Gold has traded between $1,167 and $1,180 so far today…as of 9:00 am Pacific, bullion is flat at $1,173…Silver is off 7 cents at $15.76…Copper has gained 2 pennies to $2.61…Crude Oil is down slightly at $59.60 while the U.S. Dollar Index has added one-third of a point at 95.53…
Terrorist attacks on 3 fronts this morning – France, Kuwait and Tunisia…dozens dead in shootings, bombings and a beheading…ISIS has claimed responsibility for at least one of these attacks (Kuwait)…in France, a U.S.-based gas factory was the target in which one man was decapitated by terrorists who left his severed head atop a fence, inscribed with Arabic phrases and next to the flag of ISIS…
Still, the American President denies we’re in a war against Islamic extremists…
Alberta’s Destructive Path
The socialists now running Alberta continue to take the province down a very dangerous road that is guaranteed to drive away both investment capital and human capital over the next couple of years…investors need to be prepared for that…
The so-called “climate change regulation upgrades” announced yesterday are part of a broad economic “reform” and social engineering agenda by this far left, inexperienced government that’s determined, among other things, to redistribute wealth…in part, this means punishing what has been successful – energy extraction – through higher taxation and regulation, and reward what has been less so, like government-favored “green” industries and more refining and upgrading…
Yesterday, the Canadian Association of Petroleum Producers, which represents large Oil sands players, warned that its members were facing $800 million in added costs over 2 years because of higher carbon levies and corporate taxes – at a time of course when Crude prices are well below what they were last year…
That’s just the beginning, we’re sure…
Alberta’s anti-capitalist Environment Minister, Shannon Phillips.
“If we get it right, our environmental policy will make us world leaders on this issue instead of giving us a black eye around the world,” Alberta Environment Minister Shannon Phillips stated yesterday. “We were not taken seriously on the national or international stage; with this, that will change.”
Alberta had a “black eye” around the world?…among who, radical environmentalists who just hate fossil fuels?…who cares?…what an absurd comment…
But that shouldn’t be surprising coming from this new Environment Minister for Albertastan…Philips is a former policy analyst at the Alberta Federation of Labour…in recent days she was put on the spot by revelations she co-wrote the introduction of a book a decade ago by Alberta Greenpeace organizer Mike Hudema titled “An Action A Day Keeps Global Capitalism Away” – a twisted manifesto that outlines strategies for activists to protest government and business actions and get media attention…
“At the time I was one of Mike Hudema’s employees. I helped him with some grammar and that’s really the extent of my involvement,” Phillips told the CBC…
Oh, really…that’s not how Hudema described it…he wrote, “It would not have been possible to put this book together without her. She pushed me to write it, edited my work and contributed to the content.”
Good luck, Alberta…B.C. and Saskatchewan are waiting with open arms…
Gold Surprise Coming?
In an analyst report titled “Debunking the Bearish Case for Gold(s)”, Canaccord Genuity stated, “Interestingly, the 1986-87 experience teaches us that despite a Fed hike in December 1986, Gold equities surged until the second Fed hike which occurred in April 1987. So, if the Fed were to pre-emptively hike rates in September, the Fed could take a pass in December and the second hike could only happen next year if a ‘gradual’ approach is implemented. This scenario could maintain or open the door to a cyclical rally in Gold and Gold equities.”
Canaccord also sees the possibility of a weaker U.S. dollar during the last half of 2015 which would also aid the Gold sector. “Our point is not to say that the U.S. dollar is about to crash but a phase of liquidation upon a break of the DXY (Dollar Index) below its 200-day average would likely confirm a price-range pattern for the U.S. dollar over the next year.”
What if the Fed doesn’t raise rates at all in 2015?…they do seem to be afraid to act…
Will Chinese Investors Turn From Equities To Gold?
China’s consumption of Gold in 2015 may still post an increase over 2014, especially if the country’s stock market reverses its rally during the 2nd half of the year, according to the World Gold Council…
“We will be more confident to say China’s demand in 2015 will beat 2014 if we see an end of the stock market rally and a start of a Gold price surge,” stated Roland Wang, China director of the WGC. “Chinese investors usually seek asset tools to prevent risks in stock markets and chase rallies in Gold.”
Today’s Equity Markets
Asia
Another indication of a Chinese equity market that has become over-extended…Guotai Junan Securities shares soared nearly 50% in their Shanghai debut today after the company raised 30.1 billion yuan ($4.85 billion U.S.) in the country’s biggest initial public offering (IPO) in 5 years…China’s 3rd-largest brokerage by profit saw its stock open at 28.38 yuan- up from its IPO price of 19.71 yuan…
The performance of the stock reflects the “herd mentality” of Chinese investors, Francis Lun, CEO of Hong Kong brokerage Geo Securities, told CNBC. “That’s typical of Chinese markets. You have an issue and everybody jumps on it.”
Shanghai Composite Updated Chart
The Shanghai suffered its worst day in 5 months, tumbling 334 points or 7.4% to close the week at 4194 which has brought the index down to the bottom of the upsloping channel it has been in since last summer…it hit Fib. resistance bang-on at 5132…the question is, will support within the channel hold?…it may not given the bearish RSI(14) divergence with price, so a further correction to strong support around 3400 can’t be ruled out…
After being the worst performing stock market (other than the Venture) for 6 years, the Shanghai caught up with a vengeance a rise of 150% in a short period of time is excessive by any standard…this has been a move driven by momentum and greed (the average hold period for a stock has been 1 week) with extremely high margin levels (more than 2% of total China GDP)…those margin levels are unwinding and that could easily bring this market down further in the upcoming quarter (the chart below is based on yesterday’s close)…
Europe
European markets were stable today…European Commission President Jean-Claude Juncker said in a Reuters report he was “quite optimistic but not over-optimistic” of a deal with Greece on a cash-for-reform deal at a crucial meeting of euro zone finance ministers tomorrow…
North America
The Dow has climbed 76 points as of 9:00 am Pacific…in Toronto, the TSX is off 60 points while the Venture is flat at 680…
Savary Gold Corp. (SCA, TSX-V) Update
People make the difference…Ross Beatty’s investment into Savary Gold (SCA, TSX-V) in March was a major turning point for the company which commenced a 15,000 m drill program at its Karankasso Gold Project in Burkina Faso (65% Savary) in April with very encouraging initial drill results released 10 days ago…
Savary has been a big winner so far this year, climbing from a low of 2 cents to a high of 11 cents…as we noted previously, a cup-with-handle pattern formed on this 2+ year weekly chart, so the minor pullback from the 11-cent high was not surprising…the handle has been taking shape with a band of Fib. support between 6 and 7 cents, along with a rising 200-day SMA at a nickel…
SCA is off a penny at 7 cents as of 9:00 am Pacific…good potential for the 2nd half of 2015…
Noront Resources Ltd. (NOT, TSX-V) Update
The technical outlook for Noront Resources (NOT, TSX-V) continues to be positive, and that’s encouraging for the Venture as NOT has proven itself to be a reliable leading indicator for this market…NOT‘s 2nd quarter slump appears to be over with critical Fib. support holding, and a 200-day moving average (SMA) now starting to trend higher again…
On Monday, Noront announced that it has received a notice of approval from the Ontario Ministry of Environment and Climate Change on the terms of reference for its Eagle’s Nest Nickel-Copper-PGE Project…the terms of reference, approved with a number of amendments, allows the company to move forward on the environmental assessment (EA) process for what is expected to be the first mine in the Ring of Fire…
NOT is off 1.5 cents at 48 cents as of 9:00 am Pacific…
Discovery Ventures Inc. (DVN, TSX-V) Update
After more than doubling in just under a month, thanks to some positive news, Discovery Ventures (DVN, TSX-V) has pulled back to strong support at its rising 50-day SMA at 16 cents…given the history of DVN over the last 3 summers, and the recent announcement regarding the recruitment of a major new investor who will also become the company’s new CEO, this is another junior to watch closely during the upcoming quarter…
DVN is up half a penny at 16.5 cents as of 9:00 am Pacific…
Note: John and Jon do not hold share positions in SCA, NOT or DVN.
GGI, don’t look now but seems like the bids are stacking up and ask are thinning out. Ready for the big move up?
Comment by Dan — June 26, 2015 @ 9:01 am
Dan. Is that a copy and paste message from everyday this month. 🙂 But yes we are close. I’m waiting lower for more GGI just in case they dump one more time.
Comment by BigRig — June 26, 2015 @ 9:18 am
Another week without news for DBV ???
Comment by guy delisle — June 26, 2015 @ 12:05 pm
Frustrating isn’t it guy . I look forward to that interview with Dr. Razeque , sounds like it will be on BMR this weekend .
Comment by Les — June 26, 2015 @ 12:24 pm
And given the holiday schedule next week, there might be a good chance of no news next week either… That will bring us to the week of the 6th of July. I don’t mind, as long as there is enough time to get done our drilling program. But the longer the wait, the lower it gets. Hopefully when it hits 23 or 24 cents, people wont shout from the rooftops that DBV has doubled… my average is almost that high…lol
Comment by Paul — June 26, 2015 @ 12:52 pm
I bought more GGI today, I could be wrong but it is looking more and more like a bottom to me. For me it’s always about risk versus reward and I really don’t see a whole lot of downside here given GGI’s large land holding in the Sheslay and their Mexico projects. But I do see a ton of upside if they can execute. Obviously they still have to execute but I really like the risk/reward scenario at these prices and I have made my bets accordingly.
Comment by Danny — June 26, 2015 @ 1:44 pm
I just checked TMX Money for insider sells today, there were none. Could they be finally done? Or maybe they just decided to take Friday off.
Comment by Danny — June 26, 2015 @ 3:27 pm
Paul I understand what your talking about ,it’s been a long time since any news release has been made and your not the only one under water on their share price. From this price there is more than a double here , more like a ten bagger. At present I don’t believe there is one institution that has accumulated shares in DBV but there will be a mad rush if the next hole is a thousand meters or more of the good stuff similar to hole 23 . If it we’re not for the curve ball thrown by the Tahltan drilling would have been under way in May , but from what I hear they are drilling now and it will take at least two weeks per hole. Looking for that interview and the rest of hole 23 not to mention hole 24.
Comment by Les — June 26, 2015 @ 3:32 pm
Danny, is there a point at which they are no longer classed as an insider? Maybe with all the selling they have done they are below the threshold of being an insider – just a thought. Plenty of shares traded today in GGI with some selling by anonymous. It looked to me as if the buyers have returned strongly rather than a drying up of sellers. If Sprott and the FT selling stops, then we could be in for a nice rise soon.
Comment by Tom UK — June 26, 2015 @ 3:48 pm
So Les what is you’re take on why hole 23 still not release?
Comment by Martin — June 26, 2015 @ 4:03 pm
Martin hole 23 is a game changer, I think the last 250 meters is so good that Farshad want a deal with Talhtan Band before announce, but this is only my opinion !
Comment by Guy Delisle — June 26, 2015 @ 4:57 pm
Martin , I can only guess that Farshad wants the coming news releases to be in a certain order or he wanted no news release during talks with the Tahltan . I can’t see the remainder of hole 23 being any different than what was already reported by a big margin. Jon might have a better idea about hole 23.
Comment by Les — June 26, 2015 @ 4:59 pm
Martin , with everything goin on , Farshad might be up to his azz in baby alligators.
Comment by Les — June 26, 2015 @ 5:02 pm
Tom, that’s a valid point. I think 10% is the magic number to be classified as an insider (Jon can correct me if I am wrong), but Sprott should have been below the 10% threshold well before today. In any event, they should be done soon.
Comment by Danny — June 26, 2015 @ 5:21 pm
Think can’t only get better from here, who knows how big this system really is?
Comment by Martin — June 26, 2015 @ 5:27 pm
Jon are you 100 percent GGI will be drilling the grizzly this summer? Regoci was giving a entrevue last december saying is 43-101 was about to be release and we would be suprise by the amount of info there would be to it. Are they writting a second one??
Comment by Martin — June 26, 2015 @ 5:36 pm
100%, Martin, and I’m betting on DBV blowing things wide open shortly and a discovery by GGI at Grizzly Central. A district model is in place. As far as GGI’s 43-101 technical report on the Grizzly goes, I suspect new information is being plugged into it and we’ll see it in this 3rd quarter.
Comment by Jon - BMR — June 26, 2015 @ 5:56 pm
That would be nice!
Comment by Martin — June 26, 2015 @ 6:13 pm
good start to the recovery on GGI…..hoping this play ignites in early July….also, WRR……
Comment by STEVEN1 — June 26, 2015 @ 6:59 pm
Guy – if they have the results and it is material to the company they have to release.. legally!!:) but maybe they havent released to the assay lab yet… which isnt illegal I think:)
corrections welcome!!!
Comment by Jeremy — June 27, 2015 @ 9:59 am
BLO – was doing some research on Buzzfeed and discovered it was/is one of the top ten news sites on the net in the US… thus the reaction to the C-level comments was swift due to the following that buzzfeed has…
hopefully their PR firm noticed the spanking the stock got on negative perceptions, and they can help the perceptions with more positive buzz!!
always be careful what you say in public… just never know:)
Comment by Jeremy — June 27, 2015 @ 10:01 am