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1. Gold has traded between $1,493 and $1,510 so far today…as of 7:00 am Pacific, bullion has climbed $9 an ounce to $1,506 – accelerating to the upside in recent minutes as investors digest comments this morning from Fed Chairman Jerome Powell at the central bankers’ symposium at Jackson Hole…indicative of sentiment, holdings of SPDR Gold Trust have increased by about 27 tonnes so far this month…Silver has addd 8 cents to $17.08…key resistance is in the $17.20’s…the Gold-Silver ratio appears to have peaked recently, a technical development that is very bullish for Silver which should start to outpace Gold as both metals continue their primary uptrends over the next 12 months…Nickel is up 4 cents at $7.16 while Copper and Zinc are both relatively unchanged at $2.56 and $1.02, respectively…Cobalt is steady at $14.29…Crude Oil has fallen more than $1 a barrel, below $54, while the U.S. Dollar Index has slipped one-fifth of a point as it backs off below the 98 mark…President Trump again ripped into Fed Chairman Powell this morning, questioning whether he is a “bigger enemy” to the United States than Chinese President Xi Jinping…“As usual, the Fed did NOTHING!,” Trump tweeted…“It is incredible that they can ‘speak’ without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work ‘brilliantly’ with both, and the U.S. will do great”…the President didn’t stop there, tweeting soon after that “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA”…if it’s Trump plan to really force the Fed’s hand, while also maximizing leverage against China, the strategy may work…Gold will love it but Wall Street may get increasingly nervous…
2. Fed Chairman Powell repeated his pledge this morning to keep the economic expansion going while acknowledging that tariffs and other factors are causing growth to slow…Powell, while not saying specifically where he thought rates should go, promised that the Fed “will act as appropriate to sustain the expansion”, a phrase he has used several times in the recent past…Powell also said in his annual remarks at the central bank’s Jackson Hole symposium that the “economy is close to both goals” of the Fed’s dual mandate of full employment and price stability…“Our challenge now is to do what monetary policy can do to sustain the expansion so that the benefits of the strong jobs market extend to more of those still left behind, and so that inflation is centered firmly around 2%”…with low Oil prices and a high U.S. dollar, it’s clear the Fed has no inflationary problems to deal with anytime soon…in fact, the central bank has been consistently over-estimating inflation for years now…Powell also outlined the new challenges the Fed faces due to trade battles and indicated that there are “no recent precedents to guide any policy response to the current situation. While monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rulebook for international trade,” he added…“We can, however, try to look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives”…he did say the Fed is looking at ways to address developments in a landscape that has changed significantly since the expansion began a decade ago…“We are examining the monetary policy tools we have used both in calm times and in crisis, and we are asking whether we should expand our toolkit,” he said…
3. China will impose tariffs on $75 billion worth of U.S. products to retaliate against U.S. moves to slap punitive tariffs on an additional $300 billion of Chinese goods…China’s cabinet said today that it will impose tariffs of 5% and 10% on what amounts to roughly the remaining U.S. imports it has yet to imposes punitive taxes on…it said it will also impose tariffs on U.S. vehicles and car parts, instead of holding off on such a plan…Chinese tariffs on $75 billion in U.S. goods will be imposed in 2 batches, on September 1 and December 15, the same dates U.S. tariffs go into effect…Chinese tariffs on U.S. auto goods will start December 15, according to the nation’s cabinet…after President Trump announced his plans for fresh tariffs at the the start of the month, Beijing responded by officially announcing the freezing of purchases of U.S. agricultural products and letting its currency drop to its lowest level in a decade…a weaker yuan makes Chinese exports cheaper…
4. One of the best-performing hedge funds just made Gold its top holding as it increased its investment in SPDR Gold Trust by 180%, totaling $38 million by the end of Q2, according to the latest regulatory filings…Sandler Capital Management is known as one of the top performers this year after nearly doubling the year-to-date gains for the S&P 500, reported CNBC, citing Symmetric.io — a hedge-fund tracking firm…now, Sandler, which has $2.1 billion regulatory assets under management, is doubling down on Gold…this could be a sign that the hedge fund sees more market volatility ahead as recession fears take the center stage again…Sandler’s move into Gold was made right when the summer Gold rally was just beginning…the yellow metal surprised the markets by rising from $1,300 an ounce to above $1,500 an ounce, hitting fresh 6-year highs earlier this month…a couple of weeks later, Gold is still above the important $1,500 level…in light of global growth fears and swelling negative-yielding debt, Gold has become one of the top hedge investment choices against risk, with even billionaire hedge fund owner Mark Mobius advising investors to buy the precious metal at any level…“Gold’s long-term prospect is up, up and up, and the reason why I say is that is money supply is up, up and up,” Mobius told Bloomberg in an interview this week…“I think you have to be buying at any level, frankly”…
5. The last operating high-grade Silver mine in the prolific Northern Ontario Silver/Cobalt Camp is going to grab some major attention in the months ahead as plans laid out by Canada Cobalt (CCW, TSX-V) come to fruition…this morning, the company announced an above-market hard dollar private placement with strategic investors for $500,000…proceeds will go toward the start of a Phase 2 underground drill program commencing in September, surface site preparation/development for other initiatives (company is targeting near-term production of a tailings operation that could be game-changing for the district), as well as regional exploration and CCW’s proprietary Re-2OX program…Phase 1 drill results released earlier this year included exceptionally high Silver and Cobalt grades from the first level of the Castle mine and revealed areas overlooked by historical explorers that show potential to host very-high-grade shoots of Silver and Cobalt mineralization, mixed with occasional Nickel and Gold, that may extend to considerable depths outside of historical drilling or workings…the proposed tailings program would be a simple, cost-effective operation where the coarse stamp mill tailings from historical mining would be pumped over a distance of just 300 m down the #3 Shaft where a high-grade concentrate would be created from a series of spiral concentrators already in place…a near-surface glory hole drilled by Agnico Eagle (AEM, TSX) in the late 1970’s cut a wide vein of rich Silver that led to a 10-year production run that ended not due of a depletion of ore, but a collapse in Silver prices and local and provincial political factors…
6. New massive sulphide discovery looming in the Eskay Camp?…Etruscus Resources (ETR, CSE) announced this morning that crews are mobilizing for the start of its Phase 1 drill program at the Rock & Roll Project, 7 km northeast of the Snip mine on the low elevation western side of the Camp…this follows confirmation of a number of relatively shallow geophysical targets considered highly prospective for additional volcanogenic massive sulphide (VMS) discoveries…2,500 m of Phase 1 drilling is targeting additional Silver-Gold-Copper-Zinc-rich VMS-style mineralization near the Black Dog deposit which was discovered 3 decades ago but has never been systematically followed up on until now…Dr. Jules Lajoie, who for the past 2 years has enjoyed a 100% success rate with massive sulphide drill targets from downhole geophysics at Garibaldi Resources‘ (GGI, TSX-V) Nickel Mountain discovery, has outlined several high priority near-surface conductors over a triangle-shaped area covering approximately 3 sq. km adjacent to the historic Black Dog deposit…Lajoie’s geophysical reinterpretations, supported by new data regarding the physical properties of the rocks in the area, have changed 30 years of geological thinking with respect to the Rock ‘N Roll Project…ETR has less than 20 million shares outstanding for a current market cap of only $7 million, the lowest of any junior in the district…
7. The Dow is off just 20 points through the first 30 minutes of trading but could be volatile today depending on events out of Jackson Hole (and tweets from the President)…in Toronto, the TSX is up 8 points with strength in the Gold index…Eskay Camp big boys Pretium Resources (PVG, TSX) and Seabridge Gold (SEA, TSX) are marching toward new highs…Pretium is clearly a potential takeover target in the current Gold environment, but that’s not likely the only company in the Eskay Camp on the radar screens of majors at the moment…the Venture, which has had a good week, is up 1 point at 579…historically, August has been a volatile month for the Venture but it has ended on a strong note in 14 out of the past 15 years…no reason why that trend won’t continue this time around…TC Energy’s (TRP, TSX, NYSE) long-delayed Keystone XL Oil pipeline has cleared a significant legal hurdle as the Nebraska Supreme Court has ruled that regulators’ approval of the conduit’s route through the state was valid…the court found there was sufficient evidence to support the Nebraska Public Service Commission’s decision that an alternative route for the pipeline was in the public interest, according to a ruling released this morning…the ruling removes a key roadblock to construction of the $8 billion (U.S.) pipeline, critical to Alberta, which has been on the drawing board for a decade…but challenges remain…the project is still tied up in a legal battle in Montana over its Army Corps of Engineers permits, and TC Energy said it has missed the window for starting major construction this year…the company has yet to officially declare it will build the pipeline…
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Hi Mr. Jon, thought I’d ask again…just curious if it’s still GGI’s goal to get those $4.50 warrants exercised. Eric Sprott’s that is anyway…
Comment by Jean — August 23, 2019 @ 11:01 am
Any recent thoughts on CLM ??? volume picking up….
Comment by john — August 23, 2019 @ 11:02 am
Well, John, first off, I spent a few hours with Peter Lightfoot late yesterday and completed an interview that we’ll be starting to put out shortly (CLM Newmont Lake Project and of course GGI Nickel Mountain)…he is very fired up over what he sees not only at Burgundy Ridge (“my jaw dropped to the ground”, he said, when he saw the extent of surface mineralization including a lot of chalcocite over literally hundreds of meters during a recent visit after all the snow/ice had cleared)…chalcocite is a very rich Copper sulphide, plus of course there is Gold, Silver, Cobalt and Zinc there…needless to say, based on last NR, what has been seen and assayed at surface is extending to depth…so Burgundy Ridge is hugely in play…however, the icing on the cake for him is what he’s seeing in what is now being referred to as the Northwest Zone Gold Corridor or the McLymont Gold Corridor, and then the Chachi Corridor to the northeast…
High-grade Gold is being found at surface over a broad area well away from the historic Northwest Zone deposit which was defined over a strike length of 300 m and remains open…keep in mind, CLM owns virtually the entire 20-km-long McLymont Fault…that is a Gold-producing structure!…a little sliver of it is on Garibaldi’s contiguous King Property…so the high-grade Gold potential for CLM is actually better than the high-grade Gold potential for almost every other junior in the district, and there’s already an historic resource which is 4 x the grade of what the initial resource was at Brucejack which started out as just a 1 g/t deposit…Chachi, meanwhile, has huge potential, according to Lightfoot, for an entirely new deposit type in the region…
Bottom line – 3 major areas all in play at the same time…rare to see on a property, but this is the biggest land package in the Eskay Camp…take a look at the trend or the corridor that runs from Brucejack in the southeast to Newmont Lake and beyond to the northwest…CLM’s project is perfectly on trend to host 1 or more major deposits or mines – it’s unfathomable, based on the evidence that’s now building, that there’s not something really big there…
Comment by Jon - BMR — August 23, 2019 @ 11:17 am
It’s astounding that you guys take the time to respond in such a professional and friendly manner within hours….WOW, never mind the the CLM comments, but Jon you really care about your readership……thanks again…!!!!
Comment by john — August 23, 2019 @ 11:51 am
Hello BMR team, being drawn to resource plays these days (pretty new at this) – moving on from weed stocks. Just started following your free comments and some info on CEO. I see you cover Golden Triangle plays quite a bit. Are you expecting big things from GGI for the remainder of the year? I see not too many assays have come back yet – albeit last NR was pretty solid. I see from your comment today you are quite excited for CLM.
Comment by Charlotte — August 23, 2019 @ 12:03 pm
Of course, Jean, that goes without saying…that implies new all-time highs in the stock which is what I do expect as the realization grows that Nickel Mountain is going to be a mine…
Comment by Jon - BMR — August 23, 2019 @ 12:15 pm
Wow, what a Friday. US vs. China getting serious…
Comment by flyinthruu — August 23, 2019 @ 3:21 pm
Jon,
why does CCW do a financing now if there is supposedly good news coming that will propel the share price higher? Why not release the good news and then do the financing? I know it is not a lot of shares but it does make you wonder… hope these strategic investors now that they got in cheap will help Frank make some good decisions and maybe us long time share holders will get rewarded for a change.
Comment by GREGH — August 23, 2019 @ 5:44 pm
Best move CCW could have made, Gregh, because what you’re not fully appreciating is that this is less about a normal financing (premium to market and limited dilution) and more about a strategic entry of a group that’s going to help make possible what u, me, and everyone everyone else wants – a much higher valuation…this is the beginning of what we’ve been predicting for a while…CCW IS going to new all-time highs, and the explosion in Silver is going to be a big part of it…added more CCW today – market welcomed the news…
Comment by Jon - BMR — August 23, 2019 @ 5:59 pm
China has to hurt a lot more, flyinthru, before it comes to its senses…it has been ripping off the West, not just the United States, for the last 2 decades, and now it has no clue how to deal with Trump because they’ve never had a President stand up to them before on trade who is also unpredictable…they have no playbook for him just like Clinton had no playbook for Trump in 2016…they’re hoping, of course, that Trump loses in 2020 and they can then deal with a dumb ass like Biden (“China is no threat”) or anyone else in that sad group of extreme lefties who has about as much business savvy as Trudeau (none)…when Trump wins, and China is feeling some serious pain, that communist dictatorship may finally capitulate which would allow the U.S. to get a proper trade deal that can benefit America for decades to come…huge stakes involved here…
Comment by Jon - BMR — August 23, 2019 @ 6:08 pm