Gold has traded between $1,276 and $1,292 so far today…as of 9:40 am Pacific, bullion is up $12 an ounce at $1,289…Silver has jumped 58 cents to $18.45…Copper has added 2 pennies to $2.22…Crude Oil has fallen 48 cents to $46.38 while the U.S. Dollar Index has slid more than half a point to 97.82…
The central banks of Japan and Australia both kept interest rates unchanged today…next up is the Fed which meets today and tomorrow – no rate hike tomorrow from Ma Yellen but the markets will be paying close attention to language as it pertains to a possible rate move at December’s meeting…good luck, Ma!…
China’s Gold consumption in the first 9 months of 2016 dropped 12.8 tonnes from the year before to 720.7 tonnes, China Gold Association data showed today…the world’s top Gold consumer bought 478 tonnes of Gold jewelry, down 20% year-on-year…however, investment appetite continued to edge up with 4.1% and 12.9% increases in demand for Gold bars and Gold coins, respectively…the country also cut its production of the precious metal over the period by 2.6% to 347.8 tonnes, the industry body said…
Meanwhile, there was some encouraging economic data out of China overnight that suggests the world’s second-largest economy is on a stronger footing:
- China October factory activity (govt. data) strongest since July 2014 while the private Caixin survey showed its fastest rate of improvement since March 2011
- Service sector growth accelerates to highest since late 2015
- Smaller firms seeing long-awaited improvement
- Readings suggest economy is steadying, more “in balance”
- Construction booming but housing rally may be peaking
The S&P 500 Election “Indicator”
Sam Stovall, respected chief investment strategist at independent equity research firm CFRA, says the market’s decline this fall is a bad omen for the incumbent party and Hillary Clinton who holds a modest but dwindling lead in the latest polls entering election day a week from today…
“Going back to World War II, the S&P 500 performance between July 31 and October 31 has accurately predicted a challenger victory 86% percent of the time when the stock market performance has been negative,” he said…
The S&P 500 is down 2.2% since its close of 2173 on the final trading day of July…
The one time in eight that the incumbent party won with a negative stock market was in 1956 when Adlai Stevenson challenged President Dwight D. Eisenhower…
Gold Seasonality Chart
Historically, October is one of Gold’s worst months of the year with an average negative return of 1.3% going back 2 decades…Gold has dropped two-thirds of the time in October but November is a different story with higher prices 53% of the time and an average return of 1.9% (3rd best month of the year)…
Venture Seasonality Chart
October was the Venture’s worst month since its new bull market began in February with a drop of 27 points or 3.3%…historically during bull market years, October, November and December are each exceptionally strong, but this is also a U.S. election year coupled with a great deal of uncertainty regarding what the Fed may or may not do…
This time around, it’s possible the Venture may save much of its Q4 bull market power for December, particularly after the Fed’s December 13-14 meeting which also coincides with the start of a typical year-end buying spree…then again, if Gold moves dramatically this month based on the outcome of next Tuesday’s elections, the Venture could quickly blast through key resistance around 800…
In Today’s Morning Musings…
1. WPC Resources (WPQ, TSX-V) firms up deal to acquire past producing Lupin mine – what to watch for on the WPQ chart…
2. Callinex Resources (CNX, TSX-V) gets aggressive at Pine Bay VMS Project…
3. TSX Gold Index and HGU push higher as Gold continues to firm…
4. Kootenay Silver (KTN, TSX-V) update and fresh chart as drilling continues at La Negra and La Cigarra…
5. Orca Gold (ORG, TSX-V) drills 150 m @ 2.2 g/t Au at Block 14…
6. Colorado Resources‘ (CXO, TSX-V) update…
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…
CLE – financing at .085 – interesting
Comment by dave — November 1, 2016 @ 9:51 am
The U.S. is buying up CNZ, here comes the run
Comment by dave — November 1, 2016 @ 9:52 am
Boy oh boy, Ma is in a tough spot now! S&P 500 on the downswing. Lowest levels since June. Strong economy is just around the corner. Wait for it…
Would you expect anything but “easy” talk from fed heads from here?
Wild card is Trump dumping her within the first 3 months.
Comment by Daniel — November 1, 2016 @ 9:54 am
CLE – all FT thru secutor AHHHHH. that will be a pain to chew thru and then chew thru the financing wts. they care not about the props.
Comment by david — November 1, 2016 @ 10:15 am
for what its worth … I am on a press list
My name is Phillip Sugarman and I am contacting you to arrange one of the first interviews with the CEO of Crownia Holdings Ltd. (TSXV: CNH.V) – – a rapidly growing Chinese company that is a global specialty steel trader and distributor.
Even with the global steel sector crisis that prompted plant closures and job losses this past year, demand for global steel is set to grow. The global steel sector is expected to grow 0.5 percent to 1.510 billion tonnes by 2017. China produces and consumes about half of the world’s steel with an estimated over-capacity of 300 million tonnes. The World Steel Association is expecting a better outlook for China in terms of global steel demand. For a sixth straight month, China’s crude steel output is on track to beat last year’s record of 112 million tonnes.
Crownia Holdings, a China-based company, publicly-traded under the symbol “CNH.V,” on the TSX Venture Exchange listed company, at approximately $0.49 per share, was founded in 2012 to take advantage of the global steel market by sourcing competitive pricing and good quality products. The company is focused on providing integrating specialty steel product suppliers the most suitable products to customers in international markets. The specialty steel includes plates, bar steel, strip steel , wire steel, and tube steel. Crownia Holdings has supplied steel to numerous industries such as in Construction, Oil and Gas, Electronics, Aviation and Aerospace, Pharmaceutical, and the Machinery and Equipment industry
Comment by Jeremy — November 1, 2016 @ 11:38 am
No wonder the U.S. is buying CNZ. Zach’s put out a .80 target on CNZ today.
Comment by dave — November 1, 2016 @ 11:54 am
Dave, that’s even better than John’s next measured Fib. resistance on CNZ which is .60.
Comment by Jon - BMR — November 1, 2016 @ 12:00 pm
yes, it is.
Comment by dave — November 1, 2016 @ 12:22 pm
Good afternoon David –
We wanted to quickly address your comments for the benefit of readers here and to clarify any confusion that may exist.
The Clean Commodities Corp. financing is indicated in our news release today at $0.085, which is a substantial premium (30%+) to the prior pre-announcement closing price of $0.065
An important clarification, there are no warrants being issued to the flow-through shares, which is detailed in our news release.
We view above-market, warrant-free financings as an attractive source of capital.
By my back of the envelope calculations, Clean Commodities Corp. has traded more than 25 million shares on the TSX Venture so far in 2016 and the year is not over. This also does not account for Clean Commodities Corp.’s volume traded on other Canadian exchanges.
Since I hold approx. 13.5 million shares of Clean Commodities Corp., we currently have just over 50 million shares of “free-trading” float, so it would suggest a 50%+ volume turn-over as a percentage of our free-trading shares. I have not sold any of my shares of Clean Commodities Corp. in 2016 although I have bought more.
Overall, Clean Commodities Corp. believes that our shares are reasonably liquid when viewed over time relative to our peers and capitalization.
The proposed financing of approx. 4.1 million shares equates to roughly 5.9% of the proposed proforma float based on our current issued share count of approx. 64.8 million, and an even lower percentage on a fully-diluted basis.
Junior resource exploration companies will raise capital and issues shares to fund operations, especially companies such as Clean Commodities Corp. which has conducted field-level exploration work on not one but three projects this calendar year alone (Labrador Trough, Dumont/Spodumene Lake, Preston). The fact that we are proposing to issue flow-through equity should convey the point that we are expressly raising capital for the field, which we view as positive since it should indicate that we have further exploration plans ahead.
As reference, we have historically raised funds through a combination of both flow-through and hard-dollar financings to advance our operations and projects. I would suggest to you that flow-through capital does assess project merit and we view brokered capital involvement as a plus.
To end, I point out that in a post-closing situation we would have the benefit of being able to quickly start up any field work which we might want to do, such as for example a potential VTEM survey or field work at our Labrador Trough Project as has previously been alluded to in our recent news releases.
We are pleased with the progress that Clean Commodities Corp. has made during 2016 and are excited about our preliminary plans and opportunities for 2017.
Thank you for the continuing interest by you and others here at BMR.
Ryan Kalt
Chief Executive Officer
Clean Commodities Corp. (TSXV:CLE)
Comment by ryankalt — November 1, 2016 @ 12:36 pm
Thanks for the clarification Ryan, I have purchased shares in this price range hoping they have hit bottom but am also keeping some powder dry as tax loss selling may take it down another notch. November and the first part of December is usually the best time to buy.
Comment by Danny — November 1, 2016 @ 1:37 pm
CLE elaborating on the FT. FT w insiders or is nice, it stays put or is sold gently. FT with secutor is like dealing with the troll under the bridge. Cest la vie. Hopefully you can get the money to use soon, as suggested and then when they do their thing, you’ll be able to move thru it. FT at .085 is kinda like 0.06 Hard money, I think, once the write off is in there. Anyways, you needed cash, they love giving out chqs and let’s see what you can use that money on
Comment by david — November 2, 2016 @ 4:34 am
I dont own CLE, but the chart probably is at a bottom. There are only about 150k to .11, so unless offers come in, it just needs something to draw in the buyers. I doubt NRN will be the catalyst on this first go around of drilling. CLE looks to be a land management type company, but they have done some work this year so maybe ryan keeps it going. I think a vtem in Labrador with big results would jump start this thing.
Comment by dave — November 2, 2016 @ 6:04 am
CLE is a tremendous optionality play that just needs time, Dave…besides the southern Labrador Trough and their Uranium interests, they’ve got some of the best ground in Canada for Lithium…
Gold looking strong, now at $1,304…a revolt of the “deplorables” next week would turn Washington and the establishment upside down…
Comment by Jon - BMR — November 2, 2016 @ 6:34 am
A 500k offer at .07 on CLE. ouch. unless its fake.
Comment by dave — November 2, 2016 @ 8:11 am
WPQ following up nicely today after yesterday’s news…refer to yesterday’s chart for the key level to watch…
BEX – great day on a breakout above 9 cents…
AUT – mysterious volume the last 3 sessions, as high as 4.5 cents this morning…
ABN – rumors that’s something’s up, financing also just raised $700,000 in hard dollars…Forrest Kerr Project in Heart of Gold Camp plus another new property (?) in a warmer climate (?) for winter work would be a powerful 1-2 punch…
Comment by Jon - BMR — November 2, 2016 @ 8:26 am