Gold has traded between $1,171 and $1,200 so far today following release of this morning’s U.S. jobs report which may not have been as strong as the headline number suggested…still, markets are thinking today that a Fed rate hike in June is much more of a possibility…as of 9:00 am Pacific, bullion is down $26 an ounce at $1,172…we’ll see if physical buying will support technical weakness…Silver has declined 33 cents to $15.87…Copper is off 4 cents at $2.62…Crude Oil is down 87 cents at $49.89 while the U.S. Dollar Index, which broke out yet again this week, is up more than a full point to 97.64 (see updated chart below)…
It was reported this morning that PDAC welcomed 23,578 attendees from over 100 countries for this year’s event that ended Wednesday in Toronto…while attendance was impressive, it snapped a 4-year streak of over 25,000 attendees…
Nothing like the enticement of some Gold to lose a little weight…Dubai residents who participated in the city’s weight-loss challenge will get their golden reward shortly…according to media reports, the municipal government is expected to hold an award ceremony March 15, handing out 40 kilograms of Gold to more than 7,356 residents who participated in the 2014 “Your Child’s Weight In Gold” weight-loss campaign…
U.S. Hits Debt Limit March 16
On a more serious note, unless Congress takes action, the U.S. will hit its debt limit on March 16, but will begin taking “extraordinary measures” by next Friday to finance the government on a temporary basis, according to the U.S. Treasury…CNBC is reporting that in a letter this morning to House Speaker John Boehner and other House and Senate leaders, Treasury Secretary Jack Lew said that his office will be forced to suspend the issuance of State and Local Government Series securities next Friday unless the debt limit is increased…
Robust U.S. Jobs Report
Despite the brutal winter conditions, U.S. job creation boomed in February as non-farm payrolls grew by a seasonally adjusted 295,000 jobs, the Labor Department reported this morning…the unemployment rate, calculated from a separate survey of households, fell to 5.5% from January’s 5.7%…the drop shows employers are hiring steadily, though some of the decline can be attributed to more Americans dropping out of the labor force last month…economists surveyed by The Wall Street Journal had expected payrolls to increase by 240,000 in February and the jobless rate to fall to 5.6%…
The economy has now added more than 200,000 jobs for 12 straight months…that steady hiring, however, has largely failed to translate into faster wage growth – another metric the Fed is monitoring closely…average hourly earnings among private sector workers rose just 3 cents last month to $24.78…wages were up 2% from a year earlier, a slightly slower annual gain than January’s annual gain of 2.2%…the figure suggests underlying slack remains in the labor market, despite an unemployment rate that has fallen from 6.7% a year earlier…
It’s important to note that millions of Americans remain on the sidelines of the labor force…the labor force participation rate fell to 62.8% in February (near the lowest level since the late 1970’s) from 62.9% in January…
U.S. Dollar Index Updated Chart
As expected, after a brief consolidation, the Dollar Index has turned higher yet again with another major technical breakout above the mid-90’s…the power of this trend has been obvious for some time…this has to be of concern to the Fed as an out-of-control dollar has deflationary implications and also carries the potential of slowing the U.S. economic recovery…
Next measured Fib. resistance is above 100…the 50-day moving average (SMA), rising steeply since last summer, has provided rock-solid support on the move up from the low 80’s…
Today’s Equity Markets
Asia
China’s Shanghai Composite was off 7 points overnight to close the week at 3241 while Japan’s Nikkei jumped more than 200 points to finish just shy of 19000…
Europe
European markets were mixed today…a second reading of euro zone Q4 GDP was left unrevised…it was up 0.3% from the 3rd quarter, and year-on-year it gained 0.9%…the euro currency, which was at $1.40 last spring, is now trading below $1.10 for the first time in 12 years and seems likely to be headed toward parity with the dollar…
North America
The Dow is off 191 points as of 9:00 am Pacific…tech giant Apple Inc. (AAPL, Nasdaq) is joining the DJIA, replacing AT&T, according to Dow Jones this morning…the change is expected to take place after the market close on March 18…
In Toronto, the TSX has fallen 92 points through the first 2-and-a-half hours of trading…the Venture is off 6 points at 691, holding up relatively well considering the weakness in both Gold and Oil…
The loonie is off sharply today, trading just above 79 cents…Canada reported its second-highest trade deficit on record in January as prices for the nation’s Oil shipments plunged…the deficit widened to $2.45 billion, doubling from a revised trade gap of $1.22 billion in December, according to Statistics Canada…
Garibaldi Resources Corp. (GGI, TSX-V) Update
Highly encouraging news out late yesterday following the close from Garibaldi Resources (GGI, TSX-V) regarding assay results and the ongoing Phase 2 drill program and regional exploration at its 100%-owned Rodadero Silver-Gold Project in central Sonora State, Mexico…
The latest numbers show a growing Silver Eagle high-grade mineralized system as a 150-meter step-out to the north from discovery hole SE-14-01 hit 6 m of 346 g/t Ag (11.2 oz/ton) including a spectacular 1,307 g/t Ag (42 oz/ton) over 1.5 m)…besides the fact that the high-grade system obviously carries to the north, these grades are at extremely shallow depths – the 6-m section was between 10 and 16 m…
Results from 15 drill holes unequivocally demonstrate that a deposit is in the making here, and it’s clearly open in all directions…models of other deposits in Mexico indicate the strong possibility that what Garibaldi is seeing at Silver Eagle, the adjoining Reales target, and other areas throughout the 50 sq. km Rodadero Project is merely the surface expression of a much larger system as Dr. Craig Gibson has emphasized (and Gibson has his name behind some big discoveries in Mexico)…in other words, the scale of Rodadero cannot be underestimated at this point…GGI could in fact be sitting on Mexico’s next major precious metals discovery in a previously overlooked area…continued drilling will obviously shine further light on this possibility…and deeper holes are coming, as the company stated yesterday…
Importantly, the Silver Eagle and Reales targets have been linked structurally which implies a potential strike length in excess of 2 km…that’s just for this western side of Rodadero…to the east, there are drill-ready Gold-rich and Silver targets, so this fascinating early discovery is going to become even more interesting throughout the coming weeks…
The real kicker with Garibaldi – 2 projects (Rodadero and the Grizzly) are advancing concurrently, each with huge upside potential that could change the face of this company…interestingly, despite a couple of feet of snow on the ground, GGI also reported yesterday that this year’s exploration has started at the Grizzly…the drills aren’t turning there yet, but they obviously must have stumbled on something of interest to get crews in there so early…
Much more on GGI next week…the pullback in Gold and Silver hasn’t helped GGI today, which has also had just 1 down day out of the last 9…as yesterday’s news is absorbed over the coming days, however, GGI has an opportunity gain some serious traction over the near-term…
Fairmont Resources Inc. (FMR, TSX-V) Update
We have more junior resource sector coverage coming from Quebec shortly and that includes fresh follow-up on a special situation we initially introduced to our readers a couple of months ago – Fairmont Resources (FMR, TSX)…
Fairmont is an industrial minerals company focused exclusively on Quebec, and we see an opportunity here that is very worthy of our readers’ due diligence given the suite of advanced and early-stage properties that FMR has assembled and is developing…share structure, as always, has to be an important consideration and Fairmont has just 18 million shares outstanding…what’s also critical in the current market environment is the opportunity to generate cash flow, and Fairmont has that ability after recently receiving its certificate of authorization from Quebec authorities which allows for up to 300,000 tonnes annually of titano-magnetite production…
Most quarries in Canada are privately owned and many are exceptionally profitable…Fairmont’s management team is highly experienced in this area and has the ability to effectively leverage the Buttercup, near Chicoutimi, and its other holdings to drive organic growth…
Technically, we also see a lot that we like in Fairmont…below is a 3-year weekly chart that shows how the impressive primary uptrend from late 2013 remains firmly intact despite the pullback from last year’s 30-cent high…
The 300-day moving average (SMA) continues to rise, confirming the “Big Picture” trend, a bullish low cross has occurred in the Slow Stochastics while the ADX indicator remains solidly bullish…
FMR closed at 17 cents yesterday…
NioCorp Developments Ltd. (NB, TSX-V) Update
NioCorp Developments (NB, TSX-V) is yet another special situation that has performed very well…technically, John’s call on the breakout last month above 80 cents was bang-on with NB up another 12 cents as of 9:00 am Pacific today at $1.12…on Monday, NB moves “up the ladder”, so to speak, as it graduates from the Venture to the TSX…
On February 23, NioCorp released an updated NI-43–101 resource estimate for its Elk Creek Niobium deposit…as a result of positive indications from the company’s continuing metallurgical testing and development program, Titanium (TiO2) and Scandium (Sc) were added to the mineral resource statement…both of these metals can be recovered with simple additions to the existing process flowsheet, according to NioCorp, and would provide additional revenue streams that would complement the planned production of Ferroniobium…the company is currently assessing these prospective revenue contributions, and plans to announce the results of a preliminary economic assessment for the project shortly…
The updated chart shows Fib. measured resistance at $1.13…
Note: John and Jon both hold share positions in GGI. Jon also holds a share position in FMR.
Jon – GGI also reported yesterday that this year’s exploration has started at
the Grizzly…the drills aren’t turning there yet, but they obviously must
have stumbled on something of interest to get crews in there so early…
Bert – With all due respect, because they have started exploration, may not
necessarily be because they have stumbled on something of interest, instead
it may be as a result of earlier results from Prosper & the most recent
results from Doubleview. I think highly of you, but we have to remain calm
and collective & not be guessing at what is going on… Forgive me, but we
have to be careful when investing our hard earned cash.
Comment by Bert — March 6, 2015 @ 9:35 am
Listening to the center of the video, we see were Steve’s value for the Mexican plantation, Steve mentions Cayden’s buyout, Ill let you read it?The company reported that Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) and Cayden Resources Inc. (TSX-V:CYD) have entered into an agreement pursuant to which Agnico Eagle will acquire 100% of Cayden’s issued and outstanding common shares, including shares issuable under outstanding options and warrants, under a plan of arrangement for total consideration of approximately C$205 million, or approximately C$3.79 per share
Comment by freddy — March 6, 2015 @ 9:45 am
GGI: Hey Freddy, I was going to mention it as well – great minds I suppose :). I respect GGI for being clear about their mandate, they are “explorers” (not mine developers/producers). Stick to what you do best and they are pretty good at it. Clearly, GGI is open to the right deal and interesting that Steve mentions Cayden as a reference point. They didn’t even have a formal resource estimate. Parallels here to GGI – a large mineralized area in Mexico with numerous targets (Cayden had 7), shallow drill results (however Cayden was mainly a gold play). GGI is working their Mexico properties to a buyout – I see a good chance of this happening. They do have CAs with some major players don’t forget.
Comment by Frank — March 6, 2015 @ 10:11 am
Bert – We must be careful when investing our hard earned money.
Dave – Being retired, I’m a computer potato, but I agree as I spent 43 years on the beaten path waking up at 4 a.m. everyday to go to work. My pension is puney, so all the more important finding winners. I jumped in JNX and NPH albeit late missing some movement and I’m watching SLC. I have WRR at .02, .03, and .035. I call that the bottom for sure. I do remember when GGI and VGD were trading at those levels not long ago. I entered VGD at .09 and .095 and traded in and out 3 times now. My point is:
If you get in a young baby like WRR at the bottom, ya hold it. If you enter stocks that have had stories and run ups, you trade it and very carefully. I am in the red on GGI and I am hoping for some gold assays to spark a fire in it. Those in at higher prices can only hope for the best. Remember, both GGI and VGD were .04 cent stocks. This is why I will not cough up my WRR. Here is to trading. If I were in your neck of the woods, I would buy you all a beer.
Comment by dave — March 6, 2015 @ 10:23 am
As for other stocks I mention, I am also in NAR at .55 and VGD at .16. But I must say, I am more concerned with the way VGD is trading than GGI right now. I hope that I am wrong, but the trading action in VGD so close to assays gives me some bad vibes.
Comment by dave — March 6, 2015 @ 11:04 am
Jon/John or whoever would like to answer this dumb question of mine.. If GGI was to sell the Mexico property, would that buyout be an all cash deal? or would GGI cease to exist and then re emerge as another company that we as shareholders would get shares in so we can stay involved for the Shesley plays? How does that work where we would realize our profits for the mexico properties being bought out if that happens which it sounds like from the interview that is hat Regoci has in mind? Thanks
Comment by Greg — March 6, 2015 @ 1:05 pm
Yes Jon I got that,, the last time the us buck surged like this wasn’t there a war shortly after? Hum, anyway with OTC, ggi just shy of 1/2 mil shares. Won’t take long to get back to the 52 wk high, hang in there.
Comment by Tombc — March 6, 2015 @ 1:34 pm
Tombc, I can feel a breakout coming here on GGI, both the chart and the fundamentals are in agreement with that, plus today’s activity which was fantastic despite weakness in Gold and the overall markets.
Comment by Jon - BMR — March 6, 2015 @ 2:00 pm
GGI chart looking very bullish and as the selling slows down we should start a nice uptrend. A lot of news from different fronts in the next few months to keep the momentum up and interest.
Comment by d4 — March 6, 2015 @ 2:51 pm
Sounds good, when ggi hit its year high it was on nothing compared to these results, just a bad timeing day! Very possible we may test that high in the comming weeks,should be very interesting.
Comment by Tombc — March 6, 2015 @ 4:35 pm
jon: maybe it’s time to update WRR now that the placement is done?…..also, what is there contact information as i sent an email and noone responded to me? thanks!
Comment by STEVEN1 — March 6, 2015 @ 6:20 pm
When will you be publishing more on Gold Bullion Development?
Comment by Gary — March 6, 2015 @ 7:25 pm
When will you be publishing more on GBB.
Comment by Gary — March 6, 2015 @ 7:26 pm
Greg, the only way GGI would cease to exist is if a company made an offer for everything that GGI owned and then GGI would then distribute the cash to shareholders and delist.
The Rodadero property is the one likely to attract a buyer first. If it is sold then GGI could use the proceeds to further advance the other sites and/or buy some more properties. The deal could include net smelting rights and/or shares in the buying company.
It is possible that a major could fund all costs up to a BFS for a share in the property, i.e. a joint venture.
There are many scenarios that could emerge. The good thing for shareholders is that Patilla will generate cash to fund some drilling, hopefully to the point where an offer will come in.
Comment by Tom UK — March 7, 2015 @ 3:26 am
Barring a black swan event, $1000 gold is a real possibility now. I’ll go out on a limb and say that gold will bottom somewhere between $800-1000.
Comment by chris — March 7, 2015 @ 6:54 am
This is what the fear was back in late October/early November, Chris, among many analysts, and that’s when everyone should have been buying Gold when it was trading briefly below $1,150. As John has shown in a very accurate and helpful chart, Gold has been trading within a flag formation for a couple of years now, testing the top and bottom resistance/support levels on a regular basis. We’re rapidly closing in on strong support again. Based on that pattern, now is actually the time to be getting bullish again. We’re also quickly approaching the Indian buying season – the physical market should keep Gold within that important support. Could a scenario emerge where Gold touches $1,000? Ultimately, anything could happen but that would be the deal of the century.
The reaction to yesterday’s jobs report was overdone IMHO. The headline # was nice, but there’s virtually no wage growth (which the Fed wants to see), deflationary concerns are mounting with the rising dollar and low Oil prices, and of course the Labor force participation rate remains incredibly low. This going on a bit of a limb, I don’t think we’ll be seeing the Fed raise rates until maybe even next year.
Comment by Jon - BMR — March 7, 2015 @ 7:13 am
Jon, the problem I have with gold now is it cannot keep any of its gains. $17 more and we’re back to $1,150. So gold has basically done nothing this year…we’re back to step 1. Now, if you’re trading and locked your gains, you can say that gold was a good trade…but if you’re long you cannot say that. I believe there is one final washout, then if you are long you can step in and buy, is all.
Comment by chris — March 7, 2015 @ 7:30 am
Chris- while you’re out ” on the limb” $800-$1000, whats your bottom on silver?? Also, are you the same “Chris” on KER?.. Just curious!! TIA
Comment by Greg J. — March 7, 2015 @ 7:52 am
Yes, there could always (eventually) be a healthy final washout, Chris, absolutely. But for now it’s best I believe to focus on the continuing pattern which has been in place for an extended period. The behavior of Gold stocks has been encouraging – they’re hanging in there. The volatility turns the stomach sometimes – remember the fear on the morning of Dec. 1? Best time to buy. Gold has still been the 2nd best performing currency in the world. It’s on sale again and the Asians in particular will step up to the plate and soak it up. This is what China is backing its currency with.
Comment by Jon - BMR — March 7, 2015 @ 7:56 am
Greg, you bring up an interesting point…one ultimate scenario is that GGI at the appropriate time could get split in half – sort of like what happened with Paramount. So a major steps in, buys out GGI, then either the Mexico division or the B.C. division gets spun out as a separate deal. This is a really special situation because u have 2 major projects in 2 different countries, both favorable jurisdictions.
Comment by Jon - BMR — March 7, 2015 @ 8:16 am
Greg J, no I am not that Chris from Korelin. That being said, my theory is that we return to our late 2008 launching pad. So for silver if we get that final washout I am expecting anything between $10-12.
Jon, yes, the stocks are hanging in there. For stocks I don’t think there is much further down side…but I think we will see sideways trading for a little bit. So for me it’s best to play something else in the meantime and return in gold/silver stocks sometime later this year. And yes, gold has been performing very well in Canada, Europe, Ukraine, etc…but that’s because the currencies are going down the crapper. Unfortunately the US dollar keeps power forward…so traders/investors don’t see a reason to pile in precious metals just yet. Now, I don’t have all the answers and I am interested to hear other peoples ideas.
Comment by chris — March 7, 2015 @ 8:17 am
Chri – Nobody has all the answers. There are no crystal balls or we would all be rich thats for sure. I, personaly, always try to look ahead and guess what might happen based on what I see and where things are at the moment. It’s tough for anybody to say what will happen next, but everybody has an opinion, even the best analysts. GGI is a perfect example. Just from BMR’s people alone, there has been much talked about and much speculation on what might happen. Investing is gambling although a safer bet than the casino’s. This is why I mention often on this board that I am a trader. I understand that probably no one else on this board probably is and they hold for the longer term. Personaly, I think that is great if you get in a stock that is a baby and at a very low price (such as WRR), but I find in this market we are in that not many want to hold for the longer haul, at least not yet. The phycology of the market right now is so different from 2005 to 2007. There were many stocks then that went from .20 to $5 and the initial people in at .20 held onto to it just selling a portion on a double. Its just not there right now, but I do believe that this will change down the road, when is anybody’s guess. In the past couple days I have read some posts here on WRR that are somewhat disturbing to me. I have to run for now, but I will post tomorrow on WRR because I feel that I have to comment on some of the posts I have read.
Comment by dave — March 7, 2015 @ 9:41 am
I agree Jon, again the us gov’t fails to disclose, fact- that 58% of those jobs were bartenders and waitress jobs,let’s start calling this” fib day” not job day, rate hikes won’t happen, IMO,Q4 will begin by years end,and this- just heard that the reason we are seeing more oil related train derailments is because of the proponents to build pipelines.gezz how stupid can some people be, really?
Comment by Tombc — March 7, 2015 @ 10:36 am
Dave – This is why I mention often on this board that I am a trader. I understand that
probably no one else on this board probably is and they hold for the longer term.
Bert – Don’t forget your buddy, if i didn’t trade in & out, i would be in the poor house
now, waiting for my welfare cheque to come.
Comment by Bert — March 7, 2015 @ 2:50 pm
Ed Steer in his daily article on Thursday totally predicted if the jobs report came out favorable on Friday that that would be what JPMorgan et all needed to drive the price of gold and silver down and that is exactly what they did. JPMorgan with the backing of the US Govt totally control the price of all precious metals period…
Dave has it right, take profits when you can get them…
Comment by Greg — March 7, 2015 @ 3:57 pm
I agree greg, but they can’t sustain this for much longer, sooner or later something is going to hit the fan.
Comment by Tombc — March 8, 2015 @ 7:51 am
Bert – Don’t forget your buddy.
Dave – I haven’t forgot you. te he.
Tombc – I agree, but when will the good ole days come back. I’m anxious for the moment.
GGI – Lets hope she performs well this week. she has all the elements in place to trade higher and provide growth in the share price. Someone said it best if this were 2005, it would be at a dollar. I really believe in this stock Jon, I just hope that the high of .32 which was the speculation run with nothing there is not the end of a great stock with everything there now. Speaking of speculation, on to WRR.
I was in dis-belief reading a couple of the post the other day.
First – They just announced the closing of the pp. THAT is an update. THERE is no other update at the moment. NOR will there be an update for a couple weeks or so. They have to get to Nevada and set up shop and prepare to drill. There is nothing to update UNTIL this happens. YOU don’t close a pp, drill the next day, and get rich the day after this. This leads me to another post I read.
The speculation on WRR can only last so long before it starts to dwindle away. ARE YOU KIDDING ME. – The speculation on WRR hasn’t even begun yet. The only retail investors that know about WRR are on this board, what – all 10 of us maybe. The posts on SH are near absent and the one who posts the most is trying to get your shares.
Lets take VGD. It was at .02 or .03 and houses started accumulating last March. Mcewen did not even enter the pp till the stock was .08. Retail and the masses did not even start jumping in till it was .09.
The speculation run has not even begun and may not until they announce that they have started drilling. Quitely, you see Desi accumulating the last 2 weeks. They don’t buy for pennies gain. They buy to make huge gains and because they believe. The large shares going thru Friday at .04 – not ONE share was sold by Desi. The main seller was TD, and that is the least house to worry about when they are selling.
Lastly, the comment, well thats not a lot of money and after they pay the bills they won’t have much left. THEY don’t need much and the stock is not heavily diluted.
I doubt they will need to dilute much more if any because I have a gut feeling was is happening here. Jon had answered this poster that the money they have right now is not a concern because he felt that something DYNAMIC was working in WRR favors. I feel the same thing.
After receiving the email back from Michal and talking with a person with PGLC, I have a strong hunch that CANTOR FITZGERALD is in talks with WRR on supplying money ahead. You can buy WRR or you can sell it, makes no difference to me. Jon recommended it and I just happened to already be in it after learning all that I learned in Nevada and that Geologist telling me about WRR. My shares are staying in my pocket. If I sold, I would never get my .02 and .03’s back in that pocket. Cheers
Comment by dave — March 8, 2015 @ 10:23 am
WRR – One more thing while I am venting. .04 is strong support and .03 is very strong support. So good luck thinking you will see this at .02 again. If you read all of the posts by everybody on a daily basis, you will remember Jon mentioning that shortly down the road here (NOT THIS WEEK), WRR can very possibly give a BLO like parabolic run. Jon mentioned BLO for a reason. I don’t care where the price of gold is or where the venture is sitting at. I don’t care who the President of the U.S. is at the time or what’s happening around the world. A MAJOR DISCOVERY is just that, MAJOR. And the market will react to it.
Comment by dave — March 8, 2015 @ 10:37 am