Gold has traded between $1,067 and $1,076 so far today…as of 9:30 am Pacific, bullion is flat at $1,068…Silver is 3 cents higher at $13.95…Copper is relatively unchanged at $2.12…Crude Oil has added 87 cents to $37.68…WTI is now slightly higher than its global counterpart Brent, in part because of the prospect of the first shipment of Crude being exported from the Gulf Coast in January following the lifting of the U.S. export ban…cooler U.S. weather is also giving WTI a lift today…meanwhile, the U.S. Dollar Index is up more than one-third of a point to 98.33…
Assets of SPDR Gold Trust, the top Gold-backed exchange-traded fund, fell 0.18% to 643.56 tonnes yesterday, close to a 7-year low…meanwhile, speculators’ short positions in COMEX Gold contracts remain near an all-time high, though data yesterday showed that speculators had reduced their record bearish stance in the week to December 22…
The mine supply issue is coming to a head, according to Credit Suisse’s 2015 Year-End Preview Report which notes that Gold miners’ reserve life has fallen from 14 to 10 years since 2011…the report outlines how Gold is positioned to out-perform the commodity complex next year as two more Fed hikes are priced in, physical demand should remain a source of strength, while central banks will continue buying – especially China and Russia…
Crude Oil Update
Crude Oil markets are likely to balance at some point in 2016 as supplies from North America, including U.S. shale, continue to decline “significantly”, the chairman of Saudi Arabia’s giant Oil company said yesterday. “Supply has plateaued in North America and is declining by significant amounts. We expect that to continue and perhaps accelerate in 2016,” Khalid al-Falih, chairman of Saudi Arabian Oil Co., known as Saudi Aramco, said in a news conference in Riyadh. “We see the market balancing some time in 2016. We see demand ultimately exceeding supply…prices in due course will respond.” He added that Saudi Arabia, the world’s top Oil exporter, has the capacity “to wait the market out until this balancing takes place. We have the ability to finance.”
Indeed, the Saudis are digging in for potentially lower Oil prices – even into the $20’s if that’s what it takes to snuff out more North American production, put an even greater financial squeeze on arch-rival Iran, and increase overall market share…yesterday, Saudi Arabia announced plans to shrink its record $98 billion state budget deficit with spending cuts, reforms to energy subsidies (gasoline prices are increasing 60% to 20 cents a liter), and a drive to raise revenues from taxes and privatization in the first budget under King Salman, who ascended to the throne in January…the biggest shakeup of Saudi economic policy in recent history coincides with growing regional unrest, including a war in Yemen, where a Saudi-led coalition is battling pro-Iranian Shia rebels…
In today’s Morning Musings…
1. Updated charts for both Gold and the U.S. Dollar Index…
2. A non-resource play that retreated to attractive levels and could enjoy a strong January…
3. Gold and Lithium in Nevada…
4. The incredible returns in “Lego” over the last 15 years…
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…
Jon do you think we will hear from farshad next week regarding financing, drilling, H23-25 results, etc?
Comment by Sameer — December 29, 2015 @ 1:25 pm
Definitely no on results……possibly on financing…..I bought more again today before it heats up in 2016…..
Comment by DDD4 — December 29, 2015 @ 1:57 pm
I don’t know regarding the first half of your question, Sameer. With regard to holes 23-25, keep in mind that DBV announced just 3 weeks ago that drill core from holes H-23, H-24 and the first part of H-25 was about to be cut and sent to assay labs in Vancouver. If all of that got into the lab prior to Christmas, you’re still looking at a bit of a wait yet for results.
Comment by Jon - BMR — December 29, 2015 @ 2:01 pm
Jon , just prior to the CD blockade you were in the process of making video interviews with Dr. Razique available on this website .
Will you be continuing with those videos as Dr. Razique had a lot more to say about the Hat .?
Comment by Les — December 29, 2015 @ 2:50 pm
Good point, hopefully at least news on financing and resumption of drilling
Comment by Sameer — December 29, 2015 @ 2:53 pm
Any update on that GGI interview? Is it even relevant now or can we expect another, hopefully more timely one?
Comment by Treb — December 29, 2015 @ 10:21 pm
Hi Treb, don’t worry, it’s on the way, and everything we put out – we always make sure it’s relevant/timely.
Comment by Jon - BMR — December 30, 2015 @ 3:38 am
Venture holding up nicely but gold can’t seem to gain traction. Hopefully that changes in the new year
Comment by Sameer — December 30, 2015 @ 6:56 am
Maybe just due to holidays but selling on EQT has dried up for now, causing a breakout on low volume. Still nice to see.
Comment by Jamie — December 30, 2015 @ 7:01 am
Jon,wondering your thoughts on Magor Corp, mcc, a company you followed a while ago. Do you still follow it? It seems to be turning around with numerous orders from the RCMP and other clients testing their product. Has had a huge run since Dec 10 ( about 800%) on volume of about 2.5 million. Seems to be under the radar, so wondering what you think and what John thinks on the chart ( overbought? ready for correction?) Thanks
Comment by Roger — December 30, 2015 @ 7:13 am
Roger, I was looking at MCC a few weeks ago when it trading (not much) below a nickel after their Dec. 9 and Dec. 10 news releases…I wish I had bought some back for a quick profit…it’s an interesting company with some proven leadership but they’ve been hugely off in meeting their revenue, profit and overall growth projections, so I certainly wouldn’t be comfortable chasing it at the moment…technically, it’s also extremely overbought…they’ve also done very little in terms of trying to get their story out to investors, so that’s another knock against it…I like their technology, I’ve seen it in action, but it has been a lot harder for them than expected to gain traction in a competitive market…worth keeping on the radar screen in the event there’s a definite turnaround with regard to sales and the bottom line in 2016…
Comment by Jon - BMR — December 30, 2015 @ 7:28 am
EQT- Murf and Jamie, the .055, .06c stock is looking good.
EQT continues to be the stock “in play” despite all the naysaying.
Comment by Bob — December 30, 2015 @ 7:49 am
EQT- right Bob, what doesn’t kill you makes you stronger.
I’ve doubled my position at the bottom. and still adding.
2016 will be good to EQT.
Comment by murf — December 30, 2015 @ 8:40 am
EQT- Murf, the price movement is good, but the liquidity
is terrific, can trade a few 100,000sh almost any day….
Comment by Bob — December 30, 2015 @ 9:30 am
Jon, thanks for the insight on MCC…was also considering buying some at 9 cents but that was already over 300 % from its low the previous week. Who would of thought another double from there. Anyways, won’t chase it and will keep it on my watchlist for 2016…eqt having a great day, looking forward to the next couple months on ggi and eqt. Happy New and Prosperous Year everyone!
Comment by Roger — December 30, 2015 @ 9:35 am
EQT- https://twitter.com/Canuckoholic/status/680157290599612416
Comment by murf — December 30, 2015 @ 10:13 am
Bob, Murf, I was not liquid enough to buy more of the cheap paper but am still holding strong. It was tough not to be able to take advantage of an opportunity like that..UGH! Huge volume today…thats what we call a break out..LOL! Who knows what the future holds but I plan on having a front row seat!
Comment by Jamie — December 30, 2015 @ 10:14 am
Hi Les, I believe we’ve done 4 video segments so far with Dr. Razique, and we hope to do more. We’ll provide the links to each of them ASAP to make it easier as opposed to having to go back to previous posts or emails.
Comment by Jon - BMR — December 31, 2015 @ 5:28 am