Gold has traded between $1,073 and $1,087 so far today…as of 9:45 am Pacific, bullion is down $9 an ounce at $1,077 after Friday’s powerful move…Silver is off 19 cents at $14.36…Copper is down 2 pennies at $2.08…Crude Oil has tumbled nearly $2 a barrel to $38.04, pushing the CRB Index to a new all-time low, while the U.S. Dollar Index is up nearly one-third of a point to 98.62…
China likely increased central bank Gold reserves in November by about 21 metric tons, the most in at least 5 months, as prices experienced the sharpest drop in more than 2 years…the value of China’s Gold assets was $59.52 billion at the end of last month compared to $63.26 billion at the end of October, according to data posted today on the People’s Bank of China website…however, given lower prices, that works out to 56.05 million troy ounces or about 1,743 tons, based on the London Bullion Market Association afternoon price auction on November 30, Bloomberg calculations show…the stash was 55.38 million ounces a month earlier…
China ended 6 years of secrecy in July over how much Gold it’s hoarding as it seeks to spur greater global use of its currency and diversify its $3.44 trillion in foreign-exchange reserves…the International Monetary Fund last week approved the inclusion of the yuan in the fund’s Special Drawing Rights basket, alongside the dollar, euro, pound and yen, with that change taking effect in October of next year…
Capital expenditures by Gold producers tracked by Barclays have hit the lowest level in more than 6 years, the bank reported today. “Although Gold miners this year have been posting solid operational performances and are in positive cash-flow positions generally, there are risks of long-term supply due to lowered capex spending along with weak prices.”
Analysts collected data for 34 producers…Q3 capital spending of $2.56 billion was down 20.6% year-on-year and was the lowest quarterly capex spending since the first quarter of 2009…miners’ Gold reserves also declined to the lowest level since 2007 due to the fallback in exploration and upgrading, plus the fact that lower prices have made some mines uneconomical (removing them from reserves)…
The pace of outflows from Gold exchange-traded funds has slowed from 2 years ago and there is potential for new inflows to return, according to Citi Research…the bank estimates that $30 billion in cumulative outflows from passive index and exchange-traded products linked to precious metals, of which 85% to 90% is Gold-related, occurred from January 2013 to mid-November 2014…this includes a record 870 tonnes of redemptions across physically backed bullion ETFs in 2013…by comparison, the fund outflow from physically backed ETFs has been far more muted this year, down 148 tonnes through November 20…
Crude Oil Update
OPEC ended its policy meeting on Friday without agreeing to lower production…in fact, for the first time in decades, Oil ministers dropped any reference to the group’s output ceiling, highlighting disagreement among members about how to accommodate Iranian barrels once Western sanctions are lifted…Saudi Arabia seems to think it’s “winning” this Oil price war, by increasing market share while damaging U.S. producers and hurting arch-rival Iran, but the Saudi deficit is now 20% of GDP, the country has burnt through $100 billion from its forex reserve, and now it’s going to borrow from the international market…
In today’s Morning Musings…
1. Richmont Mines (RIC, TSX) – one of the best out-performers in the Gold sector…
2. Doubleview Capital (DBV, TSX-V) resumes exploration at the Hat Property…
3. Silver backs off from Friday’s strong advance but short-term chart shows encouraging trend (plus key near-term resistance)…
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…
WRR- The bid increase !
Comment by Guy Delisle — December 7, 2015 @ 10:29 am
Doubleview Delivers Again….Perfect culmination of bullish Sheslay Scenarios
Comment by Don — December 7, 2015 @ 10:47 am
Yes Guy, its looking good!! Have you spoken with Michale lately?
Comment by Jeff — December 7, 2015 @ 10:57 am
here is one that looks like it want to move higher Saint jean carbon SJL.V working with western university research on graphite and lithium battery
Comment by kelly — December 7, 2015 @ 11:03 am
WRR at 4 cents. Let’s see if it will break through this time. Drills turning, could hit some high grade gold in the first few holes. Lots of gold on the property and in the area. ?
Comment by Ed — December 7, 2015 @ 11:22 am
WRR- Last week Jeff just told me that drilling is started, this is last wednesday !
Comment by Guy Delisle — December 7, 2015 @ 11:26 am
WRR- The 6 first hole as 150 meters, probably 2 hole by week !
Comment by Guy Delisle — December 7, 2015 @ 11:42 am
GGI coming under sell pressure. Probably a couple of nervous nellies getting impatient for the results. No NR for 2 weeks and still no news from Mexico. I’m hoping that Mexico news is actually being held back until the first hole or two at Grizzly has been released.
Comment by Tom UK — December 7, 2015 @ 11:57 am
I don’t think we will see a spike in DBV yet based on the news issued thus far. Still nothing saying drilling has resumed and no mention of the financing issue being solved yet. Confirmation that drill core has yet to be sent in means no assay results to look forward in the near future. A great future ahead but not enough excitement for people quite yet…in my opinion of course.
Comment by Jamie — December 7, 2015 @ 12:03 pm
Judging by the speed of things with GGI, it will be late January by the time DBV get assay results. Financing in Feb and then wait a few weeks for the start of Spring is my guess.
Comment by Tom UK — December 7, 2015 @ 12:24 pm
CDNX maybe in big trouble….. John… whats ur take?? may well dip into the 400’s…. if so then what??
TIA
Comment by Jeremy — December 7, 2015 @ 1:08 pm
WHOA. Venture blows past support and closes at a new all time low. This index is toast 🙁
Comment by Tony T — December 7, 2015 @ 1:16 pm
and then this…Explor Closes a $25,000 Private Placement like WTF…. 25k?????? well they will have toilet paper at least!!
Comment by Jeremy — December 7, 2015 @ 2:01 pm
yep Tony – the worst it has EVER been…. and based on the RSI it will get worse… we can only hope for a rally in the later part of Dec to beginning of Feb to get the hell out of Dodge.
I dont believe that there is anything that can be said or done to save the lack of volume and activity, and above all trust in this POS…. but then that goes for all exchanges anyway..
the HFT’s have ruined the playing field… and with naked shorting allowed and the Comex at a >300:1 paper to physical which is somehow allowed.. we dont stand a chance…
and I think that with the OIL bickering, this whole charade has a good chance of falling into a black hole…
and just when I thought it was safe to back in the water… we had 12 good years… shoulda known to park some dough in those ole coffee cans:)
Comment by Jeremy — December 7, 2015 @ 2:08 pm
but then again it happened on Nov 10th last year… but we are in a different space right now….
Comment by Jeremy — December 7, 2015 @ 2:10 pm
Then I guess all indices are toast, they all got hit, clearly the U.S. Is in minipulation mode, they are going to need the money for the next war they are about to enter, Canada and Mexico can now take the U.S. To court over a mislabeling scandal on imports. Smith and Wesson hit 8 year highs on gun sales last week on talk of gun control and fear,that’s a lovely thought hey, tell me why the rest of the worlds economy’s are doing so poorly, and the U.S. Says we’re doing so good, we can raise interest rates? This time next week all the sh$t is going to hit the fan big time in the U.S. It’s all going to change!!
Comment by Laddy — December 7, 2015 @ 3:24 pm
GGI – Problem with the junior market these days, is without real results it is very difficult to sustain the share price. Photos and descriptions of what they are into certainly helped but the market wants to see results now. If this week GGI can release more photos of say hole # 6 and a description/details of where and what they encountered in hole 5 to the east, it should be enough to prop the SP up again before hole 3 results.
Comment by Dan1 — December 7, 2015 @ 3:50 pm
Jon, your awfully quiet today, are you in a state of shock like the rest of us regarding the Venture and overall markets??
What’s your thoughts?? Have we hit bottom?
Comment by Jeff — December 7, 2015 @ 6:26 pm
LOVED today’s action, Jeff, because it just sucked more weak hands and tax-loss sellers out of the market, and created even better bargains in some cases…just bouncing along the bottom in advance of the seasonal push higher that could very well be magnified depending on the outcome of the Fed meeting next week…this is when the rubber meets the road, and those who don’t succumb to fear or frustration get rewarded handsomely…it was exactly like this in 2013, as we pointed out over the weekend – very similar pattern…then the major turn came…I was a happy buyer today on a few fronts…no surprise that Gold pulled back a little after the big run Friday…the trend is still pointing significantly higher on the HGU, so the slight retreat today was another opportunity for bulls as the Gold Index is well-positioned for a strong run into year-end, and that’s one factor that will help the Venture…
Comment by Jon - BMR — December 7, 2015 @ 7:19 pm
Dan1.. get used to it.. more to come.. Jon… sorry man .. you are yelling against a hailstorm… I wish to be proven wrong but I truly believe that this venture market is bust and will all move to the CSE where there is more cred… the venture has consistently created an environment of distrust by allowing stupid companies like Makena, TAD, Brookmount something or other.. and others who have the same BOD and different CEO’s who are other of the same companies BOD’s and raise money do drill one hole and claim they did something.
I am the ice prince…. disregard me at your peril … there will be no major turn Jon… marshmallow in the baileys… done… never to return…
Tell me this is not what you are all thinking………. dare ya
Comment by Jeremy — December 7, 2015 @ 8:31 pm
WRR had a great day today! looked strong on a bad day out there! let’s see how the week goes….
Comment by STEVEN1 — December 7, 2015 @ 9:06 pm
So much negativity on this board you may as well commit hari cari,that on could say as a contrarian that the bottom is in. Using the seasonal trend for the precious metals you just about always have a deep sell off from around the end of September to the first week of October and tend to bottom around now for the year. Using the bench mark of dropping below a major trend-line , two percent for two to three days is more like the definition of a failure. The venture as of this moment as not met this criteria. A 50% pull back of the recent gold price rise would be approx 1088-1045=43/2=21.5, therefore adding 21.5 to 1045=1066.5. We have at the moment held this number and the last previous low number came in around 1071 and change. So if this 1071 number fails in the coming days I would also have to agree the chances of this immediate rally that started from the 1045 area failed. Also the strong gold stocks have been diverging from the gold bullion price for quite some months now, and history tends to suggest that when a change in direction is starting to happen gold stocks tend to lead gold bullion by quite some months. I could go on but this post would be way to long, so I will close by saying this industry that we follow is a crap shoot at the best of times and one rolls the dice and takes one’s chances when it comes to the cowboy venture exchange.
Comment by simone — December 7, 2015 @ 10:52 pm
#9 Jamie. Drill has remained on site and the crew have been deployed . Financing arrangements have been going on for weeks so expect an announcement soon which is the reason the crew is on site. Expect hole #25 to be completed before year end.
Comment by Les — December 8, 2015 @ 4:09 am
Les, the PR does not mention a drilling crew. The geos have gone there to cut and log the core. The ”anticipated winter drilling program” will require a financing by DBV before it can go ahead.
Comment by Tom UK — December 8, 2015 @ 4:22 am
Financing is the works and the money is said to have been found so I once it opens it should quickly close.
Comment by DDD4 — December 8, 2015 @ 6:40 am
There will be flow through financing so possibly done above current market price. Maybe 15c with a 20c warrant attached?
Comment by Tom UK — December 8, 2015 @ 6:46 am
Politician Dave checking in here.
Jon – I noticed you didn’t have PHM on your list the other day of non-mining.
PHM moving up its next leg. The double bottom in Oct. and Nov. is gone folks. This will be a steady solid uptrend into next year.
CXV will piggy back.
Comment by dave — December 8, 2015 @ 7:56 am
I thought everyone was saying the big money was on the sidelines just itching to get in once the Chad day situation was dealt with? Where are they? Hopefully they step up to the plate, let’s get this show started
Comment by Sameer — December 8, 2015 @ 8:08 am
Unfortunately the reason why there isn’t much volume is probably because DBV didn’t address the Chris Day issue and what reassurance it has that it won’t happen again. Market is cautious on it for fears that it might happen again which isn’t the case. Patience….
Comment by DDD4 — December 8, 2015 @ 8:38 am
Dave, welcome back!! You sound like the Donald Trump of the BMR chat room!! How’s the move coming along?? WRR hit .04 again yesterday, your thoughts??
Thanks Pal!!
Comment by Jeff — December 8, 2015 @ 8:43 am
the move like all is hectic. Things going in 2 different places. Wrr- once they chew through that .04 and that one guy gets out of the way it should move. Wrr has a good chance
Comment by dave — December 8, 2015 @ 10:12 am
Phm. Fundamentals have changed. They funded acquisitions with a rising share price. Shares have been smoked meaning major dilution if they wish to acquire a bigger company. On top of that, integration risk has gone up with this company. Earnings have also been lowered a bit. My advice, trade it but be ready to jump out quickly.
Comment by Seamus — December 8, 2015 @ 11:21 am
Wise man Seamus. You know I don’t recommend ever holding long. PHM may do well though. Next stop .70 and then .75.
Notice CXV also moving in tandem.
Comment by dave — December 8, 2015 @ 12:08 pm
EQT is getting boxed in right now. Watch this one.
Comment by dave — December 8, 2015 @ 12:10 pm
Oh Seamus, I forgot to mention. You don’t have to jump out of PHM quickly. It is very liquid and affords you the opportunity to pick your exit point. This one is much different from lets say KEK which is not liquid and can rise or drop fast. One thing I like about PHM is that if you have to leave for the day, your not going to come home and see that you lost your house sorta speak. Anyway, I do agree with your post #32, but it is a good one to make a buck on if you time the runs right. .58 was resistance, so she goes up more tomorrow.
Comment by dave — December 8, 2015 @ 12:20 pm
Dave- does EQT appear to be in another
pennant formation, timing of results may
coincide with the tip of the triangle….
Comment by Bob — December 8, 2015 @ 12:27 pm
EQT- Ready for all the news, let her rip.
Comment by MURF — December 8, 2015 @ 1:18 pm
EQT – it is in a sloppy “W” formation. nonetheless, it can still be construed as a W set up.
Comment by dave — December 8, 2015 @ 1:48 pm
BOB – let me correct myself. It is in a W formation IF the Right side of chart starts trending up. It’s at a point where its either going to rise or drop any day here.
Comment by dave — December 8, 2015 @ 1:53 pm
@dave. No u definitely won’t lose your house with Phm as they do have revenue. The market now is trying to figure out how to value it. I made great money the first go around with it but then the shine came off it when management screwed half of Bay Street. There is a new ceo now so I think the market is going to wait a couple of quarters to see how things progress.
Comment by Seamus — December 8, 2015 @ 3:18 pm
Thanks Dave- Let’s hope a rise, on good assay results.
Comment by Bob — December 8, 2015 @ 3:33 pm
Your right Seamus, I think it will go up on another leg here into early 2016. But I’m basing this off of the chart and its trading behavior . PHM I mean.
I look at things from a TA and chart perspective and not always looking at the fundementals. Good info from you.
Comment by dave — December 8, 2015 @ 4:20 pm