BullMarketRun.ca

Gold has traded between $1,317 and $1,334 so far today to start the first full week following the UK’s bold decision to leave the EU…as of 10:00 am Pacific, bullion is up $6 an ounce at $1,322…Silver has retreated slightly to $17.70…Copper is up 2 cents at $2.13…Crude Oil is down $1.54 a barrel to $46.10 while the U.S. Dollar Index has rallied another full point from Friday to 96.26…the uncertainty created over the UK vote, and the strength in the dollar, has put the kybosh on any Fed plans to hike rates before November’s U.S. elections in our view…

Holdings in SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, jumped 2% to 934.31 tonnes on Friday, the highest since July 2013, as bullion made its biggest single day price jump in more than 7 years…

The UK’s historic vote, as the country reclaims its sovereignty, was a shock to the global establishment and triggered a $4.3 billion surge in holdings in Gold-backed funds on Friday, the most in a single day in 4 years…it adds up to a net inflow of $32 billion this year, pushing the assets to the highest level since the 3rd quarter of 2013 according to data compiled by Bloomberg…

China’s Gold imports via Hong Kong rose nearly 68% in May to the highest since December, data showed this morning…

The strength in Gold since the U.K. voted to leave the EU should also spill over into Silver, according to HSBC…Gold rose to its highest level in more than 2 years Friday while Silver hit an 18-month high. “We think Silver may benefit from ‘leakage’ from heavy Gold demand,” HSBC says. “The jump in prices for Gold coins and small bars may also encourage price conscious buyers to turn to Silver.”

We have updated Silver charts in today’s Morning Musings…

UK Fallout

Canadian Prime Minister Trudeau has come under fire from Nigel Farage, the leader of the UK Independence Party, for being “out of touch” in backing British Prime Minister David Cameron in his bid to keep Britain in the EU…Farage also said that central bank governor Mark Carney, Canada’s former central bank governor, may have to resign for not being impartial during the referendum campaign which saw 52% of Britons vote to leave the EU…

“I’m afraid that the whole international political community rallied to Mr. Cameron and the status quo,” Farage said yesterday, referring to Trudeau, who was one of many world leaders (along with globalist/socialist Obama of course) who supported Britain staying in the EU…

Farage correctly added that Trudeau would have never endorsed Canadians giving up similar powers under NAFTA…

“I mean I’d love the Canadian Prime Minister to tell you guys that you’ve decided to make NAFTA a political union, and that you are going to transfer all Ottawa’s authority to someone else, that you are going to have foreign courts overruling you,” he said. “How long would you last? A day? A week? And yet that’s what the Canadian Prime Minister was effectively recommending to us. I wonder sometimes whether foreign leaders genuinely understand what the European Union is.”

He added that “whatever Trudeau said, the fact is that the United Kingdom now has an opportunity to chart a much freer course in the world.”

Farage also criticized Carney who repeatedly warned that Britain would face serious economic consequences if it left the EU, including a possible recession…Carney has defended his remarks, saying it was his duty as the central bank governor to point out risks to the economy…but Farage and others on the Vote Leave side have said he went too far…

Venture-TSX-Dow-NASDAQ Comparative

It’s always a positive sign for the Venture, and the risk trade in general, when the Index is outperforming the broader markets…in a Venture bull cycle, the chart below is the pattern that one typically sees…and the trend often stays intact for an extended period as it did throughout 2009 and 2010…the Venture bear market began when it started underperforming against the broader indices as well as Gold in the spring of 2011…

Over the last 6 months, the Venture is up 38% vs. a 4% gain in the TSX and slight losses on the Dow and NASDAQ…despite today’s weakness, and any potential of a further minor pullback, the outlook for the Venture over the 2nd half of the year is exceedingly positive…

In today’s Morning Musings…

1. Some major financings announced this morning as +$1,300 Gold creates more believers…

2. Pilot Gold (PLG, TSX-V) is showing grade and volume at Goldstrike in Utah…

3. Another big day for Orex Exploration (OX, TSX-V)…

4. Daniel’s Den – 4 unique exploration plays that may find appeal with Silicon Valley types!…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

TSX Venture Exchange and Gold

The Venture once again traded in a narrow range last week, from a low of 706 Wednesday to an intra-day high of 716 Friday as Gold rocketed above $1,300 an ounce on a historic decision by the UK to reclaim its sovereignty by pressing the escape button out of the EU circus.

Bravo, Brits – their vote was one of no confidence in the nameless, faceless, unelected bureaucratic elites running the EU who will now have one less country to screw up through a redistributive, dysfunctional model wrapped in red tape that has suffocated growth and innovation across the entire bloc.  In addition, the EU has proven itself to be an abysmal failure on key issues such as immigration (dangerously out of control) and the war against radical Islamic terrorism.  How long will it take for France and Italy and others to wake up?

The Venture would have fared much better yesterday if it weren’t for steep losses on the broader markets including a 610-point decline on the Dow.  Investors will see the wisdom of the Brits’ decision in due course, but a higher degree of global uncertainty is an immediate product of the UK vote.  A big jump in the U.S. dollar Friday also restrained the Venture.   For the week, the Venture finished down 4 points at 711 but it has remained above the 700 level for 15 consecutive sessions.  We’ll discuss the significance of that in this report.

In today’s Week In Review And A Look Ahead…

1. A Venture short-term chart with many clues…

2. Gold’s next measured Fib. resistance after $1,320 – you’ll like it!…

3. What’s Gold’s best quarter of the year going back 2 decades?…

Click here to read the rest of today’s report, the Sunday Sizzler with more great picks, and all BMR exclusive content by taking advantage of our Spring Sizzler Subscription Special, or login with your username and password.

A remarkable 12 hours for Gold and the world…bullion traded down to its 50-day moving average (SMA) last night as voting ended in the UK, then quickly reversed to the upside as early results from the referendum on the EU began pouring in…hours later, with Leave prevailing 52% to 48% over Remain on 72% turnout, British Prime Minister David Cameron announced he was resigning as voters made a firm decision to take the UK out of the EU…global stock markets were thrown upside down today, but if you’re invested in Gold stocks your portfolio is surging…

Gold shot up as much as $100 overnight, hitting a 27-month high of around $1,360, before pulling back modestly…as of 9:30 am Pacific, bullion is up $60 an ounce at $1,316…Silver is going along for the ride, up 47 cents at $17.71…Copper is off 4 pennies at $2.11…Crude Oil has fallen $2.11 a barrel to $47.76 while the U.S. Dollar Index has surged nearly 2 full points to 95.49…the U.S. economy doesn’t need a higher dollar – the Fed really has its hands tied now…

UK voters have made a reasonable decision to repatriate their laws and “take their country back” from the suffocating over-regulation of the EU (taxation without representation – that’s what sparked the American Revolution)…in that context, they will undoubtedly work out a new relationship with the EU that will be positive and beneficial for all, but the “Brexit” will obviously take some time to sort through…the dire economic consequences predicted for the UK in the event of a “Leave” vote have been exaggerated, though there is a risk of some short-term hiccups…the referendum also leaves the country deeply divided (that could change depending on leadership)…Scotland voted by a big margin to remain in the EU, and it may seek another try at independence…

The Brexit may also encourage political parties elsewhere in Europe who want to dump the euro currency or leave the EU…Italy’s Five Star movement and France’s National Front have each called for votes on the EU…

Political and economic uncertainty around the globe, coupled with the evil of radical Islamic terrorism, are sure to keep Gold strong through the balance of the year and beyond…

The way the broader markets were so confident that the UK would vote to remain in the EU also demonstrates how many investors simply don’t understand the political trends sweeping the globe…anti-establishment sentiment prevailed in the UK last night, and we predict it will also win out in the United States this November…that means investors need to seriously prepare for a Donald Trump presidency as Hillary Clinton – the ultimate establishment candidate – could easily get flattened despite her current lead in the polls…that should pour even more gas on the fire as far as Gold is concerned…either outcome (Clinton or Trump) would be bullish for Gold but a Trump victory would further heighten the global uncertainty that has given bullion such a lift today…

In today’s Morning Musings…

1. A look at Gold in Canadian dollars (wow!), and just how high can the TSX Gold Index climb?…

2. One of the most undervalued Gold stocks on the TSX – and it’s ready for an important breakout…

3. A must-own Canadian Lithium explorer…

4. Daniel’s Den – “Behavioral Finance”!…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…

Gold rocketed higher overnight, taking Silver with it, as the political establishment in the United Kingdom got shaken to its knees with voters rebelling and deciding in a referendum that the UK should leave the European Union.

As of 6:45 am Pacific, bullion is up $61 an ounce at $1,317 while Silver has surged 57 cents to $17.81.

Politically and economically around the world, it’s hard to imagine a better scenario for Gold right now.   Would you rather put your trust in governments and central banks, or Gold?

The first casualty of last night’s vote was British Prime Minister David Cameron who announced his resignation.   “I will do everything I can as Prime Minister to steady the ship over the coming weeks and months but I do not think it would be right for me to try to be the captain that steers the country to its next destination,” said Cameron.  The country will have a new Prime Minister before the Conservative Party conference in October.

Once again, the Venture got it right on Gold.  When bullion corrected during the last half of May, the Venture held steady and remained within its upsloping channel before pushing to a new 52-week high.  In recent days, as bullion pulled back almost 5% from a 2-year high near resistance at $1,320, the Venture simply shrugged off that weakness as well – another clue that bullion’s charge north would probably quickly resume.

Despite a 417-point drop in the Dow through the first 15 minutes of trading this morning, and a 175-point plunge in the TSX, the Venture is up 2 points at 712 while the TSX Gold Index has surged 17 points to 244.

Ever since the Fed’s first rate hike in nearly a decade last December, and Janet Yellen’s very bad read on everything from China to the U.S. economy, it has been a wise strategy to buy and hold on to Gold (and Silver) stocks.  That’s not about to change anytime soon.  This applies to producers and high quality juniors.  Fortunes will be made in this sector.

Gold exploded by as much as $100 overnight, touching $1,360 before pulling back.  Bullion will now try to get comfortable above $1,300 with the next Fib. resistance at $1,320.

Longer-term charts suggest that Gold has the potential to more than double in price over the next couple of years, a scenario that should be more plausible to many investors today.  Additional global seismic shifts are on the way.

John’s most recent secular Gold chart from 2 weeks ago showed that a powerful “Wave 5” pattern is now in progress with the yellow metal expected to ultimately push to new all-time highs well above $2,000 (U.S.).

Gold has traded between $1,257 and $1,273 so far today…as of 8:30 am Pacific, bullion is down slightly at $1,264…Silver has added 7 cents to $17.30…Copper is up 4 cents to $2.15…Crude Oil is 26 cents higher at $49.39 while the U.S. Dollar Index has recovered from its morning lows and is now off just one-tenth of a point at 93.48…

Holdings in the SPDR Gold Trust are up nearly 1% this week despite the pullback in bullion prices…they rose slightly again yesterday to 915.90 tonnes…

Ronald-Peter Stoeferle, fund manager at Liechtenstein-based Incrementum AG and author of the In Gold We Trust report (the 2016 edition comes out next week), had this to say about a possible Brexit vote today in an interview with Kitco News:  “A Brexit doesn’t change the landscape for the Gold market.  According to our research, political events only have a minor impact short-term impact on Gold and don’t define the longer-term trend,” he said…while Stoeferle expects the Remain side to win today, he maintains that Gold is now in a bull market that will take prices to $2,300 U.S. by 2018…his firm sees a growing chance of the U.S. falling into a recession later in the year and that uncertainty should be positive for Gold…

Final opinion polls show the possibility of a very close vote today in the UK, though the markets are factoring in a Remain victory…the outcome will hinge on the large number of undecided (>10%) as well as the turnout level among different demographic groups…those under 30 are generally believed to be more in favor of the UK remaining in the EU, but will they actually take the time to vote?…it’s also worth noting that in the 2014 Scottish independence referendum and the 1995 Quebec referendum, there was a late swing to the status quo (risk-adverse voters) and markets suggest that’s likely to happen again today…

The Remain side also appears to have conducted an effective fear campaign as pointed out by former media mogul Conrad Black in an interview on CTV’s Power Play yesterday:  “The tremendous effort that has been deployed by the UK government to frighten the country, I think has really been quite offensive and excessive, “ he said (he forget to mention that EU President Donald Tusk said an exit by the UK could lead to the end of “western political civilization itself”).   Black added, “My concern is the tendency of Brussels as a fundamentally anti-democratic organization to demand more and more meticulous powers of interference in the lives of individuals and corporations and enterprise of all kinds in all of the member states.”

For the 3rd month consecutive month, the United Kingdom was the main destination for Swiss Gold exports…69.473 tonnes of Gold was exported to the U.K. from Switzerland in May, though that was down modestly from 78.8 tonnes in April…bullion into the U.K has flowed mostly into the reserves of Gold-backed exchange-traded products, a strong investment of choice this year among Westerners…

Fear For Canada, Not The UK:  The Frog Flap – A Sign of Things To Come?

If this is a sign of things to come from Justin Trudeau’s Liberals on the regulatory front, you can forget about any new pipelines ever being built in this country…

A noisy frog that weighs about 1 gram and measures about 2.5 cm has led the Liberal government to issue an “emergency order” – yes, an EMERGENCY ORDER, under the Species at Risk Act, blocking part of a residential project south of Montreal to protect the habitat of the western chorus frog (the Feds of course have yet to see the real western chorus, the voices of voter discontent from the west that are sure to grow exponentially over the next few years as they did the last time they were in power)…

The federal department of “Environment and Climate Change” says the frog order was necessary to “prevent the loss or degradation of the habitat the western chorus frog needs to grow and reproduce”…Wikipedia says this type of frog “has a huge distribution, from Canada to the Gulf of Mexico, and New Jersey to Arizona.” 

A “huge” distribution, says Wikipedia…

So, this federal ruling will protect 2 sq. km of land in the municipality of La Prairie, Quebec, that includes the area where 171 housing units of a project called Symbiocité were to be built…

The implications of this are obvious…

“We have based our decision on the best available scientific knowledge,” federal Environment Minister Catherine McKenna said in a statement. “We firmly believe that economic development and the protection of biodiversity can, and must, go hand in hand.”

If the Feds will put a 1 gram frog ahead of a housing project, what kind of roadblocks are they going to throw in front of a pipeline or other key economic/resource initiatives?…

In today’s Morning Musings…

1. Heart of Gold Camp update…

2. Gold Standard Ventures’ (GSV, TSX-V) favorite stock (besides GSV)…

3. Greencastle Resources‘ (VGN, TSX-V) “hidden” assets…

Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect until June 30 only, or login with your username and password to view the rest of today’s Morning Musings… 

SAVE 25% with a risk-free subscription (as little as $1 per day) as you gain full access to this and other exclusive BMR content…