Gold has traded between $1,305 and $1,321 so far today…as of 10:00 am Pacific, bullion is down $9 an ounce at $1,315 as it digests the nearly $70 total advance Friday and yesterday, and also grapples with Fib. resistance at $1,320…Silver is up slightly at $17.79…Copper has surged a nickel to $2.18…Crude Oil has jumped $1.02 a barrel to $47.35 while the U.S. Dollar Index has fallen one-fifth of a point to 96.23…
Holdings in SPDR Gold Trust climbed another 13 tonnes yesterday to 947.38 tonnes, the highest in 3 years…
Societe General’s head of metals research, Robin Bhar, told Kitco News yesterday that the firm is now calling for Gold to move much higher from current levels. “We expect prices to rise to $1,400 per ounce, with follow-through strength extending to the rest of the precious metal sector. The heightened market uncertainty will prompt investors to seek safe-haven assets, benefiting Gold and the rest of the precious metals. While, arguably, some of this uncertainty has already been priced in, there is likely much more to come.”
The UK has been stripped of its last AAA rating as credit agency Standard & Poor’s warned of the economic, fiscal and constitutional risks the country now faces as a result of the EU referendum result…the 2-notch downgrade came with a warning that S&P could slash its rating again…it described the result of the vote as “a seminal event” that would “lead to a less predictable stable and effective policy framework in the UK”…the agency added that the vote to remain in Scotland and Northern Ireland “creates wider constitutional issues for the country as a whole”…
According to former Clinton Treasury Secretary Larry Summers, and many others including CNBC’s Cramer who was ranting about this yesterday, the British vote to leave the EU is the “worst political misstep in Europe since World War II“…
What makes the EU such a wonderful institution?…Margaret Thatcher said this type of arrangement would never ultimately succeed, and she was right…
While there’s certainly going to be period of adjustment for the UK as it works out its “Brexit” from the EU, there will also be incredible opportunities for Great Britain as it enjoys greater policy freedom with full sovereignty as opposed to being suffocated by over zealous unelected bureaucrats in Brussels who have stifled growth and innovation in the euro zone through rampant over-regulation…Great Britain survived the onslaught of German bombings in World War II, and thrived in the decades that followed, so they will overcome any short-term pain that may result from exiting what is really a very flawed EU system…
CRB Index Update
This fresh 2-year weekly chart for the CRB Index points to a commodities market that remains extremely healthy…while Crude Oil experienced a knee-jerk minor sell-off following the UK vote to leave the EU, the fact the Venture has held support around 700 is another clue that the uptrend in commodities will continue into Q3…
Despite its 20% advance already this year, the CRB is far from being in any kind of a technically “overbought” state…a rising 50-day moving average (SMA) and Fib. support, both at 187, underpin the index while RSI(14) at 56% has plenty of room to push higher as it continues its uptrend…
The 200 and 230 levels on the CRB are both reasonable targets for the 2nd half of the year, and that should be sweet music to the ears of Venture investors…
In today’s Morning Musings…
1. The battle begins for Dolly Varden Silver (DV, TSX-V)…
2. Garibaldi Resources (GGI, TSX-V) has a high-grade Gold trail to follow next to Colorado’s KSP Property in the Heart of Gold Camp…
3. Updated charts for CXO, RIC and BAR…
4. Deveron UAS gets some media attention in advance of CSE listing and trading…
5. The most important Dow chart you’ve seen this year – what you need to know…
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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Jon! your research and investigative work on Dolly was spot on! Textbook. i don’t think they teach that anymore, not even at the MBA level.
Comment by Daniel — June 28, 2016 @ 9:35 am
From what I am hearing on the street, drilling at CXO is progressing at a rapid clip. Hole per shift kinda thing. Pad builders are sweating.
Comment by Mmurphy — June 28, 2016 @ 10:03 am
Thoughts on the GGI news this morning?
Comment by Mmurphy — June 28, 2016 @ 10:20 am
Jon
what is up with GGI and the Mexico properties, why do we not hear anything from GGI/Regoci regarding the drilling results, La Patilla almost a year,recent Rambo drilling, surely they have results by now? I have been very quiet and patient I just do not understand why results of those areas have not been released? Now they are going to start a work program in the Golden Triangle, will we ever hear anything about that again, as I have said before it’s the same pattern, drill one area, never report results and then release an NR that we are now going to drill somewhere else… I know I am not the only frustrated shareholder here and you have to admit yourself that the lack of drilling results from GGI just makes no sense? what are they hiding?
Comment by GREGH — June 28, 2016 @ 10:40 am
I would continue to be patient, Gregh. And the chart looks very good. They are clearly into “B.C.” mode at this precise moment, in terms of the news flow cycle at least. Perhaps a deal of some sort looming in Mexico, I don’t know? What I do know is that they’ve got some great ground in Mexico that will drive shareholder value, and we all know it’s going to be a hot summer in the Heart of Gold Camp where GGI has – to their credit – positioned themselves extremely well. I see a terrific few months coming up. That’s my opinion. If I felt the way you did, Gregh, I would have sold GGI already and parked that money into something else.
Comment by Jon - BMR — June 28, 2016 @ 12:27 pm
OSISKO GOLD ROYALTIES is a major shareholder of OREX EXPLORATION (OK) rumors of funding will come from OSISKO GOLD ROYALTIES
Comment by TheSkipper — June 28, 2016 @ 12:48 pm
Another cheap penny stock, Pure Nickel (NIC), brought to our attention by BMR several weeks ago did over 7 million shares traded today and hit a high of $.04 before settling back at $.02. NIC is behaving much like previous BMR penny stock mentions KSK and OX which have made stellar gains. Checking out news releases on SEDAR nothing appears to have changed. Has anyone heard anything that could have sent NIC into eruption mode?
Comment by John — June 28, 2016 @ 6:24 pm
Jon would you tell us if you suspected something at Garibaldi Resources?
Comment by DavidW — June 28, 2016 @ 6:30 pm
good morning bmr staff i bring you the latest press release from heron resources(HER TEXCH) “HERON RESOURCES DELIVERS ROBUST FEASIBILITY STUDY FOR WOODLAND PROJECT” regards walter emond
Comment by walter — June 29, 2016 @ 12:01 am
Of course, DavidW…I suspect we’ll see new multi-year highs on GGI in this upcoming 2nd half of the year. If we don’t, then management isn’t doing its job and you know what that will mean.
Technically, a lot of encouragement with regard to the chart as there has been a breakout above the downsloping flag in place since late last year. Hard to ignore that kind of a sign. In so many other stocks we’ve covered, it has led to a big surge to the upside. In this particular case, that would be consistent with how we see the Heart of Gold Camp being a game-changer for all juniors in the district.
Comment by Jon - BMR — June 29, 2016 @ 2:38 am
Ggi should never be at this level, head scratcher, it will definitely do better with good results fro cxo. Unless of course, they update or release results from Mexico before then.
Comment by Laddy — June 29, 2016 @ 4:06 am
“it will definitely do better with good results fro cxo” – your tight BUT that shouldn’t be Regocci’s back up plan! lol. People are frustrated w GGI and its pregnant possibilities. We all seem to recognize they have great land packages. They even managed to get them so they can have a news flow year round. They just have not capitalized on this at all. Almost got on that train a few months back. Then fell off.
WRR is an example. They have a great single package, but couldn’t keep up the news flow for investors, ‘frustrated’ was the word I think was used to describe that investment by someone. Be nice to marry TUD w GGI! lots of land and a management that knows how to mkt and move fwd.
Comment by david — June 29, 2016 @ 4:45 am
Still on the DBV train, David?
Comment by Jon - BMR — June 29, 2016 @ 5:08 am
Speaking of the DBV train, I’d sure like to see some regular (positive) news releases start flowing…
Comment by Steve A. — June 29, 2016 @ 5:21 am
Jon are u still on the dbv train? I’m still on it. I think it will work out and our patience will pay off. Have you heard any rumors or anything?
Comment by Sameer — June 29, 2016 @ 5:28 am
I’m holding, Sameer, as the Hat has undeniable potential. But the fact is, the Heart of Gold Camp is a much more attractive playground at the moment than the Sheslay district.
Comment by Jon - BMR — June 29, 2016 @ 5:33 am
Venture ALERT – chart shows another leg in the uptrend could now be starting…fresh chart in Morning Musings…
Comment by Jon - BMR — June 29, 2016 @ 6:44 am
Hopefully Dbv and the whole sheslay district still lights up like a Christmas tree this year
Comment by Sameer — June 29, 2016 @ 6:56 am
David
That would be awesome Tudor and GGI, unfortunately Regoci would never let that happen, but you are right we/GGI needs a management that knows how to PROMOTE, that is Regoci’s biggest weakness. He is obviously very good at negotiating and acquiring awesome properties, but he really needs to let someone come in and promote and get the news flowing…
Comment by GREG — June 29, 2016 @ 7:51 am