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1. Gold has traded between $1,521 and $1,533 so far today…as of 7:00 am Pacific, bullion is flat at $1,527…the yellow metal is headed for its biggest monthly gain in over 3 years as concerns about a slowdown in global growth and hopes for rate cuts by central banks worldwide boosted safe-haven bids…meanwhile, Silver is set for its biggest monthly advance since June 2016…Silver is up another 7 cents this morning at $18.31…the metal now has exceptional new support around $17 and a clear path to the $20 level…Nickel has exploded above $8 today to its best levels since December 2014 as supply concerns continue to dominate trading…Nickel is up a whopping 68 cents a pound to $8.15 (see below)…Copper, Zinc and Cobalt are steady at $2.58, $1.03 and $14.29, respectively…Platinum has enjoyed a big week, reaching its best levels in 16 months…Crude Oil is off 36 cents a barrel to $56.35 while the U.S. Dollar Index has declined slightly to 98.44…U.S. inflation remains muted, allowing the Fed plenty of room to cut rates…the Commerce Department reported this morning that its Core Personal Consumption Expenditures (PCE) Index increased by just 0.2% last month, below expectations of a 0.3% rise…annually, core inflation, which is the Fed’s preferred inflation measure, increased 1.6%, unchanged from June’s reading and below the Fed’s 2% target…
2. No U.S. recession anytime soon, despite the anti-Trump mainstream media’s desire for one: U.S. households ramped up their spending in July, providing reassurance that the economy’s decade-long expansion continues to roll on even as manufacturing cools and global growth slows…personal-consumption expenditures, a measure of household spending, increased a seasonally adjusted 0.6% in July from June, a pickup from the previous 2 months…this continues a solid performance by the economy’s main driving force…spending gains bode well for 3rd quarter growth and the near-term economic outlook, helping counter risks including elevated trade uncertainty, trouble in over-regulated, over-taxed overseas economies, and a U.S. manufacturing sector that has cooled off somewhat…
3. Canada’s economy recorded a stronger-than-expected rebound in the 2nd quarter as exports recovered, but weak consumption and business investment cast doubts on the expansion’s sustainability…output grew at an annualized pace of 3.7% in the 3 months through June, Statistics Canada reported this morning, up from a paltry 0.5% increase in Q1…the rebound follows 2 straight quarters of hardly any growth…the underlying details, however, are less impressive…the rebound was driven by the fastest quarterly increase in exports since 2014, but growth in household consumption came to a near halt despite strong gains in incomes, and business investment shrank by the most in more than 2 years…as a result, domestic demand contracted in the 2nd quarter…
4. With all the talk about Gold and Silver these days, Nickel continues to shine the most among metals (up 60% this year) with another powerful move today taking it above $8 a pound to its highest level in nearly 5 years…major new development – key producer Indonesia just stated that it would ban the export of ore from December, a move the market has been anticipating but adds fresh fuel to Nickel’s bull market…Indonesia’s Energy and Mineral Resources Minister Ignasius Jonan said he has signed a new regulation on restricting ore exports, according to a Reuters report…ore exports were originally banned in 2014 but were reopened for certain minerals in 2017 to give miners time to build smelters to process minerals such as Nickel, Copper and Bauxite…meanwhile, adding to supply concerns, a Nickel plant in Papua New Guinea is under investigation after a spill of waste into a local bay that has angered local residents and government officials…the premium for cash Nickel over the 3-month contract on the LME has spiked to a 10-year high of $99 a tonne, signalling tight nearby supply…traders report that Nickel is tight all the way out to June 2020 right now…Nickel inventories in LME-approved warehouses have edged up this month but are still hovering at a 6-year low…
5. The Dow is up another 141 points after the first 30 minutes of trading...in Toronto, the TSX is 23 points higher while the Venture has added 2 pointes to 583 as it continues to attempt to overcome resistance at its 50-day moving average (SMA) in the mid-580’s…higher Nickel prices and expectation of fresh results from Nickel Mountain have given Garibaldi Resources (GGI, TSX-V) another boost in early trading with the stock up 3 cents at $1.70…the GGI chart is exceptionally strong going into month-end with high probability of an immediate/near-term breakout above nearest resistance in the mid-$1.80’s based on a range of technical indicators, meaning a potential gap-up Tuesday when markets re-open after the long holiday weekend…in addition, EL-19–53 has all the makings of one of the best holes drilled in Nickel sulphide exploration in many years…it will get the attention of major players in the Nickel market…theScore (SCR, TSX-V) is up 2 pennies at 67 cents as a bullish trend in that stock also intensifies…
6. Benchmark Metals (BNCH, TSX-V) announced this morning that it has mobilized a 2nd diamond drill rig to test and potentially expand the discovery of widespread intense alteration, multi-phase veining and mineralization at the central resource area of the Lawyers trend…the success of the continuing 2019 field and drilling programs has provided a more thorough understanding of the regional geology, presenting a major opportunity to significantly expand existing resource zones along strike and to depth…the Lawyers project is situated in north-central British Columbia, 45 km northwest of the Kemess mine…the 2019 drilling program has demonstrated success intersecting broad zones of alteration and mineralization in almost every hole (16 out of 17 so far)…to date, all of the 2019 drilling has focused on the core of the Lawyers trend (Cliff Creek, Dukes Ridge, Phoenix and ABG zones) to facilitate a new resource estimate early next year…the drilling has extended mineralization at depth to over 250 m below surface at Cliff Creek and Cliff Creek South and remains open within the central part of the Lawyers trend and along strike…additionally, drilling at Cliff Creek has extended mineralization to over a better than 1 km strike length…drill No. 2 will focus on step-out drilling along strike at 50-to-100-m intervals from known zones at the core of the Lawyers trend (Cliff Creek, Dukes Ridge, Phoenix and ABG zones)…Benchmark’s most recent step-out hole intersected over 140 m of intense alteration and multi-phase veining…BNCH is up 1.5 cents at 38 cents as of 7:00 am Pacific…
7. Fed bias: Former New York Fed President Bill Dudley’s push for the central bank to consider the 2020 election when crafting monetary policy is “grossly irresponsible” behavior, economist Larry Summers stated in an interview on CNBC…in a post on Bloomberg this week, Dudley suggested the Federal Reserve could, and should, try to sway the election against President Trump…Dudley urged current central bankers not to lower interest rates further to cover for any negative effects on the U.S. economy that may arise due to the President’s trade battle with China…“For a former trusted official of the Fed, whose thinking is inevitably going to be tied to the Fed, to recommend that they use rates so as to subvert the economy and influence a Presidential election is grossly irresponsible, and is an abuse of the privilege of being a former Fed official,” said Summers, who formerly was Treasury secretary under President Clinton and as an economic adviser to President Obama…
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Jon, Nice bounce by VSBLTY Groupe Technologies Corp. (VSBY) Any insight you can share? Are you still following?
Comment by BCCOASTAL — August 30, 2019 @ 11:20 am
Great potential with VSBY, BCOASTAL, and we’re still watching it very closely…they just need to simplify their story (which I believe they will be doing) so the broader market can properly appreciate what’s happening there in terms of biz development and the growth curve they’re on…
Comment by Jon - BMR — August 30, 2019 @ 11:37 am
CLM getting beat up again today, seems like someone is in the know there and selling this down again.
Comment by Tycoon777 — August 30, 2019 @ 12:58 pm
Mr. Jon, didn’t comment the first time but SEDI appeared for GGI. More options happening….
Comment by Jean — August 30, 2019 @ 1:18 pm
Just like someone was “in the know” with GGI trading at $1.30, Tycoon777. Paper from the March PP should be almost entirely cleaned up by now – that has been the biggest restraint, plus one trader we suspect who had to sell after getting hurt with silly maneuvers on another deal…
Comment by Jon - BMR — August 30, 2019 @ 1:19 pm
They usually line up like that before the feast, Jean, sort of like pigs at the trough…to GGI’s credit, though, they refrained from doing cheap options when the stock was below $1 – Eric S. would have blown a gasket of course, and rightly so…
Nice day for GGI, breakout thru $1.85 coming…
Comment by Jon - BMR — August 30, 2019 @ 1:21 pm
Three winners today, nickel tops 8 bucks, venture up over 8 points, ggi tops 1.80…. the LOSER of the day- former PM Kim Campbell wishing the hurricane hits trumps mara lago. WHAT A LOSER!!! Have a wonderful long weekend folks.
Comment by Laddy — August 30, 2019 @ 3:28 pm
Yes, what a Nasty Woman, Laddy…it’s unimaginable to me how someone could make such a remark, especially a former PM…an embarrassment to Canada…some people may forget, or for those who weren’t around at the time, this is the same crazy woman who approved a Progressive Conservative ad in the 1993 election that attacked how Jean Chretien looked…attacked a disability, actually, a facial defect – backfired big-time of course on Campbell who suffered the most humiliating defeat in Canadian political history…that was basically the end of the PC’s…so now she wishes a potentially devastating hurricane that’s now threatening Florida rips into Trump’s Mar-a-Lago, and by implication hurting/killing many people…not even something to joke about…she has issued an apology today, but what incredibly poor judgement she has…besides hating Trump, and how certain people look, she’s also a climate change crusader but I won’t get into that…
Markets looked great today with the Venture closing above its 50-day SMA…great finish to August for Gold, Silver and Nickel…
Some gap-ups possible in certain stocks Tuesday…have a great long weekend…
Comment by Jon. - BMR — August 30, 2019 @ 3:55 pm
With GGI and CCW both closing strong today, going to make for a long weekend…. I think and am hoping there is a lot more coming from GGI besides just hole 53 which hopefully blows the socks off of us all! Perfect storm brewing with nickel reaching higher and higher everyday and the timing of news from GGI should be a fun September/Fall..
Comment by Gregh — August 30, 2019 @ 6:46 pm
Jon, maybe spot nickel does a mini-Urnaium (2006 right) and everything related with nickel pops hard.
Comment by Jean — August 31, 2019 @ 5:40 am
Anything is possible, Jean – certainly Nickel prices do have to go higher given the outlook for the 2020’s and how Nickel demand as it relates to the EV sector is going to increase exponentially…combine that with a decline in high quality Nickel reserves and you have a Perfect Storm for the metal…
Comment by Jon - BMR — August 31, 2019 @ 8:03 am
I assume the Eskay Camp stocks update will come in this week’s Sunday Sizzler.
Have been patiently looking forward to another good read.
Murray
Comment by Suzieq — August 31, 2019 @ 9:48 am
I agree that it was a stupid embarrassing comment by Kim Campbell. I remember the add making fun of Chretien’s appearance and thought it was the worst form of politics. Trump would never make fun of someone’s appearance.
Comment by Danny — August 31, 2019 @ 9:48 am
You’re right, Danny. Trump only mocks the disabled
Comment by johnz — August 31, 2019 @ 11:57 am
johnz…my last line was tongue in cheek, I think you figured that out. Cheers
I bought more CCW on Friday, in fact I think my buy was the last one of the day. I am thinking/hoping/guessing that they would wait until after Labour day to try and make a splash when more eyes are watching.
Comment by Danny — August 31, 2019 @ 12:12 pm
What’s scary about Kim Campbell, and how this ties in with the resource sector, is this: She is an adviser to the current federal govt. on Supreme Court appointments, and some issues that will impact the resource sector are going to end up in the Supreme Court. She has shown, going back to 1993, that she has incredibly poor judgement, yet she’s “qualified” to make recommendations for Supreme Court appointments. She has a certain radical agenda on the “climate change” front which is not favorable to the resource sector which we all are invested in here, and her Supreme Court recommendations to the govt. will be driven by that agenda.
Comment by Jon - BMR — August 31, 2019 @ 12:13 pm
What’s even more scary Jon, Kim Campbell made it on Fox News and they were calling for her head, where’s Trudeau on this? She’s actually employed by the liberal federal government, she should immediately be fired..NOW!
Comment by Laddy — August 31, 2019 @ 2:52 pm
Better yet, Laddy, time to fire Trudeau and put a pro-resource govt. into power in October. Then you’ll see a very different Venture market. We need to start championing the resource sector again in this country rather than apologizing for it and diminishing it.
Comment by Jon - BMR — August 31, 2019 @ 3:30 pm
Yes that would be easiest, I agree.. get rid of the drama queen and his class of 5 year olds.
Comment by Laddy — August 31, 2019 @ 3:38 pm
It was wrong and stupid for Kim Campbell to say what she did but insults have also come from the other direction. Peter Navarro, who was one of Trump’s trade advisors said there was a special place in hell for Trudeau during the trade negotiations. That was also a really ignorant comment but Fox news seemed fine with that.
Comment by Danny — August 31, 2019 @ 4:36 pm
Make The Resource Sector Great Again!
Comment by Sameer — August 31, 2019 @ 4:59 pm
Danny, almost everyone I have come across in the mining and Oil and gas sectors DOES care about the environment and are responsible in that regard. It’s simply not fair or accurate to suggest that they aren’t. Where the extreme positions have built up are on the left – those in recent years, especially since the election of Obama, who are so wrapped up in “climate change” and “save the planet” ideology that they are vigorously opposed to any Oil and gas development (need to move toward fossil fuel free economy) or major mining projects.
Comment by BMR — September 1, 2019 @ 12:35 am
The problem with the far-left is they offer no reasonable solutions to these problems. Just another form of wealth confiscation….
Comment by Jean — September 1, 2019 @ 4:06 am
Jon, I also believe the majority in the mining and Oil and Gas sector do care about the environment, I have never suggested they don’t. I think Trump could care less about the environment but that’s just my opinion. I tend to ignore the far left and far right in most debates as both sides have an agenda and will stretch the truth to suit their agenda. I just try and keep an open mind to try figure out where the truth lies. Cheers
Comment by Danny — September 1, 2019 @ 7:09 am
Jean, looking after the environment is important, we are to be good and responsible stewards of everything we have been blessed with, but what has increasingly emerged in recent years is unlike anything we have ever seen in our history – you have vocal and well-funded groups with political advocates who actually want, as one of hundreds of examples of their radicalization, to put a stop to any Oil and gas development in Alberta. They want to shut down the Oil sands as part of this utopian dream where we no longer need fossil fuels, allowing the planet to continue to exist beyond 2040 or whatever doomsday deadline they’ve selected.
Even extending a pipeline that has operated safely for decades is not acceptable to these people – they are opposed to Oil, period, and no compromise is possible. None whatsoever.
The “Green New Deal” is a document that is without precedent in North American history – read it and you’ll see how extreme this side has become, and this thinking is mainstream now in the Democrat Party which has shifted radically from what it used to be.
We need to stand up and protect our resource sector (and our country) from repeated attacks that are inflicting serious damage, costing Canada billions of dollars in investment, killing jobs and hurting families.
Bill C-69 is now the law of the land in Canada. Most Canadians haven’t even read it but there’s an agenda in there that is clearly anti-resource.
Comment by Jon - BMR — September 1, 2019 @ 8:16 am
If someone interesting in good oppertunity for gold there is EAS to look at…
They have come long way now. 23 M USD in financing and ready to get the license for production/exploration.
Its dirtcheap this level for sure and easily couple of baggers from here to around winter time…
Comment by Deniz — September 1, 2019 @ 9:54 am
ttps://www.forbes.com/sites/timtreadgold/2019/09/02/nickel-surges-higher-as-a-supply-squeeze-looms-leaving-gold-even-further-behind/
WHOA!!!! HUGE…pissed off the gov.
Comment by Jean — September 2, 2019 @ 12:00 pm
Silly anon traders on GGI today – nice buying on that drop….
Comment by Jean — September 3, 2019 @ 8:14 am