Gold has traded between $1,201 and $1,219 so far today…as of 9:00 am Pacific, bullion is down $15 an ounce at $1,211…Silver has dipped 16 cents to $15.16…Copper has jumped 3 pennies to $2.12…Crude Oil has added $1.98 a barrel to $31.62 while the U.S. Dollar Index has rallied two-thirds of a point to 97.44…
Demand for Gold in Britain appears to strong with prices against the British pound on the rise at the start of the week as the country faces a significantly weaker currency (the pound hit a 7-year low against the greenback today) and uncertainty over a “Brexit” continues to grow…in a significant development over the weekend, one of the country’s most prominent politicians announced he would campaign in favor of leaving the 28-nation club…London’s charismatic mayor Boris Johnson, who is also a minister without portfolio in Prime Minister David Cameron’s Conservative government, said he would argue against a new deal Cameron negotiated last week with EU leaders…
China’s Overcapacity Problem
China’s overcapacity in heavy industries is wreaking “far-reaching” damage on the global economy with steel production “completely untethered” from market demand, the European Union (EU) Chamber of Commerce in China said today…China’s steel industry manufactures more than the next 4 largest producers combined – Japan, India, the U.S. and Russia – the chamber said in a report, warning that more than 60% of the Asian giant’s Aluminium industry had negative cash flow…
“China has not followed through on the attempts it has made over the last decade to address overcapacity,” chamber president Joerg Wuttke said…Brussels has launched new anti-dumping probes into Chinese steel imports, as producers in both Europe and Asia struggle with global prices that have plummeted in the face of oversupply. “Overcapacity has been a blight on China’s industrial landscape for many years now, affecting dozens of industries and wreaking far-reaching damage on the global economy in general, and China’s economic growth in particular,” the chamber’s report said…
Oil Update
Oil rose after the world’s oil consumer body said on Monday it expected U.S. shale production to fall this year and next, potentially easing a glut that has driven prices to their lowest in more than a decade…
The International Energy Agency (IEA) said in its medium-term outlook today that U.S. shale Oil production was expected to fall by 600,000 barrels per day (bpd) this year and another 200,000 bpd in 2017…this fed into data released late last week that showed U.S. drilling rig numbers had fallen to levels not seen since December 2009…
However, that does little to change the supply-demand imbalance in the global Oil market…Russia and OPEC both pumped Crude at near-record volumes last month, while there are also concerns about weak demand as noted by analysts at Morgan Stanley. “The sharp deceleration in demand growth in recent months (especially gasoline) is a key feature of our more bearish view and expectations for a longer rebalancing period. China demand looks particularly challenged with several negative trends of late,” they stated…
Meanwhile, the IEA also predicted today that the U.S. will lead the world in Oil production increases by 2021 in spite of the country taking the taking the “biggest hit for now”…by 2021, the IEA said, “the U.S. and Iran are seen leading production gains among non-OPEC and OPEC countries respectively.”
The IEA’s report pointed to the risk of an Oil price spike in the later part of the outlook period (2017 to 2021) “arising from insufficient investment” as many Oil producers around the world seek to mitigate low Oil prices by cutting costs and closing rigs…
In today’s Morning Musings…
1. Two Gold juniors under a dime added to BMR’s Top 50 Opportunities List…
2. Venture 2-year weekly chart confirms a bullish new trend…
3. Where’s Silver headed?…updated short-term and long-term charts…
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…
The Venture has now clawed it’s way to 533 . It’s beginning to look like the energizer bunny since the lows .
Comment by Lester — February 22, 2016 @ 11:13 am
PGX. The rumor on the street is they will be doing a financing but unfortunately it will not be for the Star Project.
Comment by Iceclimber — February 22, 2016 @ 11:24 am
So what’s the financing for then?To pay for the Venture listing and salaries?
Comment by robinandthe7hoods — February 22, 2016 @ 12:43 pm
PGX. I suspect new property somewhere in Ontario or Quebec.
Comment by Iceclimber — February 22, 2016 @ 1:21 pm
PGX moving on from the Sheslay, no DBV drilling, GGI focused on Mexico.
Is this what Chad Day actually wants? No resources, no jobs, companies leaving?
Comment by ConcernedCitizen — February 22, 2016 @ 3:56 pm
CC – how do you assume that GGI is just focusing on Mexico now? They are doing both simultaneously. DBV has no money. And Chad day and people like him don’t care about anything other than “the land”.
Comment by George — February 22, 2016 @ 7:12 pm
You would think PGX would want to get back drilling at the Sheslay, after seeing what GGI has discovered.I don’t get it.
Comment by pole — February 22, 2016 @ 8:05 pm
I don’t get it either pole. I don’t get why GGI dropped after the last 2 Nr’s, so there are a lot of things I am not getting. Some stocks are doing great that I thought would be doing otherwise. It is crazy out there.
Comment by dave — February 22, 2016 @ 8:56 pm
According to the conference call, farshad says Dbv doesn’t need money and will not need to do financing.
Comment by Sameer — February 22, 2016 @ 8:57 pm
Pole, rumor has it, PGX has an interested potential buyer of its Star Project…let’s hope something materializes imminently in that regard – that would actually be fantastic for the district as PGX has been a disaster in terms of communicating to investors the tremendous value of that project. That was very evident in how they handled things between late 2013 and late 2014, and we commented accordingly in late ’14 and Bernier hasn’t spoken to us since (we bruised his ego, I guess). They did no drilling of course in 2015. They came into that deal with so much market potential, especially after their success with Blackwater. But it was a classic example of poor communication and ZERO promotion. Bernier is very, very weak on that aspect of this industry (he admits he’s not a good promoter). A roaring bull market, which he was blessed with in 2010-2011 with Richfield, made him look like a market genius when in fact he’s just the opposite. He couldn’t handle the 2013/2014/2015 market conditions, had no idea how to maneuver in a challenging environment. He was so scared of the market when they started drilling in 2014 that he changed the drill plan – rather than boldly stepping out to drill Star North, he nixed that plan and stayed conservative, focusing on the Star deposit so as not to risk “killing the deal”. But he killed the deal for Prosper by doing just that. Spent millions drilling a known deposit rather than showing how big that entire system actually is. One of the greatest missed opportunities I’ve ever seen in the junior resource market. I give Bernier credit for sparking interest in the district in 2013 – he and Dirk got the ball rolling. But now the district is better off without Bernier. He also wasn’t a good neighbor and I didn’t like how he talked down DBV and the Hat discovery in 2014 – it was very much because of Farshad’s success, actually, that PGX was able to do a 50-cent financing for $3 million or so in May 2014.
Comment by Jon - BMR — February 22, 2016 @ 9:07 pm
Regoci has let various projects lay dormant for months as he concentrates on others , now that he knows what’s at the grizzly and with work gearing up in Mexico don’t be surprised if the grizzley gets put on the back burner for a long long time.
Comment by Lester — February 22, 2016 @ 10:11 pm
Thanks for that Jon. Am I ever glad that I never wasted any money and time on that company.
Comment by pole — February 22, 2016 @ 10:38 pm
Jon
Companies are judged by their share price whether you admit that or not it is true and until Regoci does some promotion and gets the share price up he’s going to keep getting critiqued or criticized by me and others as Bill Parcells used to say you are what your record says you are. I would love to see where GGI share price would be if Kyler Hardy was the CEO
Comment by GREGH — February 22, 2016 @ 11:35 pm
Lester, after GGI just hit a system with by far the highest rock value per tonne in the district, with Regoci already having raised the money necessary to take the next steps at the Grizzly, he’s in a very favorable position at the moment that I don’t believe he’s about to give up. So with GGI, I expect the focus to be on both the Grizzly and Mexico. Let’s see how he plays this news-wise over the next couple of weeks. You may be surprised. As a DBV shareholder, that’s what u should actually be hoping for. Likewise, GGI would benefit from Farshad taking positive action at the Hat.
Comment by Jon - BMR — February 23, 2016 @ 2:36 am
Who was the person who bought Orex again? Dan1? Another nice hit for them. See Dave, TA isnt always relevant.
Comment by George — February 23, 2016 @ 6:39 am
Dave, CLZ and REX example today that fundamentals beat the TA. Look at the news just released. Onto a world class silver deposit.
Comment by Dan1 — February 23, 2016 @ 6:42 am
Dave – where do you see NHC topping out at on your TA?? TIA I’m wondering about the confluence around 5.70ish
Comment by Jeremy — February 23, 2016 @ 6:42 am
I bought Orex and Canasil. Huge smile on my face today. The hit is 350 meters from the first one and good grades on between as well. Looking like a major world class discovery. Adding another 3000 meters almost immediately. Another 11 holes to report on yet.
Comment by Dan1 — February 23, 2016 @ 7:03 am
ETF alert: We see a trading opportunity in the HOU (Crude Oil double-long ETF on the TSX) around $3. For experienced traders. This is our 4th ETF play in recent months, the other 3 all did exceedingly well. We’re locked in this recommended position on the HOU at $2.96 with a target of at least $4.
Comment by Jon - BMR — February 23, 2016 @ 7:08 am
Very nice numbers again here, Dan1, for CLZ and REX. Looking good.
Comment by Jon - BMR — February 23, 2016 @ 7:23 am
Yes, Jon. They are proving the high grade is continous for at least 350 meters at significant dept as well. This one looks like a keeper.
Comment by Dan1 — February 23, 2016 @ 7:25 am
BGM is on fire!! Finally something starts to go my way. Now I just need DBV and GGI to start making moves.
Comment by Sameer — February 23, 2016 @ 7:25 am
They’ve got a deposit, Dan1, no doubt about that with this morning’s results…what’s really impressive here is the continuity of mineralization…should definitely push higher…
Comment by Jon - BMR — February 23, 2016 @ 7:26 am
We’ve added CLZ to our Top 50 Opportunities List following this morning’s results at a 21.5 cent entry point.
Comment by Jon - BMR — February 23, 2016 @ 7:55 am
I sold a stock that went from 0.65 to 0.89 to buy GGI and DBV at 0.15 and those gave me nothing but losses, and now the stock I sold is probably going to 1.50 soon…
Comment by ConcernedCitizen — February 23, 2016 @ 8:04 am
A couple of very interesting board additions for Deveron Resources (DVR, TSX-V) on their drone/tech deal announced this morning…Dave Mascotti and Roger Dent…DVR also confirmed it’s switching from the Venture to the CSE…
Comment by Jon - BMR — February 23, 2016 @ 8:20 am
Nice call on HOU. Going off the wti futures chart there’s support above the downsloping resistance line and recent support at 32ish. I’m in to see if it holds.
Comment by Treb — February 23, 2016 @ 8:26 am
Jon, do you think DVR will take off when it begins trading again, or will we get a chance to maybe grab a few shares?
Comment by pole — February 23, 2016 @ 8:26 am
CC – What stock are you referring too? We have been holding the bag on GGI. Terrible. Look at BGM go. Wish I jumped into it. MS @ bnn market call recommend it recently.
Comment by George — February 23, 2016 @ 8:32 am
just got home. Nice hit on CLZ today, kudo’s Dan1.
George, I have always said that TA rules UNLESS there is a NR that changes this. My comment earlier said that the TA was starting to point south. The way to play CLZ is wait to see if it corrects and find the bottom OR wait till it breaks higher from the last high, which aborts a double top and then corrects. In CLZ case, the NR was steller, thus clz broke through the previous high and eliminating the double top. SO, what I was saying was to buy if it corrected or buy once it broke through the previous high. Any smart trader knows this.
Hey Jeremy, how have ya been. NHC has done a classic beauty of a “W” in the chart formation. These are always positive for a gain. Usually, the right leg (current trading days) will shoot up to the height of the left leg before the downturn. So I would call between $4.30 and $4.50.
Comment by dave — February 23, 2016 @ 8:40 am
My best guess at this point, Pole, is that DVR will open around 40 cents (at least) and then power strongly higher…I cannot stress enough how big this deal could turn out to be, especially with the likes of Dave Mascotti involved (former Pres. of Rogers Telecom)…Greencastle will go along for the ride as well, I would say an easy double from here (conservatively speaking), since they hold about 70% of the stock…compared to BLO in 2014 (and I still very much like BLO at the moment), I believe DVR is an even more exciting deal because they’re looking at almost instant cash flow…no prototype situation here…and drones are sexy…this could be a massive deal as the first publicly traded drone company, and with Mascotti involved…
Comment by Jon - BMR — February 23, 2016 @ 9:03 am
Jeremy – First level of resistance on NHC is $4.34. Hope this helps
Comment by dave — February 23, 2016 @ 9:15 am
Jon-any word on next results for wrr
Comment by kelly — February 23, 2016 @ 9:19 am
Gold stocks – most larger and mid cap gold stocks have gone up 40-50% in Feb, Small caps doubled in Feb. GGI – down. sick.
Comment by George — February 23, 2016 @ 9:27 am
What I heard was around the end of February, Kelly, so I’m expecting by the end of next week…
Comment by Jon - BMR — February 23, 2016 @ 9:28 am
Thanks for that Jon. Maybe VGN would also be a good way to play this as you stated earlier.
Comment by pole — February 23, 2016 @ 9:31 am
Thx Jon for the DVR insight.. am checking with some drone peeps and peterborough and queens peeps re the peeps invloved .. will report
Dave – thx man.. guess I thought it could go higher with smaller blips downward now that it seems the shorts are gone..:)
Comment by Jeremy — February 23, 2016 @ 9:37 am
GGI – I will hold my shares until the end of Feb to 1st week in March if I dont see any progress I am just going to dump my shares, take my loss and move on from the stock that I have ive held for would be nothing since October.
Comment by George — February 23, 2016 @ 9:45 am
It’s a great way to play DVR, pole, and the average investor doesn’t even know yet…VGN at 6 cents is already trading below cash value, not including their DVR investment…think about it.
Comment by Jon - BMR — February 23, 2016 @ 9:51 am
Thanks Jon. That sounds like a good strategy I will pursue.
Comment by pole — February 23, 2016 @ 11:50 am
Jeremy,the shorts are not gone in NHC.They are currently covering,which is a reason the stock is rising.One day you will see the price go up $1.00 or more and rise hard for 2-3 days as a short squeeze is shaping up.
Nothing but good news and numbers.Buyback of shares in the works.It won’t be long,this will be over $5.00.The largest shareholder continues to buy.Follow the money.
I’m predicting this to be over $7.00 this summer.The run is just beginning.Once the shorts have completely covered,they will be going long.
Late last year,this was called a $12 stock by many analysts.Keep that number in mind as this rises.
Comment by robinandthe7hoods — February 23, 2016 @ 9:12 pm