Gold is starting a new month on a positive note after putting in its worst quarterly performance since 2008…it’s within less than $30 of its June high this morning following bullish developments out of the recent euro zone summit and as speculation mounts that central banks will take action to spur growth…as of 6:10 am Pacific, the yellow metal is up another $19 an ounce at $1,616…Silver is 52 cents higher at $28.04…Copper is 7 cents higher at $3.54…Crude Oil has gained $2.77 a barrel to $86.52 while the U.S. Dollar Index is up slightly at 81.98…
The latest COT report shows the commercial traders’ short position in Silver is at an all-time low…this is extremely bullish and gives us great confidence that Silver has bottomed out and could explode higher at some point during this third quarter…
CRB Index Chart Turns Bullish
It has been a rough few months for commodities, but the latest CRB chart provides a lot of encouragement moving forward as John details below…
Copper Chart Update
Despite the problems that do exist on the global economic stage, and all the doom and gloom fed to us by the mainstream media, Copper has been holding up quite well…John’s latest chart (10-year monthly) shows Copper has strong support in a long-term upsloping trend channel with buying pressure increasing in June…
Crude Oil (WTIC) Chart Update
John’s 6-month daily chart shows how Crude Oil became oversold in May and June and likely hit an important low…it’s now trying to fight its way back but this will take time…there’s resistance in the mid-$80’s, where it’s trading at now, and then around $92…
Action From ECB Expected This Week
U.S. manufacturing shrank in June for the first time in nearly three years, following a string of data from Europe and Asia that suggested the euro zone debt crisis was reverberating throughout the global economy…the European Central Bank (ECB) will likely lead the way on the monetary front this week as it is widely expected to cut rates to a record low Thursday…the bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three-year loans on the heels of pledges supporting fiscal discipline…
There’s no “magic bullet” to solve the euro zone debt crisis, but EU leaders took an encouraging step forward at the end of last week after agreeing to loosen bailout rules, lay the foundations for a banking union and break the link between sovereign and banking debt through the direct recapitalization of lenders…EU leaders will try to maintain the muscle-flexing by seeking to convince investors that the euro area will do everything it can to end the three-year crisis…
The region is now suffering from its highest unemployment rate since (11.1%) in at least half a century the 1960s (11.1%)…Spain and France were the main drags on May’s figures, as 80,000 more people lost their jobs in Spain while France suffered its biggest monthly rise in joblessness this year…
Today’s Markets
Asian markets were up overnight, though China posted only a 3-point gain to 2229…European shares are higher this morning while stock index futures in New York are pointing toward a slightly positive open on Wall Street…markets in the U.S. close early today in advance of tomorrow’s July 4 holiday…the Venture Exchange put in a strong performance Friday, gaining 27 points to 1191, and will now likely attempt to climb back above the 1200 level…
Yukon Exploration Spending Remains High
Despite a rocky junior market, exploration expenditures in the Yukon this year will almost match last year’s record of $307 million…Natural Resources Canada recently estimated nearly C$300 million would go into mineral exploration in the Yukon during 2012…exploration companies with the most cash to invest in the Yukon are ATAC Resources (ATC, TSX-V), Ethos Capital (ECC, TSX-V), Golden Predator (GPD, TSX), Kaminak Gold (KAM, TSX-V), Monster Mining (MAN, TSX-V), Northern Freegold (NFR, TSX), Northern Tiger (NTR, TSX-V), Ryan Gold (RYG, TSX-V) and Victoria Gold (VIT, TSX-V)…
The Stupid Things Governments Do
Government greed and stupidity never ceases to amaze us…Pan American Silver (PAA, TSX) said yesterday the company will suspend further investment in the Navidad Silver Project in the event that a new law in a province of Argentina is approved…the law would regulate all future oil and gas and mining projects in the province of Chubut…according to Pan American, the results would render the Navidad project uneconomic, based on any reasonable estimate of long-term Silver prices…
Pan American has been working to advance Navidad into the development stage over the past two-and-a half-years with hopes of turning the project into an open-pit mine…the draft legislation introduced a series of new regulations that will greatly increase royalties on, and impose economic participation by the province in all mining projects, including Navidad…the proposed regulations include a new 5% NSR in favor of the province, a new requirement for a resource company owned by Chubut province to receive no less than 4% of total sales and to receive a 7% direct carried net pre-tax profit interest…
These increased royalties and the net carried interest are in addition to the 10% export duty payable on the sale of concentrates and the 35% income tax rate, which are payable to the federal government…
There are many more examples of governments around the world who are making it more difficult for companies to extract resources and to do so profitably, and at the end of the day this foolishness will hurt consumers by driving up prices…the world needs metals more than ever but governments are making it harder to explore for them and extract them…
gbb down big this am!
Comment by fred — July 3, 2012 @ 5:49 am
GBB will swing between 9 – 10 cents level for some time…. I am sitting in a comfort zone and my sell lot is at 12 cents. I have a feeling that my lot is going to sell soon. RBW is in light trading as usual… if this stock has 500,000 shares turnover… it is already very active…. .
Comment by Theodore — July 3, 2012 @ 6:46 am
RBW has very little support down to 12.5 cents, thats the facts. If there is nothing new in the next couple of days that is where this one is headed no matter who says what.
Comment by Ed — July 3, 2012 @ 11:29 am
Ed- I hope so….Id love to grab more under 13c!! Anyone selling this close to drilling need to give their head a shake.
Comment by db — July 3, 2012 @ 11:31 am
I am hoping management sees this and acts soon. There has been nothing of substance announced by the company to the market since may 31.
Comment by Ed — July 3, 2012 @ 11:38 am
Drilling by 15th at the latest. Defined drilling too, not just shots in the dark. My faith in RBWs mgt grew when they did the right thing and let those warrants expire instead of extending the expiry. You have to remember RBW is still very much under the radar. There is a new article coming out in Resource World which is published in the Globe and Mail among others so hopefully this will help boost RBWs following…
Comment by db — July 3, 2012 @ 11:56 am
17.5 close- been almost a month since that has happended
Comment by db — July 3, 2012 @ 12:08 pm
To get some RBW at 13-14 cents, it has to be quick… therefore, the best bet is to place a buy order at this price. The real players are not in yet. The low turnover means nothing to us as there are a lot of speculators waiting. They will jump in when the news are out. You never know when they will start buying but the days are close. GBB is digesting at 9 cents level and therefore, we can see some active buy and sell at current price. Selling pressure still intense at 10-11 cents level. GQC… went up to 60 cents in low trading but I believe that adjustment is not over …
Comment by Theodore — July 3, 2012 @ 12:17 pm
Theodore
Theodore
Back trying to be of assistance to my cyber friend. Be careful with GBB, the following
will dominate this play for sometime:-
July 3, 2012 – Gold Bullion Development Corp. (TSXV: GBB) (OTCPINK: GBBFF) (âGold Bullionâ) today announced that it had filed a counter-claim against Genivar Inc. before the Superior Court of QuĂ©bec (500-17-070970-127). In its counter-claim, Gold Bullion is claiming the amount of $25,431,906.10 in damages from Genivar as a result of the failure by the latter to properly perform its contractual obligations in relation to the Granada and Castle Mines projects. In the same proceeding, Gold Bullion also denied owing the amount of $783,652.06 which Genivar is claiming.
Comment by Bert — July 3, 2012 @ 1:35 pm
HEY BERT!!!!!!!!! Howdy:)
Comment by Jeremy — July 3, 2012 @ 1:45 pm
Bert, u finally caved! welcome back…
Comment by db — July 3, 2012 @ 1:59 pm
@bert. Ease explain urself in regard to today’s nr dominating gbb for some time. I see you didn’t pick up any brain cells whe you were away.
Comment by Heath — July 3, 2012 @ 3:19 pm
@ Bert. Gbb nr today was very positive, even Bashers like yourself cannot find any logical argument in a negative light!!!!
Comment by Heath — July 3, 2012 @ 3:22 pm
Whenever there is legal case involved… it will impact the company. You will see volatile up and down … and we must enter and leave the show at the right time … GBB is not a stock to hold but you can still make some quick money from it. Selling pressure is very high at 11 cents level… for sure, someone wants to leave the play.
Comment by Theodore — July 3, 2012 @ 4:14 pm
@ Theodore. It is obvious you have done absolutely zero dd on gbb. Last reply to you.
Comment by Heath — July 3, 2012 @ 4:16 pm
@Heath. I did not do any dd on GBB recently until the news came out today. I still have 25% of cushion in my average price. I will keep my holdings for the time being and I like to see some excitement everyday. SFF is another stock I like but I do not have any holdings at this moment. Sometimes, it does not matter you did dd or not, the expectation may be different, especially for these junior stocks.
Comment by Theodore — July 3, 2012 @ 5:16 pm
Just thought may be of interest to those that follow UCU or junior rare earth plays:
Ucore Comments on the Announcement of a Chinese Rare Earth Stockpile
HALIFAX, NOVA SCOTIA–(Marketwire – July 4, 2012) – Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) (“Ucore” or “the Company”) is pleased to comment on the recent announcement that the Chinese government intends to implement a stockpile of critical rare earth oxides, including Dysprosium Oxide, Terbium Oxide, Europium Oxide, and Yttrium Oxide. It is expected that rare earth producers Chalco, China Minmetal, and Baotou Steel Rare Earth are to receive interest free loans in conjunction with the creation of the stockpile.
This action by the Chinese Government to further control the supply of these crucial elements, all of which are considered to be critical by the US Department of Energy, further increases attention on the degree of exposure that the West has to supply interruption of a small group of critical metals. Ucore continues to encourage Federal initiatives to increase competition in the U.S. domestic rare earth market. The Company’s extensive resource holdings, particularly its Bokan – Dotson Ridge REE property in Alaska, hold great potential for the U.S. to develop a fully independent rare earth industry.
“Ucore is actively pursuing collaboration with the U.S. government to accelerate the development of Bokan Mountain’s heavy rare earth resources, and is pleased with the progress of Federal initiatives to date,” said Jim McKenzie, President & CEO of Ucore. “China’s prospective stockpile of some of the most critically threatened strategic metals to the US is a watershed event that will likely accelerate the development of domestic initiatives to protect the supply of these materials.”
Comment by Andrew — July 4, 2012 @ 5:30 am
Thanks, Andrew…
Morning update by 8 am Pacific…..
Comment by Jon - BMR — July 4, 2012 @ 5:54 am
Jon – any thoughts on RIC and yesterday’s new release when you have time, would be appreciated. I’m wondering if they would now be looking to buy out a junior to augment their reserves for the mine or continue exploring, or maybe there sp is now attractive for a larger producer to buy out RIC?
Comment by Andrew — July 4, 2012 @ 6:00 am
Hoping for one more drop in RBWs SP before drilling. Part of that 14.5 bid, heres to getting lucky…
Comment by db — July 4, 2012 @ 6:26 am