Gold has traded between $1,147 and $1,163 so far today after yesterday’s intra-day reversal to the downside following the Fed policy statement…as of 8:00 am Pacific, bullion is down $5 an ounce at $1,151…strong support exists at $1,130…Silver is off 31 cents at $15.63…Crude Oil, after a surge yesterday, has backed off slightly to $45.87 while the U.S. Dollar Index has fallen one-fifth of a point to 97.40…
As we mentioned yesterday, Chinese demand for Gold is finishing the year on a strong note and should limit any price pullbacks…based on figures to date, it looks as if withdrawals from the Shanghai Gold Exchange for all of 2015 will likely reach 2,600 tons or more – a huge new record, probably over 400 tons more than that of the previous record year of 2012 when 2,181 tons were withdrawn from the SGE…
Gold prices were at a 1-week high just prior to yesterday’s Fed meeting and then reversed sharply lower immediately following the statement as traders interpreted that a December rate increase is back on the table (how often have we heard that from the Fed which has become like the boy who cried “wolf”)…strangely, the Fed seems to be less concerned about world economic developments, perhaps due to confidence that continued fresh stimulus from China and the ECB will kick-start faltering global growth…officials struck from their policy statement a sentence introduced in September that pointed to market turbulence and global developments as potential restraints on U.S. economic activity…as those concerns appear to recede, in the eyes of the Fed, the central bank sees fewer impediments standing in the way of a rate increase…deflationary concerns remain, however, along with the negative impact of a higher U.S. dollar which is biting into American corporate earnings and weakening exports…
Before the Fed released its policy statement yesterday, traders in futures markets placed about a 33% probability on a rate increase this year; after the release, that probability rose to almost 50%…
Cruz: Fed Should Be Focused On “Sound Money…Ideally Tied To Gold”
During last night’s CNBC Republican Presidential debate, Senators Ted Cruz and Rand Paul argued for more oversight of the Federal Reserve. “I’ve got deep concerns about the Fed,” Cruz stated. “The first thing we ought to do is audit the Fed. We need…to end this ‘Star Chamber’ that has been engaging in this incredible experiment called quantitative easing.”
The Texas Senator, who was born in Calgary, went on to lambaste the Fed for trying to “goose the economy.” Then, he said, with echoes of 1971 sounding in careful listeners’ ears, that the Fed should be focused on “sound money…ideally tied to Gold.”
In today’s Morning Musings…
1. Think more about Gold in terms of Canadian dollars and other currencies…
2. NexGen Energy (NXE, TSX-V) completes its summer drill program with more off-scale radioactivity results from Rook 1…
3. Things are stirring in the Sheslay district as Doubleview Capital (DBV, TSX-V) now threatens to bust loose…
4. Equitas Resources (EQT, TSX-V) completes financing and begins to rebound out of deeply oversold technical conditions…
5. Interesting chart for the TSX…
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…
John, I think you left something out at the end of pararaph 3 in your DVN update. Also, do you have any thoughts on FMR as you have mentioned them before and they are trading at .04 cents at the moment.
Comment by DBReese — October 29, 2015 @ 8:13 am
Thanks, DBResse, you’re correct…sorry about that…part of the sentence was left out…fixed…that was my error, not John’s…
Comment by Jon - BMR — October 29, 2015 @ 8:23 am
Eurocontrol waking up keep a close eye it is ready to break out to bew 52 week high – Big News Is Imminent !!!!
Comment by bernie .p — October 29, 2015 @ 9:23 am
DBV chart is in a nice uptrend.Positive news in court tomorrow and this jumps .03-.04.Remember,it’s DBV that has core results waiting to be announced,not GGI.
Imo,DBV is in position for a double whammy with a positive court decision likely,and core results possibly a week after to push interest in the stock.
Anything that comes out of GGI after that will only help to propel the stock higher.
Comment by robinandthe7hoods — October 29, 2015 @ 11:09 am
Jon,do you know anyone who will be attending the court date tomorrow,or can relay what has occurred?I’m assuming the decision won’t be made tomorrow,but we could get an inkling of what it will be based on common sense.
Comment by robinandthe7hoods — October 29, 2015 @ 11:17 am
Anyone know a reason for the sell off on NPH on pretty big volume?
Comment by Sameer — October 29, 2015 @ 11:20 am
Oops, sorry Jon, and my apologies to John also. Not sure who does the writing,I am pretty new here. Perhaps I will just call you BMR till I figure it out. BTW, 110% satisfaction on my subscription. Thank you.
Comment by DBReese — October 29, 2015 @ 11:32 am
I don’t think any of the drill core from DBV’s recent program has been sent to the labs yet. I believe when drilling was halted by Chad and crew that everything was closed up and vacated essentially. Next week when the crew returns to the property, the core will have to be cut and shipped in addition to drilling resuming. Perhaps I am wrong but I just don’t want people expecting assay results immediately if not even sent in yet.
Comment by Jamie — October 29, 2015 @ 11:36 am
I predict GGI provides NR after positive news from DBV tomorrow.
Comment by Dan1 — October 29, 2015 @ 11:36 am
well the market sure doesn’t think ggi si going release good news. 11.5 cents.. bummer
Comment by tony T — October 29, 2015 @ 12:06 pm
I’m in the sand opinion as Dan…that we here something from GGI tomorrow or Monday. It’s always tough to wait it out while the drill is turning. I have the limit of shares that I’m comfortable with..so no more buying for me…just waiting. Glta
Comment by weatheritout — October 29, 2015 @ 12:09 pm
….and yes it’s more than 1000 shares! Ha
Comment by weatheritout — October 29, 2015 @ 12:10 pm
How many on this board thought there would be a NR after those photos were released? I for one did. Who thought the SP would go up this week on heavy volume? I did. Now that I sit back and think about it, it doesn’t surprise me because that’s Regoci’s style. Just wish he would change his style for once.
Comment by Dan1 — October 29, 2015 @ 12:21 pm
Dan, maybe there will be a twist here. Often GGI has chosen to put news out right near or at the end of the week. I’m thinking Regoci may choose differently this time if indeed he has something of major significance brewing at Grizzly Central (that happened with Rodadero), which the evidence suggests appears very possible. My gut tells me they’re very close to news. If it’s not later today, or tomorrow morning, then it may be bigger and better than we think. Then I would say Monday’s the day. That would be Regoci changing his style.
Comment by Jon - BMR — October 29, 2015 @ 12:37 pm
I for one really expected a news release this week. But I know as the guys that run these companies, they can have a different timeline. It’s tough being a retail investor and its nice when a company comes through for them. I’m long on GGI but really hope we get news soon, even if it is strictly an update….how many metres and hole # they are on.
Comment by weatheritout — October 29, 2015 @ 12:47 pm
You may be right Jon.
Comment by Dan1 — October 29, 2015 @ 12:49 pm
GGI- What news do you want ???? GGI drills and everything that can be expected are results in three weeks to a month minimum …. the only thing that I think could help us it is new photos. If we have a news, this will surely be the situation with Chad Day and following a news from DBV.My opinion only !
Comment by Guy Delisle — October 29, 2015 @ 12:56 pm
You might be in for a surprise, Guy.
Comment by Jon - BMR — October 29, 2015 @ 1:24 pm
Yes I agree Jon, I remember regoci saying a while back that he was tired of being punched around, I think he wants to get something out just as much as us long investors do, next week our heads will spin, I’m sure of it…
Comment by Tombc — October 29, 2015 @ 2:33 pm
DBV next resistance at .145.If rumours come out that they have,or appear to have a positive outcome tomorrow,I’m predicting a run right through that resistance to .16 based on finaly getting a heavy volume day on an already uptrending chart that just needs a catalyst to set it off.
Comment by robinandthe7hoods — October 29, 2015 @ 4:20 pm
When you buy shares of GGI you should stock up on flashlight batteries.
Comment by Ivan — October 29, 2015 @ 4:45 pm
After most of the day away, I am surprised at the close on EQT and some even on GGI. I guess we can only hope for better days ahead. I am guessing that EQT assays bout 2 weeks away. I was hearing another drilling update but I am wondering if they will wait for assays now.
Time will tell on both of these stocks as it is early in the program for both. I think that GGI did not put out a news release cause they know that pics of drill do not always tell the story and assays can come back only to disappoint. How many times have we seen since 2008 that a company announces visible gold in the core only to have nothing of significance. This has happened time and time again and I think many CEO’s take a more cautious approach on a NR pre-assay results.
This is the reason Hardy did not want to do this. He did not want for the stock to run sky high only to have the assays not live up to the price point. He wants the assays to do the talking and let the price ride up based on merit.
So, understanding this (and its just my opinion on GGI), we may just have to wait for the official results.
But just as I say this, watch GGI come out with a NR. We just don’t know and we patiently wait.
Comment by dave — October 29, 2015 @ 9:11 pm
Cartaway Resources was a perfect example.Claimed the visuals were good for nickel.The stock was halted going into the weekend.The stock had just gone up from $15 to $26 in three days based on rumours.If the results came back positive they were talking $100/share and it was going there.
Results came back negative for nickel,the stock didn’t re-open right away,and when it did,the price dropped right away to $2.00.
Comment by robinandthe7hoods — October 29, 2015 @ 9:32 pm
DBV – Court case today and injunction most likely in hand today….drilling to resume next week with H23, H24 and part of H25 still pending! The best team in the Sheslay and will aggressively drill through winter.
I just topped off this morning and finally attained my goal of a position in DBV of a little over 1 million shares.
I am biased…..do your DD. IMO DBV will be a life changing stock and will put some into retirement in 2016. Don’t expect to get shares next week at these low prices if they win today…..odds are in their favor.
Comment by DDD4 — October 30, 2015 @ 5:42 am
Robin – Then I applaud how EQT handled the news release rather than claiming visuals.
Comment by 02charoc — October 30, 2015 @ 5:58 am
I hope you are right DDD4…hopefully we can get some indication today on how things went in court for DBV. Has anyone talked to Farshad recently? Are they actually ready/organized to start drilling next week “if” things go in their favour today?
Comment by ChetBaker — October 30, 2015 @ 6:14 am
Somebody know at what time DBV is in court ?
Comment by Guy Delisle — October 30, 2015 @ 8:28 am
DBV – Guy…. more questions on “court” – Where is court, what city? time? Is DBV on the docket? Who is attending, Farshad and his lawyer, both in person? Chad Day and his group of followers?? with his/their lawyer(s)? Hmmmm,I wonder. I’m not sure how this will all unfold. There has been so little information on this, no chatter at all, makes me wonder. Will there be an 11th hour agreement (like NHL arbitration)???? Farshad has still not addressed the shareholder’s with any update on this situation, this is unreal. What’s really happening?? Do you really think we will go drilling next week with limited funds in the kitty?
Just some thoughts for discussion. Have a great weekend.
Comment by vepper — October 30, 2015 @ 9:04 am
Just checked the docket Supueme court. Nothing scheduled with DBV today.
Comment by Les — October 30, 2015 @ 9:13 am
If that’s the case, Les, raises the possibility of some sort of last-minute out-of-court agreement…
Comment by Jon - BMR — October 30, 2015 @ 9:20 am
That’s what I’m thinking too. We should hear from DBV on this very soon.
Comment by Les — October 30, 2015 @ 9:24 am
I’m just curious if we ever had a confirmation that court was actually scheduled for DBV today? I know lots of speculation was based on a 3 week response time for Chad Day, but did anyone actually see or hear of a specific court date?
Comment by ChetBaker — October 30, 2015 @ 9:40 am
If today was just some sort of deadline for Chad Day to repsond, it might not even show on a docket. I do agree with Les though, nothing showing on the docket for Terrace, Smithers or Vancouver Supreme Court listings (depending on how often it’s updated on the gov’t website).
Comment by ChetBaker — October 30, 2015 @ 9:45 am
DBV hearing in Sept never showed up either….it’s scheduled for today but I don’t know the time. Chad did provide the court with a response right before the deadline.
Comment by DDD4 — October 30, 2015 @ 10:03 am
My mistake….Sept wasn’t a hearing….
Comment by DDD4 — October 30, 2015 @ 10:04 am
Vepper….you’re wrong. DBV will drill next week if they get the injunction today…..they have enough money to get going…..enough to start and get those pending cores released and do a PP at much higher prices….
Comment by DDD4 — October 30, 2015 @ 10:08 am
Well, I guess all we can do is wait. DBV is in for a nice ride up if we get the injunction…or a big ride down if they don’t.
Comment by ChetBaker — October 30, 2015 @ 10:55 am
Jon has it correct . The only reason DBV would have canceled the hearing date that was scheduled for Oct. 30th, is an out of court settlement.
Comment by Les — October 30, 2015 @ 11:12 am
DDD4 – you say…. “if they get the injunction”. From what both Les and Jon say, it sounds as though a last minute deal is in the works as we are not on the docket. If a judge does not rule on this there will be no “injunction”. If a side deal, it will be interesting to hear what’s happening. Farshad, please address your shareholders with a detailed update of where we have been (since May 21) and where we are going.
Comment by vepper — October 30, 2015 @ 11:16 am
Not worried….the odds are in our favour…
Comment by DDD4 — October 30, 2015 @ 11:17 am
DBV – I would have thought it would be a stretch, logistically, to drill next week. Drillers have to be shipped in, camp restored, equipment checked over , supplies brought in. Its too costly a gamble IMO for DBV to pay to have this all ready to go w/o a yes from the courts. But a yes , goes a long way to making it sooner than later. Volume isn’t suggesting anything yet.
Comment by david — October 30, 2015 @ 11:48 am
DDD4 – I hope we do go drilling next week and with more than one rig! Nothing would be more soothing than to get back to some normalcy with this stock. At times, I feel as though I don’t have enough shares and sometimes I think I have too many, lately the latter. Farshad needs to take a step back and look at this date in time and put out a news release….today.
Comment by vepper — October 30, 2015 @ 11:55 am