Gold has traded between $1,341 and $1,356 so far today…as of 9:45 am Pacific, bullion has reversed higher and is up $2 an ounce at $1,353…Silver has cooled off 49 cents to $19.82…Copper is down 3 pennies to $2.17…Crude Oil has fallen $2.20 a barrel to $46.79 while the U.S. Dollar Index has added half a point to 96.02…
Silver’s advance last week, driven in part by technical factors, was its biggest weekly gain in nearly 3 years, trimming the Gold-Silver ratio to its lowest level since September 2014…
“Silver had soared by nearly 19% at its peak since the beginning of last week without there having been any news to justify such a pronounced price rise,” Commerzbank said in a note. “Evidently speculative financial investors played a major part in the price increase. In our opinion, there is now considerable correction potential from this side. If the ‘hot air’ were to dissipate, the Silver price could come under more significant pressure.”
What Commerzbank has failed to point out, however, is that Silver’s long-term chart has changed dramatically in recent weeks, suggesting that while a near-term pullback is certainly a possibility to unwind temporarily overbought conditions, the outlook over the next 6 to 12 months is exceedingly bullish…that explains the current interest of “speculative financial investors” referred to by Commerzbank…the “poor man’s” Gold, Silver is going to continue to lead the yellow metal to the upside over the remainder of the year…
In today’s Morning Musings…
1. How high are the Venture and Gold headed this month?…
2. Water, water, everywhere – good news for Orca Gold (ORG, TSX-V)…
3. Volume spike in Takara Resources (TKK, TSX-V) is a bullish signal…
Plus more…click here if you’re a non-subscriber to receive 3 Top Picks For July, or login with your username and password to view the rest of today’s Morning Musings…
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Jon, what are your thoughts on DBV expanding to Red Spring? With things stalled at the Hat and financing, pending results still an unanswered question…is this a good thing or are they spreading themselves out too thin?
Comment by ChetBaker — July 5, 2016 @ 9:11 am
I would say that’s a positive development, ChetBaker. DBV needs to get something going on the ground and that’s the path of least resistance (and least expense) at the moment.
Comment by Jon - BMR — July 5, 2016 @ 10:03 am
CXO – planning a tour for analyst and news letter writers. The confidence that they have something special at Inel is shining through. The sp seems to indication that the drills are hitting some nice gold.
Comment by Dan1 — July 5, 2016 @ 11:56 am
Looks like we are about to have a run on TUO and SIE
Comment by dave — July 5, 2016 @ 12:09 pm
Dan
I was thinking the same thing and was also thinking this is how you promote your company
CXO is gonna be big!
Comment by GREGH — July 5, 2016 @ 3:27 pm
Be careful on SIE…
Comment by Jeremy — July 5, 2016 @ 3:37 pm
It’s funny watching a bunch of analysts starting to jump on the gold bandwagon. A year ago they were all bashing gold and calling it a “pet rock”. I love it.
Comment by Sameer — July 5, 2016 @ 3:43 pm
IDM also have tours coming up soon
Comment by TheSkipper — July 5, 2016 @ 3:57 pm
Gold and Silver looking strong tonight. Instincts tell me fireworks on multiple fronts tomorrow. Get up early, do not sleep in!!
Comment by Jon - BMR — July 5, 2016 @ 5:02 pm
Dan – thanks for the heads up on the planned CXO tour. Do you have ant insight on tour timing? I wonder if it will be before or after the Sprott Conference in VCR at the end of July (which by the way CXO will have a booth at).
Comment by Rockman — July 5, 2016 @ 8:24 pm
Third week of July, Rockman.
Comment by Jon - BMR — July 5, 2016 @ 8:30 pm
Rockman, that was indicated in Morning Musings yesterday.
Comment by Dan1 — July 6, 2016 @ 2:54 am
Ok thanks Jon and Dan1 – must have missed that. But it certainly means we can expect first drill results either this week or next, as they would want to have that out before the tour.
Comment by Rockman — July 6, 2016 @ 3:32 am
News out EQT,any comments,results sound good ,moe news coming,up on the German exchange ?
Comment by bigbear — July 6, 2016 @ 3:45 am
Baldo zone continues to look very good, bigbear. They should definitely be able to increase resources there and delineate higher grades – that’s a recipe for success. Interested in seeing how the drill results turn out.
Comment by Jon - BMR — July 6, 2016 @ 3:54 am
Interesting to note that Clean Commodities (CLE, TSX-V) has expanded its land package around Northern Shield’s PGE discovery – news out after yesterday’s close. Nearly 300 sq. km now. With its various acquisitions in recent months, CLE is extremely well positioned for a stellar 2016 IMHO.
Comment by Jon - BMR — July 6, 2016 @ 3:58 am
Aben to Acquire 23,000 Hectares Within B.C.’s Golden Triangle
Comment by diesel — July 6, 2016 @ 4:12 am
That’s a major package, starting just NW of the Eskay Creek mine and tracking north toward Galore Creek. High-grade Gold/Silver/base metal potential. Could be a company-builder for ABN, a lot of nice looking structure along the Forrest Kerr Fault. Limited historical drilling within the project area but notably, RDN (Kiska) package includes drill-hole RG91-16 at the Boundary Zone which returned 10.2 g/t Gold over 17 m.
Comment by Jon - BMR — July 6, 2016 @ 4:37 am
EQT: bids are building… I really like how they are planning their fast-track development.
http://rockstone-research.com/index.php/en/research-reports/1219-Trenching-Discovers-High-Grade-Gold-at-Surface
Comment by rgiroux — July 6, 2016 @ 5:27 am