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July 11, 2016

BMR Morning Market Musings…

Gold has traded between $1,350 and $1,369 so far today…as of 9:45 am Pacific, bullion is down $8 an ounce at $1,357…Silver is up 8 cents at $20.33…Copper has added 3 pennies to $2.16…Crude Oil has slipped 55 cents to $44.86 while the U.S. Dollar Index has gained one-quarter of a point to 96.61…

Gold is taking a back seat today to global stock markets which are up sharply…Abenomics may not be working very well but it’s sure popular among the masses in Japan!…Abe’s coalition notched a landslide victory for the upper house in Japan’s parliament yesterday, sending the Nikkei 4% higher overnight…the Japanese had cast the election as a referendum on his “Abenomics” recipe of hyper-easy monetary policy, spending and modest reform…with signs the strategy is failing, the government plans to compile a post-election stimulus package that could exceed 10 trillion yen ($99 billion U.S.) as Abe doubles down…the aging Japanese population doesn’t want the medicine it really needs – massive economic structural reform…

The Bank of England meets later this week – expect new stimulus measures from them as well…

Data from the U.S. Commodity Futures Trading Commission (CFTC) on Friday showed that hedge funds and money managers again raised their net long positions in COMEX Gold and Silver contracts to record highs in the week to July 5, after the June 23 vote by Britain to leave the EU…

Citigroup “Especially Bullish” On Commodities For 2017

Citigroup says that it’s bullish on commodities including Oil in 2017 as the impact of the UK’s vote to quite the EU fades away and global growth chugs along…with markets rebalancing, Citigroup expects investors to plow more cash into funds…

“Citi is especially bullish commodities for 2017,” analysts led by Ed Morse wrote in a note received today, 2 months after the New York-based bank said that raw materials’ markets had turned the corner.  “The Oil market is trending water for now, but the Oil price overshot to the downside earlier this year and this is clearly setting the stage for a bullish end to the decade.”

Hecla Mining (HL, NYSE), which has made a bid for Dolly Varden (DV, TSX-V), has hiked its guidance for Gold and Silver production in 2016 after the company reported a big year-on-year jump in output during the 2nd quarter…Silver production rose 71.2% from the year-ago period to 4,241,338 ounces, while Gold output was up 40.9% to 62,695 ounces…this led to AgEq production of 11.8 million ounces, a 38.4% increase…byproduct output of Lead and Zinc also rose…meanwhile, Hecla has upped its estimate of Silver production for 2016 by 5% to 15.75 million ounces, and Gold production by 13% to 233,000 ounces…

In today’s Morning Musings…

1. An amazing new long-term chart for Copper – this could make you a lot of money!…

2. NexGen (NXE, TSX-V) starts 35,000-m drill program at Rook 1…

3. The “beat” picks up in the Heart of Gold Camp…

4. Updated Silver charts – a move of historic proportions underway?…

5. Daniel’s Den – the unbelievable statistics (the REAL story) from Friday’s “blowout” jobs number, and alternative bull markets!…

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…

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Top Opportunities Update Including 37 New Additions

The resource section of the BMR Top 50 Opportunities List unveiled in early December 2015 is up a staggering 175% in just over 7  months (293% annualized return) with 64% of the 39 picks posting triple-digit percentage gains. 

This compares to a 45% advance for the Venture and a 26% climb in Gold during the same period.  The TSX is up 6.7% since then, the Dow is up 1.7% while the NASDAQ has fallen 3.6%.

Individual category performances (comprising 50 stocks) are as follows:

PRODUCERS:  Up 140%

NEAR-PRODUCERS:  Up 207%

EXPLORERS:  Up 154%

EXPLORER SLEEPERS UNDER A NICKEL:  Up 269%

NON-RESOURCE:  Up 25%

In today’s report is an updated performance review of each category through July 8, and comments on individual companies for our subscribers.  In total, 38 or 76% of the 50 picks have increased in value over the last 7 months, 11 are down and 1 is unchanged.  The average return so far for all 50 companies is an impressive 142% or 238% on an annualized basis.  Pure Gold Mining (PGM, TSX-V) tops the list with a gain of 576% followed by Cordoba Minerals (CDB, TSX-V) at 546%, Kiska Metals (KSK, TSX-V) at 500% and Brazil Resources (BRI, TSX-V) at 440%.

Not included in the above statistics are the 37 recent additions (NEW ADDITIONS), companies that have been added at various times since late February – more than half of them since the beginning of May.  Combined, this group is already up nearly 60% with Colorado Resources (CXO, TSX-V) setting the pace with a gain of 331%.  Three other stocks in the Golden Triangle’s Heart of Gold Camp have posted returns in excess of 100% over a short period – Tudor Gold (TUD, TSX-V) has surged 203% since it was listed just 2 months ago, SnipGold (now part of Seabridge Gold) has jumped 158% while Aben Resources (ABN, TSX-V) has advanced 143%.  ABN also has fresh momentum after important news last week.  Meanwhile, Garibaldi Resources (GGI, TSX-V), which has increased its position in the Camp 10-fold, remains under accumulation.  It has broken out above a downtrend line in place since last November and was one of last week’s top gainers.

BMR recently correctly predicted potential takeovers of both Dolly Varden Silver (DV, TSX-V) and Homestake Resource (HSR,TSX-V), up 164% and 64%, respectively, since we broke the story June 7 (click here) about a major Silver producer acquiring 600 sq. km of claims in the Kitsault district near DV and HSR from a private group.

Athabasca Nuclear is now Clean Commodities (CLE, TSX-V), building a powerful Canadian clean commodity brand that includes an impressive package of recent Lithium acquisitions.

1.  Stocks with momentum entering the 2nd week of July…

2.  The high-grade Silver and Cobalt play under 10 cents that has broken out on record volume…

3. Potential high-flier prepares to start trading on the CSE as unique tech play…

Click here for a free BMR eAlert on 3 new picks that could excel over the rest of this month…

And click here to gain immediate full access to this and other exclusive BMR content which provides daily Venture coverage and money-making trading opportunities you won’t find anywhere else, or login with your username and password…

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July 10, 2016

Sunday Sizzler Report

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July 9, 2016

The Week In Review And A Look Ahead

TSX Venture Exchange and Gold

The Venture once again led the broader indices higher this past week, climbing 3% (22 points) to close at 752.  The TSX gained 1.4%, the NASDAQ rose 1.9% while the Dow added 1.1%.  The Dow is now within 165 points of its all-time record closing high (May 2015) while the S&P 500 on Friday finished just 1 point below its record closing high of 2131.

Accommodative central bank policies are driving investors into stocks and Gold, and of course the yellow metal also has many other factors in its favor at the moment as well.  The surge in Gold has created an even greater percentage move in Silver, the “poor man’s” Gold, which jumped 3% or 61 cents Friday to finish the week at $20.25.

Thursday was a great day for bargain hunting on the Venture when it suffered its worst single-day loss (10 points) since May 27.  Any pullbacks do need to be embraced because this is a market in the midst of one of its greatest bull runs ever.

Learn how you can profit from the Venture’s relentless “upsloping channel” in today’s Week In Review And A Look Ahead, plus one stock under 20 cents that we like a lot going into Monday after some game-changing news just a few days ago.

Click here for a free BMR eAlert on 3 top picks for the rest of July…

And…Click here to read the rest of today’s Week In Review And A Look Ahead, and all BMR exclusive content, by taking advantage of our July Subscription Special, or login with your username and password.

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July 8, 2016

BMR Morning Market Musings…

Gold has traded between $1,335 and $1,371 so far today…as of 9:30 am Pacific, bullion is down $6 an ounce at $1,354…a much stronger than expected U.S. jobs report for June (287,000 jobs added) caused an immediate $25 sell-off in Gold, but the yellow metal quickly stabilized and then briefly turned higher for the day…Silver is up 21 cents at $19.86…Copper is flat at $2.12…Crude Oil is 12 cents higher at $45.26 while the U.S. Dollar Index has gained one-tenth of a point to 96.38…

Analysts had been expecting this morning’s jobs report to show a substantial rebound from May’s dismal showing, but the June number easily topped expectations as 287,000 jobs were created…that was more than 100,000 above estimates and made for a nice headline for Obama and Clinton, but May’s report was also revised even lower to just 11,000 from 38,000…combined, that’s 298,000 new jobs over 2 months which is still well below the average monthly pace of more than 200,000 for both 2014 and 2015…

June job growth occurred in leisure and hospitality, health care and social assistance, and financial activities…employment also increased in the information sector, mostly reflecting the return of workers from a strike…

The unemployment rate increased by 0.2% to 4.9% in June, and the number of unemployed persons increased by 347,000 to 7.8 million…the labor force participation rate remained little changed, near an all-time low at 62.7%…

Employment in the mining sector continued to trend down in June (-6,000)…since reaching a peak in September 2014, mining has lost 211,000 jobs…

A key metric – average hourly earnings for all employees on private non-farm payrolls – edged up just 2 cents to $25.61, following a 6-cent increase in May…over the year, average hourly earnings have risen by 2.6%…

There’s little in today’s jobs report for the Obama administration to cheer about, despite the “287,000” number that the liberal media will play up – hence, Gold has held its ground and the U.S. dollar has barely budged…equity markets are higher as they see a Fed that’s simply not going to increase interest rates no matter what until only God knows when…

BOA Merrill Lynch Predicts $1,500 Gold By Year-End

A slew of bullish bets on Gold were announced following the shock result of the UK’s referendum on its EU membership, but 1 investment bank has just given an even more generous prediction for the future price of the precious metal…a global research team at Bank of America Merrill Lynch is calling for Gold to rise 10% between now and the end of next year and expects it to close in on $1,500 an ounce…

“The world has been walking from crisis to crisis and we see risks that this may not change,” the team, led by Michael Widmer, said in a report released this morning.  “We called a bottom in Gold in February and Brexit reinforces our view. As such we are upgrading next year’s Gold price forecast from $1,325 per ounce to $1,475 per ounce.”

HSBC On PGE’s

HSBC looks for wide supply deficits to underpin prices of Platinum group metals. “Limited prospects for mine output growth, reduced metal derived from auto recycling, and steady but not stellar auto and industrial demand should assure both PGMs of ongoing structural deficits, this year and next,” the bank says.  “Mine output gains of 2015 are unlikely to be repeated going forward for Platinum as high production costs, restructuring and capex cuts by South African producers should, over time, reduce supply growth.”

In today’s Morning Musings…

1. Updates on some possible big movers next week…

2. The incredible Venture-U.S. Dollar Index comparative and what it means…

3.  TSX Gold Index to 350 in this 2nd half of 2016?…

4. Daniel’s Den – Daniel goes nuclear!…

Plus more…click here if you’re a non-subscriber to receive 3 Top Picks For 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…

July 7, 2016

4 Major League “Optionality Plays”

According to natural resources veteran and CEO (Sprott U.S. Holdings Inc.) Rick Rule:

“Optionality involves hoarding enormous commodity deposits when commodity prices are low, and selling the deposit(s) intact when prices are high and the industry is screaming for it. Optionality (or hoarding) is a speculative technique that works particularly well when entered into during bear markets, transitioning into bull markets.”

While “options” on stocks expire, a well-run optionality play does not expire.

Below you will find 4 Major League “optionality plays” related to Oil, Copper, Platinum, Potash and Iron Ore, with a brief description of each.

To read the rest of this report, click here and find out how you can become a BMR subscriber for as little as $1 per day, or login with your username and password…

SAVE 25% with a satisfaction guaranteed, risk-free subscription…as a new subscriber, if we don’t help you make money over the next 6 months, we’ll refund your subscription fee in full – no questions asked…

BMR Morning Market Musings…

Gold has traded between $1,350 and $1,369 so far today…as of 9:30 am Pacific, bullion is down $5 an ounce at $1,358…Silver is off 41 cents at $19.65…Copper has slid 3 pennies to $2.12…Crude Oil has reversed lower, tumbling $1.53 a barrel to $45.90 as government data showed a far weaker U.S. Crude inventory draw than an industry report released Tuesday suggested…meanwhile, the U.S. Dollar Index has gained one-fifth of a point to 96.22…

China, the world’s biggest producer and consumer of Gold, added about 500,000 ounces to central bank reserves in June (now at 58.6 million ounces) according to data on the central bank’s website, restarting monthly purchases to diversify holdings after taking a breather in May…the country has boosted its hoard in 11 out of the past 12 months after announcing a 57% increase since 2009…

Not surprisingly, sales of American Eagle Gold coins by the U.S. Mint during the first 6 months of 2016 are far ahead of the pace from the same period in 2015, Commerzbank points out: “This year has seen not only high inflows into Gold ETFs so far, but also strong coin sales.  According to figures from the U.S. Mint, 501,000 ounces of Gold coins were sold in the U.S. in the first half of the year, which is 84% up on the same period last year,” the bank says. “As such, coin sales are clearly on track to significantly exceed last year’s total.”

The most important jobs number EVER! (lol) comes tomorrow when the Labor Department reports on June non-farm payrolls after last month’s horrendous statistics…this morning, a report from ADP and Moody’s showed that employment in the private sector rose modestly more than expected in June, led by gains in the small business sector…private sector jobs grew by 172,000, up 13,000 from what economists estimated…the May number was revised down to 168,000 from 173,000…the ADP report isn’t always a reliable indicator for the non-farm payrolls report that follows…

Mark Zandi, chief economist at Moody’s Analytics, said in a statement.  “Job growth revived last month from its spring slump. Job growth remains healthy except in the energy and trade-sensitive manufacturing sectors. Large multinationals are struggling a bit, and Brexit won’t help, but small-and mid-sized companies continue to add strongly to payrolls.”

We’ll see what the Labor Department has to say tomorrow, and the wage growth numbers will be watched with keen interest as well…expectations of course are everything – according to a Reuters’ survey of economists, non-farm payrolls likely increased 175,000 last month (the May number was just 38,000) while the unemployment rate is forecast rising to 4.8% in June from an 8.5-year low of 4.7% in May…another jobs number below 100,000 will shake a lot of people up…

If Gold weakens tomorrow on the jobs report, which is possible, it’ll surely rebound fairly quickly as there’s little prospect of the Fed raising rates at all this year…so many factors are supporting bullion right now and they aren’t about to go away anytime soon…it’s also possible Gold could explode higher tomorrow if the jobs number is another disaster…

BHP Move Is Positive For Copper, Oil Outlooks

A geologist reminded us yesterday that BHP Billiton (BHP, NYSE), the world’s #1 mining company, recently announced that it has raised its annual exploration spending by 29%, allocating nearly all its $900 million budget to finding new Copper and Oil deposits which the miner has singled out as the key resources that will bolster its future growth…the budget increase comes despite the Melbourne-based mining giant’s decision to cut overall capital expenditures to $5 billion in the fiscal year that began July 1, compared to a peak of $25 billion in fiscal 2013.  “We are investing at a time when most in our sector continue to reduce discretionary spend,” Laura Tyler, BHP’s head of geoscience, said in a statement…

Already the world’s second-biggest listed Copper miner, BHP will be looking for more of the red metal in Canada, the U.S., Chile, Peru and South Australia, and eyeing new partnerships to boost its growth pipeline…

UBS Raies Oil Price Forecast

UBS:  “Oil demand growth remains robust…an historically high level of physical inventories… is no bar to a rising price if the direction of travel in market adjustment is supportive.”

In today’s Morning Musings…

1. Drilling begins at Kootenay Silver’s (KTN, TSX-V) La Negra high-grade Silver discovery…

2. The Little Engine (ABN) That Could!…

3. Bargain hunting as some profit-taking hits the Venture…

Plus more…click here if you’re a non-subscriber to receive 3 Top Picks For 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…

July 6, 2016

BMR Morning Market Musings…

Gold has traded between $1,363 and $1,376 so far today, touching a 27-month high…as of 11:00 am Pacific, bullion is up $10 an ounce at $1,366…Silver has climbed 19 cents to $20.10…Copper is off a penny at $2.16…Crude Oil has turned higher, up 66 cents to $47.26 while the U.S. Dollar Index has eased slightly to 96.11…

The world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, posted the biggest 1-day surge in its holdings in more than 6 years yesterday…they jumped 28.8 tonnes to 982.72 tonnes, their highest since June 2013…

Germany’s 10-year bond yield slid to a record low for a second day today as fears about the impact of Brexit on economic growth gripped global markets and underpinned demand for safe-haven bonds…meanwhile, yields on U.S. Treasuries, the benchmark for bonds worldwide, hit record lows out to 30 years yesterday…no wonder investors are piling into Gold and Silver…

We called a new bull market in Gold back in February…some analysts are just jumping on board while others are scrambling to raise their targets…

Gold has entered a “new bull run” according to UBS’s Joni Teves who predicts demand will be driven by falling interest rates, pressure on the U.S. dollar, quantitative easing in the U.K., continued concerns over the state of the world economy and, of course, the U.K.’s decision to bail out of the European Union.  “The U.K.’s vote to leave the EU further underpins Gold’s macro narrative, reinforcing the themes of further dovish shifts in monetary policies, consequently lower yields and heightened uncertainty,” Teves and her team noted.  “We continue to expect U.S. real rates to fall from here and ultimately for equilibrium real rates to settle lower and have limited upside.” 

Light BulbAnother noteworthy understatement from a Fed official who apparently had a “light bulb” moment this morning:  Daniel Tarullo, a voting member who’s on the central bank’s policy setting committee, said today:  “This is not an economy (in the U.S.) that’s running hot.” 

 

But does the Fed really get it?…

Weakening Central Bank Credibility

“Part of the reason Gold is going up is because people are losing confidence in central bank money, from all central banks,” Jim Rickards, author of The New Case for Gold, told CNBC yesterday…speaking on the Federal Reserve, in particular, Rickards said the U.S. central bank’s credibility is “already in shreds” and will likely get worse as interest rate hikes don’t materialize, which should continue to help the metals.  “December maybe, but I doubt it. Definitely not ahead of the election,” he explained…

In today’s Morning Musings…

1. Updated Venture 6-month daily chart – near-term guidance as the bull charges…

2. EQT, TKK and ABN explode to the upside…

3. Goldstrike in Utah!…

4. Daniel’s Den – Orca, the Valentine Gold Camp and Jobs Friday!…

Plus more…click here if you’re a non-subscriber to receive 3 Top Picks For 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…

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