Gold is solid again today…as of 6:00 am Pacific, the yellow metal is up $13 an ounce at $1,600…Silver is 19 cents higher at $27.53…Copper is flat at $3.43…Crude Oil is off 43 cents at $85.56 while the U.S. Dollar Index is up slightly at 83.23…
Gold Forecast
Global macroeconomic conditions are likely to trigger another rise in investment demand for Gold in the months ahead, enabling it to reclaim $1,800 an ounce by year-end, according to Thomson Reuters GFMS…the consultancy is looking for a modest increase in mine production and scrap supply to result in a new all-time high for overall supply in 2012…meanwhile, fabrication demand – dominated by jewelry – is forecast to fall by a small amount this year, due to still-high and volatile Gold prices coupled with weak consumer spending in a slower global economy…as a result, a market surplus between supply and fabrication demand minus coins will grow, leaving it to central banks and investors to make up for the difference…the consultancy does in fact foresee another rise in investment inflows into the Gold market, particularly with an increasing likelihood of further monetary easing worldwide…
More Chinese Economic Data
Chinese import growth slowed to 6.7% over the previous year in June, half the 12.7% pace expected by analysts…export growth, however, was solid, rising 11.3% vs. the forecast of a rise of 9.9%…the drop in imports is not due to a weakening of spending by Chinese consumers as some reports have suggested (retail sales numbers, employment and wage increases don’t support that view)…China, however, has been sitting on some large inventories of certain commodities and will need to draw down on those stocks in the months ahead…copper and crude imports, for example, fell 17% and 15% respectively in June…infrastructure investments by the government and social housing projects should lead to a rise in demand for raw materials during this second half of the year…as we mentioned yesterday, China has a lot of fiscal and monetary maneuverability to kick-start growth given that inflationary pressures have receded significantly…they still have plenty of bullets to fire after two interest rate cuts in less than a month…
Euro Zone Ratifies Terms Bank Bailout Agreement For Spain
Euro zone finance ministers reached agreement this morning on the blueprint for Spain’s 100 billion euro bank bailout, a deal expected to see the first 30 billion in aid from the euro zone’s €440bn rescue fund sent to Madrid by the end of the month…although the final memorandum sealing the deal will not be officially agreed until July 20, senior euro zone officials said it will include further in-depth stress tests for 14 of Spain’s largest financial institutions followed by a requirement that Madrid segregate the banks’ distressed assets into a “bad bank”…
How The Market Can Humble The Best
More than $200 million in customer funds appears to be missing from the accounts of U.S. futures broker PFGBest, regulators said yesterday, just hours after the firm’s founder attempted suicide outside the company’s Iowa headquarters…the suicide attempt and missing money renewed anxiety over the stability of the brokerage industry less than a year after the collapse of much larger MF Global…PFGBest told customers their funds had been frozen and clients would be allowed to liquidate open trading positions, but would not be able to withdraw funds or make new trades until further notice…
Russell Wasendorf Sr., a 40-year veteran of futures markets, was found in his car near the company’s new headquarters, having apparently attempted suicide…he is in critical condition in hospital, according to local news reports…Wasendorf made a fortune and expanded his business in the late 1980’s after he and his clients shorted the financial futures markets 10 days before “Black Monday”…
Today’s Markets
Stock index futures in New York as of 6:00 am Pacific are pointing toward a positive open on Wall Street…Asian markets were down slightly overnight while European shares are enjoying a solid day…
The Venture Exchange continues to be supported by a rising 10-day moving average (SMA) currently sitting at 1205, but as we pointed out yesterday the Index needs to make a decisive break above its EMA-20 in order for the bulls to gain some control…overall, it’s hard to imagine the Venture not ending its downtrend and taking off to the upside at some point during this third quarter… there are several possible catalysts including new discoveries, takeovers, higher Gold and Silver prices, and the Venture’s favorite drug – quantitative easing…
Kaminak Gold (KAM, TSX-V)
Kaminak came out with more solid results yesterday from its Coffee Project in the Yukon, and we expect KAM to be a strong performer this quarter…its 50-day moving average (SMA), in decline since April, appears ready to reverse to the upside…below is an updated KAM chart from John…like a lot of stocks, it needs to break above its down trendline which it could be on the verge of doing…this is an important stock to watch as a “bellwether” for the Venture…
Northern Graphite (NGC, TSX-V)
Northern Graphite (NGC, TSX-V) came out with important news yesterday and is looking strong after making it through resistance around $1.80…
Osisko Mining (OSK, TSX-V)
Osisko Mining (OSK, TSX-V) which appeared to bottom out in mid-May at just below $6.50, has enjoyed a strong start to the month of July and that’s a good sign as far as overall Gold stock sentiment is concerned in this early part of the third quarter…OSK’s second quarter production was higher than some analysts had expected, and the company’s Q2 financials will be released after the close August 9…technically, the stock still faces some challenges (volume and buying pressure both need to increase) but a bottom appears to have been put in…
Note: John, Jon and Terry do not hold positions in KAM, NGC or OSK.
Gbb has the potential to be a great mine if they do not get a great buy out price first. Weak management and no large backers have hurt them in this weak junior market. That being said…if they can get private financing or a jv from bigger boys without dilution but rather from poured gold..then they have the potential to not only survive but be a great success. Osisko did not move until after their second 43-101. There are few juniors that did not have hic ups along the way on their path to success. Gbb has learned and must think out of the box…the gold is huge and is there. It is a matter of time and presenting the gold in the ground to the money.
Comment by Natalie — July 10, 2012 @ 5:35 am
@Nathalie… great comments.
Comment by Theodore — July 10, 2012 @ 9:05 am
I have a feeling that my buy lot 8.5 cents will be filled.. The news from GBB on July 9 was not exciting to any investors… people are watching and are getting bored…. SFF is one of the stocks I like … have good turnover and fluctuations… some real supporters.
Comment by Theodore — July 10, 2012 @ 9:24 am
Todays smile .A woman dies and meets Saint PETER at heavens gate Saint peter greets her and said you may enter heaven but you must spell a word she said what is it he said spell love she had no problem spelling love and entered heaven.Saint peter was busy one day so he asked the woman to be the gate keeper along came her former husband after greeting him she asked how things had been after she had died.He said things had been great the life insurance she left helped him live the good life.he had remarried and traveled the world with his new wife he wined and dined in the very best restaurants he had a blast.She said ok you may enter heaven but you must spell one word he said what is it she said Czechoslovakia
Comment by gil — July 10, 2012 @ 9:33 am
It’s too bad that some are inclined to blame BMR for RMW misjudging the bureaucracy.
RBW folks are only the messengers & are only as good as the information given them.
Remember ”imminent” being used, but they were told to expect the permits sometime
within 90 days, which has recently passed, so i assume we can expect them any day now.
The problem appears to have been a case of over excitement & of course, they couldn’t
wait to start their promotion, which i feel was too early. I was fortunate to have sold
earlier, but i have since bought back my total position, plus & feel more positive than
ever today. I could go on & on giving an opinion of what could/should happen, but instead,
i will remind all that RBW will have it’s RUN, so prepare yourself for better RBW days. R !
Comment by Bert — July 10, 2012 @ 10:17 am
Thanks Bert. I am one of your readers.
Comment by Theodore — July 10, 2012 @ 11:22 am
Whatever helps you sleep better at night Bert – keep making yourself feel better about another speculative play like RBW. I’m sure it has some prospects, but it trades on the junk ventures and will need some serious news to keep it falling back down to $.10 and/or lower.
Just another venture play is what it is.
I’m in RBW don’t get me wrong, but we’re are or will soon be bagholders throughout this low volume bleed.
Good luck,
Comment by alex — July 10, 2012 @ 11:24 am
Alex
Regarding the junk Venture, may i state that whether it’s the Venture stocks, Toronto stocks, Dow
stocks, slot machines, whatever, it’s all junk when one is down. I’ll wait & take note of your posts
when RBW shines. Although i have some problems with management, they have indicated they are not only
willing to drill, (drills idling), but also to promote, but we will see. R !
Comment by Bert — July 10, 2012 @ 11:40 am
Since the expiration of warrants, there has been very little selling of RBW stock. Look at today, 17ask was not willing to budge….but some still say we will slide to 10c…highly unlikely. Drilling within days and some soon to be nice visuals to get this stock moving, teens will be a thing of the past.
Comment by db — July 10, 2012 @ 12:23 pm
SFF, my another favorite, had a good day with strong support at 15 cents… has good potential to pass 17 cents mark … I missed the opportunity to scoop some at 13.5 cents… Another time, always have chances to make money. You do not have to own many stocks… RBW, GBB and SFF … will be good enough. NAR is another one I may buy some in the next few days… but this one needs some time to harvest. Try to get some at 6-7 cents…. Ooops, this is my buy price only.
Comment by Theodore — July 10, 2012 @ 4:55 pm