Gold has traded between $1,255 and $1,272 so far today after yesterday’s powerful post-Fed $30 advance…as of 9:00 am Pacific, bullion is up $3 an ounce at $1,265…Silver has shot up 38 cents to $15.98 (a key breakout would be through the $16 level)…Copper has gained 4 pennies to $2.28…Crude Oil has climbed $1.31 a barrel to $39.77 while the U.S. Dollar Index has tumbled another full point to 94.72, the first time since October it has traded below 95…bears are tightening their grip on the greenback, and that’s positive for commodities and the Venture…
The U.S. central bank held interest rates steady as expected yesterday, but the tone of the post-meeting statement and Janet Yellen’s news conference was decidedly dovish which sent the dollar reeling and Gold higher…fresh projections showed policymakers expect just 2 quarter-point increases by year-end, half the number forecast in December…
The Fed’s cautious stance yesterday, and its concerns regarding global growth, puts the U.S. central bank more into line with the world’s other most important central banks…in January, the Bank of Japan cut rates into negative territory…last month, the People’s Bank of China reduced reserve requirements, freeing banks to lend more…last week, the ECB cut rates further into negative territory and expanded its bond-buying program…weaker global growth, said Fed Chairwoman Janet Yellen, is a key reason officials now expect the U.S. to grow just 2.2% this year, down from 2.4% forecast just 3 months ago…
Global risks still abound, from heavily indebted emerging markets to a British vote on whether to leave the European Union and likely the most fractious presidential election in U.S. history – all at a time when the world faces unprecedented terrorism threats, an unstable Middle East and an aggressive Russia…
Investors increased holdings in exchange-traded funds backed by Gold for a second straight day yesterday, after a rare outflow on Monday, with the total jumping 0.2% to 1,738.3 metric tons, according to data compiled by Bloomberg…
“Gold has already rallied more than $200 an ounce since hitting cycle lows in December, and arguably the ceiling for Gold may be approaching,” HSBC said in a note. “The Fed projections may only be conforming to what many in the market already assumed. This could limit further Gold gains. That said, the dovish tilt in the Fed’s policy statement should be enough to reaffirm and galvanise the Gold rally.”
What is the “ceiling” for Gold?…we’ll explore that in an updated chart this morning…
Oil Update
Oil’s bullish trend remains firmly intact, and dollar weakness is helping as well…we remain long on the HOU (Crude double bull ETF) until at least the $4.60 target level is reached which would represent a 55% gain since this position was taken during the last week of February…John’s ETF calls since September remain 100% accurate and have delivered some spectacular short-term profits…
OPEC and non-OPEC producers including the top two exporters, Saudi Arabia and Russia, will hold talks on April 17 in Qatar over a plan to freeze output, increasing the likelihood of the first global supply deal in 15 years…there will likely be an opportunity over the next month to go short on the Oil market, in anticipation of a retrace, but now is certainly not the time…
The Trump Factor
Like him or not, Donald Trump is turning U.S. politics on its head…he has rewritten the election playbook, and for that reason he’s Hillary Clinton’s worst nightmare…his ability to read the electorate and energize voters – he’s the politically incorrect blue collar billionaire who doesn’t ever need a script or a teleprompter like Obama – has been vastly underestimated by the political and media establishments everywhere…investors would be wise to consider taking the possibility of a Trump presidency very seriously, and how his campaign over the coming months may impact an array of markets including Gold and the U.S. dollar…
Below is yet another example of Trump’s creativity as he goes after the Democrats’ and Hillary Clinton’s foreign policy weaknesses in a short video ad released yesterday…
https://www.instagram.com/p/BDBS8bYGhWr/
In today’s Morning Musings…
1. The Venture continues its march toward the 600 level (momentum remains very strong)…
2. Graphite One (GPH, TSX-V) gets another boost on fresh news…
3. If Silver surges, so too may Silver plays including Canasil Resources (CLZ, TSX-V)…
4. Updates on MTO, AGE, PRG, SSO and CRJ…
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…
So DBV’s next court date is in May…which means the Tahltan fiasco will officially have cost Farshad (and shareholders) close to one full year. If this court decision doesn’t favour DBV…I think DBV is toast…I hope I’m wrong, but somewhat disappointed that now we’re waiting another 2 months to determine DBV’s fate.
Comment by ChetBaker — March 17, 2016 @ 8:49 am
Jon, whats your take on the Biorem lawsuit I just read about this morning?
Comment by pole — March 17, 2016 @ 9:25 am
Chet I can say this for sure. I will certainly not be disappointed if Chad Day loses his upcoming election. I also have to say that as ticked off as I am about this interference, I keep remembering a very valid point that Jon made here long ago about this. Chad would not have wasted his time with DBV if there was nothing of value in the ground.
Comment by Jamie — March 17, 2016 @ 9:27 am
Good buying opportunity, pole, IMHO. That accident occurred back in January (it was a methane buildup that led to the explosion)…Biorem has had a great track record with its projects over the years, so I would highly doubt they will be proven to have any liability in this case…keep in mind, Biorem is also not the only one named in this suit, as others worked on that project…the city is trying to blame anyone but themselves which is typical for government…BRM says the allegations in the suit are without merit…the news came out during the trading session this morning and 1 investor panicked and decided to dump a bit of stock…that’s good because the availability of stock under 40 cents had really tightened up…this company has very solid fundamentals and I think this particular issue will be forgotten about as soon as Q4 and full-year financials come out…
Comment by Jon - BMR — March 17, 2016 @ 9:53 am
Thanks for that Jon. Hopefully a few more weak hands will be shaken out and give a better entry point.
Comment by pole — March 17, 2016 @ 10:01 am
Precipitate Gold looks like an interesting play, insiders hold a lot of this stock which I like, I have taken a position. Jon, any update on ELT, looks like a huge bid at .065, maybe we have seen the bottom, bought some today at .07
Comment by Danny — March 17, 2016 @ 10:23 am
When Dave said events at EQT would be delayed he wasn’t kidding! Hope everything is going well behind the scenes.
Comment by Jamie — March 17, 2016 @ 10:42 am
CLZ and REX on the move.
Comment by Dan1 — March 17, 2016 @ 10:49 am
ELT is stronger today trading at 8c….options are at 10c.
Comment by John - BMR — March 17, 2016 @ 12:13 pm
Jamie – I am thinking second week of April for EQT.
Comment by dave — March 17, 2016 @ 12:31 pm
Oh sorry Jeremy, I meant a w in the yearly chart, not anything on TA. PHM. The sister CXV is on the move as it did an inverted head and shoulders in the yearly chart.
Comment by dave — March 17, 2016 @ 12:33 pm
Jon – LAD will be a while yet. Trust me, things behind closed doors no one knows about.
Comment by dave — March 17, 2016 @ 12:43 pm
Keep your eyes on PMD.v.We may just be looking at the next LIX type of play coming up.Debt will be settled very soon along with a nice PP.
After that the fireworks begin.
Comment by robinandthe7hoods — March 17, 2016 @ 12:52 pm
Thanks Dave
Comment by Jamie — March 17, 2016 @ 7:00 pm
Dave – thx man!! gotta take my scope out to a longer view! CXV been doin really well!
Comment by Jeremy — March 17, 2016 @ 9:00 pm
Great work GGI. Shareholders have been well rewarded.
Comment by George — March 18, 2016 @ 4:29 am
EQT is ideal for accumulation at the moment, Dave – John has an updated chart this morning. Could take a few weeks yet but at a nickel there is money to be made on this one. Investors often tend to be most bearish at exactly the wrong time.
Comment by Jon - BMR — March 18, 2016 @ 4:45 am
Something quite remarkable is also unfolding in the CRB chart…this suggests a potentially explosive move that will surprise a lot of investors…updated chart this morning…
Comment by Jon - BMR — March 18, 2016 @ 5:13 am
Regoci hasn’t changed his style after many complaints from shareholders regarding Keeping shareholders in the dark. Believe me I contacted the company and expressed my concerns. He’s certainly not living up to their slogan on the website.
Comment by Dan1 — March 18, 2016 @ 5:40 am
Jon
CRB is that Cariboo Rose?
Comment by GREGH — March 18, 2016 @ 6:09 am
No, Gregh, I was referring to the CRB Index…commodities…there’s something quite extraordinary developing on the CRB chart…
Comment by Jon - BMR — March 18, 2016 @ 6:43 am
Dan1
does no good to complain about Regoci, believe me I know, I was complaining loudly ever since the Sheslay results and all it does is get people mad at me… I said then this would be dead money for a while and so far I have been correct… at this point I would be very happy just to get my money out and break even, it really upsets me that I tied so much up in GGI and don’t have a lot of ammo to take advantage of the other companies out there that are performing right now…my own fault and it will never happen again…Regoci in my opinion is a flat out liar, he does not do what he says he is going to do, I highly doubt we will ever see any results from the supposedly mettalurgical tests that are supposed to be performed, what was that 45 days ago now since the ultra zone NR and still nothing… whats worse this stock never trades enough to get your money out without taking a huge hit, if they ever do release any good results from Mexico or Sheslay the stock wont really go anywhere as everyone will be selling as no one trusts Regoci anymore… another valuable lesson learned.
Comment by GREGH — March 18, 2016 @ 7:01 am
Greg. What I don’t understand is that when Regoci responds to me he indicated that they are shareholders as well and have a lot a stake and would like the sp to go as much as I do. Well, they are not helping their cause.
Comment by Dan1 — March 18, 2016 @ 8:14 am
Dan1
I don’t know Dan1 what to think anymore,GGI was the number 1 play for BMR and now they hardly say much at all about GGI unless someone specifically asks and they always stick up for Regoci when in my opinion they should be holding his feet to the fire….doesn’t do any good to complain, no one cares…
Comment by GREGH — March 18, 2016 @ 12:41 pm
Gregh, holding Regoci’s feet to the fire on our part doesn’t necessarily mean sounding off here on BMR and engaging in emotional rants.
The fact is there are few companies with the opportunities GGI has, given their holdings in B.C. and Mexico, and there is no reason this shouldn’t turn into a stellar year for this company. If Regoci doesn’t make that happen, and messes up in our view, we’ll call for new management. As simple as that.
We’ve been quiet recently because there hasn’t been too much to say, beyond what we’ve already stated, but that should change very soon. The technicals are actually looking quite good in the sense that a bottoming process has been occurring as it did at lower levels in the summer of last year, prior to the big move up, and it has been an ideal time for stock to go from weak hands into strong hands. As investors, impatience and our emotions in general are our worst enemies, so when a stock isn’t doing what we would like it to do (or it’s doing exceptionally well), it’s best to try to keep emotions out of it (easier said than done, mind you) and understand the forces at play and what could trigger a turn in either direction.
GGI’s current share price doesn’t properly reflect the company’s assets and potential, IMHO (though that can be said about most companies despite the market’s recent advance), so the upside far exceeds the downside risk. This stock has had some powerful runs every year since we’ve been following it, and there’s no reason 2016 should be any different.
Comment by Jon - BMR — March 18, 2016 @ 2:33 pm
Jon,
I am way past the emotional part of my investment in GGI, I will admit I was very emotional when GGI announced the Sheslay results, no doubt about it, but I am way past that now, I have gone back and looked at every NR GGI/Regoci has put out and a definite and disturbing pattern is very plain to see, there is something just not right about what is going on here – it makes no sense to jump all over the place from Mexico to BC then back to Mexico again and then talk about BC again, something is just not right, why does he not finish what is started at La Patilla for instance, they announce Bonanza grades and then they do not follow up, now they say how great this Ultra zone is in Canada, but wait lets go back to Mexico and drill a totally different target, no mention of the La Patilla drill results or follow up there.. so I’m sorry Jon if you think this is a rant, I see it as facts.
Fact: Feb 25 2015, NR from GGI stating letter of intent to start processing mill feed from La Patilla to Gainey’s processing facility, fact never another word about this. Fact: March 5 2015 NR from GGI stating that they drilled into bonanza grades on 150m step out from Silver Eagle step out hole, fact never another word about this. Fact: April 9 2015 NR from GGI GGI to drill high grade zone at La Patilla, Steve Regoci, Garibaldi President and CEO, commented: “From Rodadero to La Patilla we continue moving forward on all fronts in Mexico.Really? Fact August 14 2015 NR from GGI, GGI advances La Patilla, Steve Regoci states ” “We are active on several fronts and we look forward to providing shareholders with additional updates on developments at our key projects in Mexico and British Columbia over the next few weeks.” HE SAID A FEW WEEKS, Fact we have heard nothing from GGI regarding any of the Mexico properties for almost a year now. Fact, numerous NR’s regarding the Sheslay properties up to the last NR of the ultra zone and will be testing the Mettalugical results which was about 45 days ago and fact still nothing… Fact: Feb 19 2016 NR stating they are preparing to drill the Rambo target… fact still do not know if they started drilling or not?
Jon these are all facts, not assumptions, GGI is all over the place, why not follow thru with one supposedly discovery and drill the crap out of it,that
is what most CEO’s would do right? You have Bonanza grades and you do not follow up on that? that makes no sense. It just does not make any sense at all to do what they have been doing.
Comment by GREGH — March 18, 2016 @ 8:16 pm
Regoci must think people like being told to expect news on a certain project and then nothing given the number of times he’s done that. I remember him saying he was going to drill into the heart of the grizzly like it was going to happen soon and it was a year later.
He has his own drill and cheap labor and only 15 holes drilled in Mexico but what gets me the most is finding this high grade stuff so close to surface even mom and pop could mine it but Regoci seems unable to.
Comment by Ivan — March 19, 2016 @ 10:50 am