gold price in the short-term is likely to depend on the Fed,”Commerzbank said in a note today. “If it raises the prospect of another rate hike in the near future at its meeting on Wednesday, this is initially likely to weigh on the Gold price.”
Gold has no fear…the Fed, the Bank of Japan and the Reserve Bank of New Zealand are all scheduled to meet this week, leaving markets waiting to see if the central banks will announce monetary policy or forward guidance changes…the main attention is likely to be fixed on the Bank of Japan meeting on Thursday after last week’s reports that the central bank might extend its negative rate policy further by adopting a policy of a negative rates on loans…
Watch Out, ISIS, Here We Come!
This is akin to bringing a knife to a gun fight…President Obama announced this morning that he will send as many as 250 additional military personnel to Syria, bumping up the U.S. presence there in an effort to help local forces and extend recent gains against Islamic State…the 50 U.S. Special Operations forces already on the ground in Syria have made progress in the battle against Islamic State extremists, Obama insisted, and additional personnel will help “keep up this momentum”…the new deployment will be implemented in phases, not surprising since that’s a lot of boots on the ground for this President who still insists that “climate change” is the world’s most ominous threat…it seems his rhetoric has influenced other nations, too, as where are they in the fight on the ground against ISIS?…
In today’s Morning Musings…
1. Key test for the Venture this week…
2. Lithium plays update…
3. Nevsun Minerals (NSU, T) makes move for Reservior Minerals (RMC, TSX-V)…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only…
SAVE 25% with a risk-free subscription as you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
U.S. data yesterday, including Q1 growth of only 0.5%, supported views the Fed will take a cautious stance in hiking rates this year…
