July 15, 2016
July 14, 2016
BMR Morning Market Musings…
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.
July 13, 2016
Thinking BIG In The Heart Of Gold Camp
In the stunning Heart of Gold Camp in northwest British Columbia’s infamous Golden Triangle, much gets supersized – from tonnages and grades as detailed in historic production statistics and the most recent NI-43–101 reports, to a hydroelectric facility, land packages and market capitalizations.
There is something very, very special about the geological features and processes God has masterfully created in this particular part of the world. And the key to finding incredible mineral deposits in the Heart of Gold Camp, and generating enormous wealth, is to think BIG and persevere – just as Murray Pezim did, and others since. They followed their hearts, their passions and their instincts, and they made amazing discoveries in this uniquely rich district.
The Golden Triangle’s “Heart of Gold” Camp
Eskay Creek churned out more than 3 million ounces of Gold and 161 million ounces of Silver at mind-boggling average grades of 1.3 oz/ton Au and 65 oz/ton Ag, respectively.
Seabridge Gold (SEA, TSX) hosts the world’s largest concentration of Gold and Copper in Reserves at its KSM deposits, and is looking for more with 2 drill rigs in action at KSM while another drill program searches for potential high-grade Gold deposits at its Iskut Project.
Pretium Resources (PVG, TSX) is constructing one of the world’s highest-grade Gold mines at Brucejack, slated to commence commercial production in the 2nd half of next year at an annual clip of 500,000 ounces, while it also carries out exploratory drilling to the east.
Pretium’s market cap is now almost $3 billion.
Colorado Resources (CXO, TSX-V) consolidated supersized geological belts (KSP and KingPin) totaling 600 sq. km, and the stock has zoomed from 6 cents in February to 60 cents – a 10-bagger already – with a drill program in progress at KSP.
Walter Storm, who made fortunes in the last bull market on Osisko (Canadian Malartic), has supersized ideas for Tudor Gold (TUD, TSX-V) which has more than tripled in value since it first started trading in mid-May.
Several other companies are stirring, including Skeena Resources (SKE, TSX-V), Eskay Mining (ESK, TSX-V), Garibaldi Resources (GGI, TSX-V), American Creek (AMK, TSX-V), Teuton Resources (TUO, TSX-V), Metallis Resources (MTS, TSX-V) and Romios Gold (RG, TSX-V) – they could all have a “sizzling summer”, especially the ones who think BIG and overcome the challenges of the terrain.
Like The Little Engine That Could.
Tiny-sized Aben Resources (ABN, TSX-V), which closed today at 17.5 cents for a market cap of only about $3 million, is set to quickly power forward in the Heart of Gold Camp thanks to a supersized vision that has allowed this company to come from nowhere less than 3 months ago. President and CEO Jim Pettit thinks BIG, and so does Chairman Ron Netolitzky who of course was a driving force in the 1980’s boom when Snip and Eskay Creek were discovered.
Aben has taken a page out of the Colorado playbook and has just received Exchange approval for a multi-party agreement announced last week that consolidates 230 sq. km beginning on the northern border of the KSP and the western border of Garibaldi’s PSP, and continues to the north for 40 km along the Forrest Kerr fault toward Galore Creek.
“When you can consolidate a whole belt that’s unique as this one, it’s a great opportunity. And it has turned some heads,” stated Pettit in an exclusive interview the BMR (full audio version as part of this feature piece).
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.
And 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.
BMR Morning Market Musings…
Gold has traded between $1,335 and $1,355 an ounce so far today…as of 9:45 am Pacific, bullion is up $10 an ounce at $1,343 after profit-taking sent the metal down $20 yesterday…Silver has jumped 21 cents to $20.33…Copper has climbed another 3 pennies to $2.24…Crude Oil has plunged $2 a barrel to $44.81 while the U.S. Dollar Index is off one-third of a point to 96.18…
Holdings of SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, fell 1.63% yesterday to 965.22 tonnes, its biggest single day decline since December 2, 2015…
Gold has strong technical support in the $1,320’s and $1,330’s, so it wasn’t surprising to see bargain hunters step up to the plate this morning after yesterday’s minor sell-off took bullion to a 2-week low…
Malaysia’s central bank unexpectedly lowered its interest rates today for the first time in 7 years in an effort to boost the country’s economy, but Canada’s central bank has stayed the course…
China’s dollar denominated exports fell more than expected in June, according to figures released today…imports also shrank more than forecast as waning global demand and Brexit concerns put some grey clouds over the world’s 2nd-largest economy…
CNBC’s just-released 2016 ranking of top states for business has Utah at the top, followed by Texas, Colorado, Minnesota, North Carolina, Washington State, Michigan, Georegia, Iowa and Florida…the 5 worst states are Maine (#46), Mississippi, West Virginia, Hawaii and Rhode Island (#50)…
Crude Oil Update
The International Energy Agency (IEA) warned that today that a global supply glut threatened a price recovery in Oil, while data showed an unexpected weekly gain in U.S. Crude stocks…the IEA, which advises industrialized nations on energy policies, said Crude inventories kept rising last month and pushed floating storage to the highest level in 7 years. “(Stocks) are at such elevated levels, especially for products for which demand growth is slackening, that they remain a major dampener on Oil prices,” the Paris-based IEA said in its latest report…
Rising Metal Prices
Metals are on the move, prompting Goldman Sachs to hike its various price forecasts through 2017 as stimulus in China and elsewhere supports demand through the 2nd half of 2016…Nickel has hit an 8-month high amid expectations of supply cuts in the Philippines, the world’s top producer of the metal, while Zinc is at its best levels in more than a year…Copper has picked up steam this week while Palladium has touched an 8-month high…
Plummeting Global Bond Yields
This month, for the first time ever, Switzerland’s entire stock of bond yields has fallen below zero, with the 50-year yield plunging to negative 0.03%….
The Canadian 10-year yield closed just below 1% yesterday (has recovered slightly today) while inflation in May came in at 1.5%…when you subtract the latter from the former, you get a real rate of negative 0.5% – meaning inflation is eating your lunch…like negative bond yields, negative real rates have in the past accelerated momentum in Gold’s Fear Trade…
Bank Of Canada Keeps Rates Steady
The Bank of Canada kept interest rates at 0.5% today but slightly cut its economic outlook for the year, saying the extensive damage from the Alberta wildfires will result in an economic contraction in the 2nd quarter…among the projections, the bank for the first time released numbers on the potential impact of the UK’s vote to leave the EU…it said the fallout from the vote will lower global GDP by 0.2% by the end of 2018, with most of that expected to be tied to an extended period of uncertainty around investment. “The impact on the level of Canadian GDP over the projection period is likewise anticipated to be modest, about –0.1%, reflecting, among other factors, Canada’s small direct trade exposure to the UK,” the bank said in its latest monetary policy report…
In today’s Morning Musings…
1. Fresh Gold chart – sell me some more!…
2. The breakout in Nickel…
3. IDM Mining (IDM, TSX-V) “revs up” at Red Mountain…
4. Daniel’s Den – a Copper junior on the rebound…
Plus more…click here if you’re a non-subscriber to receive 3 Top Picks for the rest of July, or login with your username and password to view the rest of today’s Morning Musings…
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July 12, 2016
BMR Morning Market Musings…
Gold has traded between $1,330 and $1,358 so far today…as of 10:00 am Pacific, bullion is down $23 an ounce at $1,332…Silver has slipped 20 cents to $120.06…Copper is going in the opposite direction, jumping 6 cents to $2.21…Crude Oil has surged $1.83 a barrel to $46.59 while the U.S. Dollar Index is down one-fifth of a point to 96.34…
Gold is under some mild pressure today on profit-taking as cash pours into global stocks…the S&P 500 and Dow both hit new record highs today, Asian stocks hit 2-and-a-half month highs overnight, while European shares posted a 4th straight day of gains on hopes of more stimulus from global policymakers…
China suffered a major defeat today as an international court rebuked its claims on distant waters that contain the world’s busiest shipping lanes and declared some of its expansionary tactics illegal…a tribunal at the Permanent Court of Arbitration in The Hague, Netherlands, issued the ruling in a dispute between China and the Philippines…analysts believe the decision, and the responses of both countries and others, could mark one of the most significant geopolitical events in years (potentially Gold-bullish)…
Nickel On The Rise
Goldman Sachs is predicting a surge in Nickel prices during the 2nd half of this year, driven by probable supply cuts in the Philippines, the biggest ore producer…the new Philippine government has put mines on notice that ventures falling short of environmental and welfare standards will be shut down and has ordered an audit of operations, driving prices to the highest in 8 months…Goldman Sachs has raised its full-year average price by 15%. “The results of the audit will be critical to the outlook for Nickel,” Goldman analysts including Jeff Currie and Max Layton wrote, noting there appears to be no readily available alternative source of ore for China, the biggest producer and consumer…
Nickel, which dipped below $3.50 per pound early this year, is up 16 cents at $4.71 as of 10:00 am Pacific…
Crude Oil Update
OPEC has cut its forecast for world economic growth this year (to 3.0% from 3.1%), citing increased uncertainty following Britain’s vote to leave the EU…in its first 2017 forecast, the cartel says the pace of Oil demand growth would slip…
Crude Oil prices are rebounding today off a 2-month low yesterday, a retreat we put into perspective this morning with an updated chart…
Saudi Energy Minister Khalid al-Falih said today that the Oil industry needs a price above $50 per barrel to sustain investment but added that downward pressure would prevail because of an inventory glut. “We need a price higher than $50 to achieve balance in Oil markets in the long- term,” Falih told German business daily Handelsblatt. “But there are still excess stocks on the market – hundreds of millions of barrels of surplus oil. It will take a long time to reduce this inventory overhang,” he said. “Market conditions will help remove overall excess Oil stocks in 2017.”
WTIC 8-Month Daily Chart
We do see a potentially big opportunity coming up in Crude Oil, given the pullback that started recently, but for now some bearish technicals are restraining the price and may cause WTI to test the nearest support at $43…buy pressure (CMF), dominant for most of the period since from March through June, has transitioned into weak sell pressure…
Note the RSI(14) downtrend line…what has been occurring since early last month is a healthy unwinding of temporarily overbought conditions that prevailed from March into June, so a test of the strong RSI(14) support at 30% can’t be ruled out…confirmation of the price turnaround should come when the RSI(14) breaks through its resistance at the downtrend line…
It’s a good time to be planning for a long position in the double bull HOU on the TSX, but not just yet…we’ll continue to monitor…all 4 of our ETF trades have been winning ones this year including the HOU earlier in the year which we closed out for a short-term profit of 40%…
“Policeman” – In Honor Today Of The Slain Dallas Police Officers
Back in 1970, the great Paul Harvey did one of his best pieces ever – “Policeman”. There couldn’t be a more appropriate day than today to post this video and narration from Harvey as a memorial service is held in Dallas to celebrate the lives and service of Brent Thompson, Patrick Zamarripa, Michael Krol, Lorne Ahrens and Michael Smith who were all shot and killed in last Thursday’s ambush in downtown Dallas while they were protecting the rights of citizens to protest.
Click on the arrow to view this heartwarming 2-minute tribute to law enforcement, our brave men and women in uniform, who unfortunately have come under unfair attack (verbally and physically) due to an agenda-driven rhetorical war on police.
In today’s Morning Musings…
1. Updated S&P 500 chart paints an interesting picture for the rest of this year…
2. Phase 3 drill program commences at Sandra Escobar high-grade Silver discovery in Durango State…
3. Richmont Mines (RIC, TSX) on track to exceed guidance for 2016…
4. The implied value of Columbus Gold (CGT, TSX)…
Plus more…click here if you’re a non-subscriber to receive 3 Top Picks for the rest of July, or login with your username and password to view the rest of today’s Morning Musings…
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…
Stay Cool With This Commodity – Literally
What?
According to Wikipedia: R-22, also known as “freon”, is a hydrochlorofluorocarbon (HCFC). This colorless gas is commonly used as a propellant and refrigerant. R-22 is being phased out in developed countries due to the compound’s ozone depletion potential (ODP) and high global warming potential (GWP). Due to UN regulations, R-22 production will be completely phased out by 2020, with new supply tapering down between now and then.
While most new air conditioning (HVAC) units and refrigeration equipment is manufactured to use alternatives to R-22, millions of existing systems remain in place – this installed base will “need” R-22 long past 2020.
That’s why I see such an opportunity in this NASDAQ-listed company, a stock trading under $3.50 that has been in an upsloping channel for a decade!
Click here to read the rest of this article, and all BMR exclusive content, by taking advantage of our July Subscription Special, or login with your username and password.
And 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.
July 11, 2016
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