Gold has traded between $1,335 and $1,344 so far today…as of 9:30 am Pacific, bullion is up $5 an ounce at $1,341…Silver is 14 cents higher at $19.78…Copper is flat at $2.15…Crude Oil has surged another $1.11 a barrel to $45.60 while the U.S. Dollar Index has declined more than one-tenth of a point to 95.56…
High on the U.S. calendar this week are inflation figures for July and minutes of the last Federal Reserve meeting which might offer more clues on the chance of an interest rate hike by year-end (not likely!)…
Holdings of SPDR Gold Trust fell 1.2% to 960.45 tonnes on Friday…
Gold has entered a period of seasonal strength (late August until late September or early October), driven by a variety of factors including a pick-up in jewelry demand from Asia…the current negative rate environment, particularly in the euro zone and Japan, should also keep Gold well bid…according to Jeffrey A. Hirsch, editor of Stock Traders’s Almanac & Almanac Investor, in the 19 years since 1996 (which includes a couple of nasty bear markets), “entering Gold long positions on or about August 26 and holding until October 1 has been profitable 13 times (a 70% success rate) with a cumulative potential profit of $17,550 per single futures contract.”
A very modest unwinding of Gold speculation in recent weeks can be construed as positive, setting the stage for another leg up in prices…during that time, the Venture hasn’t lost a beat as it’s up nearly 9% since mid-July (the Venture is a reliable indicator of Gold’s primary trend)…
The net-long position in Gold futures and options fell 4.3% to 255,773 contracts in the week ended August 9, according to Commodity Futures Trading Commission data released Friday…the holdings have dropped 11% since July 5 when they reached an all-time high…assets in SPDR Gold Shares, the world’s biggest exchange-traded product backed by the metal, have declined in 3 of the past 5 weeks…however, global holdings in bullion ETP’s reached a 3-year high last week…
“Abenomics” Not Working
Fresh figures this morning showed Japan’s economy failed to grow on a quarterly basis during the April-June period, with GDP growth coming in at zero and missing already subdued forecasts…on an annualized basis, GDP expanded 0.2%, slowing dramatically from the 1.9% spike in the first 3 months of the year…a Reuters‘ poll of economists had predicted an annualized increase of 0.7% and a quarterly rise of 0.2%, so not only is the Japanese government off track but so too are the economists who are cheerleading Abenomics…
The government of course is doubling down on Abenomics after recently announcing a fiscal “stimulus” package of 28 trillion yen (265.3 billion U.S.), roughly 6% of Japan’s economy….
However, we should be grateful for Abenomics in the sense that it’s one of a range of factors that has pushed Gold higher this year…Japan is also the “star performer” among smaller Gold consumers, reports Bloomberg, with 4 straight quarters of positive net investment into bars and coins…demand expanded to 5.8 metric tonnes in Q2…the World Gold Council cites distrust of Abenomics, negative interest rates and a rising yen for the investment boost…
Nervous Billionaires?
The world’s billionaires are holding more than $1.7 trillion in cash, roughly the size of Brazil’s GDP and the highest amount since one firm began recording the measure in 2010…due to what they perceive to be growing global risks, the world’s 2,473 billionaires are keeping 22.2% of their total net worth in cash, according to the Wealth-X Billionaire Census…
The world’s billionaires saw their fortunes grow last year by 5.4% to $7.7 trillion-higher than any country’s GDP except the U.S. and China…while Europe had the largest number of billionaires of any region, 806, Asia had the fastest growth…its billionaire count grew 15% over the prior year, to 645…North America had 628 billionaires, 3% higher…
In Today’s Morning Musings…
1. Two new drill programs commence in the Heart of Gold Camp…
2. Silver – getting ready for another run higher?…
3. Daniel’s Den – 2 Oil stocks, and a rubber band that finally snapped – creating a great buying opportunity in this high-grade Gold play…
Plus more…click here to read the rest of today’s Morning Musings and all BMR exclusive content, through a risk-free Pro, Gold or Basic package, or login with your username and password.
CPI tomorrow @ 8:30, will be the big economic data point of the week. Wouldn’t be surprised if the number comes in hot, largely due to increase in oil prices. However, a steady dose of Fed Speak will set the tone for gold.
Comment by Daniel — August 15, 2016 @ 10:21 am
Jon, what do you think about RYR.V. Tim Coughlin, the serial mindefinder, on to sth. new?
Comment by maikenders — August 15, 2016 @ 10:24 am
Nice trading today in BEX, looks like it wants to move higher this week.
Comment by Jon - BMR — August 15, 2016 @ 11:54 am
RYR could work out well, maikenders, but doesn’t have momentum at the moment—keep in mind, the 25 million shares from the April financing became free-trading today…picking it up on a further little dip could be attractive…overall trend is positive…
Comment by Jon - BMR — August 15, 2016 @ 12:08 pm
DBV – receives enhanced drilling permit for Hat property and is in late stage discussions for ‘substantial’ financing.
Comment by Dave2 — August 15, 2016 @ 3:20 pm
Well that’s good, I guess. Just really a shame that whole area was stunted by that one little pr–k. Terrible shame..
Comment by Laddy — August 15, 2016 @ 3:53 pm
DBV – well, we will see if this NR sparks any volume on it tomorrow. I think investors are shying away from it till they see drilling numbers. but tomorrow will tell.
Comment by dave — August 15, 2016 @ 6:01 pm
Jon
what’s your opinion on this comment”
“SnipGold was incredibly smart to accumulate the land position but in a terrible market. Seabridge was extremely smart to scoop it up at a bargain. CXO sat on their butt way too long and when they finally decide to do something they totally drop the ball. Drilling a bunch of short holes exactly where the structures were already drilled is an old ploy and a stupid one. Everyone knows whats there, thats why pretivm went over to Brucejack, way bigger deposit and they finished what Don McLeod started with Newhawk. INEL will not connect to Kyber, this isn’t a game of join the dots. What CXO should have done was spend their $$$$ on actually expanding what was there or find something new but that would not have moved the price up in this market. The wasted effort they have done got you to $.65 and its your choice to sell or wait but they will have to finance and NOBODY is going to pony up now, same old INEL as from the 80’s. Thanks CXO for nothing…..On the other hand, Skeena will drill Snip, they will hit in new areas and they will publish a resource…sell and put your $$$$ there.
Comment by GREGH — August 15, 2016 @ 9:37 pm
A ridiculous comment generally, Gregh, from a bitter individual and it’s obvious what the intent was as he’s pushing one particular stock. Mind you, I do like the odds of SKE doing well with Snip and outlining new resources there as I’ve stated on numerous occasions. However, to bash another stock in the area with false information just to try to lure people into buy SKE is typical SH-style crap…undermines what is otherwise a sound argument for SKE. The good people at SKE wouldn’t support that either.
“Seabridge was extremely smart to scoop it up (Snipgold) at a bargain” – yes, they made a very wise acquisition at precisely the right time, but SnipGold directors literally gave their company away for peanuts which wasn’t so “incredibly smart”…zero percentage gain from the day after SEA made the offer for SnipGold.
(CXO) “Drilling a bunch of short holes exactly where the structures were already drilled.” Very misleading comment – that’s not how someone of Jim Oliver’s technical expertise and stature has approached Inel as the holes have been drilled very differently from the 1980’s, and new structures have also been identified and drilled that weren’t known back then. Don’t take just my word for it but Brent Cook – who’s the ultimate skeptic – will tell you the same thing as he has examined the cross-sections just as I have. In fact, it’s obvious now that back in the ’80’s, the way the oldtimers approached the drilling of Inel was completely off the mark (they had the wrong orientation of the system for starters) but of course they were hampered by numerous factors including ground conditions and were forced to drill many holes blind from underground. They also had no surface geology map to go on. The continuity of mineralization at Inel is much greater than historically understood and CXO has also expanded the Inel zone considerably. Khyber looks very promising. If only most Venture companies would carry out a drill program in the professional manner that CXO has, we’d have an even better market.
Comment by Jon - BMR — August 16, 2016 @ 3:14 am
Gotta like the overnight action on the charts, it’s about time.
Comment by Laddy — August 16, 2016 @ 3:37 am
Interesting, Laddy, how the folks at Bloomberg the other day disseminated a piece for the masses about the Gold “rally” being “exhausted” and “over”.
Comment by Jon - BMR — August 16, 2016 @ 3:41 am
Yes, very, the truth about ther economy may finally be comeing out, I was blown away when I seen a very, very small piece on Obama and Clinton’s home town Chicago, disgusting, and a whole bunch of other cities close to that, but once again not on the mainstream media, the lying is unbelievable.
Comment by Laddy — August 16, 2016 @ 4:02 am
The mainstream media wouldn’t lie and distort the truth about things, would they, Laddy?
Comment by Jon - BMR — August 16, 2016 @ 5:20 am
Nice numbers from IDM’s Red Mountain this morning…they’ll need those to counter the free-trading stock coming into the market later this month.
Comment by Jon - BMR — August 16, 2016 @ 5:35 am
NRN – we have an accordian forming off the flag, should break out to the upside one day this week
Comment by dave — August 16, 2016 @ 5:58 am
Thanks Jon for your comments above on CXO
Comment by Greg — August 16, 2016 @ 6:05 am
Dave, NRN must be close to announcing the start of drilling. It should take CLE with it.
Comment by Dan1 — August 16, 2016 @ 6:21 am
everyone needs a good laugh in the morning jon, thx for that, Bloomberg this morning a rate hike back on in sept,geez,ha.
Comment by Laddy — August 16, 2016 @ 6:36 am
Agree Dan1 – NRN has gone through an excellent consolidation period with good volume. Looks about done and ready to rock soon
Comment by dave — August 16, 2016 @ 6:50 am
One of my old buds from yester years has come to life, looks like a leak, CJC.
Another old bud from years past, CEV started drilling, worth the eye watch.
Comment by dave — August 16, 2016 @ 7:14 am
NRN – expect a drill NR nxt week likely for Huckleberry.
Comment by david — August 16, 2016 @ 9:27 am
Anyone out there that has partaken in the meteoric rise in the Sirios (V.SOI)share price over the last week ? I was in it at one stage a few months ago but sold out to buy CXO. A similar share count to CXO, started a 10,000 metre drilling program on July 21 last and recently hit a 52 week high of $C1.42. Strange thing is that Brent Cook I understand was not impressed with the geology there in contrast to his being impressed with the CXO project. Well it proves that Brent is fallible on the SOI project at least, but not I hope on the CXO one. Feeling regret at switching from SOI to CXO. SOI was one of John Kaiser’s bottom fish- certainly now a salmon leaping prodigiously upstream!
Comment by DAVID — August 16, 2016 @ 10:34 am
SOI has a nice high-grade play going on in Quebec, David, which we haven’t had time to look into in any detail. In this type of a market, you want to try to hang on to your best winners and let them run unless there’s compelling fundamental and technical evidence that dictates otherwise. As far as CXO goes, look at the trend…this is the 4th pullback off a high (highs were .40, .48, .60 and .71), and those who have accumulated during these pullbacks have done extraordinary well…John charts clearly show where CXO is headed, and they will continue to deliver on the ground…
Comment by Jon - BMR — August 16, 2016 @ 10:54 am
Hi David
I have a small position in SOI, and heard Brent speaking at the Sprott Symposium in July. He used SOI as an example of his fatal flaw talk. Market is proving him wrong, also the reports of VG in the currently drilled core helps. CEO Dominique Doucet will be on Allen Barry (Laboucan) reports podcast today (after market close). Looking forward to hear what he has to say.
Comment by Dave2 — August 16, 2016 @ 11:10 am
David – We all know the drilling starts this weekend or early next week on nrn
Comment by dave — August 16, 2016 @ 11:26 am
Speaking of NRN – and CLE, someone on SH mentioned that it looked like institutional buying on CLE with its last run up to .17 – Indeed it was as well as NRN. Quest Capital out of Atlanta Georgia, (my home town now), took a lot of the stock down. The guy responsible has now left quest and become a board member with NRN. Just thought this was interesting to share.
Comment by dave — August 16, 2016 @ 11:31 am
I remember Brent Cook saying a few years back at a conference in San Francisco that Goldquest was a one hole wonder it will never amount to anything… Everyone has their opinions some not always right and some not always wrong…
Comment by Greg — August 16, 2016 @ 4:42 pm
Good article on the September bull rush
http://www.streetwisereports.com/pub/na/gold-2-0-how-to-profit-from-the-current-gold-bull-market
Comment by Matt — August 16, 2016 @ 5:34 pm