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Gold has traded between $1,277 and $1,294 so far today…as of 8:45 am Pacific, bullion is down $11 an ounce at $1,279…Silver is 7 cents lower at $19.37…Copper is off 2 pennies at $3.01…Crude Oil has lost $1.94 a barrel to $102.43 while the U.S. Dollar Index is relatively unchanged at 79.95…Nickel has advanced to a 14-month high on concerns that escalating tensions in Ukraine may disrupt supplies from Russia amid Indonesia’s ban on ore exports…

Reuters reports that China has started to allow Gold imports through its capital Beijing, in a move that would help keep purchases by the world’s top bullion buyer discreet at a time when it might be boosting official reserves…the opening of a third import point after Shenzhen and Shanghai could also threaten Hong Kong’s pole position in China’s Gold trade, as the mainland can get more of the metal it wants directly rather than through a route that discloses how much it is buying…bullion markets can get a sense of Chinese purchases based on the monthly release of export data by Hong Kong, which last year supplied $53 billion worth of Gold to the mainland…Gold has traditionally been imported from Hong Kong into Shenzhen, where nearly 70% of the Chinese Gold jewellery business is located…Shanghai was opened up as a second port last year…only banks are allowed to import Gold into China…China imported nearly 1,160 tonnes of Gold from Hong Kong last year, more than twice that of 2012 as the drop in prices caused a spurt in demand…an analysis of trade figures from data provider Global Trade Information Services showed that China imported at least another 194 tonnes last year from centers other than Hong Kong, likely into Shanghai, showing that direct imports have ramped up…China’s central bank last disclosed its Gold reserves in 2009 when it announced that its bullion holdings had risen to 1,054 tonnes from 600 tonnes in 2003…the U.S. currently holds 8,812 million tonnes of Gold, so China would still need about 10 years for its Gold holdings to catch up to the U.S., suggesting continued strong demand for bullion in the years ahead as pointed out in a report from the World Gold Council last week…

India’s Elections & Gold

Keep an eye on elections in India that started on April 7 and will end on May 12…due to India’s severe restrictions on carrying physical cash in large denominations which were imposed on Gold traders during the elections, several jewelers have stopped business until the elections are over…this low Gold demand is expected to continue until the middle of May…in nine phases of polling that move from region to region, 814 million Indians are eligible to vote for the next government – roughly the number of people who have been eligible in the last four U.S. presidential elections combined…Indian citizens will have 370 different political parties to choose from, though it’s really a two-horse race between the incumbent government run by the Congress Party headed by Rahul Gandhi and its perennial challenger, the Bharatiya Janata Party (BJP) headed by Narendra Modi (Modi’s BJP is considered more business oriented and has the support of many in the Gold trade)…current polls suggest that Modi is ahead, though it’s important to note that Indian opinion polls have a history of projecting outcomes incorrectly…according to various estimates, political parties in the world’s largest democracy are pumping about $5 billion into vigorous campaigns, second only to the U.S. 2012 presidential campaign in which more than $6 billion was spent…

Don’t Try This At Home (Especially If You’re In India) – Man Swallows 12 Gold Nuggets

Doctors in India have discovered 12 Gold nuggets in the stomach of a wealthy businessman, according to local reports…the businessman, from the Chandni Chowk district of Delhi, went to the hospital on April 9, saying he had swallowed a metal bottle cap in anger…on examination, doctors found 12 nuggets, each weighing 33 grams, stuck in his small intestine…India taxes Gold imports at 15%, so the man was trying to save about $2,300…he survived a high-risk surgery and was recently discharged, but the police confiscated his Gold…

Interesting 3-Year Silver Chart

A 3-year weekly chart was very effective in giving us an early heads-up on a turnaround in the Venture during the fourth quarter of last year, and a 3-year weekly is equally interesting as it pertains to Silver at the moment…

As you can see on the chart below, Silver in February broke above a downtrend line in place since late 2012…short-term technically overbought conditions then ensued with the metal also running into stiff resistance just above $22…what has happened since then is quite healthy and normal – Silver has retraced back to the top of the trendline (just like the Venture did in December of last year) and is also now trading within a horizontal support band…yesterday, Silver closed at a fresh 11-week low, and bearish sentiment is high at the moment which is good…RSI(2) on this 3-year weekly has plunged to 5% – a level we haven’t seen since the price lows of late January…note also how the sell pressure has been in an overall decline since peaking during the second quarter of last year when Silver, Gold and the Venture all hit what appear to be important bottoms…

It’s possible that Silver could test the top of that downtrend line a little more vigorously in the days ahead, but expect support to hold…based on this chart, now would be an ideal time to accumulate some high quality Silver stocks in anticipation of a stronger metal price (a longer-term Silver chart is at the bottom of today’s Morning Musings)…

Today’s Equity Markets

Asia

China’s Shanghai Composite rebounded in the final hour of trading to post a 7-point gain, closing at 2073…the Index reversed from a two-week low following Monday’s 1.5% plunge after 19 new IPO filings were listed on the China Securities Regulatory Commission web site…

Japan’s Nikkei average erased earlier gains to end at a one-week low, down 124 points, as the yen strengthened against the dollar in afternoon trade…

Europe

European shares were up strongly today as merger and acquisition activity boosted sentiment…

North America

The Dow is up 91 points as of 8:45 am Pacific…the TSX is 25 points higher while the Venture has added 2 points to 999…Fission Uranium Corp. (FCU, TSX-V) climbed as high as $1.48 in early trading but is now off 3 cents at $1.40…the company announced more drill results from Patterson Lake South this morning…PLS14-187 (line 660E) returned a continuous 102.5-m interval of 5.98% U3O8 – the widest high-grade interval to date at PLS…

Garibaldi Resources Corp. (GGI, TSX-V) Chart Update

The long-term chart for Garibaldi Resources (GGI, TSX-V) suggests some very positive developments are in store for GGI as 2014 progresses…no doubt the Grizzly Property will take center stage as GGI proceeds toward drilling and the Sheslay Valley overall enters a whole new phase during this second quarter, but the chart could also be telling us that there could be some positive developments out of Mexico where GGI remains very active…exploration success in Mexico is what built GGI and has negated the company’s need for a financing since 2009…GGI is off a penny at 16 cents as of 8:45 am Pacific…

A few significant features regarding this 10-year GGI monthly chart which is very intriguing…

1.  RSI(14) has been climbing an uptrend line since the middle of last year and at 54% has plenty of room to move higher…

2.  Note the support band between 15 and 17 cents, between the uptrend line and the Fib. level…

3.  The 100, 200, 300 and 500-day moving averages (SMA’s) are all in bullish alignment – the 500-day is indicated on this chart and it recently reversed to the upside – a similar occurrence in late 2009 ushered in a move in the stock from 15 cents to nearly 60 cents by early 2011…

4.  The Chaiken Money Flow (CMF) shows the strongest accumulation in GGI in many years, while the ADX trend indicator remains very bullish…

Doubleview Capital Corp. (DBV, TSX-V) & Part 1 Of Interview

Doubleview Capital (DBV, TSX-V) has been under some selling pressure recently after the company announced March 27 that it had decided to accelerate the expiry date of the warrants issued on Dec. 31, 2012, in connection with its flow-through and non-flow-through private placement unit offerings…however, those warrants expire at the end of this week and the DBV chart is looking increasingly bullish with key support holding at and above the rising 200-day SMA in the high teens…a new round of drilling of course began at the property a few weeks ago…

Below is a 3-year weekly DBV chart update from John…RSI(14) has unwound significantly from overbought conditions that began to emerge in late January when the company reported a Cu-Au porphyry drilling discovery at Anomaly “B” on the Hat Property…as of 8:45 am Pacific, DBV is off a penny at 22 cents where the 20-day SMA is flattening out after being in decline since the last half of March…

BMR Interviews DBV Consulting Geologist & Geophysicist John Buckle

During our recent Sheslay Valley and Hat Property visit, we had the opportunity to meet Doubleview consulting geologist and geophysicist John Buckle who has played a critical role in selecting drill targets at the Hat…through our hundreds of hours of Sheslay Valley research, one thing is certainly clear – geophysics has been and is going to continue to be instrumental in drill target selection for all companies throughout this district…the dots are connecting, so to speak, with regard to certain signatures…

Below is the first excerpt of an expanded interview with Buckle with today’s version very general in nature to give readers an introduction to the individual interpreting the geophysics at the Hat…the interview took place inside one of the camp units, hence some occasional background noise and movements…Buckle started his career in 1972 with Teck…former president of the Canadian Geophysical Society, and also former president of the Association of Professional Geoscientists of Ontario, Buckle has worked in 10 countries and has several discoveries under his belt…he specializes in porphyry Copper, Gold, Nickel, kimberlite and polymetallic exploration…

Highbank Resources Ltd. (HBK, TSX-V) Update 

Highbank Resources (HBK, TSX-V) continues to make progress, announcing last Thursday that it has closed the first tranche ($2.7 million) of its total $4 million convertible debenture to accelerate development of its Swamp Point North aggregate project on the Portland Canal near Prince Rupert…below is a 10-year monthly HBK chart from John…previous long-term resistance at 15 cents is now the first area of major support…HBK is off half a penny at 16.5 cents as of 8:45 am Pacific…

Erdene Resource Development Corp. (ERD, TSX)

Erdene Resource (ERD, TSX) caught our attention last week when it announced a $350,000 financing with Teck Resources Ltd. (TCK.B)…ERD is certainly worthy of our readers’ due diligence, especially given some weakness today…Erdene recently aligned with Teck to fund and explore a Copper porphyry discovery and Erdene’s large land holdings in southwest Mongolia, about 200 km from the China border…ERD’s 100%-owned Altan Nar Gold discovery is a near-surface Gold-polymetallic mineralized system that extends over a 5.5 km by 1.5 km area, and a drill program is expected to commence by month-end…in addition to the investment by Teck, ERD is raising up to another $650,000 through a non-brokered private placement at 16 cents…

This 2.5-year weekly ERD chart is promising with strong Fib. support between 14 and 16 cents…as of 8:45 am Pacific, ERD is off 4.5 cents at 15 cents…

Silver Long-Term Chart

This 11-year monthly chart confirms that the metal has exceptional support just below $20…sell pressure has been dominant since early last year but is weak…if and when Silver breaks above the main downtrend line, watch out (there are two downtrend lines to take note of)…RSI(2) has unwound from above 80% to 31%…

Note:  John and Jon both hold share positions in GGI and DBV.