Gold has traded between $1,253 and $1,276 so far today…as of 9:00 am Pacific, bullion is down $12 an ounce at $1,260…Silver is flat at $15.59…Copper is up 2 cents at $2.25…Crude Oil has climbed 70 cents a barrel to $38.54 while the U.S. Dollar Index has declined more than one-tenth of a point to 96.15 after a failed rally early in the day…
Supporting bullion, holdings of SPDR Gold Trust, the world’s largest Gold-backed exchange-traded fund, rose to 25.68 million ounces yesterday, the highest since August 2014…physical Gold demand apparently slowed in top consumer China this week, while a strike by jewelers protesting against the imposition of a new tax has temporarily curbed demand in No. 2 market India…jewelers in India are estimated to be losing about $150 million a day as a shutdown to protest a proposed tax enters its 2nd week, according to the All India Gems & Jewellery Trade Federation…shops will remain closed until the government assures jewelers that the 1% duty will be withdrawn, said Bachhraj Bamalwa, a director at the federation, which represents 300,000 jewelers and bullion dealers across the country…
Dennis Garland, editor and publisher of the Gartman Letter, on Gold in an interview on CNBC: “The trend is up, the trend has been up for the last several months and I continue to think that as long as the monetary authorities are going to remain as expansionary as they are…this trend will continue,” he said. “Monetary expansion equals higher Gold prices…the Fed will have no choice to at least hold monetary policy steady, if not become more expansionary following what the leads are from the ECB. Don’t fade this trend.”
Oil Update
The International Energy Agency said in a monthly report that oil might have bottomed, and that low prices were beginning to impact crude output outside producer organisation OPEC. “There are clear signs that market forces…are working their magic and higher-cost producers are cutting output,” the Paris-based IEA said…the group, which coordinates energy policies of industrialized nations, says it now believes non-OPEC output will fall by 750,000 barrels per day (bpd) in 2016 compared to its previous estimate of 600,000 bpd…it also says Iran’s post-sanctions return to exporting has been more gradual than expected, keeping its barrels from putting significant pressure on the market…still, this week Iran said it would not participate in any production freeze until it had regained market share…
In today’s Morning Musings…
1. What the U.S. dollar’s behavior tells us about the Venture…
2. GoldQuest and Precipitate Gold flex their muscles in the Dominican Republic…
3. Gauging the next wave up in a discovery play…
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…
S&P500 hitting the resistance of the 200 SMA… Critical juncture right now. SPXU ?
Comment by rgiroux — March 11, 2016 @ 11:15 am
VGN looking very strong.
http://apps.tmx.com/TMX/HttpController?GetPage=DelayedMarketByPrice&SelectedSymbol=vgn&Market=V&Language=en
Comment by John - BMR — March 11, 2016 @ 11:17 am
so the move in BLO was a creation??? to sell the PP maybe??? or normal back filling???
Comment by Jeremy — March 11, 2016 @ 12:35 pm
I see it as normal backfilling, Jeremy…there was a clear breakout, accumulation, and a normal retrace. That’s why it’s always best to accumulate before the breakout. In any event, I believe we’ll see BLO head much higher. This is just the beginning of its 2016 show.
Comment by Jon - BMR — March 11, 2016 @ 12:39 pm
Thx Jon.. you know I think that we have been had so many times, and burned so many times, that when we are handed a rose, we are focused on the thorns instead of the sweet fragrance…
hmmmm… human nature??
Comment by Jeremy — March 11, 2016 @ 1:23 pm
DYG… I like this one. Any ideas guys?
Comment by Theodore — March 11, 2016 @ 1:30 pm
VGN is looking very strong. These are types of low risk plays I love to accumulate, strong balance sheet (trading below cash value), low burn rate, a project that will eventually get people excited and nobody is currently paying attention, except BMR of course. Sometimes you have to wait a while with these types of plays but usually patience is rewarded. Low risk/high reward.
Comment by Danny — March 11, 2016 @ 2:29 pm
Jeremy
you are exactly right, I am having a very difficult time pulling the trigger on several different plays that all sound very promising, the boy called wolf one too many times…. I would feel a lot better putting new money to work if GGI, DBV, WRR and EQT were all making me money…gotta get past this fear Im having right now of losing…
Comment by GREGH — March 11, 2016 @ 5:05 pm
DYG – reading SEDAR makes me wonder why. reading the board of directors makes me see why. this looks like a fat shell,118MM+ out, $500K cash and the bd needs to find a project, preferably not in china. what are they up to?
Comment by david — March 11, 2016 @ 6:24 pm
Greg… I am on another blog where a lot of human nature ‘fodder’ gets tossed around.. and that fear you have is real… like being a battered wife/husband … you think your ok for a bit and then you hear the door lock turn and its time for more..
and you think and hope it wont be as bad this time.. but one of these times it will be the rescue squad coming for you… but we never think it could happen.
but it will but its that fear that will keep you out of the game until you start chasing stuff because the rescue squad came but you couldn’t believe it.. so you hid..
may not make sense but hopefully you catch my drift…
Comment by Jeremy — March 11, 2016 @ 8:13 pm
Jeremy, I am not quite sure what you are saying but I think the key so you don’t get frustrated is to be disciplined and not chase stuff. I am a big believer in John Kaiser’s bottom fishing rules (see link below), especially #1. When I follow these rules (ie. was buying VGN and PGM when nobody was paying attention) I do well, when I chase stuff I usually get punished. I apologize if I sound like I am preaching here as I have made my share of mistakes which happen when I lose discipline. Good luck!
miningmarkets.ca/features/the-kaiser-rules-john-kaiser-s-10-strategic-rules/
Comment by Danny — March 12, 2016 @ 8:57 am
Understood Danny .. fear of loss will haunt us if a stock goes up.. your key word is discipline… thx for the link.
and I was trying to say is that we repeat our mistakes and that is human nature as such.. the time when you are sweating bullets and cant click that mouse is the time to do it..
🙂 not investing advice just a comment!
Comment by Jeremy — March 12, 2016 @ 9:58 am