Gold has traded between $1,258 and $1,274 so far today…as of 9:30 am Pacific, bullion is up $8 an ounce at $1,267…Silver has added a dime to $15.61…Copper has retreated 2 pennies to $2.26 after a big gain last week…Crude Oil has jumped $1.57 a barrel to $37.48 while the U.S. Dollar Index has fallen one-quarter of a point to 97.08…
China raised its central bank Gold reserves by the smallest amount since the nation started disclosing monthly increases last year…the People’s Bank of China expanded holdings by 0.6% to 57.50 million ounces in February from 57.18 million ounces a month earlier, according to its web site…Chinese markets, however, were closed during the week of February 8 for the Lunar New Year holiday which may have impacted central bank buying…global bullion prices jumped 11% in February, the biggest monthly increase in 4 years, as investors sought a haven from financial turmoil…
China held its big central planning meeting over the weekend with economic officials laying out plans to promote growth…government officials said China’s GDP will grow by 6.5% to 7% this year…that’s a hefty number by world standards, if it’s to be believed, but it’s also the slowest projected growth rate laid out by China in more than 25 years…the consumer price index growth target is around 3% while the budget deficit is projected at 3% of GDP…
Qu Hongbin, chief China economist at HSBC, wrote in a morning note that the National People’s Congress growth target reflected a “significant expansion” of fiscal policy. “This will provide greater support to the financing needs of infrastructure projects, which holds the key to (stabilize) growth,” Qu said. “We expected infrastructure investment will be become stronger, and there will be more progress in tax reduction, increased subsidies to migrant workers’ property purchase needs and other supply side reforms in 2016.”
Oil Update
Major OPEC producers are privately starting to talk about a new oil price equilibrium of $50 a barrel, adding to signs that the market’s long, deep rout is officially over, according to one of the industry’s leading prognosticators…Gary Ross, the founder, executive chairman and chief Oil forecaster at New York-based consultancy PIRA, told clients recently that he reckoned the “lows are in” for Crude, which was then about $30 a barrel…in an interview with Reuters, Ross said Oil should recover to $50 a barrel by the end of the year, potentially aided by eventual supply cuts from leading producers among OPEC…
“They want $50 Oil, this is going to become the new anchor for global oil prices,” said Ross, one of the industry’s most respected forecasters for his bold price predictions and decades-long history of consulting with OPEC members. “While it may not be an official target price, you’ll hear them saying it. They’re trying to give the market an anchor.”
In today’s Morning Musings…
1. Updated charts for both Gold and Silver…
2. Equitas Resources (EQT, TSX-V) signs a definitive deal to acquire majority interest in 6 Gold properties, including a small-scale producer, covering 184 sq. km in Brazil…
3. Renewed interest in Blackbird Energy (BBI, TSX-V) as Crude prices strengthen…
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…
CLZ & REX moving today. News must be very close.
GGI – Some dumping today with no news still regarding there metallurgy and no announcement of drilling at Rambo. Guess investors are getting tired of the same old show from Regoci.
Comment by Dan1 — March 7, 2016 @ 1:16 pm
Well, have I ever learned my lesson on GGI.
Comment by George — March 7, 2016 @ 1:18 pm
You see dumping, Dan1, I see accumulation and the careful targeting of the ideal first holes at Rambo. You don’t make a discovery by drilling for the sake of drilling to satisfy impatient investors. You get it right, immediately at the outset, and you don’t waste holes. Ray Oripaugh found Don Ese. He knows what he’s doing. I bet we’ll hear from GGI any day now – at least we certainly should – that the drill is ready to turn. Again, look at John’s latest chart, and go back in history to whenever GGI has entered a drill program.
Comment by Jon - BMR — March 7, 2016 @ 1:47 pm
Jon, I am just saying why does it take so long with everything with GGI? Yes I know that precision is important when it comes to the drill collar location. But everyone said including BMR, it would be a couple weeks after the announcement of the Grizzly results and we would see the Metallurgical results. What’s it been, more than a month and still nothing. Hope we see something this week as it would be the right timing with the PDAC ongoing. There may be accumulation going on but GGI really needs to get going. Next thing we know it will be sell in May and go away.
Comment by Dan1 — March 7, 2016 @ 2:30 pm
Buying GGI and holding it and then buying more was my first mistake. Holding it and buying more rather than selling it was my bigger mistake. I could have made my loss back and more just in February. Trader lessons. So many impressive gains in other stocks.
Comment by George — March 7, 2016 @ 2:59 pm
Dan1, I agree that GGI needs to pick up the pace in Mexico, and I believe that will happen starting with Rambo any day now. It should, and needs to, build from there. However, GGI did move very quickly and effectively last summer during the Tahltan uprising at Sheslay when few people predicted they would even drill. This is a company with lots on the go including activity at no less than 7 100%-owned properties (3 in B.C., 4 in Mexico) and a very different and large new discovery at the Grizzly that needs to be analyzed properly. Keep in mind we’ve also been through the worst market conditions on record the last 16-and-a-half months, when so many companies have been decimated (little action at all) and most have diluted like crazy just to stay alive. GGI has not only survived that period, but has positioned itself extremely well on multiple fronts for a great 2016. I don’t judge the value of any company or its potential based on its share price on any given day, otherwise I would have been buying BLO like crazy at 75 cents rather than a nickel. A stock is either overvalued or undervalued. You succeed when you can effectively visualize what’s going to unfold, and you’re able to see beyond what the market sees on any particular day. Otherwise you’re just a crowd follower, with your sentiment and emotions controlled by every move up or down in the stock, and that usually doesn’t work out too well.
Comment by Jon - BMR — March 7, 2016 @ 3:53 pm
George, if you’re investing in the junior resource market, you must be diversified. Not all stocks move exactly when we want them to. Timing can be tricky sometimes, and markets are volatile. The biggest mistake I ever made in the market was on QLT, the pharmaceutical company, back in the late 1980’s. I bought it at $5 a share, I knew it had great promise. I got impatient and sold it about 6 months later around the same price. It went to $200 per share. It didn’t move when I wanted it to, but when it moved, it moved big. I took my eye off the fundamentals. I’m frustrated with GGI at the moment, just like you and some others. But the fundamentals are better than they’ve been at anytime since we’ve covered this play since 2013, and patience will be rewarded as a result. In the kind of market we have now, 1 drill hole at Rambo could change everything, not to mention other possible triggers.
Comment by Jon - BMR — March 7, 2016 @ 4:20 pm
One year ago news on rodadero came out at end of pdac, this is the timing part ,makes sense gotta be this week!!!
Comment by Laddy — March 7, 2016 @ 4:34 pm
Emotions are the hardest thing to knock off your shoulder, greed is the hardest thing to put on your shoulder.
Comment by dave — March 7, 2016 @ 6:47 pm
Dan1
Not everyone said we would hear from GGI on the Grizzly results in a couple of weeks, I was loud and clear that we would not hear anything re Grizzly Metallurgical results for sometime if at all. I got tired of complaining about Regoci and the sad thing is if and I mean if GGI ever does come out with good news on any of their properties we will see little movement and what movement and volume we do see will give a lot of fed up investors the opportunity to get out and move on, especially now that there are so many other great opportunities out there.
Comment by GREGH — March 7, 2016 @ 10:55 pm
Jon – I agree you must be diversified in the junior resource market. You must also sell stocks like GGI, because when stocks don’t follow the market flying up its telling you something. It’s telling you that you should sell and move on because it’s dead money. GREGH I agree, any volume in this stock would help me get out, I couldn’t care if this stock went to $1 at this point which it isn’t anyway.
Comment by George — March 8, 2016 @ 5:50 am
Some of us have been mentioning some stocks that have moved up quit well, here are some more that I found. BRI, NGC, FPC, SCY, SEV.
dead money is killing us.
Comment by dave — March 8, 2016 @ 7:53 am
Great move on BLO this morning…
Comment by Jon - BMR — March 8, 2016 @ 9:14 am