Gold has traded between $1,276 and $1,291 so far today as the Fed begins its 2-day meeting and prepares to issue more bafflegab tomorrow…as of 10:15 am Pacific, bullion is off $1 an ounce at $1,282…Silver has retreated 6 cents to $17.34…Copper is down 2 pennies at $2.04…Crude Oil has slipped 49 cents to $48.39 while the U.S. Dollar Index has added more than one-third of a point to 94.84…
The yield on the 10-year benchmark German bund fell into negative territory for the first time ever this morning, amid global growth concerns and jitters over the U.K.’s upcoming referendum on EU membership…at around 8:30 am London time, the yield hit zero and briefly fell into negative territory as investors continued to flock to safe-haven assets…bond prices and yields, of course, move in opposite directions, and a negative yield implies that investors are effectively paying the German government for the privilege of parking their cash…what a treat!…the trend toward negative yields has been accelerating across the globe, and that can only be viewed as bullish for Gold…
BMO on Silver today: “There continues to be profit taking in Silver, while Gold speculative positions are seeing growing longs again. Earlier this year, Silver prices lagged Gold by about 6 weeks due to uncertainty around industrial activity globally. However, we note that the negative sentiment towards industrial demand has eased somewhat, especially given the outperformance of the steel complex.”
Odds & Ends
U.S. retail sales rose more than expected in May as Americans bought automobiles and a range of other goods, suggesting anemic economic growth isn’t falling over the cliff (not yet anyway) like job creation…the Commerce Department said this morning that retail sales increased 0.5% last month after surging by an unrevised 1.3% in April…it was the 2nd straight month of gains and lifted sales 2.5% from a year ago…consumer spending generates more than two-thirds of U.S. economic activity…
The Fed will spin this as a positive sign – U.S. import prices recorded their biggest increase in more than 4 years in May on rising costs of petroleum and other products, pointing to potential firming inflation they will say as the drag from a strong dollar and lower Oil prices fades…the Labor Department reported this morning that import prices increased 1.4% last month, the largest rise since March 2012, after an upwardly revised 0.7% gain in April…economists polled by Reuters had forecast import prices rising 0.7% in May after April’s previously reported 0.3% gain…in the 12 months through May, import prices fell 5.0%, the smallest decline since November 2014…
Apart from the Fed, the Bank of England, Swiss National Bank and the Bank of Japan will meet this week, and all are expected to hold monetary policies steady against a backdrop of caution about the global economic outlook…
And it gets stranger by the day in Obamaland…the Democratic National Committee’s computer network, seemingly about as secure as Hillary’s email account, was breached by Russian government cyber operations that have had access to the group’s communications and databases since at least last summer, according to news reports this morning…the sophisticated Russian groups, which have previously targeted the White House, the State Department and the Joint Chiefs of Staff, specifically concentrated on the DNC’s research units and had access to all of the committee’s internal communications, including chat and email applications…
TSX Gold Index Update
The TSX Gold Index continues to grapple with resistance at 233, though it did shoot as high as 240 intra-day yesterday and Friday…keep in mind that the 50-day moving average (SMA) – 221 on this 5-year weekly chart – has provided excellent support for the Gold Index since its big move began in late January, and there’s no reason to believe that won’t continue…
The primary trend for the producers is very bullish which lines up well with the 36-year Gold chart we posted yesterday, indicating bullion is in the early stages of a powerful “Wave 5” move that could easily take it to new record highs over the next 2 years…in the unpredictable, chaotic world we’re now in, owning shares in money-making Gold producers (big and small) is a wise strategy…it’s not hard to envision the Gold Index reaching at least 350 at some point when looking at John’s chart…
The Gold Index has softened 5 points to 228 as of 10:15 am Pacific…
In today’s Morning Musings…
1. Auryn Resources (AUG, TSX-V) has learned the “Art of a Deal” – picks up a Gold-Silver resource and exploration opportunity on the cheap…
2. Updates on BTR, CDB and ROG…
3. Acceleware (AXE, TSX-V) quickly accelerates – Oil sands/technology/General Electric combo…
4. Daniel’s Den…
Plus more…click here to take advantage of our Spring Sizzler Subscription Special in effect for a limited time only, or login with your username and password to view the rest of today’s Morning Musings…
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Jon, noticed a big jump in volume for VGN, are things finally happening for DVR?
Comment by Danny — June 14, 2016 @ 11:10 am
Good assumption, Danny.
Comment by Jon - BMR — June 14, 2016 @ 11:18 am
GGI – smells like news . finally. alos , maybe, looks like Secutor is close to being out of FT shrs,
till they start exercising their wts
Comment by david — June 14, 2016 @ 11:50 am
This may surprise many, but I became a GGI shareholder today. When you have a stock in a downtrend and all of a sudden it goes west to east and can’t be taken any lower by shares being sold off, you know that is the true accumulation spot. GGI has to much going on, the shares being sold about done. It is undervalued and a sleeper. I don’t think time is far off for it to move north. I can wait it out.
Comment by dave — June 14, 2016 @ 2:24 pm
Not surprised dave as you are a pretty astute fellow. I take it as a good sign if you are buying. Some of us longer term shareholders are a little frustrated but also know that you need to keep your emotions in check. The volume today in GGI was a very good sign. Maybe, just maybe things are starting to happen.
Comment by Danny — June 14, 2016 @ 3:48 pm
Hi John, Jon and Dan (welcome aboard)
I apologize for reposting my Umbral post but I’m not sure if you guys noticed it. Again I’m interested in any info as to why Anonymous (was at it again today)is such a heavy seller.
Thanks,
John
Umbral Energy (UMB) has seen Anonymous be a net seller of 19,460,000 shares since the run up in share price from $.04 to $.095 and back down to today’s $.055 all over a period of 13 trading sessions. Granted Anonymous provided a lot of paper for buyers on the run up to $.095 but has also been responsible for almost all of the selling on the way back down. Any idea who (fund, individual)is selling and why?
Comment by John — June 13, 2016 @ 6:47 pm
21.With regards to my Umbral post I forgot to add that with 58,000,000 shares outstanding, the 19,460,000 shares sold by Anonymous is 33% of the float. A fair whack of Paper!
Comment by John — June 14, 2016 @ 5:48 pm
Dave.. whats your thoughts and opinion on PHM,CXV and NHC… man these 3 have greta biz models and revenue but getting hammered for seemingly no reason…
u have any thoughts on this trio?
Comment by Jeremy — June 14, 2016 @ 5:57 pm
UMB – 14.8 options @0.05 issued since Dec 2014. the only money raised (per a NR) was $300K from wts+options in Aug 2014. checking Canadian insider , shows a lot of activity between shr + options exercising , and something you don’t see often for public viewing, insider shorting (400K @0.075 likely via TD since it was buy not a sell)! Jab has done almost 2MM shrs or selling , wt exercising and option exercising, in the past 2 weeks. they have no cash in the till, owe $250K and have office expenses of $90K a 1/4. They exercised 9MM options in 2015 to keep the gig running. They also had 10M wts at 0.06 per last filing, that likely got exercised. It looks like insiders know how to trade their mkt in order to make cash to pay their way. anyone see it differently?
Comment by david — June 14, 2016 @ 6:41 pm
PHM – when I looked at it a while back, the shrs they issued to themselves over the years and the way they traded them for tax reason was odd. reminded me of valeant pharm. could be wrong.
Comment by david — June 14, 2016 @ 6:43 pm
David – good homework on UMB. Unless proven otherwise (anyone else want to add their 2 cents worth?)I think your reasoning is correct. I have emailed Jag Bal (CEO) asking about financing plans and the selling by Anonymous so if he responds we should have some more clarity.
Umbrals’ lithium properties have good speculative merit so if they can raise some exploration money and have a desire to promote their story, I think we could get a good run out of UMB. Someone has put a lot of effort into their website. It is up to date with the lithium story front and center. (there is a strange glitch though. Click on “Join The VIP List” and it sends you to join the Lithium X mailing list and not Umbral)
Comment by John — June 15, 2016 @ 1:01 am
Good call on pending Ggi news
News out this morning !!
Comment by Matt — June 15, 2016 @ 4:07 am
Jeremy – I think CXV is a takeover target down the road and it has held up better than PHM. For PHM, David’s post #9 brings up a good point. This is pretty much talked about on the SH board. My focus has shifted to other areas and I have not kept up with them as much any more, especially after PHM broke below the triple bottom in chart. I mentioned a while back to you if you were in it to maybe consider exiting. hope your doing well Jeremy.
Comment by dave — June 15, 2016 @ 4:56 am
I spoke to the President of Sekova Metals (SEK). The GMP, Leede, Industrial Alliance buying have been explained. I like this story more now than before. Drilling begins early July. I think we see .10 to .12. – Keep an eye on this one. The past history of this property they are drilling soon is very interesting. I own a little at .06
Comment by dave — June 15, 2016 @ 5:09 am
GGI – Dear Steve: Nice acq. Nice portfolio of properties. But to get me excited and pay 10 cents for your stock, please release some drill results, outline your work programs or JV off the props to people who have the time and money to work and release results.
Comment by david — June 15, 2016 @ 5:56 am
He will david, paper almost done and when yellen does her speech today, and it will sound something like this, bla,bla,bla data, bla,bla,bla.
Comment by Laddy — June 15, 2016 @ 7:12 am
Jon,Any comments on GGI great land acquisition in the Golden triangle. They sure have increased their holdings.Drill results would have been nice, but this bit of news is exciting.
Comment by pole — June 15, 2016 @ 7:12 am
Good move, pole, we’ll elaborate on Morning Musings…besides the upside on the E&L deposit, what’s interesting is that GGI now adjoins half of the 15 km north-south eastern border of Colorado’s KSP…that will play prominently over the summer, I’m sure…historical reports show some significant mineral occurrences near/along that eastern border…if they can get some crews in their shortly, and conditions seem to be supportive of that, watch out…the KSP is going to be a very hot property over the summer, that’s going to drive CXO, and in turn that’s going to be terrific for the entire district…lots of other exploration programs and drilling on other properties too…
Comment by Jon - BMR — June 15, 2016 @ 7:34 am