Gold has traded between $1,177 and $1,194 so far today in thin trading conditions due to U.S. Thanksgiving…as of 10:30 am Pacific, bullion is down $1 an ounce at $1,183…Silver, which has corrected 20% from its August high, has recovered 18 cents to $16.49…Copper is up a penny at $2.64…Nickel, enjoying a great week, has pushed 4 cents higher to $5.26…Crude Oil has slipped $1.50 a barrel to $46.46 while the U.S. Dollar Index has retreated one-quarter of a point to 101.43…
Assets in bullion-backed ETFs have contracted 85.5 metric tons this month, retreating to 1,902 tons, the lowest level since June according to data compiled by Bloomberg…Gold’s decline this month is a reversal from earlier this year when prices were surging as the Fed held off raising rates and investors reacted to unexpected political events, especially the Brexit vote…Fed officials will hold their final meeting of the year on December 13–14, and investors see a 100% probability of a move at that gathering according to futures contracts…this would be only the second rate hike in more than a decade, so the pummeling that Gold has taken should be considered an over-reaction…the greenback, like last year, should start to cool off as soon as the rate hike news is out of the way, allowing bullion to stabilize and push higher into year-end…a renewed focus on U.S. budgetary woes would help Gold significantly during Q1…
Crude prices extended losses this morning after Reuters reported that top OPEC Oil exporter Saudi Arabia told the producer group it will not attend scheduled talks in Vienna on Monday with non-OPEC producers…traders interpreted that negatively, but OPEC sources said the Saudis want to focus on having a consensus within the organization first…the Saudis have much at stake and are anxious to pull a deal together…2 years ago at this time, it was a different story as Saudi Arabia pulled away in hopes that a sharp drop in Oil prices would increase their market share, damage arch-rival Iran and decimate the North American shale industry…that strategy didn’t work out quite the way the Saudis had imagined…
U.S. equity markets have already closed today as it’s always a half trading session following the Thanksgiving holiday…the Dow and S&P 500 both hit new record highs as the Trump rally continues…several retailers actually kicked off Black Friday sales yesterday (is there no respect for Thanksgiving?)…J.C. Penney opened its doors Thursday at 3 pm while Macy’s began sales at 5 pm…
Key economic reports out of the U.S. next week (besides Black Friday sales) include consumer confidence and a revision to GDP on Tuesday, the ADP private-sector employment report, personal income and spending plus the Beige Book on Wednesday, the ISM manufacturing survey on Thursday, and nonfarm payrolls on Friday.
This is an abbreviated edition of Morning Musings due to U.S. Thanksgiving with Canadian markets also very quiet as a result…Daniel’s Den returns Monday…
Gold In Canadian Dollars
Below is a look at Gold in a different currency – the Canadian dollar…
Note the uptrend line in place since late 2014 with bullion now trading on the edge of that around $1,600…the uptrend line was violated briefly at this time last year when speculation of an imminent Fed rate hike was rampant, but that proved to be an historic buying opportunity…the same scenario could unfold between now and December 14…Gold in Canadian dollars has strong support in the $1,550’s, so that’s where we’d expect a turnaround to kick in if the metal gets pushed a little lower…
Based on a convergence of technical and fundamental factors, a 1-day “washout” in Gold can’t be ruled out anytime over the next 2–3 weeks, followed by a powerful reversal…
In Today’s Morning Musings…
1. Copper’s new price range…
2. A must-see chart for Hit Technologies (HIT, TSX-V) – all on board!…
3. A Uranium turn in 2017?…
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…
Huge decisions today for Trudeau on pipelines, let’s hope common sense prevails, and get this country moving forward instead of backwards. We’ll see..
Comment by Laddy — November 25, 2016 @ 11:12 am
It’ll be a rejection of Northern Gateway, Laddy, you can take that to the bank…creating wealth in this country has taken a back seat to “saving the planet”…down the road a little bit, an aspiring Prime Minister might come up with the slogan, “Make Canada Prosper Again”…true story—saw a picture yesterday of former Liberal cabinet minister John Manley wearing a red hat, “Make Canada Innovative Again”…
Comment by Jon - BMR — November 25, 2016 @ 11:59 am
No doubt, twin kinder then, I’ll bet half the people in my city here don’t even know that a pipeline goes right through here, ei, I asked 10 random people about twinning kinder, 6 out 10 agreed to it, and get this the four that were against twinning kinder didn’t even know we already have a pipeline here, they were shocked, the mentality of some people is just unbelievable. We moved here 28 years ago and never has there been an issue here or anywhere along the line…
Comment by Laddy — November 25, 2016 @ 12:56 pm
I’m getting a little warm on this subject, I guess everyone needs a little more education on pipelines, especially the protesters, oh and by the way, how did the majority of the protesters get to these sites where they’re protesting anyway? Da!
Comment by Laddy — November 25, 2016 @ 1:10 pm
Deveron.
http://www.deveronuas.com/journal/2016/11/24/deveron-presents-at-cix-top-20-tech-startup-conference.
Comment by John - BMR — November 25, 2016 @ 2:01 pm
DVR at highest price since Sept. 1, and stock actually went up in value when 4 million free-trading shares entered the market around the end of October…shows there were people eager to accumulate…should continue trending higher into year-end.
Comment by Jon - BMR — November 26, 2016 @ 6:32 am
Have been picking away at VGN under .10, looks like the company (DVR) is making progress, I consider this one a long term hold and willing to be patient here.
Comment by Danny — November 26, 2016 @ 10:03 am
The trend in DVR is looking a whole let better, Danny, and a move back above 50 cents which is a reasonable expectation for the end of December would give a lift to VGN.
Comment by Jon - BMR — November 26, 2016 @ 10:30 am
Jon, personally I think VGN is the better buy, VGN has 42.7 million shares outstanding, DVR has 17.2 million (as of Sept 30,2016), VGN owns/controls 8.5 million shares of DVR or 50% of the total. Plus VGN has a bunch of cash in the bank. At .39 DVR is about 4 times the price of VGN. It definitely looks like VGN is the better buy unless I am missing something here. Feel free to comment.
Comment by Danny — November 26, 2016 @ 11:14 am
There’s no doubt VGN will make a nice percentage move as DVR firms, Danny. A few points to ponder which support your thesis: 1) The ideal scenario for VGN is a sharply higher Gold price concurrent with improving fortunes for DVR, as VGN holds a nice Gold property package in Nevada near Coral Gold’s Robertson Property that was recently sold to Barrick for $20 million CDN and other consideration; 2) Now that DVR is on its own, VGN’s expenses have dropped significantly, plus they stand to get money back that’s owed to them by DVR or shares in lieu; 3) Yes, VGN has a strong cash position and that affords them to pull the trigger on a compelling opportunity that may arise at any point, and T.R. would be more confident to do so if DVR business model really starts to take off as I suspect it will in due course.
Comment by Jon - BMR — November 26, 2016 @ 12:23 pm
Jon, thanks for your thoughts on VGN.
Comment by Danny — November 26, 2016 @ 12:30 pm
Jon, I just went and re-read all the “Sunday Sizzler Reports” dating back to October 14th. After your great analysis and information about what GGI has at the E&L, and what may yet be found there, I still cannot believe anybody would be selling GGI at these prices. Just wondering what your thoughts were on this Jon. Thanks.
Comment by pole — November 26, 2016 @ 12:57 pm
Most are hanging tightly, pole, as volume on the retreat to chart support in the last number of sessions has been very light. Patience will be rewarded here big-time with the way the E&L is going to play out. What GGI is working on at the moment is unique in Canada when one considers the historic deposit, the high tenor, the Q magnetic anomaly and keel, and the surrounding district with such world class discoveries. Nickel experts are noticing, they’re ahead of where most investors are at the moment. Watch what happens.
Comment by Jon - BMR — November 26, 2016 @ 1:44 pm
Thanks for that Jon.
Comment by pole — November 26, 2016 @ 2:02 pm
I think some people may be thinking that the next step for GGI will be a PP and drilling in the spring and are not prepared to wait that long. Hopefully GGI will fool those people with some unanticipated news.
Comment by Danny — November 26, 2016 @ 2:17 pm
You may be right Danny. But I myself can not see Regoci doing that to the shareholders who have been so patience with GGI.Just not the right time for a PP.
Comment by pole — November 26, 2016 @ 3:06 pm
pole, according to the last financials, at the end of July they had approx. $200,000 in cash. Hopefully there is another way (JV, sale of other properties, cash flow from Mexico) to come up with more cash otherwise I can’t see any way around not doing another PP in the near future. They have salaries to pay and drilling to get done.
Comment by Danny — November 26, 2016 @ 3:59 pm
Danny, they could literally close a PP in 5 minutes if they wanted to, and they have other means of accessing capital. The E&L is a game changer. I hope and suspect they’ll make the right moves in the coming days and weeks, and we’ll all be very happy shareholders who can retire within 9 months.
Comment by Jon - BMR — November 26, 2016 @ 4:15 pm
Best idea I’ve heard all day!
Comment by Laddy — November 26, 2016 @ 4:33 pm
Jon, here’s hoping they make the right moves. Also I am very much looking forward to the end of tax loss selling. This period provides a lot of great opportunities but it can also test your resolve, 4 weeks to go.
Comment by Danny — November 26, 2016 @ 4:37 pm
Jon, Thanks for weighing in with comments on Danny’s and my thoughts on Regoci’s next moves. I retired 18 months ago but I sure could use “a super-sized top up” to my retirement nest egg. Hope everything works out great for all of us in 2017.
Comment by pole — November 26, 2016 @ 5:25 pm
pole, I am all for a “top up” to my investment account. I am looking forward to 2017.
Comment by Danny — November 26, 2016 @ 5:53 pm