Gold has traded between $1,363 and $1,376 so far today, touching a 27-month high…as of 11:00 am Pacific, bullion is up $10 an ounce at $1,366…Silver has climbed 19 cents to $20.10…Copper is off a penny at $2.16…Crude Oil has turned higher, up 66 cents to $47.26 while the U.S. Dollar Index has eased slightly to 96.11…
The world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, posted the biggest 1-day surge in its holdings in more than 6 years yesterday…they jumped 28.8 tonnes to 982.72 tonnes, their highest since June 2013…
Germany’s 10-year bond yield slid to a record low for a second day today as fears about the impact of Brexit on economic growth gripped global markets and underpinned demand for safe-haven bonds…meanwhile, yields on U.S. Treasuries, the benchmark for bonds worldwide, hit record lows out to 30 years yesterday…no wonder investors are piling into Gold and Silver…
We called a new bull market in Gold back in February…some analysts are just jumping on board while others are scrambling to raise their targets…
Gold has entered a “new bull run” according to UBS’s Joni Teves who predicts demand will be driven by falling interest rates, pressure on the U.S. dollar, quantitative easing in the U.K., continued concerns over the state of the world economy and, of course, the U.K.’s decision to bail out of the European Union. “The U.K.’s vote to leave the EU further underpins Gold’s macro narrative, reinforcing the themes of further dovish shifts in monetary policies, consequently lower yields and heightened uncertainty,” Teves and her team noted. “We continue to expect U.S. real rates to fall from here and ultimately for equilibrium real rates to settle lower and have limited upside.”
Another noteworthy understatement from a Fed official who apparently had a “light bulb” moment this morning: Daniel Tarullo, a voting member who’s on the central bank’s policy setting committee, said today: “This is not an economy (in the U.S.) that’s running hot.”
But does the Fed really get it?…
Weakening Central Bank Credibility
“Part of the reason Gold is going up is because people are losing confidence in central bank money, from all central banks,” Jim Rickards, author of The New Case for Gold, told CNBC yesterday…speaking on the Federal Reserve, in particular, Rickards said the U.S. central bank’s credibility is “already in shreds” and will likely get worse as interest rate hikes don’t materialize, which should continue to help the metals. “December maybe, but I doubt it. Definitely not ahead of the election,” he explained…
In today’s Morning Musings…
1. Updated Venture 6-month daily chart – near-term guidance as the bull charges…
2. EQT, TKK and ABN explode to the upside…
3. Goldstrike in Utah!…
4. Daniel’s Den – Orca, the Valentine Gold Camp and Jobs Friday!…
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, with all the trials and tribulations Frank has been
through with GBB, I think he may find himself in the sweet
spot with both GBB and TKK. Might be worthy of an interview..
Comment by bob — July 6, 2016 @ 10:29 am
You’re right, Bob, re GBB/TKK. Nice move by CXB late this morning, as well, really charging into the close…patience on some of these plays like EQT and CXB that have been churning is important…suddenly, they can wake up and go crazy…
Comment by Jon - BMR — July 6, 2016 @ 11:47 am
Jon, I think Bob was mentioning GBB and TKK? Worth gaving an interview or site visit with Frank? Regards, Arjan
Comment by Arjan — July 6, 2016 @ 12:24 pm
That’s what I was referring to, Arjan….then I commented on the CXB move. Sorry for the confusion.
Comment by Jon - BMR — July 6, 2016 @ 12:26 pm
Thnx Jon. Noticed it. Any comments on GBB and TKK. Any plans for an interview with Frank in the near future? Much appreciated. Have a good evening. Arjan
Comment by Arjan — July 6, 2016 @ 2:07 pm
Yes, Arjan, it’s possible. Stay tuned.
Comment by Jon - BMR — July 6, 2016 @ 3:53 pm
Any thoughts on Wrr. Way too quiet
Comment by Matt — July 6, 2016 @ 4:06 pm
Jon
how late in the year can a company drill in the Golden Triangle area?, seems to be a lot of talk of companies acquiring ground but not a lot of talk of actually drilling, how many of the companies that have acquired ground will actually be able to put a drill in the ground this year?
thanks
Comment by GREGH — July 6, 2016 @ 4:13 pm
Hi Greg, in the Heart of Gold Camp there’s not a problem drilling until at least the end of September, perhaps into October depending on weather conditions. Right now we’ve got CXO and SEA with drill programs in progress, Tudor will be drilling, GGI will be drilling as they have permits in place for the King and field work starting imminently there, ABN made a terrific acquisition today and I suspect they’ll be good to drill by sometime in August or September (permitting is in progress), Skeena is still waiting for permits for the Snip and so too is Metallis for Kirkham. So that covers most of them. ESK of course has the huge ground surrounding the Eskay Creek mine—–key area——definitely could be drilling there as well in the event of a major JV deal.
Comment by Jon - BMR — July 6, 2016 @ 5:21 pm
Not sure how late companies can drill in the Golden Triangle but very happy my biggest holding reported 15 drill holes in two weeks. Depending on what the results are, they could turn INEL into swiss cheese given the rate at which the crew is tearing through the rocks.
Anyone notice that some of the planned drill holes are at Kyber as well? 7 or 8 of them I believe. Given the statement that they are seeing similar geology and possible linkages with INEL, I can understand why. When Jon says the masses haven’t poured into CXO yet, I tend to agree with him. You ain’t seen nothing yet.
Comment by Dan1 — July 6, 2016 @ 5:26 pm
These first 15 holes are also going to give CXO some incredible new knowledge about the geological environment they’re in and the controls on mineralization, Dan1. This will enhance the possibilities for success as drilling continues, that’s important to realize. They definitely seem to be picking up on linkages, connecting some dots, likely finding new mineralized zones adjacent to previously known zones. Stock pulled back today (on lighter volume) but that was healthy after 4 straight up days and a 40% move. New support in the high 40’s, so this is likely setting up a strong push to the next resistance which we’ve pointed out.
Comment by Jon - BMR — July 6, 2016 @ 5:36 pm
Cxo next week should see first look at drill results
GLTA
Comment by TheSkipper — July 6, 2016 @ 6:51 pm
Hi Jon, you are an eternal optimist.Nearly fell off my chair regarding GGI drilling King this season. Here is a company with their own rig and an interesting property in Mexico and in the last 3-4 years have drilled a tiny number of holes into it.These guys are not shakers and movers.18 months and can’t get material to the mill at Patilla to get some money in, and even worse, won’t inform shareholders as to what is going on. You are far too forgiving of this company.
Comment by PaulH — July 6, 2016 @ 7:18 pm
GGI will be drilling the King, PaulH – that’s not wishful thinking. I said last year they would drill the Grizzly—they did, and in challenging circumstances as well with the Tahltan uprising. Permits in hand at the King (smart to get those so early), boots on the ground shortly to nail down final drill targets…then watch what happens. All heck will break loose. Chubby Creek—remember that, one important target area we’ll probably here a lot of at the King going forward.
Aben’s deal today was very interesting, great to see them put together an entire belt as I’m sure this wasn’t easy to do dealing with 3 different entities as well as underlying NSR’s. Only $2.5 million market cap at the moment – think about the possibilities a month or two down the road. I suspect they’ll probably drill at RDN which is the most advanced target area and has some analogues to both Valley of the Kings and Eskay Creek. Great summer ahead for ABN and others in the district. The more companies that drill, the better —- should be more than half a dozen drill programs going at the same time, and CXO will be the guiding light.
Comment by Jon - BMR — July 6, 2016 @ 7:26 pm
Jon
Thanks for your feedback on the Golden Triangle companies I sure hope they all are able to drill this summer as that would be an incredible amount of potential news flow all the way to the end of the year and would put a lot of eyes on the heart of gold camp, just imagine what could happen if 2-3 of them hit big numbers, CXO, Tudor, Metallis maybe Aben , fun to thing about …
Keep the news coming….
Comment by Greg — July 6, 2016 @ 7:34 pm
A lot of potential triggers, Greg, beginning of course with CXO. Notice how Pretium is on fire as well, and Seabridge, as Gold makes its move? It’s great when the leaders in a camp have a combined market cap in excess of $3 billion.
Remember that Kinross added to its position in CXO in Colorado’s last financing.
Comment by Jon - BMR — July 6, 2016 @ 8:07 pm
Jon
sure hope you are right about GGI drilling the King property this year… you were right about them drilling the Grizzly last year when we all thought that wouldn’t happen so maybe Regoci can pull it off again? Here are my concerns with GGI based on GGI’s track record so far… 1. need money to drill..which in the past Regoci has been able to raise with pretty much little dilution, can Regoci pull this off again, not so sure he can as I believe the market is getting tired of his lack of promotion… 2. I believe by the time they raise the money to drill and they actually start drilling it will be in the fall..3.GGI is the slowest of any company in getting drilling results and notifying the market of those results, so if they do somehow drill the King property this year we wont see any results based on their past track record until next year, so what kind of pop in the share price will we really see?. As Paul mentioned above and you and I have discussed many times you do cut GGI a lot of slack, maybe you can or already have discussed with Regoci his lack of promotion and his need to do a better job in this area, I can only imagine where GGI would be trading at if CXO’s CEO Adam Travis was in charge, with all of the properties that GGI has a CEO like Travis would be having a field day promoting that company…
Comment by GREG — July 6, 2016 @ 9:07 pm
Greg, ABN, Metallis, GGI, others in the camp….they’ve all had brokers/investors approaching them, offering dollars, and I can say that because I know some of the people who have…so raising money is no issue for any of them.
The King will be drilled, as will ABN’s Forrest Kerr and MTS’ Kirkham properties…we’re in for an exciting summer and a profitable one, as simple as that.
Comment by Jon - BMR — July 7, 2016 @ 3:14 am
KTN news out this morning—-drilling underway at La Negra.
Comment by Jon - BMR — July 7, 2016 @ 5:41 am
Also drilling in the golden triangle – Ascot and IDM and Pretivm – busy place!!
Comment by Mmurphy — July 7, 2016 @ 5:54 am
thoughts on the CBS.v release yesterday?
Comment by Mmurphy — July 7, 2016 @ 5:54 am
any idea as to how close or not ABN’s Forrest Kerr is to KING or PSP? no map yet on ABN site
Comment by david — July 7, 2016 @ 7:09 am
David, Forrest Kerr begins from ABN’s previously staked ground (May 11 NR), which borders KSP and PSP, and continues north along the Forrest Kerr fault toward Galore Creek, east of the King and RG’s ground…best way to view it is probably on GGI’s area map…ABN’s RDN Property (the part acquired from Kiska) in the northern area of Forrest Kerr will likely be key…RDN is 40 km NW of Eskay Creek…
Comment by Jon - BMR — July 7, 2016 @ 7:38 am
ABN – GGI – thx – that helps a lot
Comment by david — July 7, 2016 @ 8:38 am