Gold has traded between $1,172 and $1,191 so far today…as of 9:15 am Pacific, bullion is up $7 an ounce at $1,189…Silver has added 22 cents to $16.17 (see updated charts at the bottom of today’s Morning Musings)…Copper has fallen a nickel to $2.63…Crude Oil is off 43 cents to $59.53 while the U.S. Dollar Index is down one-tenth of a point to 95.00…
Texas Governor Greg Abbott signed a bill into law last Friday that will allow the state to build a Gold and Silver bullion depository…in addition, Texas will repatriate $1 billion worth of bullion from the Federal Reserve in New York to the new facility once completed…on the surface, the bill may look rather innocent but its implications are far-reaching…
Why does the state of Texas want to go through the trouble of building its own bullion storage facility?…there are two important reasons…one involves distrust in the current storage system…the second threatens the paper money system as a whole…
Texas Governor Greg Abbott signed bill 483 into law Friday, June 12, allowing the state’s comptroller’s office to establish a bullion depository.
“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store Gold bullion and other precious metals,” the Governor stated. “With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our Gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store Gold in facilities outside our state.”
The Texas legislature seems to be following a national trend of a growing number of citizens removing their savings and wealth from the federal banking system and into precious metals that they can store in a private depository or at home…the bill was introduced by state Rep. Giovanni Capriglione…the depository will also be able to establish agents to act as intermediaries between financial institutions…this would allow consumers to open up a Gold account in one bank and use it to pay for goods…Capriglione said that he doesn’t believe in replacing the U.S. dollar with Gold as a currency, but this initiative gives consumers additional options…instead of just sitting in a vault doing nothing, Gold can play an important role in stabilizing an economy, but it needs to be utilized, he said…
“You can now choose, do you want to pay for your items with dollars or pay with Gold,” he stated. “People should have as many options as possible when it comes to bartering for items.”
Capital Economics Bullish On Gold Due To Central Bank Buying
A new research report by analyst Simona Gambarini of Capital Economics suggests official sector buying can take much of the credit for establishing something of a floor for Gold this year…central banks have upped their share of overall Gold demand from around 2% in 2010 to as much as 14% last year…Gambarini expects this trend to strengthen, thereby pushing up the Gold price…Capital Economics has a year-end Gold forecast of $1,400 per ounce…
Greece Talks Collapse
Talks aimed at reaching an 11th-hour deal between Greek ministers and their bailout creditors collapsed last night after a new economic reform proposal submitted by Athens was deemed inadequate to continue negotiations…
The breakdown is the clearest sign yet that differences between the two sides may be too wide to breach, increasing the possibility that Athens will not secure the bailout aid it needs to avoid defaulting on its debts – including a loan repayment due to the IMF in just 2 weeks…
Oil Update
Low Oil prices and economic growth have helped drive up consumer demand for energy across the world in 2015, the International Energy Agency said last last week, a phenomenon seen from U.S. gasoline stations to Chinese auto dealerships…
The IEA’s closely watched Oil-market report lent some support to an idea pushed by OPEC and other producers – that collapsing Oil prices would spur more consumer demand and eventually send prices back up…WTIC hit a 6-month high last week…
The IEA said world demand for Oil would increase by 1.4 million barrels a day this year, 300,000 barrels a day faster than it previously forecast, to a daily average of 94 million barrels this year…global demand in 2014 was about 92.6 million barrels a day, the IEA said…
HGD 3-Year Weekly Chart – Looking At The TSX Gold Index Upside Down
The Horizons BetaPro S&P/TSX Global Gold Bear+ ETF seeks daily investment results equal to 200% the daily performance, or inverse daily performance, of the S&P/TSX Global Gold Index™, before fees and expenses…the Index, of course, consists of securities of global Gold sector issuers listed on the TSX, NYSE, NASDAQ and AMEX…
It’s helpful to regularly look at the HGD for additional technical perspective on the direction of Gold producers in the market…given declining sell pressure and a short-term uptrend pattern (notably on lower volume), it wouldn’t be surprising to see the HGD once again challenge its 200-day moving average (SMA, currently $13.41) as it did in March ($13 on the HGD would equate to about 150 on the TSX Gold Index where there is strong support) …
The HGD‘s upside appears limited, however, and it has generally remained within a downsloping channel since peaking at just over $31 in the 2nd quarter of 2013 as you can see in the chart below…in addition, the 200-day SMA (MA-40 on this weekly chart) will likely be pressured to the downside over the 2nd half of this year given the strength the HGD showed from September through December last year…
The HGD was a low-risk long trade in late 2011 and throughout 2012 into early 2013…that has changed…
Today’s Equity Markets
Asia
China’s Shanghai Composite led Asian markets lower overnight, declining 103 points or 2% to 5063…the country’s securities regulators published rules late Friday that would further margin limit trading…
Europe
European markets were down significantly today due to uncertainty surrounding Greece…
North America
The Dow is down 106 points as of 9:15 am Pacific…the manufacturing sector in the New York region lost momentum this month, reversing all the gains recorded in May, according to the latest data from the New York Federal Reserve…the general business conditions index in the Empire State manufacturing survey fell to to a reading of negative 2.0 in June, compared to May’s reading of 3.1…this is the 2nd negative reading in 3 months…according to consensus estimates, economists were expecting to see a strong rise in the region’s manufacturing sector, forecasting a reading around 5.8…
In Toronto, the TSX is up 14 points as of 9:00 am Pacific while the Venture has retreated 2 points at 680…
A Biotech Bubble?
A biotech company with a single unproven drug candidate and a 29-year old CEO went public last week and already has a market cap of close to $3 billion, raising some concerns the sector may be in a bubble…
Axovant (AXON, NYSE), headed by entrepreneur Vivek Ramaswamy, is a clinical-stage biotech focused on dementia treatment…its sole drug candidate is RVT-101, a treatment for Alzheimer’s disease that Ramaswarmy acquired from GlaxoSmithKline PLC in late 2014 for $5 million, according to its IPO prospectus…
Axovant sold 21 million shares in the IPO last Wednesday at $15 a pop to raise $315 million…shares just about doubled on their first day of trading Thursday to close at $29.90…AXON is up by nearly $1 a share as of 9:15 am Pacific to just above $23…
John Carroll of the Fierce Biotech newsletter said investors should be scared. “The fact that someone can make something of this size out of virtually nothing should be of concern to everyone in the industry,” he wrote in a posting…
Axovant said it would use $95 million to $105 million of the IPO proceeds to finance a Phase 3 trial of RVT-101 that it aims to start in the 4th quarter…if the trial is successful, the company will apply for regulatory approval in the U.S., European Union, Japan and other major markets…
Axovant is a unit of Roivant Sciences, another company started by Ramaswarmy and which still owns about 80% of Axovant…the 29-year-old Ramaswarmy, who graduated from Harvard with a biology degree and from Yale with a law degree, is also chairman of Tekmira Pharmaceuticals Corp. (TKMR, NASDAQ), a company that is testing an Ebola drug that has a market cap of about $800 million…
NexGen Energy Ltd. (NXE, TSX-V) Update
An outstanding drill hole result reported this morning by NexGen Energy (NXE, TSX-V) from the Arrow Zone of its Rook 1 Project, demonstrating the world class potential of this growing Uranium discovery in the Athabasca Basin…drilled during the winter program and located on the current southwestern edge of the high-grade core zones of the A2 and A3 shears, AR-15–44b has delivered the most continuously mineralized intersection of any hole drilled at the Arrow Zone to date, with superb grades…the hole featured 56.5 m @ 11.5% U3O8 (499.5 to 556.0 m) including 20 m @ 20.7% U3O8 (499.5 to 519.5 m) and 1 m @ 70.0% U3O8 (503.0 to 504.0 m)…
Summer drilling has commenced and NXE will be stepping out further to the untested southwest…the Arrow Zone is currently 515 m by 215 m with the vertical extent of mineralization commencing from 100 m and extending down to 920 m, and is open in all directions…
NXE has climbed 3 pennies to 70 cents on total volume (all exchanges) of more than 5 million shares as of 9:15 am Pacific…this is looking exceptionally good…
Discovery Ventures Inc. (DVN, TSX-V) Update
Discovery Ventures (DVN, TSX-V) has clearly created exciting new synergies with the addition of a major new investor, Manitoba entrepreneur Dan Omeniuk who has agreed to provide 2 secured credit facilities to Discovery – a $2-million convertible credit facility and a $5-million credit facility…Omeniuk brings not only new financial strength to Discovery, but other important synergies to the equation as he runs a successful transport company in Winnipeg…he has powerful business contacts, access to equipment, labor and services…he’s a tremendous strategic fit for Discovery, and is expected to be appointed as President and CEO of the company in the near future…
The combination of the high-grade Willa deposit and the nearby Max mill has similarities to the successful model built by Klondex Mines (KDX, TSX) in Nevada…keep in mind that Willa features a NI-43-101 resource with nearly 600 drill holes (57,000 m) and 2,600 m of underground workings…Max, meanwhile, is a former producing molybdenum mine about 80 miles to the north that operated from 2007 until late 2011 when depressed metal prices led to its closure…DVN picked up Max at a bargain-basement price…it includes an underground moly mine, crushing, milling and concentrating facilities, tailings storage facilities, mineral claims, mining leases and other holdings located near Trout Lake in the Revelstoke mining division (and it comes with $50 million in tax loss pools)…
The Willa-Max Project has significant new momentum…technically, as John showed last week, DVN has staged a powerful breakout…it’s up another 1.5 cents to 24 cents as of 9:15 am Pacific…
Doubleview Capital Corp. (DBV, TSX-V) Chart Update
We’ll have more on the Sheslay district later this week and how this is shaping up to be an extraordinary summer on the exploration front in this important region of northwest British Columbia…as we’ve reported, the stakes have increased dramatically in recent weeks and the two near-term beneficiaries will be Doubleview Capital (DBV, TSX-V) and Garibaldi Resources (GGI, TSX-V)…
DBV has broken above a downsloping flag on this 2.5-year chart…that’s just one of several bullish technical indicators supported by how we see events unfolding on the ground very quickly…
DBV is unchanged at 14.5 cents as of 9:15 am Pacific…
Quantum International Income Corp. (QIC, TSX-V)
A non-resource play to keep an eye on is Quantum International Income (QIC, TSX-V) which announced Friday that it has signed a definitive agreement to acquire Columbus Hospital LTACH LLC, a company operating a long-term acute care hospital (LTACH) in New Jersey…the LTACH is currently running on a 4-month unaudited annualized basis of approximately $40-million (U.S.) in revenue and approximately $13.5-million of earnings before interest, taxes, depreciation and amortization…
This 6-month QIC chart is interesting, to say the least…note the uptrend line, the rising 50-day SMA, and the breakout above the downsloping flag…as always, perform your own due diligence…
QIC is off 3.5 cents at 45 cents as of 9:15 am Pacific…
Silver Short-Term Chart
As expected, Silver is now testing support at the top of the downtrend line (dotted blue, $16) where it broke out from in May…it’ll be interesting to see if this holds…if not, next support is around $15.65…
Silver is about to enter a traditionally strong period of the year, so it’s reasonable to expect the downtrend line support to hold…
Silver Long-Term Chart
An explosive push higher (eventually) – is this actually a scenario that could unfold in Silver over the next couple of years?…quite possibly, given the look of this 34-year monthly chart, though at the moment it’s hard to understand all the factors that could come into play to generate the kind of “Wave 5” move that appears to be in the works here…
It seems quite possible that the bottom of “Wave 4” came late last year when Silver briefly plunged to just above $14 an ounce…RSI(14) has managed to hold support which goes back to 2001…
Sell pressure continues to remain strong, however, as shown by the CMF – amazingly, at levels not seen in nearly 25 years since the low of $3.51…this intense sell pressure at the moment, which could continue for a while yet, should therefore be viewed in a larger context as a bullish contrarian indicator…
Several fundamental factors are currently in Silver’s favor…industrial demand for the metal is growing, and global supplies are poised for a deficit of 57.7 million ounces this year, according to Thomson Reuters…
Note: John and Jon both hold share positions in DBV and GGI.
Jon if we have a game changer with hole 23, we have probably more than 1%cu eq for the last 250 meters, with 1% in the last 250 meters we will have a grade of 0.70%cu eq for 582.4 meters !
Comment by guy delisle — June 15, 2015 @ 10:50 am
Yes, Guy, hole 23 has changed the dynamics for the Hat and the entire district for that matter, but what’s even more critical is the “connecting of all the dots” at the Hat along a broad NW/SE corridor…and what’s emerging at Grizzly Central…as much as NXE has a world class Uranium discovery in the Athabasca Basin, the market is going to be stunned I predict at what’s about to unfold in the Sheslay district…that also explains the May 21 letter…
Comment by Jon - BMR — June 15, 2015 @ 11:00 am
I’m hearing next week the fireworks will start in the Sheslay
Let’s hope so we waited long enough
Comment by anon — June 15, 2015 @ 12:21 pm
This morning i had a little bid of 5000 GGI @ .095, ended having them at .09 without changing the bid, Is like someone want the price to dropped baddly since friday, as up now no sign of nothing huge comming soon technically.
Comment by Martin — June 15, 2015 @ 1:08 pm
does anyone know of any way or place to go to find out how many crooked vulture companies did a reverse split ??? actually any company’s 🙂 sorry if I used my outside voice.
Comment by Jeremy — June 15, 2015 @ 1:09 pm
Hope so Anon i have been following this story For 2 years now!
Comment by Martin — June 15, 2015 @ 1:44 pm
Nothing moves until DBV or GGI or anyone else signe a deal with the Tahltan .Anyone know how long that will take ? I don’t , but if it doesn’t happen soon the share price of everyone in the area is going to look a lot worse than it is already. Let’s hope cool heads prevail and everyone gets what they need quickly because when negotiations bog down they can drag on for months.
Comment by Les — June 15, 2015 @ 2:05 pm
You heard fireworks next week at the Sheslay? Care to elaborate? I managed to pick up more GGI today at 0.085. Pretty soon I will be an insider. Lol.
Comment by Dan — June 15, 2015 @ 3:39 pm
Dbv already has a signed deal,money has been paid up front for drilling
Fuel and everything is already on the property along with drill
We’re waiting for the mou to be signed by the council that’s it
It’s coming once we see that expect the rest of hole 23 to be released
Ggi we could see a surprise move here so watch for it
Pgx is also in the picture
Myself I can’t wait it’s been a long time in the making
Release the hounds
Comment by anon — June 15, 2015 @ 5:00 pm
I will guess we won’t hear anything from ggi until the yellen effect on wed, at which time yellen and her buds will just kick the” suspect” can down the road once again.
Comment by Tombc — June 15, 2015 @ 7:44 pm
By the looks of things DBV has been waiting for this MOU for quite some time ,drilling should have started over a month ago. When they tool the break for Christmas , it was indicated resumption of the drill program was to restart I n January.
The sooner the drill starts turning the better for everyone.
Comment by Les — June 15, 2015 @ 8:37 pm
DBV need more than one drill if he want 43-101 before the end of the year !
Comment by Guy Delisle — June 16, 2015 @ 4:52 am
Les
How could dbv restart drilling in Jan?
First off dbv had very little money to resume drilling thus we seen the first 400 meters of results to try and raise cash period.
They all have special permits now in place as that would be able for the companies not needing helicopters to do everything thus bringing the costs down to 100 to 150 buks a meter to drill
They all can start drilling anytime they like they have approval to do so.
The mou is just a mutual understanding but also makes it have better relationship with the Tahltan band in which is a smart thing to do.
Comment by anon — June 16, 2015 @ 5:09 am
This should serve as welcome news for everyone…Dr. Razique, with Doubleview’s consent of course, has agreed to a fresh interview with BMR concerning the Hat for next Monday…I would take as a very positive sign of what’s unfolding for the Hat and the district…our last interview with him was prior to when he had actually been on the property…he’s even more excited now and has a much greater understanding of the system and the dynamics of the district…this interview will open some eyes, guaranteed…
Comment by Jon - BMR — June 16, 2015 @ 5:14 am
Can not wait to hear this!
Comment by guy delisle — June 16, 2015 @ 5:33 am
He is a world class geoscientist, Guy…you can take what he says to the bank. It’s a whole new ball game at the Hat and in the district. Hence, the Tahltan power-play, which not by coincidence was launched after hole 23 and with GGI also getting ready to drill.
Comment by Jon - BMR — June 16, 2015 @ 5:42 am
Red Chris receives tailing permit
So looks like Tahltan band pretty easy to work with
That’s out this am on iii
Comment by anon — June 16, 2015 @ 6:10 am
Looking forward to that interview with Dr. Razeque, the man came to DBV for a reason . Just waiting for the MOU with the Tahltan and by the looks of things it should be coming as they appear to be pro mining with the agreements with Red Chris and others. Everyone just waiting for the green light and the whirlwind of activity in the Sheslay district.
Comment by Les — June 16, 2015 @ 6:46 am