Gold has traded between $1,225 and $1,241 so far today…as of 9:00 am Pacific, bullion is up $10 an ounce at $1,234…Silver is 19 cents higher at $15.41…Copper is flat at $2.21…Crude Oil has gained 48 cents to $38.76 while the U.S. Dollar Index is under renewed pressure, down one-third of a point at 94.53…
Gold could post its best quarterly performance in nearly 30 years…the yellow metal has climbed 16% in the first 3 months of this year, its first quarterly advance since June 2014 and its biggest quarterly rise since Q3 1990, as concerns over global growth and equities sparked a wave of safe-haven buying…
“A combination of safe-haven demand on the back of worries about China in particular, a scaling back of expectations of further rate hikes from the Fed, and rising inflation expectations…have been behind the rally in the Gold price,” Capital Economics analyst Simona Gambarini said. “Overall real interest rates will remain low, which is what matters for Gold.”
Silver has been lagging Gold but was still up 10% this quarter through yesterday…
5 Oil Producing Countries In Trouble
RBC Capital Markets‘ global head of commodity strategy, Helima Croft, says in a new report that “there are 5 sovereign producers that are on the precipice of a major crisis amid the current low Oil price environment.” These countries face a mix of social, political and terrorism-related upheavals that could either lead to a regime change or create great instability that could actually knock out their Oil production, leading to an Oil-supply shock…
“Our ‘fragile 5‘ states…were already facing severe political and security challenges when Oil prices were above $100 and the situation has grown far more grim as these countries have struggled to fund their state apparatuses and provide essential services,” Croft wrote…those 5 countries, in alphabetical order, are Algeria, Iraq, Libya, Nigeria and Venezuela…
Canada, meanwhile, will take more than 2 years to fully adjust to the drop in Oil prices, a senior Bank of Canada official said yesterday, signaling no quick end to a shock that has roiled the economy…Deputy Governor Lynn Patterson said a simulation run by the bank suggests it will be several years before the economy finds a new balance after a plunge in Crude prices pushed the country into a mild recession last year, prompting policymakers to cut interest rates twice…
A simulation run by the bank suggests that the share of the commodity sector in the Canadian economy will decline, and could account for about 40% cent of exports by 2020, compared with about 50% in 2014…however, 40% is still a huge number and means that a Canadian Prime Minister should not be downplaying the importance of the resource sector in this country simply due to the fact that commodities suffered so badly the last couple of years…if anything, to build upon its competitive advantage in the global market, Canada should be doubling its efforts to prepare for the next swing up in commodities which may very well have already started…
Trudeau Backs Off From Keystone XL
In a breakfast speech this morning at the U.S. Chamber of Commerce, across from the White House, Justin Trudeau was asked directly about resurrecting Keystone…according to the Globe and Mail, Trudeau said simply, “It’s not a Government of Canada proposal,” effectively distancing himself from the $8-billion TransCanada plan to funnel Canadian Oil to Texas and Louisiana refineries…
Trudeau did acknowledge, with a caveat however, that “one of the most important jobs of any prime minister is to make sure we’re getting our resources to market,” adding: “Doing that in the 21st century means doing it responsibly, sustainably, ethically and thinking about the long- term.”
Good grief…you know what that means for Energy East, too, as this Prime Minister and his government are completely bound up in “climate change” ideology and political correctness…we are now living under “National Energy Program 2.0“, the successor to the disastrous original National Energy Program inflicted on Canadians (aimed at Western Canada in particular) in 1979 by Trudeau’s father…
In today’s Morning Musings…
1. Updated chart for NexGen Energy (NXE, TSX-V) after yesterday’s 15% jump on 10.6 million shares, its 4th highest volume day ever…
2. The increased opportunity in one of NXE’s neighbors…
3. Gold Bullion Development (GBB, TSX-V) hits a new multi-year high…
4. An Oil play at a nickel to watch…
Plus more… to view the rest of today’s Morning Musings, login with your username and password, or click here to register and gain full access to this and other exclusive BMR content and features…
example of a NR of a lifestyle company…. in my opinion of course
Makena’s Athabasca neighbour yesterday had more impressive results today (full release below) NexGen announced….Step-out drilling 180 metres southwest along strike from the Arrow deposit has intersected extensive mineralization including off-scale radioactivity (greater than 10,000 counts per second). Hole AR-16-77c2, a follow-up from hole AR-16-75 (see news release dated March 15, 2016), intersected 109.5 m of total composite mineralization, including 2.3 m of off-scale radioactivity and encountered local concentrations of semi-massive pitchblende associated with extensive dravite alteration southwest along strike from the A4 shear, within an area that is untested. This newly discovered mineralized area will be the focus of immediate follow-up drilling. The footprint of Arrow has extended along strike by an additional 25 m to 865 m and laterally by 40 m to 275 m.
Makena is planning a drill program shortly. Makena’s property is borders Fissions’ Patterson Deposit, Pure Point and NexGen.
shortly ….. been sayin that for a while… remember Canasia, Brookmount Tad Minerals, Habenaro Resources??? all the same in my opinion… name change produce paper without any hold time, and pump to monetize the paper… just sayin
Comment by Patricia — March 31, 2016 @ 10:46 am
Bids are building on EQT!!!!!!
GBB traded at 11c today….looking a little brighter for April.
Comment by John - BMR — March 31, 2016 @ 11:10 am
John – the bids were that big on Eqt last week too, and they got sold into at .045
Comment by dave — March 31, 2016 @ 12:10 pm
Jon
If you follow the GBB forum, there is a meeting tomorrow between GBB and the
Que Min of Environment, mediated by the Min of Justice to resolve the issuance
of the CoA (final permit). There has also been discussion of potential suitors
doing due diligence on GBB. Nice to see the volume and price move, whether either
of these 2 developments are factors or not, it appears that GBB is in for some short-
term fireworks.
Comment by bob — March 31, 2016 @ 12:29 pm
Glad to see March finally finish….seemed like a long month due to Spring Break and then monthend……cheers to April!
Comment by STEVEN1 — March 31, 2016 @ 4:54 pm
Between gbb,WRR and blo it’s going to be an interesting couple of months!!!
Comment by Matt — March 31, 2016 @ 5:16 pm
Dave….That may be, but, strong moves often start with BID building. We will see.
Comment by John - BMR — March 31, 2016 @ 6:54 pm
Matt
now if GGI would perk up it could really be fun, cant believe after all these yrs I might get back to even on GBB in one account at least…
Comment by GREG — March 31, 2016 @ 7:42 pm
I bought GBB at 4 cents a while ago. Within a week of buying it dropped to 2 and had got to the point where I was ready to write it off so iam glad I held on and am in the money on it … I hope good things come out of today’s meeting with the ministry
Comment by Matt — April 1, 2016 @ 4:28 am
john – I had to be quiet yesterday to allow some positioning, so I sidetracked the issue.
EQT, exchange has paperwork for all approval. EQT is going to do very well here probably starting next week. There are things going on that are powerful. If you are in it , enjoy
Comment by dave — April 1, 2016 @ 5:52 am
Yes, Dave, the chart also says EQT is an excellent accumulation opportunity at the moment but too many investors prefer to chase rising prices.
Initial reaction to the jobs report this morning is typical of Wall Street. It’s also the start of a new quarter. We’ll see a different market than today next week, I believe, and the Venture is holding up well in the face of weakness in Gold which is a positive sign.
Comment by Jon - BMR — April 1, 2016 @ 5:57 am
Bit of laughing this morning on April 1st…: Loonie Will Keep Collapsing, But Toonie Will Soar: Analysts
huffingtonpost.ca/2016/04/01/loonie-toonie-spread-record-highs_n_9566280.html
Comment by rgiroux — April 1, 2016 @ 6:14 am
EQT has turned over, now over a million on bid at .05
Comment by dave — April 1, 2016 @ 7:51 am