Gold has traded between $1,232 and $1,247 so far today…as of 10:30 am Pacific, bullion is down $7 an ounce at $1,239…Silver is flat at $15.76…Copper is up 2 pennies at $2.04…Crude Oil has soared $3.11 a barrel to $29.32 on more (questionable) hopes for near-term production cuts after hitting a 13-year low yesterday…the U.S. Dollar Index, meanwhile, has gained nearly half a point to 96.03…
Credit Suiise analysts, who admit Gold prices rose faster than they expected, say “our fundamental view on Gold remains constructive”…back in December, the bank forecast a 2016 market deficit due to supply constraints, stable physical demand and doubts the Federal Reserve would be able to hike interest rates as fast as markets were factoring into prices at the time. “Although we did not forecast the relative speed at which this Gold-positive scenario would play out, we did expect increasing supply/demand deficits into 2017 and 2018 primarily on declining supply,” the bank stated…
CME Group is raising margins on Gold futures as of the end of business today, the exchange operator reported…the “initial” margin for speculators on the Comex division of the New York Mercantile Exchange will rise to $4,675 from $4,125…margins for other accounts are going up as well…
A Fed official thought it was necessary to give some words of encouragement to Wall Street this morning…New York Federal Reserve President Bill Dudley said the economy is “healthy” and better equipped for “shocks” than before the financial crisis…Gold doesn’t quite agree with that…Dudley added that monetary policy remains “quite accommodative” after the central bank’s decision to hike interest rates in December…policy has only “limited” ability to respond to volatility with rates already low, he said…
Russia has warned Saudi Arabia today that deploying ground troops in Syria risks “unleashing a new world war”…
Crude Oil Update
Crude Oil prices, which fell 14% this week before an about-turn in one of the most volatile weeks ever, have been rising since late in trading yesterday after The Wall Street Journal posted translated comments from the United Arab Emirates’ energy minister about whether OPEC members are more open to cutting output…the minister said they are “ready to cooperate,” though he also said other countries must participate, too…that has yet to happen, despite increasing talk of it in recent weeks…Venezuela, meanwhile, proposed that OPEC and non-OPEC producers should at least freeze output at the current level, but who’s listening to Venezuela?…
Meanwhile, Oilfield services firm Baker Hughes reported today that the number of Oil rigs drilling in U.S. fields fell by 28 to a total of 439, compared with 1,056 at this time last year…
In today’s Morning Musings…
1. A fascinating 5-year weekly Gold chart that shows the significance of this week’s activity…
2. Don’t trust any rallies in the Dow…
3. Calibre on the comeback…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
The Venture clawed it’s way to 511 to end the week still in an uptrend , it has to take out the 528 area next so that the lows can be considered the bottom.
Comment by Lester — February 12, 2016 @ 1:15 pm
Just got to read the nr again and listen to the audio. Don’t see any issues here, should get very interesting next week. Just wondering Jon, could or would you share some of those hypothetical,back of the envelope figures with us over the wknd. Thx.
Comment by Laddy — February 12, 2016 @ 1:29 pm
I don’t know what Jon has to say about back of napkins. But I contacted my Geo friend in California who is 43-101 compliant in Canada. I bought when he called me back. His back of the napkin with just these few drill holes was $350 a ton. He is familiar with GGI because of me talking to him about it in the past. He is familiar with the Mexico results. He said “what is this thing doing at .09”. He was a buyer also. Take it for what it is worth.
Comment by dave — February 12, 2016 @ 4:21 pm
What might they have under the scandium and magnesium in Holes 1-3-4.Possibility of high grade nickel based on nickel found with the magnesium?Is there a 4th layer of mineralization under that?
With 253 metres of scandium in Hole #5,and scandium found as the top layer in the first 3 holes,what might they find under the scandium to the east?And how deep can they go and still hit mineable layers?
Ther is so much potential here.
Comment by robinandthe7hoods — February 12, 2016 @ 4:43 pm
I don’t know Robin – but if they have 1/10 of scy on just these first few holes, and they have only touched 2% of the property, it makes ya wonder.
Comment by dave — February 12, 2016 @ 4:54 pm
We have not even talked about Platinum and that was mentioned. I might be wrong, but I think that I mentioned my guess was platinum last week. Time will tell, they have way to much in the hopper to be at .10. Someone mentioned it was not a sell off and I would have to agree, the selling stopped after 250k shares went through. It took me forever to get my fill.
Comment by dave — February 12, 2016 @ 4:57 pm
This has become an interesting play, I expected a sell off on news because you almost always get a sell off on news plus few people full understand what they have (including me) but the sell off was minor. I do know that Scandium is valuable, have followed SCY a bit. It will be interesting to see if Kaiser starts to follow the story here. One of the main reasons I originally bought GGI was because of their Mexican assets which will become more valuable as the price of gold/silver rises. I see no reason to sell here, was fortunate to get in cheap on GGI.
Comment by Danny — February 12, 2016 @ 5:23 pm
Dave,I see the potential for PGMs also.In fact,in the PR,they take the time to point out the possibility of PGEs.Is that a clue of what they are seeing?
PR—“Speculatively, this unique ultramafic package discovered in the Sheslay district could be a layered intrusive with the potential to host even higher-grade zones along with other types of mineralization, including PGMs (platinum group metals) and gold, which were detected above background levels in some of the core samples.”
Comment by robinandthe7hoods — February 12, 2016 @ 6:09 pm
Robin- I agree the story here is not well known for GGI including the company as a whole and the news release details. I’m not sure advertising is the right way to go..??? Maybe other newsletter writers have to pick up on this so that they can explain what’s here to their members and then when that happens eventually people start talking. Why isn’t GGI attending PDAC?
Comment by George — February 12, 2016 @ 8:02 pm
* correction – I’m not sure advertising on “stockhouse” is the way to go is what I meant to say above.
Comment by George — February 12, 2016 @ 8:03 pm
Call me crazy, but GGI is in a unique position at the grissley with so many different metals that any one of them can ignite this thing. I have seen a few of these in my days. The company puts out a news release and the stock drops. All of a sudden it’s that one NR about any one of these metals and the stock goes ballistic. I do not know if I am correct, but I think Steve mentioned the magnesium in the PR but sent it for a re check on the numbers and what ever else goes along with it. They can put out a NR that they have platinum and the stock takes off. You just never know. But one thing is certain, this stock with everything announced is not worth only .05 to .10 in that range.
Getting away from GGI, has anyone heard from Guy? I know he was in WRR and I have not seen him post since WRR ran up. I don’t think that I have seen Martin either. just curious.
PHM – possibly a triple bottom, should be watched for up movement. Hopefully, the deal with EQT and the gold property finalizes and we should see the stock move up.
Have a good long weekend.
Comment by dave — February 12, 2016 @ 8:38 pm
Dave, yes Steve mentioned the magnesium being sent for recheck – I believe a fusion process whereby grades could come back 30-50% higher. Also results from the metallurgical test will be important. If that happens, it may just get the markets attention in a big way. Jon briefly mentioned back of the envelope calculations in the interview with Regoci, but he didn’t want to get ahead of himself but did say there could be some crazy numbers if they did. For him to say that, they know this new find has the potential to be quite valuable and the nice thing is they have only scratched the surface. There was nickel as well which is a new metal discovered in the district. What could be underneath the black unit which hasn’t ended yet? What is to the east in the valley which they are pointing a big arrow to? There are so many directions that they can drill. I believe they need at least two drills, one to the east and one either to the west and to also test deeper into the black unit.
Comment by Dan1 — February 13, 2016 @ 6:25 am
Dave, I think bmr has shut the door on comments from non subscribers, so I may be wrong but I think that’s why you’re not seeing familiar names in the past, like I said I may be wrong.
Comment by Laddy — February 13, 2016 @ 8:11 am
I hope they don’t take too long to resume drilling at grizzly….would be nice to see where and how many holes are planned. They keep highlighting that the camp is winterized so hopefully they get in there. Mexico update would be nice and also I remember them stating that an update was coming on one of their other BC properties. So seems like there is still lots to come, hopefully the share price firms up in the coming weeks.
Comment by weatheritout — February 13, 2016 @ 8:42 am
GGI – very mixed emotions here with me. I am quite irritated that I’ve been holding since October to be down 40%. I’m hopeful that 0.10 is the support here and news flow continues, Mexico, grizzly update, and gets this moving.
Comment by George — February 13, 2016 @ 9:27 am
Well said Dan1.I reread the PR a couple more times as well as the audio.The possibilities are mind blowing in my opinion.I agree 2 drills turning will unmask the Grizzly a lot faster.
I am so glad that I own both GGI and DBV.
Comment by pole — February 13, 2016 @ 9:38 am
George, my feeling is this. I think gold has turned a corner and GGI’s Mexico properties may come to the forefront as the price of gold/silver continues to move much higher. It’s ridiculous out there with more and more central banks going with negative interest rates. That can only tell you one thing in my opinion, there is a whole lot of concern out there. The 60 dollar move in gold in one day this week was very telling. When was the last time gold moved that much higher in one day? I think 2016 is going to be a crazy year and gold will move substantially higher. This is just one man’s opinion. Hang in there George and enjoy the long weekend.
Comment by Danny — February 13, 2016 @ 10:10 am
You may remember me mentioning my 2 contacts in Canada when EQT was halted. The one who was wrong was getting thrown in the trash, the other I was putting in my hip pocket. And I was pretty sure which one was getting thrown in the trash and I was right. I just had a 2 hour (missed my breakfast) phone conversation with the one that I put in my hip pocket. We have always text or emailed. This was my first ever voice to voice with him. We talked about 3 stocks at length. He was out of internet range up in B.C. till late Friday. He has been familiar with GGI and has always loved its Mexico properties. His comment, “I was stunned to see GGI go down on such a news release. It went down on little volume and I am guessing it just started hitting stop loss that were set”.
He is buying GGI next week. He works no different than you would expect anyone else to work. He gets the shares he wants first, then he talks. He is the E.F. Hutton in Canada. He has BIG followers with BIG money.
Just saying. Nuff said.
Comment by dave — February 13, 2016 @ 10:53 am
Danny – good post #17. I think people lose sight of the big picture. everybody wants to be rich tomorrow. I am no exception. It is tough to sit back and not see anything from Mexico. I have always had this uncanny knack at hunches. I watched as GGI put news out in late summer about the Grizzley. I had a hunch that news on mexico would be silent as Steve focused on getting the Grizzley drilled and up and running. THIS MAKES SENSE. Now he can get back to Mexico and keep the Grizzley going and have 2 projects with news flow.
some of you may view it the other way around. Thinking that Mexico should have kept going to keep interest in the stock. I believe that it would have been a distraction to the grizzley events, but this is me and how I think.
NOW- lets say he gets Mexico going again right when the metals market is improving and gold and silver are about ready to make runs again. He has 2 sites in different parts of the world going on with different metals to work with, people are going to be going crazy trying to guess the market cap value on GGI and the buying just continues because of this.
Some on this board have not been happy with Steve on his approach, but I am beginning to believe in this CEO and his approach. I thought about this a lot yesterday and now realize that this was a positive move. I am confident that NR’s will be more fluent in the months ahead.
By the way, my contact mentioned above was a big part of why GGI ran to .33 in 2014 on the silver news. He is buying back this week.
George – I am not a drinker, but have one for me. Chill my friend.
Comment by dave — February 13, 2016 @ 11:37 am
Oh good sounds like the pump will start next week then…..
Comment by GREGH — February 13, 2016 @ 11:42 am
With gold going up in price relative to other commodities , GGI has all the more reason to turn it’s attention towards it’s Mexico properties.
Comment by Lester — February 13, 2016 @ 11:42 am
I can’t even begin to make a back of an envelope estimate of the Grizzly without the lab report of the assays. Hope GGI issues it soon .
Comment by Lester — February 13, 2016 @ 11:52 am
Use this opportunity to buy GGI cheap because once it gets past the BMR newsletter into the mainstream media,this could take off.
The PR was released on a Thursday night,heading into a long weekend,where many potential investors would have taken Friday off also.
This is completely under the radar at this time.
There were only 108 trades on Friday for $66,000 total,an average of $640/trade.It closed only down .03.This was mostly BMR readers who hadn’t liked the PR,as there were no posts on Stockhouse that day.
Once word gets out,the volume will pick up substantially.
Comment by robinandthe7hoods — February 13, 2016 @ 12:56 pm
Well I guess I chime in for a bit
Two things
#1: I’m glad I didn’t sell my shares on Friday
#2: The market doesn’t always understand what it has.
In relation to point 2 I’m not totally sure of the significance of this Magnesium deposit. But, what they have is obviously different and probably easy to dismiss when it is not totally understood. I heard Regoci make the comment on one of the interviews or written comments ( can’t quite remember where ) but he compared this area to the ring of fire. Now I’m not going to hold him to it in exactly what he means by that comparison but I followed the ring of fire story quite closely. The interesting part of it all was that there were early indicators prior to Noront’s big discovery. Here’s a quote
KWG and Spider drilled four holes on the McFauld’s Lake property. On March 6, 2006, Hole FWR-06-03 encountered two zones of massive chromite. Unknown at the time, this was the discovery hole for the Big Daddy deposit, currently thought to be one of the richest in the Ring of Fire. Until then, there had been a few previous chromite discoveries found in Northern Ontario or the rest of Canada, but they were largely uneconomical and very few people in the Toronto junior community understood that sector or the significance of these original drill holes. KWG/Spider continued to focus on potential VMS deposits.
So we kinda have a different deposit here, located close to Porphyry deposits, open in all area’s. The market may not quite understand the potential and it may take a bit to play out. But we do know that the drill hit success is high and there are a ton of targets left along with this deposit. It is an interesting story and one that I too believe could take off quickly combined with Mexico results.
Interesting
Comment by weatheritout — February 13, 2016 @ 2:04 pm
Great posts, comments, etc. etc.as always.. nothing to add.. but.. Thanks, guys!!!
Comment by GregJ. — February 13, 2016 @ 4:13 pm
Hey does anyone know if Jon has a girlfriend or wife…..wondering if we will get a Sunday Sizzler since it is a different type of Sunday Sizzler today….Valentines day. 🙂 Enjoy the week everyone…I’m going offline to Mexico for the week. Here in Ontario temperatures are -30C overnight and that is just plain wrong. Booked it Yesterday….and no it wasn’t from the money I made in GGI. Ha
Comment by weatheritout — February 14, 2016 @ 9:12 am
Yes, Weatheritout, I’m not too busy with my fiancée to prepare a Sunday Sizzler Report which will have some extra sizzle tonight on this Valentine’s Day. Enjoy your escape from the freezing cold of Ontario to the warmer climate of Mexico. You may find it ironic that you’re in Mexico this coming week if something develops on that front for GGI.
Comment by Jon - BMR — February 14, 2016 @ 9:31 am
Very true Jon, maybe I should look GGI up in Mexico. Ahhhhhh who am I kidding, I’m staying planted on the beach. Have a good one everyone.
Comment by weatheritout — February 14, 2016 @ 9:40 am
Enjoy it weather. I have finally met my honey in Ecuador. She is coming to U.S. in April. We meet in Chicago. She sees her friend and I see my brothers and sisters up there. May 1st I am going to Salinas Ecuador for 3 months. She has a beachfront condo. ahhhhhhh
Comment by dave — February 14, 2016 @ 11:31 am
Gezz, hope gold doesn’t lose all its lustre in one nite, profit taking I gather…
Comment by Laddy — February 14, 2016 @ 8:36 pm
A minor pullback like this to begin the week is actually good, Laddy. Lots of support.
Comment by Jon - BMR — February 14, 2016 @ 8:44 pm
Yes, sounds good, listened to an interview with Jim dines this wknd, and I think we can all agree all metals and mining is on its way back, especially gold !!!
Comment by Laddy — February 14, 2016 @ 8:55 pm
New area for gold , and it will not be celebrated by everyone,
Brent Johnson of Santiago Capital, highlighted the reason why the inevitable rise in the price of gold will not be cause for celebration. As he says it so well, “…Our winnings will come on the backs of innocent people around the world whose prices will rise as their wages fall. It’s going to come from the people who wake up one morning to find their savings have been devalued or bailed-in… it’s going to come from the pension funds of teachers and firefighters. The irony is that when gold finally pays off – it will not be a cause for celebration.”
Comment by Lester — February 15, 2016 @ 12:02 pm