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October 28, 2016

BMR Morning Market Musings…

Gold has traded between $1,261 and $1,275 so far today…as of 9:45 am Pacific, bullion is up $2 an ounce at $1,270…Silver is 11 cents higher at $17.71…Copper has added 3 cents to $2.19…Crude Oil is off 56 cents at $49.16 while the U.S. Dollar Index has retreated one-quarter of a point to 98.67

Gold prices pulled back slightly immediately following the release of preliminary data this morning that showed the U.S. economy grew at a faster pace than expected in Q3, but quickly rebounded as details of the report were digested…

Just 12 days before U.S. elections, the Commerce Department reported, in its advance assessment, that GDP expanded by 2.9% in the 3rd quarter, up from 1.4% growth seen in Q2…economists were expecting to see the economy expand by 2.5%…this is the best GDP reading in 3 years…what a coincidence!…

The bureaucrats’ explanation?…“The acceleration in real GDP growth in the 3rd quarter reflected an upturn in private inventory investment, an acceleration in exports, a smaller decrease in state and local government spending, and an upturn in federal government spending. These were partly offset by a smaller increase in PCE, and a larger increase in imports,” the report said…

Major strength in Q3 came from a surge in exports…according to the report, exports grew by 10% between July and September…this sector has been a major laggard as U.S. manufacturing companies are competing with a rising greenback…meanwhile, the data showed that domestic demand was weaker than expected while personal consumption in the 3rd quarter grew by 2.1%, down from Q2  growth of 4.3%…economists were expecting to see consumption expand by 2.6%…watch for a downward revision in Q3 growth when fresh estimates come in (after the election, of course)…

Other economic data released this morning included the final read on consumer sentiment for October which missed expectations…

Gold To $1,500 On Trump Upset Victory?

A victory by Republican presidential candidate Donald Trump or a clear sign that he might win in the next 2 weeks could possibly drive Gold prices up by at least 10% or more, according to analysts at Thomson Reuters GFMS…in its Third Quarter Gold Survey, the research firm broke down potential outcomes for the Gold market ahead of the November 8 election.  “On Balance, a victory for Trump (or possibly even just a clear sign that this is set to happen) would be likely to cause Gold to rise above $1,400 and even $1,500 for the first time since April 2013,” the analysts wrote in their report…

Markets are anticipating that Democratic candidate Hillary Clinton, who leads in almost all polls, will capture the White House…

How much trust should we have in the polls?…Brexit was a great recent example…also, keep in mind that no national poll in the final week of the 2000 campaign had Al Gore ahead in the popular vote, according to fivethirtyeight.com, even though he ended up winning it (Gore lost out to Bush of course in the electoral college but not before a razor-thin Supreme Court vote pertaining to Florida ballots)…in British Columbia in 2013, polls had the NDP leading comfortably right up until election night but the Liberals coasted to victory…there is a lot of potential volatility in the U.S. electorate at the moment, so anything is still possible November 8…the latest CNN and Fox News polls had Clinton ahead by 5 points and 3 points, respectively, and holding the edge on the electoral college map…

BREAKING NEWS JUST IN:  FBI re-opens investigation into Hillary Clinton’s private email server…oops!…dollar drops, Gold pushes higher…

Chinese Gold Imports Remain Robust

Simona Gambarini, respected commodities economist at Capital Economics, says Gold imports into China so far this year are up 9% compared to the same time frame last year, “suggesting that China’s appetite for Gold has remained robust”Gambarini added that she’s expecting the trend to continue, particularly after the 5% drop in Gold prices at the start of the month.  “Chinese consumers tend to be very sensitive to changes in price and the recent fall in the Gold price below the $1,300 per ounce level has probably stimulated buying activity. We expect China’s demand to strengthen in the remainder of the year as Gold buying normally accelerates ahead of the Chinese New Year,” she stated…

iAnthus Capital Holdings Inc. (IAN, CSE) Boosts Financing To $20 Million

Interesting news from iAnthus Capital (IAN, CSE) this morning which demonstrates how hot the marijuana sector is right now…the company has increased its bought deal financing (led by Canaccord Genuity) to $20 million (9,525,000 units at $2.10 each)…each unit includes a half warrant…one full warrant will be exercisable to acquire one share at $3 per share for 1 year…the warrants will be subject to a 30-day forced exercise provision if the company’s daily volume weighted average share price is greater than $4 for 15 consecutive trading sessions…iAnthus raised $6.5 million to list on the CSE in September and had only 5.7 million shares outstanding entering this financing, so this tightly held, well-financed marijuana deal could gain a lot of traction yet from its current $2.60 price…best volume day yet for IAN on the CSE…

China’s Stock Market Catching Fire Again

China’s Shanghai Composite is gaining serious momentum, so what that all means will be interesting to find out…notice the breakout above the downtrend line in place since the Big Correction that started in mid-2015

Interestingly, during the gradual advance of the Shanghai this year that’s now picking up steam, the CRB Index has been rising as well…we’ll be watching closely to see if that trend stays intact…

ssec-oct-28

In Today’s Morning Musings

1. Almadex Minerals (AMZ, TSX-V) up 50% for the week after results from El Cobre…

2. G4G Capital (GGC, TSX-V) surges on completion of financing and Shawn Ryan deal…

3. Garibaldi Resources (GGI, TSX-V) samples 56% Zn, 7.4 g/t Au and 7.2% Cu at E&L East, but that’s merely a side show for what’s to come concerning the E&L Project and its Ni-Cu-Au deposit…

4. A 5-cent non-resource speculative play…

5. Ross Beaty likes this one, a lot!…

6. Daniel’s Den – even billionaires make mistakes!…

Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password…

24 Comments

  1. fbi reopening Clinton e mail investigation , rite on!!

    Comment by Laddy — October 28, 2016 @ 9:15 am

  2. I can hardly wait for the Sunday Sizzler Report Jon, and what you have to say about GGI. I have this feeling that from now on every update from Regoci is going to be very dynamic and will help propel the stock going forward.

    Comment by pole — October 28, 2016 @ 9:18 am

  3. Glad I don’t live in the US and have to make a decision in this election, both are rich arrogant and corrupt, but I would like be less inclined to vote for the racist pervert. You are right to not trust polls as you pointed out with the last BC election. I have a few gold stocks in the portfolio in case the reality tv star actually wins. Probably shouldn’t bet against a celebrity politician in the states right? Its going to be interesting.

    Comment by Mmurphy — October 28, 2016 @ 9:36 am

  4. CNN and Hillary’s worst nightmare…

    DEVELOPING: FBI reopens investigation into Hillary Clinton’s use of private email server, Gold now up $10 an ounce…could take off big-time…HGU trade could be the huge “Big Short” on Hillary and the system as speculated…

    Comment by Jon - BMR — October 28, 2016 @ 9:36 am

  5. Yeah
    A lot of good that will do now since all of the evidence against her has been conveniently destroyed ..
    Unbelievable that she is not in prison her and Bill both

    Comment by Greg — October 28, 2016 @ 9:36 am

  6. My friend thinks she is a lock in, but i don’t know. I stay out of politics. I would not be surprised if neither of them made it in, and they did a write in for President.

    Comment by dave — October 28, 2016 @ 9:37 am

  7. The fact the case is being re-opened against Hillary definitely opens the door for Trump, no matter how much evidence Hillary’s team has destroyed…the optics for her are horrible…

    Comment by Jon - BMR — October 28, 2016 @ 9:56 am

  8. I think the poll’s are wrong, and trump will win. when the good American people walk into the voting booth, they will check the box beside trump’s name for one reason that NO ONE is talking about.
    He is a man. there has never been an American female president, and there wont be one this time around.

    Comment by herman — October 28, 2016 @ 10:06 am

  9. HGU is going for a run, and u know what that means for Gold stocks…

    Comment by Jon - BMR — October 28, 2016 @ 10:10 am

  10. Gold is looking for sure!

    Herman – I was shocked a black president got voted in! not sure I would count on that

    Comment by Mmurphy — October 28, 2016 @ 10:22 am

  11. DVR – PP shares came free on the 24th of Oct… or there abouts… more for sale means more to buy??

    Comment by Jeremy — October 28, 2016 @ 10:51 am

  12. Jeremy, creates some needed liquidity which can be a positive in this case.

    Comment by Jon - BMR — October 28, 2016 @ 11:10 am

  13. Thanks Daniel
    glad I waited until earnings were announced on CRR was very tempted to jump in as it appeared CRR couldn’t go much lower… Oil companies/drillers just not willing to spend the extra money right now for the superior products of CRR. One to keep on the watch list as oil continues to re cover. Thanks for bringing these types of companies to your readers attention.

    Comment by GREGH — October 28, 2016 @ 11:20 am

  14. DVR
    Im holding onto my shares, I live in California right in the heart of one of the largest agriculture areas in the world, Kern County, almond orchards everywhere, not to mention cotton, alfalfa, carrots and many others, unlimited potential here, hope DVR’s first contract here is one of many more to come…
    Water is a huge issue here so growers are going to be open to anything that can boost yields without having to use more water or fertilizers to do so…

    Comment by GREGH — October 28, 2016 @ 11:24 am

  15. Thanks GREGH! Appreciate the feedback. and Happy you held off!

    Comment by Daniel — October 28, 2016 @ 11:50 am

  16. Dave – no brinks truck… only profits from BLO:)
    Jon – DVR – a positive for sure I think… maybe we get some momentum now???
    Gregh – me too… when I talked to David M he was talking about building the company into a 500 mill biz.. so the biz plan is not for the short term…
    BLO and DVR could be BIGGGGGGGGGG winners here… new global biz!!

    Comment by Jeremy — October 28, 2016 @ 12:03 pm

  17. Clinton emails re-opened cause they found stuff in Wieners emails . too funny. that idiot screws up his wife’s life, again! as for whether there is anything new for the FBI to get hot+bothered about, time will tell.

    Comment by david — October 28, 2016 @ 12:25 pm

  18. Jon

    GGI I swore I would never do this again, but I bought more GGI today, alot more, either I am very stupid or I just like PAIN… It may be dead money for a little while, worst case it only needs to move a couple of pennies now and I can break even if I can get out, lol, C’mon Regoci prove all of us naysayers wrong!!

    Comment by GREGH — October 28, 2016 @ 12:59 pm

  19. anyone follow CBG.v? some good buying at the end of the day

    Comment by Mmurphy — October 28, 2016 @ 12:59 pm

  20. I like CBG’s properties, MMurphy, but the problem is that Jack Stoch puts all his money into the ground, and that’s exactly where his deals are—–buried in the ground.

    Comment by Jon - BMR — October 28, 2016 @ 1:32 pm

  21. I found a gem today. Can’t go into details and can’t give the symbol till monday. I am hoping it does not gap up on Monday. I don’t think it will. I think even Jon might like this one. I mean this is a hidden gem.

    Jeremy – glad your in the green on blo. Chart looking like it could break to the upside again. But you know me, I didn’t buy at .20 and I have that stubborn mentality, buy low or don’t buy at all. It keeps my trades green.

    Ya’ll have a great weekends, eh

    Comment by dave — October 28, 2016 @ 1:55 pm

  22. Nice close on PMA. Should b interesting.

    Comment by Dennis — October 28, 2016 @ 2:35 pm

  23. Thanks for the response Jon re CBG

    Comment by Mmurphy — October 28, 2016 @ 3:01 pm

  24. dave.. yep very green:) one of the few.. I am an investor.. a dying breed I fear:)

    Comment by Jeremy — October 28, 2016 @ 3:55 pm

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