Gold has traded between $1,236 and $1,272 so far today…as of 9:30 am Pacific, bullion is up $16 an ounce at $1,269…Silver has jumped 23 cents to $15.51…Copper is down a penny at $2.23…Crude Oil has retreated 73 cents to $37.56 while the U.S. Dollar Index, after initially spiking above 98 on this morning’s ECB news, has tumbled more than a full point in a major intra-day reversal to 96.15…the Dollar Index is clearly under technical pressure and that’s bullish for Gold…
“ECB Pulls Out All The Stops” was one of this morning’s news headlines…the reality is, the desperation of central banks continues and Gold buyers can sense it…the ECB cut interest rates today and expanded its asset-purchase program to €80 billion ($88 billion U.S.) a month in a bid to boost inflation and reinvigorate a stuttering euro zone economy…the central bank cut its deposit rate to minus 0.4% and its main interest rate to zero…
ECB economists now expect consumer prices to rise by just 0.1% in 2016, having forecast in December they would rise by 1% (weather forecasters are more accurate), with inflation set to pick up to 1.3% in 2017 and 1.6% in 2018, still short of the ECB’s target of just below 2%…bottom line is, the ECB – like every other central bank right now – is grasping at straws…
The ECB’s move will likely push interbank lending rates in the euro zone close to the new deposit rate, which will be set at minus 0.4%…this is in stark contrast with the U.S. interbank rate, which is around 0.3%…however, once inflation is accounted for, rates in the U.S. have actually been lower…
ECB President Mario Draghi said the outlook for economic growth in the euro zone has been revised slightly down, mainly reflecting the weakened outlook for the world economy…he added that he did not anticipate the need to reduce rates further but new facts could change the situation…the euro zone’s 19 countries are now seen posting average growth of 1.4% in 2016 rather than the 1.7% forecast in December…
Julian Jessop, head of commodities research for Capital Economics, reiterated his end-of-year forecast for Gold at $1,350 an ounce and noted that bullion is getting strong support from developments in the U.S. economy “The resilience of the Gold price in recent weeks,” he said, “can largely be explained by a rebound in U.S. inflation expectations. The main drivers in Gold have been swings in the U.S. currency, the ebb and flow of safe-haven demand, and, above all, shifts in inflation expectations.”
New Gold (NGD, TSX) Hedges For Rainy River
New Gold (NGD, TSX) has hedged nearly all of its remaining 2016 Gold production to ensure cash flow for its Rainy River Project, the company announced yesterday…it’s an unusually large amount for a miner after bullion’s most robust move in 4-and-a-half years…New Gold says it has hedged 270,000 ounces of Gold for the remaining 9 months of the year through options contracts at a cost of $2 million, starting in April, giving them a minimum price of $1,200 an ounce and a maximum of $1,400 an ounce…
In today’s Morning Musings…
1. Updated TSX Gold chart – shorts beware…
2. New Carolin Gold (LAD, TSX-V) completes financing, updated chart shows strong momentum…
3. Next moves for PE, GBB and VGN…
Plus more…to view the rest of today’s Morning Musings, login with your username and password, or click here to gain full access to this and other exclusive BMR content and features…
John, what’s the chart looking like now on GGI? Don’t seem to matter with the lost interest. It’s going to take some kind of spectacular discovery to repeat what happened in 2013 in my opinion.
Comment by Dan1 — March 10, 2016 @ 2:32 pm
Jon.. heres what I see happening… DVR comes back to trading… VGN SP appreciated due to the ‘value’ of the DVR stock.. VGN decides in a heartbeat to sell their DVR stake to bring money into the bank.. executives pay themselves big bonuses and the VGN SP deflates to nothing… smells like what INT did, and UC resources…
they cant be trusted yes???? what you think about that scenario????
Comment by Jeremy — March 10, 2016 @ 3:29 pm
When is GGI AGM? I keep hearing that this stock is better than ever but nothing to show for it…
Comment by George — March 10, 2016 @ 4:41 pm
Jeremy, unfortunately you’re way off the mark with that IMHO, so I’m not sure you fully understand the significance of the DVR deal and what MacMillan, Dave Masotti (former Rogers Telecom President) and Roodenburg have put together here. First off, VGN doesn’t need to “bring money into the bank”. They have over $4 million already. Second, you like BLO, and I like BLO, and BLO is doing great, but DVR will even be better than BLO because not only is it a disrupter in a very sexy and rapidly growing industry, but they’ll have instant cash flow servicing a niche market, and they’ve got the best share structure you’ll ever find. MacMillan has become the “drone authority” in Toronto – there is no one on Bay Street who knows more about this business than he does. That’s a fact. He has Masotti at his side and that’s a winning combo. The technology behind this is what’s going to drive it. Deveron is going to be a major success and there’s just no way Roodenburg is going to be selling VGN’s DVR position (and give up majority control) in a “heartbeat” as you suggest. Not a snowball’s chance in _ell of that happening. Down the road a year or two, probably – that’s the end game, to have VGN cash out for tens of millions. I’ve known and followed Roodenburg in the market for about 10 years. He has had some very successful deals but this will be the biggest of his career. Watch how this unfolds – you’ll be impressed.
Comment by Jon - BMR — March 10, 2016 @ 4:41 pm
Jeremy – if you think that what you said actually might transpire than I wouldn’t buy it regardless of what anyone says.
Comment by George — March 10, 2016 @ 4:47 pm
Jon,any idea when DVR could begin trading on the CSE?
Comment by robinandthe7hoods — March 10, 2016 @ 7:28 pm
Well then Jon.. Guess I got your dust up?? 🙂 glad u think I am way off the mark.. and of course noone knows what Tony (yes??) is thinking or what he will do.. and I for sure hope you ARE on the mark…
I am a tainted dude.. have been taken to the cleaners by many a CEO who talks and walks a good game but in reality is only in for themselves..
I had a call from a Jim Nelson of Makena Resources today.. about a PP for 1 cent… like really??? 1 cent??? and they are a lifestyle company… snake oil people for sure.
I had a stable of 120 stocks and over 1/2 have done a reverse split and will end up with nothing.. those that said they would never do that do their shareholders… like really????
thus my comment… I have zero confidence in any CEO when they are holding a ton of dough on paper..
However I WILL watch and be vigilant… and sincerely hope that you are accurate in his assessment …. I appreciate your comments and candor mate… good dialog.. and yes BLO is good.. and if DVR can hold a candle to BLO then all will be good..
To be honest I am scared that defeat will be snatched from the jaws of victory… it has been that way for 5 years!!!!
BTW…. does VGN have anyone on the board of the newco – do you know?? once the newco is released as public guess we will see…
Cheers all… bedtime:)
Comment by Jeremy — March 10, 2016 @ 7:51 pm
robinandthe7hoods, the last I heard on that was around the end of March/early April.
Comment by Jon - BMR — March 11, 2016 @ 4:20 am
Jeremy, Roodenburg had major plans for Deveron from the moment of its IPO in late 2012. The fact he has Masotti involved shows where this is headed. And Masotti has plenty of skin in the game given his holdings in the private company that Deveron is acquiring. This is another BLO, in terms of its “disrupter” potential, but the difference is there’s no wait here for a prototype. They are putting their technology into action immediately. What they’ll be doing initially is helping farmers improve crop yields, and that’s a big business given just the acreage in Ontario—-let alone the west. And farmers like to buy stock, too. Keep that in mind. This represents the best of what venture capital is all about. Drones are an amazing vehicle to deliver new technologies to many different sectors, including mining and exploration…they will change our world in the years ahead. It’s an important big-picture story to understand, and profit from.
Comment by Jon - BMR — March 11, 2016 @ 4:30 am
George – that scenario has happened so many times it makes my head spin… So I put it out there start a dialog. which has happened hopefully for the benefit of all…
so now it seems that I really dont understand the involvement of VGN in the original IPO in 2012.. need to do some research on that. I dont get the connection between Roodenburg, VGN, DVR and getting the private drone company involved – Masotti aside..
Will report back:) I didnt look hard enuff!! Thx Jon for the extra work:)
Comment by Jeremy — March 11, 2016 @ 6:32 am
Thx for the 2012 guidance Jon .. there are 3 BOD’s from Greencastle on Deverons board… 2 from Eagle Scout will be added to Deveron.. for a total of 6, so Deveron and greencastle are joined at the hip
One thing I didnt realize which is very obvious is the GreenCastle IS an investment company and not just a mineral explorer which I thought was their main business. I invested in the beginning due to cash flow from royalties… which still exist.. but going back to 2012 tells a different story since VGN funded the DVR PP for mineral exploration in Nevada.
so we have 2 companies with similar BODs and VGN owns 66%ish of DVR as it sits right now.. so they pull the strings.
So this puts a way different light on the story.. thx Jon.. and thank you google:)
Comment by Jeremy — March 11, 2016 @ 6:45 am
Greencastle is indeed a bit of a different creature, Jeremy, and you can see what the game plan is with Deveron which will be the lead horse in the VGN stable…right now you can’t buy DVR until it’s trading on the CSE…few investors realize that they can get in on the DVR situation through the back door with VGN which controls 70% of the company…as best we can tell, DVR will be the first publicly traded full-fledged drone company in Canada…think about it.
Comment by Jon - BMR — March 11, 2016 @ 6:57 am
YFI- up today on nr
Comment by kelly — March 11, 2016 @ 7:04 am
Yes, YFI chart is looking better…could go for a run again.
Comment by Jon - BMR — March 11, 2016 @ 7:11 am
Thx Jon .. yes indeed:) problem I have with drones as such (my buddy has started a drone company as well… for security) is to package the story benefits and application(s) so that people understand it…
like ‘this is what we can do for you’ and BTW we use drones… all about the sales pitch:)
Comment by Jeremy — March 11, 2016 @ 7:36 am
Hi Jeremy, you’re absolutely right – that’s why MacMillan and Masotti are heading this up—-I do see it as an easy story to tell with some normal creativity…Masotti has that background, his track record is phenomenal…
Comment by Jon - BMR — March 11, 2016 @ 8:41 am
With the talk on drones this morning for anyone who is not aware a new ETF from Purefunds has just been launched and it is the first of its kind focusing on companies that design, manufacture, and research drones and drone technology. The ETF began trading yesterday on NYSE Arca. Ticker is IFLY. I have not bought yet as I haven’t looked into their holdings but I am in VGN which is trying hard to break out.
Comment by DBReese — March 11, 2016 @ 8:51 am
Thx Jon… Masotti is also on the BOD of Queens where my brother is a research chair.. he doesnt know him but knows of him.
His resume is pretty impressive…
Comment by Jeremy — March 11, 2016 @ 9:03 am
Jon
have you spoken with Regoci lately regarding the Grizzly Metallurgical results? Any idea if drilling has started on Rambo… as you know I am very concerned about how the market is looking or not looking at GGI going forward because of the way Regoci has handled things, I am concerned the market will not react to any good news that GGI puts out. It has been 30 days today since the NR regarding the Grizzly and no follow up news at all. I know you believe in Regoci and support him, but really Jon if you look at what he has done lately jumping all over the place doesn’t it make you wonder what he is doing? Appreciate your response. Thanks
Comment by GREGH — March 11, 2016 @ 9:38 am
Thx DBReese:) very interesting//….
Comment by Jeremy — March 11, 2016 @ 10:07 am
Hi Greg, yes I have. They’re moving as quickly as they can on the Grizzly and he expects to be providing an update soon. Regoci knows, as we all do, that it’s very important to get it right in terms of explaining the exact nature of this deposit and the significance of it – it’s obvious just from this board that most investors don’t really have a clue as to what this discovery is all about. It’s different and as such there is an education process. My hunch is, and we got the first clue of this in the initial release with the sulfide info, that the black unit is unusually clean from a metallurgical standpoint. This isn’t easy stuff, Greg, and it’s quite possible they may have gotten information back that was even better than they were expecting which has demanded some re-checking and feedback from certain experts. In any event, GGI’s last news 1 month ago indicated they expected preliminary results “shortly” (not “imminently”)…then of course some time is needed for interpretation and any re-checking that needs to be done. Of course the news can never come fast enough for most investors, especially when the overall market is trading better as it is. I’m more interested in them getting it right. At Rambo, they mobilized crews to the drill site and you don’t leave drillers standing idle for very long…usually a few days after mobilizing the drill is turning. So I’m sure we’ll get confirmation imminently that drilling is in progress. Regoci has a lot on the go, so the ramped up news flow trend will continue I’m sure.
Comment by Jon - BMR — March 11, 2016 @ 11:50 am