Gold has traded between $1,066 and $1,073 so far today…as of 10:30 am Pacific, bullion is unchanged at $1,070…Silver is off slightly at $14.16…Copper is 3 cents lower at $2.11…Crude Oil dipped briefly below $40 a barrel for the first time since August and is currently down 26 cents at $40.41, while the U.S. Dollar Index is flat at 99.67…
The latest report from the GFMS team at Thomson Reuters states that the Silver market is expected to be in an annual physical deficit of 42.7 million ounces in 2015, marking the 3rd consecutive year the market has realized an annual physical shortfall (you wouldn’t know it by the price action)…such deficits do not necessarily influence prices in the near-term, but multiple years of annual deficits can begin to apply upward pressure to prices over time…this year, however, net outflows from ETF holdings and derivatives exchange inventories on a year-to-date basis have lessened the impact of the physical deficit, bringing the net balance to –21.3 million ounces…
Total Silver supply is forecast to fall by 3% from last year…this decline is expected to be driven by flat mine production, a 5% drop in scrap return, and some net de-hedging…mine production is slated to total 867.2 million ounces in 2015, up 0.3% from a year ago…this would be the weakest performance since 2002 when mine production fell by 2%…total physical demand is forecast to contract by 2.5% in 2015, primarily driven by a drop in electronics demand…
Meanwhile, Silver bullion coin sales reached a fresh record high in the 3rd quarter of this year, totaling 32.9 million ounces, and are up 95% year-on-year, according to GFMS’s bullion coin survey…the slide in Silver prices in July and August to 6-year lows triggered a surge in buying in the Silver coin market, particularly in North America where sales increased by 103% in Q3…
Gold 6-Month Daily Chart
Extreme oversold RSI(14) conditions have emerged in Gold, similar to what occurred in July, which is why we’re taking a contrarian approach to this market right now after we correctly anticipated the recent slide in prices and went long on the triple-short DUST ETF…
Gold has chart support at $1,065…one can’t rule out a sudden, brief wash-out to a lower level, but the intense sell-off from the high of nearly $1,200 last month has largely run its course in our view…
Executives of Gold mining companies are focused on cutting costs and can probably find areas to do more, according to RBC Capital Markets in a report summarizing a London conference hosted by the bank, with 11 of the industry’s largest producers making presentations…with the recently declining Gold price “broadly out of companies’ hands, focus is on managing the costs they can control, with operational and cost efficiencies seen as the way to protect margins,” RBC stated…
In today’s Morning Musings…
1. A big victory for Doubleview Capital (DBV, TSX-V) as it prepares to return to drilling at the Hat, while Garibaldi Resources (GGI, TSX-V) gets bold after GC-15–03 with a major step-out at Grizzly Central…
2. Updated Canadian dollar and CRB Index charts…
3. Two Gold producers that should be in everyone’s portfolio…
4. Nemaska Lithium (NMX, TSX-V) is halted, pending news, while Equitas Resources (EQT, TSX-V) bounces back strongly…
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…
I think that I mentioned that cxs was next to move after phm
Comment by dave — November 18, 2015 @ 11:51 am
sorry, meant cxv
Comment by dave — November 18, 2015 @ 11:52 am
Dave – Didn’t see that post from you
Comment by 02charoc — November 18, 2015 @ 12:44 pm
GGI looking strong
Comment by Martin — November 18, 2015 @ 12:47 pm
really like how ggi is trading!
Comment by Tony T — November 18, 2015 @ 12:50 pm
I’ll put my money on one of those majors to visit the DBV site being Antofagasta.
Comment by Les — November 18, 2015 @ 2:48 pm
02charac – which post?
Comment by dave — November 18, 2015 @ 4:07 pm
I cringe when I hear someone mention “insider information” as it happens on probably 98% of stocks, like it or not.
Prime example: SLC. It had very little volume and was at .18 at 3:16, and look at the trades, volume, and closing price. Ya actually think the market gives a hoot and they are going to go after management of SLC.
How many times do we see volume increase and the share price rise before a news release. Almost always.
I have been accused of it many times, but ya know what, it is what it is.
Now, I am done with my short vent.
Comment by dave — November 18, 2015 @ 4:18 pm
TSX accept the change of 4 millions of warrant at 0.20…..now everything is ready for drill soon !
Comment by Guy Delisle — November 18, 2015 @ 5:00 pm
Can you imagine if GGI releases a whopper of a hole in #3, and then announce the same type of visible mineralization in hole 4 approximately 600 meters South east of hole 3. That is my dream.
Comment by Dan1 — November 18, 2015 @ 6:24 pm
EQT – Almost 3 million shares traded today. I don’t think the reason for the heavy volume was the updated website. I am betting assays from the first 4 holes are ready but they are waiting for the rest before releasing news. My guess, news next week on EQT.
Comment by Dan1 — November 18, 2015 @ 6:27 pm
Dbv – great news,this was the news we were all waiting for. I expected a bigger pop on high volume. Any thoughts?
Comment by Sameer — November 18, 2015 @ 6:52 pm
Dan – assays a couple weeks away yet. However………..
Comment by dave — November 18, 2015 @ 7:24 pm
DBV and GGI have set the path to move up.
Comment by Theodore — November 18, 2015 @ 7:32 pm
Dan – actually, that was last week when we were thinking 2 weeks or so away. So maybe we will have some assays on eqt by next week. Can’t be too much longer.
Comment by dave — November 18, 2015 @ 7:35 pm
Excellent news on DBV, Sameer, I do expect it to gain traction in the week ahead.
Comment by Jon - BMR — November 18, 2015 @ 9:11 pm
Goldman Sachs Group Inc. says the bear cycle in copper has years to run, predicting rising global surpluses through 2019 and seeing prices at $4,500 by the end of 2016.
Not everyone is bearish. Daniel Hynes, senior commodity strategist at Australia & New Zealand Banking Group Ltd., said the slump has been excessive. With supply cuts coming through, the metal may trade in the mid-$5,000s in 2016, Hynes said.
Vivienne Lloyd, an analyst at Macquarie Group Ltd., sees potential for substantial output cuts at the $4,600 level and believes the current price to be unsustainably low.
Comment by ConcernedCitizen — November 19, 2015 @ 5:07 am
post 17 … just goes to show that analysts, like economists have NO IDEA about predicting future events. There’s enough of them out there that statistically a few of them will be bang on in every cycle, which sadly is enough to keep them around and in business.
Comment by treb — November 19, 2015 @ 6:04 am
WRR- finally announces that drilling on their excellent high grade gold property in Nevada will start on Dec 1…
Comment by Jeff — November 19, 2015 @ 8:46 am
Yes and it is a good news !
Comment by Guy Delisle — November 19, 2015 @ 9:49 am
Walker to start 20,000 ft drill program at Lapon Dec. 1
2015-11-19 11:11 ET – News Release
Mr. Michel David reports
WALKER ANNOUNCES START OF DRILL PROGRAM
Walker River Resources Corp. will begin its drilling program on Dec. 1, 2015, at the Lapon Canyon gold project, located approximately 60 kilometres southeast of Yerington, Nev.
The Lapon project consists of 36 claims (720 acres) situated in the Wassuk range, easily accessible by secondary state roads from the main highway (25 kilometres). A state grid power transmission line passes within three kilometres of the property.
The Lapon project is located within the Walker Lane shear zone, a 100-kilometre-wide structural corridor extending in a southeast direction from Reno, Nev. Within this trend, numerous gold, silver and copper mines are located, notably the historic Comstock Lode mines in Virginia City, the past producing Esmeralda/Aurora gold mine, with reported production of some one million ounces, as well as the Anaconda open pit copper mine in Yerington. Nevada Copper’s new mine, Pumpkin Hollow, is also located within the Wasuk Range about 25 kilometres north of Lapon. Notably, this mine is within porphyry.
The Lapon project is cut by a series of steeply dipping cross fault structures cutting across the Walker trend, analogous to other cross fault structures responsible for many gold and base metal deposits in the world. These faults are heavily sheared and altered (sericite, iron oxides) with abundant silica. They vary in width from 60 to 300 metres. Four of these structures have been discovered at Lapon, and at least two can be traced for over four kilometres. Gold mineralization is located within en echelon structures within these faults. At least one of these shear zones, the Lapon Rose zone was the site of underground development, and shows a minimum strike length of four kilometres, has a width of over 60 metres and has a vertical extent of at least 650 metres.
The 2015 Exploration program began in April. Since that date, significant exploration progress has been made. Within the upper Lapon Rose zone, gold mineralization in the form of visible gold has been noted in two different locations within the upper adit.
Walker along with its partner, Nevada Canyon Gold Corp. (see news release Sept. 16, 2015) intends to pursue an aggressive drill program on this well-located, highly prospective gold project. Some 20,000 feet of planned drilling has been outlined with an initial six drill holes (3,000 feet) spotted with drill pads completed.
Small-scale high-grade mining began on the project in 1914. The mine area was at the top of the canyon at the Lapon Rose zone, and access to the site in those years was extremely difficult, indicating that the mine was rich enough to drag equipment and supplies up a steep canyon trail. About 600 metres of drifts and raises were developed from two adits, and a two stamp mill was built. Further limited underground work was carried out, returning numerous assay values in the range of one ounce per ton, with a sample at the end of an adit returning 20.6 ounces per ton (National Instrument 43-101, Montgomery and Barr, 2004)
E. Gauthier, Geol, Eng (OIQ), acts as the qualified person to the company, and has reviewed and approved the contents of this release.
© 2015 Canjex Publishing Ltd. All rights reserved.
Comment by John - BMR — November 19, 2015 @ 10:05 am
Didn’t expect to get fills at .14 and .145 today on ggi but more for me. 🙂
Comment by Treb — November 19, 2015 @ 10:12 am
A good day for bargain hunters, Treb…
Comment by Jon - BMR — November 19, 2015 @ 10:14 am