Gold has traded between $1,247 and $1,257 so far today…as of 11:00 am Pacific, the yellow metal is up $7 an ounce at $1,254…Silver has jumped 25 cents to $16.81…Copper has added 5 cents to $2.57…Nickel is 9 cents higher at $4.22…Crude Oil has climbed nearly $1 a barrel to $50.29 while the U.S. Dollar Index has tumbled three-quarters of a point to 97.10…
Saudi Arabia has been increasing its holdings of U.S. Treasury bonds by billions of dollars ahead of tomorrow’s visit by President Trump and economic talks at which Riyadh aims to obtain investment and technology from the United States…Saudi holdings of U.S. government bonds climbed to a 1-year high of $114.4 billion in March from a low of $89.4 billion last September, according to the latest data from the U.S. Treasury Department…Trump’s decision to make Riyadh the first stop in his first foreign trip in office sends a powerful message underlining Saudi Arabia’s clout after 8 years of strained bilateral ties under the Obama administration…we expect that one of the key outcomes from Trump’s visit, which will feature several stops including Saudi Arabia and Israel, will be a major overturning of the Obama policy of appeasement toward Iran…this could have bullish implications for Oil prices…
Canada Unnecessarily Lags U.S. In LNG
Canada embarrassingly continues to badly trail the Americans when it comes to expanding opportunities for Natural Gas exports to Asia (getting critical energy infrastructure built in Canada is now exceedingly slow, difficult and in some cases impossible due to a proliferation of eco-fascists in this country – many of them influenced by radical U.S. NGO’s – and politicians who are simply unable to lead)…the fact is that rapid expansion of LNG infrastructure in the U.S. will eventually make the Americans the 3rd largest exporter of LNG, behind Qatar and Australia, according to analysts at Columbia University’s Center on Global Energy Policy…notably absent from that list of important players is Canada despite our vast Natural Gas resources…meanwhile, President Trump has taken further steps to gain U.S. LNG market share in China as Beijing agreed to make it easier for Chinese companies to buy liquid Natural Gas from U.S. suppliers as part of the recent Trump-China trade deal…
Canadians have become so afraid of the Climate Change Boogeyman, so deceived by the false prophets of the new climate change religion, that they’re practically apologizing for this country’s immense resources and how they have supposedly been “destroying the planet”…what this ultimately means, if there isn’t a rapid change in thinking and approach, is that Canadians will simply have to accept a lower standard of living in the years ahead – for themselves and future generations – as the country loses competitiveness vs. the U.S. and other countries…look how much wealth has already been destroyed in Alberta, and that’s not just because Oil prices are less than half what they were a few years ago…it is a horrible shame and proof of poor governance…
Oil Update
Crude Oil is suddenly back above $50 a barrel which shows how the Saudis still have the ability to move markets…they are determined to keep Oil prices healthy for budgetary reasons, hence the deal they struck with the Russians that should lead to OPEC and certain non-OPEC producers to agree next week to extend their production cut into the 1st quarter of next year…
Meanwhile, Oil prices have maintained their gains late this morning after Baker Hughes reported its weekly count of U.S. Oil rigs increased for an 18th straight week…U.S. drillers added 8 rigs last week, pushing the total to 720…
Gold 9-Month Daily Chart
There’s lots going on in this updated 9-month Gold chart from John, but the key takeaway is that this year’s uptrend remains very much intact after Gold successfully tested superb support at $1,215…
Near the end of March, bullion broke out above a downtrend line (new support) going back to last summer and raced to a high of $1,297 (resistance at $1,300) by mid-April…
The 6.4% pullback from $1,297 to $1,214, which essentially mirrored the Venture’s mini-correction, was a classic healthy retreat in an ongoing bull market…
Note how the Gold price exactly hit a Fib. level and the uptrend line from the beginning of this year…
Where to now?…
At some point between now and June 14 when the Fed is widely expected to raise rates, we should see Gold gain considerable momentum above resistance at $1,260…that sets the stage for a very bullish summer…
Despite what you may read and hear in the mainstream media, nothing could be more bullish for Gold than a Fed rate hike June 14…
U.S. Dollar Index Update
The pattern in the U.S. dollar is not favorable for the balance of 2017, though a near-term rally is increasingly likely given how RSI(14) and SS are being pushed into temporarily oversold territory…
As the year progresses – certainly by August – the Dollar Index is going to come under significant new pressure from a declining 200-day moving average (SMA)…that’s because the last several months of 2016 were exceedingly bullish with the Dollar Index rising to nearly 104…
The declining 50-day SMA, currently at 99.70, will cap any near-term rallies…the greenback is in trouble…the markets don’t fully discern that at the moment which means OPPORTUNITY for savvy investors…
The Venture feeds on a declining U.S. dollar…
In Today’s Morning Musings….
1. An even bigger WGO stamp on the White Gold district…
2. A “quantum” leap in the works for this stock?…
3. Eskay Heart of Gold Camp – the wait ends very soon…
4. Daniel’s Den – “Friday Footnotes” and conversations with America’s top traders…
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Did you know that for as little as just over $2 a day, you can be a BMR subscriber and tap into the best analysis and picks for the junior resource sector that you’ll find anywhere? Last year’s BMR Top 50 List returned a whopping 118% and we are delivering market-trouncing returns again in 2017. BMR was the first to call the new bull market in the Venture in early 2016, and our coverage of the commodities space gives you valuable daily insights into price movements and critical trends. BMR is daily information that puts you ahead of the crowd!
We also give first-time subscribers an industry-leading 100% money-back satisfaction guarantee. If you don’t believe BMR has helped you make money for your first 6-month subscription period, we’ll refund your subscription fee in full – no questions asked!
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Jon, regarding Granada. How do you know more than 80% of Securitor’s position has been sold? Is that just an educated guess? Do they only use 1 broker? Thanks
Comment by Danny — May 19, 2017 @ 12:47 pm
More than just an educated guess, Danny…based on an extensive review of all trading in GGM going back to November of last year…they do use more than 1 broker, often ANON and National Bank, and their trading has a certain “signature” or character to it…we have become very good at tracking their trading patterns in multiple stocks…that’s how we called the cleaning out of their position in GGI in early February, before the 4-month hold was even up (yes, they have creative ways to sell their PP paper before having to wait 4 months like regular investors)…a person can make a good living just trading off how Secutor disposes of its flow-through shares…of course once the paper has been flushed out (these guys are pros), the lid comes off the stock…Secutor was in the GGM market again today…they also know how to play both sides of the trade, so they can benefit on the move back up once the FT paper is gone…between collecting finder’s fees and being professional flow-through share sellers in the open market, these hustlers from back east do very well…average investors can certainly profit when they fully understand Secutor’s strategies and what their inventory is in a particular stock…
Comment by Jon - BMR — May 19, 2017 @ 12:58 pm
Jon, good to know. Do you have any concern that Granada will do a share consolidation? I know companies always say they won’t and then you wake one morning and there it is. A recent example is TCO, had about 250 million shares outstanding, did a 1 for 10 consolidation and now 2 days ago did a 50 million share private placement, talk about screwing the shareholders. That is my big concern with Granada.
Comment by Danny — May 19, 2017 @ 1:14 pm
Companies most vulnerable to consolidations, Danny, are ones without big project strength…TCO has 50,000 Gold ounces in NI-43-101 resources; GGM has 50 times that plus a Block Model showing 5 million ounces…if your project has scale and can support a large share structure, you’re ok…there are plenty of examples of that, Integra being just one that’s also on the same trend as GGM, just 60 miles down the highway…
Comment by Jon - BMR — May 19, 2017 @ 1:31 pm
Nice bit of volume on GGI today… been waiting for that.
Comment by Charles — May 19, 2017 @ 3:09 pm
Jon..Could you see a mid tier or major making an offer for GGM that
Frank and shareholders would consider fair, or is the differential
between today’s price and a fair price too large. I personally have
not seen an offer made for multiples of a current trading price.
Comment by bob — May 19, 2017 @ 4:29 pm
Jon, appreciate your thoughts on GGM, can’t see it going much lower.
Also noticed a big bid come in on VGN late in the day, that always catches my attention when it happens late on a Friday afternoon before a long weekend, like someone is trying to accumulate without anybody noticing. I was sitting on the bid at .105 for 100,000 shares hoping someone would badly need some cash. Now VGN is almost a value play given it’s cash in the bank and shares in DVR. Buying at .105 would be a steal and unlikely to happen now but you never know, only takes 1 desperate seller. I can wait for VGN, love those plays with little downside.
Comment by Danny — May 19, 2017 @ 6:47 pm
There’s likely an opportunistic potential buyer lurking out there somewhere, Bob, which further supports the reason to accumulate at current levels, but the stock will push quite a bit higher before such an event would unfold IMHO…I say that because the last hurdle at the moment is Secutor and once that supply is removed (the markets are all about demand and supply), the current uptrend which has been established will accelerate…7 trading sessions left in the month and Secutor should be out during that time…we’ll see what develops with the DRA scenario, that will be important and could give GGM a big boost…
Comment by Jon - BMR — May 19, 2017 @ 6:49 pm
Interesting article on Frank Giustra (“He likes to think big when others think small”) and his new deal in Mexico:
http://vancouversun.com/news/local-news/b-c-mining-magnate-lured-from-hiatus-by-new-billion-dollar-dream
Comment by Jon - BMR — May 19, 2017 @ 6:58 pm
Hi Jon
Your brilliant chart above leads me to believe that one could do well trading currencies based on information of that type. Does a subscriber have access to other currencies as well as the dollar index? Thanks for you fine analysis. You are turning me into a subscriber.
Comment by Marshall — May 20, 2017 @ 9:11 am
Hi Marshall, absolutely—-John has been exceptionally accurate on the U.S. dollar and we dedicate a separate piece to the Dollar every Saturday in our Week In Review, plus during the week when appropriate. We also track the CDN dollar, the euro and the yen.
Comment by Jon - BMR — May 20, 2017 @ 10:41 am
U.S. Signs Huge Defense, Economic Agreements With Saudi Arabia
(CNBC) The United States has sealed an arms deal to Saudi Arabia, the White House announced on Saturday, a move that solidifies its decades-long alliance with the world’s largest energy producer just as President Donald Trump begins his maiden trip abroad as leader of the free world.
The agreement, which is worth $350 billion over 10 years and $110 billion that will take effect immediately, was hailed by the White House as “a significant expansion of…[the] security relationship” between the two countries.
Simultaneously, Saudi Arabia is in a broad-based push for economic reform, and as part of that effort signed a flurry of deals with private U.S. companies worth tens of billions of dollars.
Lockheed Martin, one of the world’s largest defense contractors whose technology was part of the U.S-Saudi accord, said in a statement that the deal “will directly contribute to [Saudi Arabia’s] Vision 2030 by opening the door for thousands of highly skilled jobs in new economic sectors.”
The arms package represents an enhancement of Saudi Arabia’s military capabilities as tensions flare in the region, with the U.S. viewing the Saudis as a linchpin in efforts to check the global ambitions of Iran. The country, the hub of Islam’s most revered sites, but is also a target of radical Islamic extremism.
Comment by Jon - BMR — May 20, 2017 @ 11:07 am
How many independant gold explorers in Ontario or Quebec have 4.9’m oz resource with 75000 oz reserves that can grow?
Why haven’t any of the majors come knocking ? How dumb .
Comment by donald — May 21, 2017 @ 4:15 am
One or more could be knocking, Donald…we just don’t know yet. More information to come.
Comment by Jon - BMR — May 21, 2017 @ 10:04 am
30-35 million market value seems like a fire sale. People pay that much for a shell filled with junk.
Comment by donald — May 21, 2017 @ 2:48 pm