Gold has traded between $1,245 and $1,258 so far today…as of 9:30 am Pacific, bullion is up $4 an ounce at $1,254…Silver, which has hit an 11-month high, is up another 20 cents at $17.12 after yesterday’s big move…Copper is a penny higher at $2.23…Crude Oil was lower in early trading but has since reversed and is now up 67 cents at $41.75 while the U.S. Dollar Index has added one-fifth of a point to 94.30 after briefly dipping below 94…
Gold rallied sharply yesterday as weak U.S. housing data, on top of other soft economic data last week, further dented the likelihood of U.S. interest rate hikes in the foreseeable future. “The Gold rally is most under threat from the resurgence in investor risk appetite,” HSBC observed today. “The move in stocks to fresh 2016 highs, if the run continues, may rob Gold of some of the oxygen it needs to continue to rally.” However, potential equity strength may pose less risk to the Gold rally than in previous periods of stock market gains as the U.S. dollar remains under pressure thanks to a dovish Fed – very different dynamics than were at play from mid-2014 to December 2015…
Commerzbank: “Silver is currently much stronger than Gold. The Gold-Silver ratio has dropped to below 74, its lowest level since early November. It was still over 80 at the beginning of last week. Unlike Gold, Silver saw further inflows into its ETFs. The iShares Silver Trust, the world’s largest Silver ETF, reported inflows of 44.4 tonnes. By contrast, Gold ETFs posted an outflow of 8.5 tonnes Tuesday.”
There’s another wind at Silver’s back: miners are producing less of it…more on Silver (“Silver Shines”), including an updated chart, in today’s Morning Musings for subscribers…
ECB Meets Tomorrow
The European Central Bank is back in the spotlight tomorrow – how that may impact Gold and the U.S. dollar will be interesting to see…no major policy changes are expected but market attention could drill down on ECB head Mario Draghi if there’s any pullback from him on recent rhetoric expressing the chance for additional monetary policy loosening for the region…
Canada Joins The World In Piling On Debt In The Name Of “Stimulus”
A new report from Canada’s parliamentary budget watchdog confirms that the Trudeau government inherited a surplus before plunging federal finances deep into red ink…the Parliamentary Budget Officer’s economic and fiscal outlook, released yesterday, also estimates the government’s decision to return the eligibility for Old Age Security to 65 from a planned Conservative increase to 67 will cost the treasury (taxpayers) more than $11 billion a year beginning in 2029–30…the PBO also questions the government’s projection that budget measures will create or maintain 100,000 jobs by 2017–18, instead forecasting the creation of 60,000 jobs…
As we’ve stated all along, the Trudeau government isn’t “investing in Canadians” as it’s cleverly trying to claim – it’s really investing in itself, creating a bigger government (just like in the province of Ontario and some other jurisdictions) that will overspend, overregulate, and ultimately extend the tax burden for everyone in this country…this is the 1970’s all over again under the previous Trudeau…today’s younger generation obviously doesn’t read history…that reckless strategy, pursued by liberals in both Canada and the U.S., was proven wrong and it will fail again now…all the more reason to own Gold…
Mulroney Blasts Trudeau’s Handling Of Pipelines
Former Canadian Prime Minister Brian Mulroney also contributed to Canada’s debt problem but at least he got this right in a speech yesterday at a private event held by the Business Council of Canada, as reported in today’s National Post by John Ivison: Murloney said the regulatory process governing pipeline approval is being “gamed” by people who want to disrupt any Oilsands development, and urged Trudeau to spearhead a “concerted and coherent strategy” to build energy infrastructure.
Mulroney: “Despite all that you may have heard or read, the age of fossil fuels is not about to end any time soon. In fact, the International Energy Agency estimates that demand for Oil, Coal and Gas will increase steadily into 2040. Heavily subsidized “renewables” will also increase but will still be a small part of the total. That is the reality of the world we are in.
“The biggest challenge in Canada today is uncertainty,” Mulroney continued. “The resource sector has hugely capital-intensive projects with a long life. But these projects cannot go forward if they become captives of seemingly endless processes and reviews. Public policy has a critical role to play in reducing some of that uncertainty and promoting the Canadian resource sector in emerging markets. Your voices need to be heard in this debate.
“We cannot allow our regulatory regime to be gamed by those who simply want to disrupt any form of development. There are clear lessons from history on this tendency.”
In today’s Morning Musings…
1. Pure Energy (PE, TSX-V) pushes through another Fib. level (updated chart)…
2. The dynamics that will power the Iskut River Gold Camp…
3. A look at a strong non-resource play…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only…
SAVE 25% with a risk-free subscription as you gain full access to this and other exclusive BMR content and features, including our new Top Opportunities List May 1!…
Jon, you have mentioned v.CYP as one to watch and accumulate in the Clayton Valley.Cache Exploration has a LOI with Matica for the McGee property directly below CYP,with PE bordering directly to the west and PE’S optioned property to Nevada Alaska directly below Cache.
Matica has already done two phases of testing on the McGee property with results matching what CYP has come up with on theirs.
I wonder if you could do some DD on this arrangement and what your thoughts would be on the potential?Cache only has 7.8 million shares,and none for sale at this time.
Comment by robinandthe7hoods — April 20, 2016 @ 12:36 pm
For the most part I have been pretty quiet lately however I have started buying back my trading position in GGI, I have become more convinced that gold and silver have turned a corner and GGI has many irons in the fire that could propel the price much higher. Personally I think this a no brainer at .10 right now. Big upside/limited downside.
Comment by Danny — April 20, 2016 @ 6:49 pm
Gold pushing above key $1,260 level (top of symmetrical triangle flag) following the ECB news this morning and more dollar weakness…as per John’s chart yesterday, + $1,300 Gold soon?…
Comment by Jon - BMR — April 21, 2016 @ 4:16 am
Jon, what are your current thoughts on GGB and BHS? BHS has a permitted mine just waiting to go, and GBB waiting for CofA?
Comment by TJ — April 21, 2016 @ 5:19 am
purepoint uranium ptu…some impressive results this morning
Comment by Roger — April 21, 2016 @ 5:29 am
I wouldn’t put the 2 of them (GBB and BHS) in the same category, TJ. I like Graeme O’Neill, and I imagine he’ll draw some more speculative interest into BHS, but I’ve never been too keen on mining plays in Oregon given all the tree huggers down there. Love the sand dunes on the Oregon coast but the mindset among the populace in that state, and I’ve been all through Oregon, is a little different as reflected in their politics. It’s not exactly mining country. Northwest Quebec is, and though the CofA process for GBB has been frustrating due to the environmentalists who have infiltrated the bureaucracy in Quebec, it’s inevitable in my view that Granada will go into production. In addition, the economics of the project are looking better than ever given the outlook for Gold.
Comment by Jon - BMR — April 21, 2016 @ 5:35 am
Indeed, just about to mention that, Roger. Where there is smoke, there’s fire…right on strike with NexGen and they’ve drilled into their best high-grade yet…stock is breaking out this morning above that previously identified 10-cent resistance…this is why we added this one about a month ago to our list as recent results have been increasingly bullish…the next several months should be very positive for PTU – summer drill program should attract a lot of interest…
Comment by Jon - BMR — April 21, 2016 @ 5:36 am
wow,you must admit that was a pretty wild couple of hours..
Comment by Laddy — April 21, 2016 @ 6:08 am
Jon, regarding SKE: have you heard anything regarding the Eilat lawsuits in the Supreme Court of British Columbia over its sale of the Spectrum gold project in northwest B.C. to Skeena (press release of Friday 15 April 2016)?
I would hate to have management distracted by this at the moment that Eskey is getting hot…
Comment by rgiroux — April 21, 2016 @ 6:57 am
CXO just halted…
Comment by Jon - BMR — April 21, 2016 @ 7:15 am
CXO…Trading HALTED, pending news.
Comment by John - BMR — April 21, 2016 @ 7:15 am
I don’t believe that lawsuit has any merit, rgiroux, and I say that simply because Netolitzky is no fool…he didn’t make it into the Canadian Hall of Fame by screwing up on something like that, so we’ll see…the only thing I haven’t been keen about regarding SKE is their share structure which they’ve allowed to balloon…CXO is much tighter and they’re the leader of the pack with KSP…there are also tighter deals among other plays in the camp besides SKE, but keep in mind—-Netolitzky has a big and successful history in the Iskut/Eskay Creek area…
Comment by Jon - BMR — April 21, 2016 @ 7:18 am
Now that’s going to be interesting (CXO halt), especially just a few days after Seabridge gobbles up SGG…
Comment by Jon - BMR — April 21, 2016 @ 7:20 am
SKE: reviewing the acquisition terms of Spectrum gold project, quite complicated terms…
skeenaresources.com/news/skeena-completes-acquisition-of-high-grade-spectrum-gold-property-northwest-b-c2014-10-27
Comment by rgiroux — April 21, 2016 @ 7:21 am
CXO halted. If news is good I am happy I didn’t wait for the pull back. I will thank you Jon if news is positive as you did say waiting for a pull back could be a dangerous game to play with CXO
Comment by Dan1 — April 21, 2016 @ 7:40 am
I’m hoping Seabridge doesn’t gobble up all the small players in the Iskut region.What would that mean for GGI and the King claims?
Comment by pole — April 21, 2016 @ 7:52 am
What I’d like to see, pole, is a strategic investment into CXO by Seabridge (or another heavyweight) at this time…if that’s what this news is about, watch out…Seabridge had very specific and strategic reasons for an immediate SGG takeout…they don’t need to do that with CXO or another company at this time…
Comment by Jon - BMR — April 21, 2016 @ 8:07 am
I’m also a happy subscriber that has acted rapidly on this one with profit from ABR. That was great timing…
Comment by rgiroux — April 21, 2016 @ 8:13 am
Thanks for that Jon. Just have to wait for news.Hopefully GGI has added to their land claims in the Iskut region.
Comment by pole — April 21, 2016 @ 8:14 am
CXO doubles its land position – wow…more to talk about in our interview coming up with Adam Travis…this area is literally going to explode, which is why we have 2 new picks to add to our Top Opportunities List from this camp (coming up in today’s Morning Musings)…
Comment by Jon - BMR — April 21, 2016 @ 8:47 am
TUO – teuton – 24mm shrs out – has to becoming a player in this area, they have options a # of props off in this area over the years
Comment by david — April 21, 2016 @ 9:11 am
What happened to the news GGI was supposed to release this week?
Comment by Dan1 — April 21, 2016 @ 9:26 am
I don’t think the week has ended yet, Dan1, but they did indicate they expected to provide an update on the Grizzly sometime during this week…that means either later today or tomorrow, I guess, unless they’re all up at the Iskut River Gold camp…
Comment by Jon - BMR — April 21, 2016 @ 9:27 am
I surprised that we haven’t heard any more news from WRR. Kind of makes you wonder.
Comment by pole — April 21, 2016 @ 9:38 am
WRR just came out with news the other day, pole…we’ll have an update tomorrow…
Comment by Jon - BMR — April 21, 2016 @ 9:53 am
Thanks Jon, because I can’t find anything new since last news release last month.
Comment by pole — April 21, 2016 @ 10:12 am
Drilling kicks off again in May, pole…
Comment by Jon - BMR — April 21, 2016 @ 10:13 am
Hi Pole, go to stockwatch.com and you’ll find news at the bottom of the page.
Comment by jasi — April 21, 2016 @ 10:48 am
Thanks Jon.
Comment by pole — April 21, 2016 @ 10:50 am
Thanks jasi.
Comment by pole — April 21, 2016 @ 11:01 am
WRR has also stated results from holes four and five coming soon. and if they are as good or better then the first three then this will not be at five cents for long.
Comment by Ed — April 21, 2016 @ 11:21 am
There’s a good chance it’ll move higher, Ed, just leading into May as the drilling draws closer. It’s crazy that it’s trading where it is at the moment given these high-grade near-surface intersections. I seldom do this, but here’s Michel David’s cell #: 1-819-856-7486. Bug the heck out of him. If he’s upset about his number being given out, tell him he should return my calls more promptly.
Comment by Jon - BMR — April 21, 2016 @ 11:29 am
Lol love it Jon!! He will be changing his # by tomorrow
Comment by Matt — April 21, 2016 @ 3:26 pm