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February 2, 2017

BMR Morning Market Musings…

Gold has traded between $1,212 and $1,226 so far today…as of 11:00 am Pacific, bullion is up $6 an ounce at $1,216…Silver is off slightly at $17.43…Copper has slipped 2 pennies to $2.65…Nickel is 4 cents higher at $4.66…Crude Oil is down marginally at $53.69 a barrel while the U.S. Dollar Index is off its lows of the day and now unchanged at 99.74

The greenback, after suffering its worst January in 30 years, slipped to a 12-week low this morning against a basket of currencies after Ma Yellen and the Fed gave an upbeat view on the economy yesterday but no hint of accelerating rate hikes…meanwhile, President Trump’s unpredictable style – he promised to bring unpredictability to U.S. foreign policy and he’s delivering on that – has unnerved some investors who are turning to Gold…a whiff of inflation is also helping bullion…the world’s largest Gold-backed exchange-traded fun, SPDR Gold Shares, reported its biggest 1-day inflow in nearly 4 months yesterday of 10.7 tonnes…the Great Flood of outflows persisted from November into January…

Tomorrow’s non-farm payrolls report is always seen as a key barometer of the health of the U.S. economy and will be closely watched for signs that growth is strong enough to support further interest rate hikes…

Gold vs. 10-Year Treasury Note

A leveling off in the yield for the 10-year U.S. Treasury after a big run during the 2nd half of last year has allowed Gold to stabilize and firm up…the two typically move in opposite directions…if the yield slips into correction mode, which it appears it could based on John’s 20-year monthly chart, then that would allow Gold to move aggressively higher…keep an eye on those yields!…

Crude Oil Update – Military Strike Coming Against Iran?

Geopolitical tensions spilled into the Crude Oil market yesterday after President Trump took an aggressive stance toward Iran for test-firing a ballistic missile…Tehran confirmed that it fired a new missile test but claimed it did not violate the recent nuclear deal…national security adviser Michael Flynn said otherwise and that the U.S. is “officially putting Iran on notice”…bullish!…

Oil prices rose sharply after Flynn’s comments on the belief that Trump could take action that would hurt Iran’s efforts to revive its Oil and gas industry…Trump also later issued a tweet that Iran’s influence in neighboring Iraq has expanded…

Hard to imagine the President not taking some sort of action – not just sanctions but a limited military strike of some sort – against Iran early in his term, if for no other reason than to send the Iranians a very clear message not to mess around…on any Trump move against Iran, the mainstream media can be expected to distort and sensationalize the action in an attempt to make Americans think the new President is going to lead the country into World War 3…it’ll all be very bullish for Oil and Gold prices!!!…

A “Fire Hose” Of Lava Pouring Into The Ocean

For those interested in geology and the beauty of nature, this is a spectacular photo from the Associated Press of the erupting Kīlauea Volcano in Hawaii…lava continues to enter the ocean at Kamokuna…

In Today’s Morning Musings

1. A Cobalt stock under 25 cents gearing up for a move…

2. Manitou Gold (MTU, TSX-V) on the rebound, eyes a bulk sample from high-grade Kenwest and an acquisition…

3. Updates on Purepoint Uranium (PTU, TSX-V) and Doubleview Capital (DBV, TSX-V)…

4. Daniel’s DenTo buy or not to buy Uranium stocks into weakness?…

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7 Comments

  1. Dbv: bit of a roller coaster ride.

    Comment by Foz1971 — February 2, 2017 @ 12:58 pm

  2. Gold and oil could really take off if Iran keeps shooting off rockets, Trump won’t put up with their crap….

    Comment by GREGH — February 2, 2017 @ 5:57 pm

  3. You’re right, Greg, I have a strong hunch Iran is about to meet the wrath of Mad Dog Mantis…Obama never stood up to Iran and Trump will want to send a quick, powerful message that he means business. Profit opportunity here.

    Comment by Jon - BMR — February 2, 2017 @ 6:36 pm

  4. I think that is why Israel is going to visit the U.S. To ask if it’s ok to attack Iran

    Comment by Greg — February 2, 2017 @ 9:25 pm

  5. The Saudis would have no problem with a U.S. strike against their arch-rival Iran, especially if it impacts Iran’s Oil and gas infrastructure and production…the Saudis of course would also love higher Oil prices, as would others…

    Comment by Jon - BMR — February 2, 2017 @ 9:34 pm

  6. Doubleview Capital Corp. (TSX-V: DBV) Closes Private Placement Financing of Convertible Notes in the Principal Amount of USD $450,000

    Doubleview Capital Corp. (“Doubleview”) (TSX-V: DBV) is pleased to announce it has closed its previously announced non-brokered private placement financing (see news release dated January 31, 2017) of convertible notes (the “Notes”) in the principal amount of USD $450,000 (the “Financing”). Each Note bears interest at a rate of 5% per annum, payable quarterly, and will mature and be payable eighteen months from the date of issue of the Notes.

    The principal amount of the Notes will be convertible into common shares (the “Conversion Shares”) at a price of USD $0.07866582 (being CAD $0.10) per share (the “Conversion Price”). Upon conversion, the holder will also receive share purchase warrants (“Warrants”) equal to 75% of the Conversion Shares, with each whole Warrant entitling the holder to purchase one additional common share of Doubleview at a price of CAD $0.15 per share for a period of thirty months from the date of issue of the Warrants.

    Under the terms of the Notes, Doubleview will have the right to repay the outstanding principal amount under the Notes plus accrued and unpaid interest at any time. Further, Doubleview, at its election, may pay any accrued and unpaid interest through the issuance of common shares of Doubleview at the Discounted Market Price (as defined by the rules of the TSX Venture Exchange) at the time of the interest payment date.

    The institutional holders of the Notes will have a right of first refusal to participate in up to 50% of any future financings. During the term of the Notes, Doubleview has agreed to not issue any shares at a price below the Conversion Price. Doubleview will also have the right to force the conversion of the Notes and accelerate the expiry date of the Warrants.

    Under the Financing, Doubleview paid a finder a fee equal to $31,500 cash and issued 450,000 finders warrants. The finder’s warrants will be on the same terms as the Warrants.

    The securities issued under the Financing are subject to restrictions on resale expiring on June 2, 2017.

    The proceeds from the private placement will be used for exploration on the Hat Gold-Copper Porphyry Project and general working capital purposes.

    About Doubleview Capital Corp.

    Doubleview Capital Corp., a mineral resource exploration and development company, is based in Vancouver, British Columbia, Canada, and is publicly traded on the TSX-Venture Exchange [TSX-V: DBV], [OTCBB: DBLVF], [GER: A1W038], [Frankfurt: 1D4]. Doubleview identifies, acquires and finances precious and base metal exploration projects in North America, particularly in British Columbia. Doubleview increases shareholder value through acquisition and exploration of quality gold, copper and silver properties and the application of advanced state-of-the–art exploration methods. The Company’s portfolio of strategic properties provides diversification and mitigates investment risk.

    On behalf of the Board of Directors,
    Farshad Shirvani, President & Chief Executive Officer

    Comment by John - BMR — February 3, 2017 @ 5:26 am

  7. Nice bids on GGI this morning at 16.5 cents

    Comment by Dan1 — February 3, 2017 @ 7:17 am

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