A remarkable 12 hours for Gold and the world…bullion traded down to its 50-day moving average (SMA) last night as voting ended in the UK, then quickly reversed to the upside as early results from the referendum on the EU began pouring in…hours later, with Leave prevailing 52% to 48% over Remain on 72% turnout, British Prime Minister David Cameron announced he was resigning as voters made a firm decision to take the UK out of the EU…global stock markets were thrown upside down today, but if you’re invested in Gold stocks your portfolio is surging…
Gold shot up as much as $100 overnight, hitting a 27-month high of around $1,360, before pulling back modestly…as of 9:30 am Pacific, bullion is up $60 an ounce at $1,316…Silver is going along for the ride, up 47 cents at $17.71…Copper is off 4 pennies at $2.11…Crude Oil has fallen $2.11 a barrel to $47.76 while the U.S. Dollar Index has surged nearly 2 full points to 95.49…the U.S. economy doesn’t need a higher dollar – the Fed really has its hands tied now…
UK voters have made a reasonable decision to repatriate their laws and “take their country back” from the suffocating over-regulation of the EU (taxation without representation – that’s what sparked the American Revolution)…in that context, they will undoubtedly work out a new relationship with the EU that will be positive and beneficial for all, but the “Brexit” will obviously take some time to sort through…the dire economic consequences predicted for the UK in the event of a “Leave” vote have been exaggerated, though there is a risk of some short-term hiccups…the referendum also leaves the country deeply divided (that could change depending on leadership)…Scotland voted by a big margin to remain in the EU, and it may seek another try at independence…
The Brexit may also encourage political parties elsewhere in Europe who want to dump the euro currency or leave the EU…Italy’s Five Star movement and France’s National Front have each called for votes on the EU…
Political and economic uncertainty around the globe, coupled with the evil of radical Islamic terrorism, are sure to keep Gold strong through the balance of the year and beyond…
The way the broader markets were so confident that the UK would vote to remain in the EU also demonstrates how many investors simply don’t understand the political trends sweeping the globe…anti-establishment sentiment prevailed in the UK last night, and we predict it will also win out in the United States this November…that means investors need to seriously prepare for a Donald Trump presidency as Hillary Clinton – the ultimate establishment candidate – could easily get flattened despite her current lead in the polls…that should pour even more gas on the fire as far as Gold is concerned…either outcome (Clinton or Trump) would be bullish for Gold but a Trump victory would further heighten the global uncertainty that has given bullion such a lift today…
In today’s Morning Musings…
1. A look at Gold in Canadian dollars (wow!), and just how high can the TSX Gold Index climb?…
2. One of the most undervalued Gold stocks on the TSX – and it’s ready for an important breakout…
3. A must-own Canadian Lithium explorer…
4. Daniel’s Den – “Behavioral Finance”!…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings…
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Lion write up ..fwiw
These guys make some good points
Regarding the mill, word has it that it is being planned with ease of expansion in mind.
________________________
Summary of positive characteristics of Tuvatu Gold Project:
·Gold mined from the existing exploration decline may fully repay capital.
·Thirty nine (39) “lodes” (mineralized veins) have been identified, commencing at surface and extending laterally and to depth, and may not be fully reflected in the mine plan and current resource estimate.
·The geometry of the lodes is at an ideal angle for efficient underground mining.
·The thickness of lodes are attractive (for minimizing mine dilution) for experienced Fijian miners with decades of underground mine experience.
·The plant is designed to achieve high recoveries, utilizing gravity tables, flotation circuits and separate CIL processing of flotation concentrate and tailings.
·Mining is recognized by the government of Fiji as critical to economic development.
Lion One has developed Tuvatu with added capacity to reduce bottlenecks and de-risk operations, to maximize the continuity of operations, and achieve high recoveries from a modest 600 tpd operation. This is expected to increase cash flow to repay capital and fund mine development and exploration, to potentially extend the project. We are initiating research coverage of Lion One with a Buy rating and price target of C$1.40 per share.
SCARSDALE EQUITIES LLC
Comment by Carl — June 24, 2016 @ 9:04 am
AQ in Atlin BC Irwin Olian talks richmondclub.com/african-queen-mines-ltd-investor-presentation-june-22-2016
Drills turn next week took a position as AQ has all the ground cover with huge land position plus placer operation to start soon to
Historic Drill holes
Interval
Width
Grade
YJ03-01 13.95m to 19.51m 5.56m 513.5 g/t Au
YJ04-07 48.85m to 54.45m 5.6m 40.1 g/t Au
including: 53.95m to 54.45m 0.5m 588.9 g/t Au
TW05-02 10.67m to 12.79m 2.12m 853.0 g/t Au
including: 10.67m to 11.58m 0.91m 2,397 g/t Au
TW05-02 20.05m to 41.50m 21.45m 11.5 g/t Au
Comment by TheSkipper — June 24, 2016 @ 9:18 am
Good volume on RJX.A today.
Comment by Mmurphy — June 24, 2016 @ 11:20 am
Great work!!.. Daniel T.
Comment by GregJ. — June 24, 2016 @ 12:37 pm
the gold stocks did not react well today for gold shooting up
Comment by dave — June 24, 2016 @ 2:18 pm
TSX Gold Index was up 7% today vs. 4.7% move in Gold, so the producers outshone Gold today as they often do, Dave. Venture plays specifically (and the producers) would have done better if the Dow hadn’t fallen 600+ points, but the fact the Venture was even up slightly today in the face of a broad market sell-off shows you how much things have changed. The Venture continues to outperform the broader indices and that’s very bullish. Juniors will respond extremely well if Gold has staying power above $1,300. Good chance for bullion to be at $1,500 come September/October IMHO.
Comment by Jon - BMR — June 24, 2016 @ 2:53 pm
Jon… thanks for that I was really disappointed when I check my portfolio and it was ONLY up 12000…. i was figuring it would have been up 25-30..!!!! the mid to large caps did well of course… but some of the explorers were muted!
Comment by Jeremy — June 25, 2016 @ 6:39 am
Jon: do you see the carnage continuing on Monday as capitulation sets in in the morning and then possibly some sort of rebounding? Gold at 1315 looks good now?
Comment by STEVEN1 — June 25, 2016 @ 12:53 pm
It’s certainly possible (likely) there will be more selling on the broader markets Monday on follow-through from Friday, Steven1, but then a rebound next week as central banks tell investors what they want to hear. Gold needs to overcome $1,320 and then $1,300 may become the new floor. We have a new Fib. level for Gold in our updated 6-month chart in the Week In Review And A Look Ahead just posted.
Comment by Jon - BMR — June 25, 2016 @ 1:03 pm