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Gold has finished May on a strong note, closing above the important $1,260 level as it rebounded by more than $50 an ounce from lows earlier this month…a new yearly high certainly seems very possible in June…bullion touched $1,275 today and closed up $2 an ounce at $1,269 as the greenback came under renewed pressure…as of 7:15 pm Pacific, Gold is unchanged at $1,269…Silver is up 4 cents at $17.34…Copper is flat at $2.56…Nickel has slipped 2 cents to $4.01…Crude Oil has rebounded 38 cents to $48.70 a barrel while the U.S. Dollar Index is down slightly at 96.94…

Gold is the ultimate hedge for setbacks in the Trump agenda, and we all know how there are powerful forces in the mainstream media and the “Deep State” who are doing their best to undermine the new President and his administration…the culture war in the U.S. will only intensify (we predict it’ll also eventually spill over into Canada, albeit to a lesser degree), and the impact on Gold could be profound…

U.S. Treasury yields have fallen sharply from where they began trading in 2017, a trend that’s bullish for the yellow metal…today, the benchmark 10-year yield dipped briefly below 2.20%…it began the year near 2.5%…

In data just released this evening (Thursday morning in China), China’s factory activity contracted for the first time in 11 months, according to a private survey…output and new orders slowed as companies shed jobs…the Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) fell to 49.6 in May, lower than a 50.1 forecast by analysts polled by Reuters and lower than April’s 50.3.  “Softer growth in output reflected a relatively muted increase in total new orders during May,” Caixin and IHS Markit said in a joint news release…

Dr. Deceiver And Hulk Horgan Team Up To Reshape British Columbia

British Columbia’s ideologically hard left NDP drove the province’s economy into a deep ditch the last time it held power in the 1990’s, and voters responded in anger by nearly wiping out the Wealth Destroyers in the 2001 election (the NDP captured just 2 seats as it was banished to the political wilderness)…unfortunately, voters currently in their 20’s and early 30’s have no recollection of how bad things were under the NDP in the 90’s when vast amounts of human and financial capital fled B.C. to a more welcoming and prosperous jurisdiction, Ralph Klein’s Alberta…the mining sector in B.C. was nearly destroyed…

The younger generation throughout Canada, brainwashed by our left leaning schools, universities and colleges, has yet to learn through real life experience that socialism never works…hence, just 3 weeks ago, the ruling Liberal Party, a unique B.C. coalition of free enterprise liberals and conservatives, was reduced from majority to minority status in the provincial election despite the fact that B.C. features the best-performing economy in the country…it has it all – the fastest growth, the lowest unemployment rate, a highly favorable tax regime, budget surpluses and superior health services…a strong economy was taken for granted, as if it’s something that just keeps going and going and going – no matter what – just like the Energizer Bunny…

The Liberals won the most number of seats (43, just 1 short of a majority) and the popular vote May 9, but in their hunger for power the NDP veered even further to the left by announcing a deal yesterday with the eco-fascist Green Party to attempt to rule the province with a 44-43 combined seat majority…Premier Christy Clark says she’ll recall the legislature as early as possible next month and put her government to a confidence test…unless an NDP member pulls off a “Belinda Stronach” and crosses the floor (highly unlikely), the NDP will start governing the province under new Premier John Horgan with support from professor Andrew Weaver’s Green Party which represents the radical fringe of North American political parties…

Weaver, the “climate change” scientist, stressed the words “enforcement”, “compliance” and “prosecutions” in the Green Party platform as it pertained to the resource sector…essentially, he wants to turn resource rich B.C. into a Fossil Fuel Free Zone…for now at least, climate change fanatics have truly seized control of the province…

It’s no surprise then that in the actual written agreement between the NDP and the Greens, the 2 parties have agreed to “employ every tool available” to KILL the Kinder Morgan Trans Mountain pipeline expansion, a multi-billion dollar project that has been approved at every level and is critical in terms of getting Alberta Crude to market…strangely, this actually pits the socialists of Alberta against the socialists of British Columbia…Dr. Deceiver and Hulk Horgan should not be underestimated in their ability to at least force unreasonable delays in the Trans Mountain project with construction scheduled to commence in September…the federal government will likely have to take the province to court, if Prime Minister Justin Trudeau has the political courage, but it’s also quite possible that the hastily arranged NDP-Green marriage will end in a nasty divorce in less than a year (more on that later)…

The B.C. Brand Will Take A Hit

For resource investors, let alone all British Columbians, the biggest immediate problem here is how the province faces the risk of being imminently branded as hostile to the energy sector and the resource industry in general as soon as the NDP and Greens steal the reigns of power next month, assuming there’s no “Judas” among their pack of 44…whether you’re running a Starbucks, a grocery store, a sports franchise, an amusement park, a junior exploration company or a government, branding is critical…the B.C. brand, unfortunately, is about to get stained right off the bat under a new government thanks to the Kinder Morgan pipeline issue with the NDP and Greens taking a position that is simply insane and indefensible, though popular among the younger generation in particular (“Father, forgive them, for they do not know what they are doing”)…

Keep in mind, as well, that the NDP also intends to adopt the UN Declaration on the Rights of Indigenous Peoples, a step that would effectively give First Nations veto powers that could seriously further impede resource development in the province…

As the Vancouver Sun’s Gary Mason wrote yesterday, “In less than a month, B.C. could get a political makeover that could leave the province unrecognizable.”

Compared to NDP rule in the 1990’s, what makes the situation in B.C. so potentially dangerous now – the gasoline on the fire – is the added element of radical climate change fanaticism…

As America under Trump and Republican leadership smartly lowers taxes, reduces burdensome Obama-era regulations, abandons climate change fanaticism, builds new pipelines, encourages resource investment and development, British Columbia moves in exactly the opposite direction – extremely foolish as business in B.C. will be put at a competitive disadvantage…that’s no way to create wealth and keep an economy growing…

A Picture Tells A Thousand Words

David Suzuki, Canada’s most well known environmental lunatic, never endorsed a political party in his life until he recently threw his support behind Dr. Deceiver…

“For over 30 years, scientists have been warning us that climate change caused by global warming represents a threat second only to nuclear war,” said Suzuki.  “There is no better person in this country to guide us into the challenge of climate change, and the Green Party is the only party that has understood and embraced that challenge, and based its entire program on this.”

God help British Columbia…

Below is Dr. Deceiver (left) basking in Suzuki’s endorsement…

Is There Any Hope In This Ugly Mess? 

If we’ve depressed you or scared you, here’s some encouragement…

• “The show goes on” is what one CEO of a successful, high-volume junior exploration play based in B.C. said to us in a meeting afternoon, and he’s right in the sense that for now at least it’s still “business as usual” – exploration and drilling programs will be carried out in the province as planned this summer…many companies also have multi-year permits…
• A big discovery somewhere in B.C. this summer could certainly overpower the NDP-Green circus…
• Contrary to the statement by Dr. Deceiver, there will be nothing “stable” or “long-term” about this proposed new government – in all likelihood, it’ll be unstable and short-term (6 months to 2 years) given the slimmest of majorities, the extreme ideologies and egos involved in the coalition, plus of course The Law of Political Surprises…
• The NDP and Greens will be facing the largest and most vocal political opposition in B.C. history, urban/rural conflicts will quickly appear, and the business community and investors will be applying heavy pressure on the government whose Kinder Morgan stance is full of risk (not to mention many of their other planned initiatives)…
• Just 1 defection or 1 by-election loss and the NDP-Green 4-year unholy alliance crumbles and goes before the voters who will want to know why their taxes are up, why the province is running deficits again, and why the economy is suddenly hitting the skids…
• In its thirst for power the NDP may have made a catastrophic strategic error by aligning with the Greens, a decision that will only encourage the NDP’s worst instincts and ultimately result in their banishment once again to the political wilderness…

Gold Seasonality Chart

It’s notable that despite a looming Fed rate hike, Gold continues to push higher and has rebounded powerfully off its lows during the 1st half of the month around $1,215…

Below is a seasonality chart for Gold which shows how May and June have been the worst back-to-back months for the metal going back 2 decades…

However, Gold is bucking that trend in 2017…with no end in sight to the greenback’s technical woes (further deterioration is likely over the summer as the 200-day SMA begins to decline), and Q3 seasonal strength ready to kick in for bullion, it’s hard to imagine that Gold won’t break out powerfully above $1,300 over the summer in a move that will take many pundits by surprise…

In tonight’s Market Musings…

1. Candian Zeolite (CNZ, TSX-V) – what does this week’s volatility mean?…

2. The bullish Big Picture with Jaxon Minerals (JAX, TSX-V)…

3. This Idaho Gold play is a winner…

4. Quebec Gold junior adds $6 million to treasury as multiple programs draw interest from a major…

5. Daniel’s Den – a guaranteed way to become a better trader and investor…

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We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere?  Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017.  BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends.  BMR is daily information that puts you ahead of the crowd!

We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee.  If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!

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