Gold has surpassed the $1,300 mark for the first time in 15 months…the yellow metal has traded between $1,288 and $1,304 so far today…as of 8:15 am Pacific, bullion is up $2 an ounce at $1,294…Silver is off 12 cents at $17.70…Copper is flat at $2.29…Crude Oil is 52 cents lower at $45.40 while the U.S. Dollar Index has fallen another one-third of a point to 92.69…
Data on Friday showed hedge funds and money managers cut their net long positions in Gold futures and options in the week to last Tuesday. “Even though net long positions in Gold were reduced slightly in the week to 26 April, we believe that speculative financial investors have been driving the Gold price up significantly of late,” Commerzbank said in a note…
The fact is that those speculators see a lot of momentum in Gold, just as many of them were attracted to the momentum in the U.S. dollar that persisted from the summer of 2014 to the end of last year…Gold is in a new bull market, so it won’t stop at $1,300 this year like it did in 2015…
An ounce of Gold bought about 84 ounces of Silver at the end of February, more than any time since the financial crisis of 2008…while the ratio has now dropped to the low 70’s, in line with the 2015 average, it is still well above the long-term average in the mid-60’s…we have updated Silver charts in today’s Morning Musings…a remarkable change has occurred in Silver’s long-term chart…
Commodities on the move – the Bloomberg Commodity Index, which tracks returns for 22 raw materials, enjoyed its biggest monthly gain in April since 2010…
Has Bill Gates lost his mind?…on CNBC this morning, he said investment gains should be taxed at the same level as ordinary income…the current top tax rate on capital gains is 20% (with the highest earners paying an additional 3.8% surtax)…the top tax rate on ordinary income in the U.S. is 39.6%…
Oil Update
A survey of 13 investment banks by The Wall Street Journal sees Brent Crude averaging $41 a barrel this year, up $1 from the same survey conducted in March…the banks see West Texas Intermediate, the U.S. Oil gauge, averaging $39 a barrel this year, broadly unchanged from the prior survey…this is interesting because these banks are clearly behind the curve in terms of how the technical outlook has changed, rather dramatically, for Crude Oil over the past several weeks…
Oil surprised many traders and investors to the downside in 2014 and again in 2015, mostly because they weren’t paying any attention to TA…the charts have been telling us for a while now that Crude will surprise to the upside during the balance of this year…the reasons could be related to a combination of U.S. dollar weakness and significant supply disruptions in high risk Oil producing states such as Venezuela, Iraq, Libya, Nigeria and Algeria…
OPEC-supplies rose to 32.64 million barrels per day (bpd) in April, from 32.47 million bpd in March, according to a Reuters’ survey based on shipping data and information from sources at Oil companies, OPEC and consultants…
The Golden Triangle’s “Heart Of Gold”
In today’s Morning Musings, we feature a fascinating Part 6 of our interview series with Colorado Resources‘ (CXO, TSX-V) President and CEO Adam Travis. “This is the geologist’s equivalent of being in the candy store,” Travis commented about the 32 sq. km KSP Property which includes numerous bona fide targets in addition to the high-grade Inel area that will be the focus of initial upcoming drilling…CXO also recently expanded that impressive belt of rocks by adding another 33 sq. km immediately below it, known as the KingPin Property…
KSP and KingPin, of course, are part of a much bigger picture that features some of the most incredible “candy stores” on the planet…during the unprecedented recent brutal bear market in the resource sector, particularly from 2012 through 2015, most investors simply weren’t paying much attention to developments in this core section (about 1,000 sq. km) of B.C.’s infamous Golden Triangle where a staggering amount of Gold (well in excess of 100 million ounces) has been outlined in NI-43–101 reports filed by Pretium Resources (PVG, TSX) and Seabridge Gold (SEA, TSX)…
Pretium Chairman and CEO Bob Quartermain.
Pretium’s Brucejack, of course, is scheduled to go into commercial production by the middle of next year and hosts Proven and Probable reserves of 6.9 million ounces of high-grade Gold (13.6 million tonnes grading 15.7 g/t Au) in the Valley of the Kings…the adjacent West Zone is more rich in Silver, featuring reserves of 2.9 million tonnes grading 6.9 g/t Au and 279 g/t Ag…
By reserves, Seabridge’s adjacent KSM deposits constitute the world’s largest undeveloped Gold-Copper Project (38.2 million ounces of Gold and 10 billion pounds of Copper) with estimated total costs well below industry averages…
In short order, following Murray Pezim’s spectacular discovery in 1989 that sent the Vancouver Stock Exchange into a trading frenzy, Eskay Creek became one of the richest ore deposits ever mined, annually churning out 250,000 ounces of Gold, 15 million ounces of Silver and substantial base metals for much of its 14-year mine life (average grades were 49 g/t Au and 2,406 g/t Ag)…the mine became an important part of the growth story that made Barrick Gold (ABX, TSX) the world’s largest Gold company…
To the west, within this core block of the Golden Triangle, the Snip mine produced approximately 1 million ounces of Gold from 1991 until 1999 at an average grade of nearly 1 ounce per tonne…Ron Netolitzky, who was a big part of that discovery as well as Eskay Creek, believes there are many more ounces at Snip and recently cut an option deal with Barrick on this past producer…
Major infrastructure upgrades, including power, roads and bridges, have reshaped the landscape, making a Snip restart potentially viable…
Meanwhile, glacial retreat throughout this incredible district has exposed vast new areas with promising surface mineralization that will likely lead to new deposits…
All of the above, plus breakouts in Gold, Silver and the Venture, has combined to create the “Perfect Storm” – a whirlwind of excitement that could rival the boom of the late 1980’s that created instant millionaires…
It can be easily argued that this is the richest metal area on the entire planet…
The Golden Triangle’s “Heart Of Gold”…
https://youtu.be/pO8kTRv4l3o
Become a BMR subscriber today, if you’re not already, for valuable unique research and insights into this very special part of northwest British Columbia that offers investors the opportunity to bag huge profits, especially in this new Venture bull market, over the next several months…
In today’s Morning Musings…
1. New chart shows how the TSX Gold Index could easily double this year after last week’s key breakout…
2. Equitas Resources (EQT, TSX-V) shows potential for higher grades at its newly-acquired Gold project in Brazil…
3. Updates on PRB, OX and SEK…
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