Gold has traded between $1,348 and $1,368 so far today…as of 7:45 am Pacific, bullion is up $12 an ounce at $1,365…Silver is 21 cents higher at $20.61…Copper is up 3 cents to $2.23…Crude Oil, which briefly fell below $40 yesterday for the first time since April, has regained 42 cents to $40.48 while the U.S. Dollar Index is down another half point to 95.19…
Gold ETF investors are remaining loyal…yesterday marked the highest daily global inflow in 3 weeks (8.4 tons) and the 4th consecutive daily inflow…holdings of the world’s largest Gold-backed exchange-traded fund, SPDR Gold Shares, rose 5.9 tonnes yesterday in the biggest 1-day jump since late June…
The amount of Gold ETF buying rose again in July, although not as dramatically as in June and other months this year, according to Commerzbank. “Stock levels increased by a good 55 tonnes overall in July, compared to almost 110 tonnes in June. Since the beginning of the year, (global) inflows have reached 546 tonnes.”
How pathetic – Fed officials are at it again, talking up the possibility of a rate hike…William Dudley, President of the New York Fed, said yesterday that the market shouldn’t be ruling out the possibility that the Federal Reserve will hike interest rates again this year. “Market expectations, to my eye, derived from federal funds futures prices, which price in no more than one 25 basis-point rate hike through the end of 2017, appear to be too complacent,” he told a conference of central bankers and financial regulators on the Indonesian island of Bali…
Dudley said he expected the U.S. economy to grow around 2% annualized over the next 18 months, boosted by improved consumption. “If the upcoming information validates my view of the outlook, then U.S. monetary policy will need to move at a faster pace than implied by futures prices to a more neutral posture as the labor market tightens further and U.S. inflation rises,” Dudley said…
Fed funds futures rates yesterday suggested a 37% probability that the U.S. central bank will hike rates at its December meeting, down from about 48% a couple of weeks earlier, according to CME Group’s FedWatch…
One More Reason Gold Will Continue Its Climb
Governments and central banks around the world have gone insane…
As the Wall Street Journal reports, the total amount of global government bonds that bear negative yields – meaning it costs you to have the government hold your money – has now climbed to a massive $13 trillion…
A picture tells a thousand words – look at the trend…
Desperate Japanese Government Hands Out Cash As Government Bonds Fall The Most In 3 Years
Japanese Prime Minister Shinzo Abe’s cabinet approved 13.5 trillion yen ($132 billion U.S.) in fiscal measures today as part of efforts to revive the flagging economy, with cash payouts ($150 to 22 million low-income earners) and infrastructure spending…the headline figure for the package totals 28.1 trillion yen, but that includes public-private partnerships and other amounts that are not direct government outlays…the so-called stimulus spending is part of a renewed government effort to coordinate its policy with the Bank of Japan, but growing concerns that the BOJ policy has reached its limit has triggered the worst sell-off in government bonds in 3 years…
The government claims that its measures in this package, which will be implemented over several years, will push up real GDP by around 1.3% in the near-term…however, SMBC Nikko Securities’ analysts expect the impact on growth will be much less – just 0.4 percentage points this fiscal year to March 2017 and less than half a percentage point in 2018…
Japan already has a massive debt (229% of GDP in 2015) – it’s only a matter of time before it hits the fiscal “cliff”…
In Today’s Morning Musings…
1. Venture trades above 800 for first time in 22 months – astounding long-term chart shows where this market is headed…
2. Heart of Gold Camp update including fresh interview with Colorado’s Adam Travis as CXO hits new high…
3. Silver’s key level to watch…
Plus more…click here to read the rest of today’s Morning Musings, and all BMR exclusive content, by taking advantage of our Subscription Special ending tonight, or login with your username and password.
Jon, another informative interview with Adam – Thanks. Do you know if they are using a second drill rig at Kyber or moving the one from Inel?
Comment by Dan1 — August 2, 2016 @ 7:03 am
For now, as far as I know, Dan1, they are continuing with 1 rig that is extremely productive at 150+ m a day…to add a 2nd rig of course involves not just additional drillers but extra geologists, technicians and other support as well…CXO is accomplishing with 1 rig what most companies would have trouble doing with 2…so they are getting great efficiency and saving money…at this point I think they’re wise to stick with 1 rig and then expand if circumstances dictate as August/September/October unfold…they’re certainly good to drill well into October before weather conditions become an issue…however, Travis isn’t ruling out winter drilling…it is doable in certain areas – just more costly…
Comment by Jon - BMR — August 2, 2016 @ 8:38 am
I agree Jon, they will keep making hay with one drill for now. However I expect the Kinross guys will soon pay a site visit and after that Kinross may go ahead and exercise their warrants which brings in another $1 million and if CXO is encouraged by what they are seeing they may yet add a second drill and possibly complete their 80% earn in on KSP before the winter settles in. That will certainly shock Seabridge if they do.
Comment by Rockman — August 2, 2016 @ 9:08 am
Big day for Otis Gold (OOO, TSX-V) and Strategic Metals (SMD, TSX-V) as well…both recently added to our Top Opportunities List…
Comment by Jon - BMR — August 2, 2016 @ 10:28 am
Got in on Deveron today at 61 and 62 cents. Kept my bid at 61 for the second lot and was filled before end of day. CXO up nice again today. I am feeling warm and fuzzy all over this summer. GLTA
Comment by Dan1 — August 2, 2016 @ 12:12 pm
Jon
was today the day you were going to be meeting with Regoci/GGI? All I can say is very very disappointing, do you still think Regoci is the one to build shareholder value going forward? You always said when you did not think he was performing you would call him out on it, well I think that time has come in my opinion, the stock price speaks volumes…
Comment by GREGH — August 2, 2016 @ 3:34 pm
I got tied up in research today, Gregh, and it will be tomorrow.
Comment by Jon - BMR — August 2, 2016 @ 3:45 pm
Jon, I have to agree with GREGH, in a rising venture market where the wind is at the back, GGI has been a big disappointment, silver is on fire right now so where are the updates on Mexico? Obviously a lot of people have decided to move on which is reflected in the share price. This seems like dead money right now, I have patience but it is being stretched real thin with GGI right now. At least selling at these prices I would break even as I was fortunate to get in pretty cheap, I know others on the board are not so fortunate, hopefully they are making money on others ie.CXO
Comment by Danny — August 2, 2016 @ 4:03 pm
You’re right, Danny, Regoci needs to pull things together in a hurry because there are too many great opportunities in this market right now as we’ve been busy outlining. An ace up Regoci’s sleeve is certainly the King – if he handles that properly, there’s huge leverage at these prices with GGI but execution is the key. Given my recent trip and the research we’ve carried out on the Heart of Gold Camp, we’re almost ready for a broad update that will include progress reports – “checks” – on each company. Stay tuned.
Comment by Jon -BMR — August 2, 2016 @ 7:07 pm
GGI shouldn’t be relying on the speculative nature of the King. Rambo and Silver Eagle should have given them plenty to get their teeth into in this exuberant market.
Comment by PaulH — August 2, 2016 @ 7:13 pm
I don’t disagree with that, PaulH, but the bottom line is they’ve been handed a gift with the King due to developments in the district. And don’t forget the King has had some drill holes put into it (late 1980’s) – it’s a very good prospect in the context of the district as laid out by award-winning geoscientist George Cavey. If GGI can execute, they should capture a lot of value from a drill program there…IF they can execute.
Comment by Jon - BMR — August 2, 2016 @ 7:31 pm
I took a loss on GGI a long time ago. Thankfully put some money in CXO which helped get back those losses. IMHO Regoci doesn’t have what it takes.
Comment by omega — August 2, 2016 @ 8:21 pm
GGI. they didn’t drill deep enough at Rambo, they think, The hits they had were small. BUT he’s known this for weeks. He should have come clean a long time ago. Misses are part of the game. outright lack of updates, not clever. The geo/vendor for PSP has shares in GGI, so hopefully, they will report something before it snows.
Comment by david — August 3, 2016 @ 5:01 am
GER – just announced they made a deal to accept and process artesinal ore only in excess of 10gpt Au, with the proceeds being split 70/30 in favour of GER.
Comment by david — August 3, 2016 @ 5:36 am
david, what you are saying is that Regoci knows the results from Rambo, you know the results but shareholders like myself don’t know!!! Is that correct??
Comment by Danny — August 3, 2016 @ 6:38 am
A CXO sale again this morning…the sellers just never learn. More dumb money about to be flushed out.
Comment by Jon - BMR — August 3, 2016 @ 6:52 am
Danny,probaly just a rumer about regoci,no nr from ggi, rather hear it from the horse’s mouth than the other end,i’ll say something very soon about king.
Comment by Laddy — August 3, 2016 @ 10:10 am
GGI – ya he knows Rambo results, has for over a month now. Its fair to hold results in the case of ABZ hitting a diamond in the core and needing time to get more property. But this doesnt sound like a similar case.
Not funny anymore. So many good properties and handled so poorly. The mkt will fund companies that are set to do something and report it. They need to shake their heads over at GGI HQ. If they are like any other company in the triangle, they are fending off offers of JV’s, but that doesn’t excuse you from keeping the ongoing work up to date with investors. Still holding though. Must be for the Ultra results!
Comment by david — August 3, 2016 @ 5:12 pm