Gold has traded between $1,140 and $1,150 so far today…as of 7:50 am Pacific, bullion is up $6 an ounce at $1,146…Silver has added 7 cents to $15.39…Copper is off a penny at $3.03…Crude Oil has fallen $1.03 a barrel to $77.65 while the U.S. Dollar Index had gained one-third of a point to 87.77 after nearly touching Fib. resistance at 88…
Sales of Silver coins have picked up sharply as the price of precious metals has declined, so much in fact that the U.S. Mint says it has run out of American Eagle Silver bullion coins for now. “This is to inform you that due to the tremendous demand we have experienced in the last several weeks, the U.S. Mint has temporarily sold out of its American Eagle Silver bullion coins,” the Mint said in a memorandum to authorized purchasers late Wednesday. “We continue to produce 2014-dated coins and will advise you when additional inventory will be available for sale.”
The U.S. Mint’s website shows that sales of Gold coins were strong in October, with the combined total of 88,500 ounces for American Eagle and Buffalo coins the most since this January…sales of Silver Eagle coins were even stronger as the total of 5.79 million ounces was the most in a single month since January 2013…
Bernanke On Monetary Easing
Former Federal Reserve Chairman Ben Bernanke predicted that the European Central Bank (ECB) would have a rough time implementing U.S-style monetary easing…speaking yesterday at the Schwab IMPACT conference, the ex-central bank chief said the ECB faces political barriers to enacting such an aggressive program. “The barriers to doing it are not really economic,” he said. “The legal and political barriers being thrown up are going to make it very difficult to do that.“
Bernanke also made some interesting comments pertaining to the Fed’s recent QE programs. “There never was any risk of inflation,” he boldly stated. “The economy was in great slack. If anything we were worried about deflation. Four years later there’s not a sign of inflation. The dollar is strengthening. They’re saying, ‘Wait another 5 years, it’s going to happen.’ It’s not going to happen.”
OPEC Cuts Forecasts For Oil Price Growth & Global Demand
OPEC has cut its forecasts for the price growth and global demand for Oil…in its annual World Oil Outlook, published today, the group said there would be a “small decline in real values” over this decade together with a “constant nominal price” of $110 per barrel between now and 2020…economic forecasts for the U.S. were raised, while predictions for the “BRIC” countries (Brazil, Russia, India and China) were cut in the medium term…OPEC added that there was a danger of “substantial over-capacity in the sector”…
Today’s Equity Markets
Asia
Asian markets were mixed overnight…China’s Shanghai Composite gained 7 points to close at 2426 while Japan’s Nikkei average slipped 145 points to finish at 16792…
Europe
European markets are mixed in late trading overseas…ECB President Mario Draghi struck a dovish tone as he spoke after the bank decided to keep interest rates on hold…the Bank of England also left interest rates unchanged…
North America
The Dow is up 22 points as of 7:50 am Pacific…Wall Street embraced economic reports that had the government’s tally of Americans filing for jobless benefits falling by 10,000 to 278,000 last week, better than the expected 285,000…another report had productivity rising more than estimated in the third quarter…non-farm payrolls for October are due tomorrow…
The TSX is up 12 points while the Venture, trying to snap a 9-session losing skid, is flat at 747…it would be nice if it could start flying higher like a 747…
Euro Turnaround On The Way?
The euro has plunged sharply since mid-July and this has corresponded with weakness across the commodity sector…there are signs, however, that the euro is approaching at least a temporary bottom given a strong divergence between RSI(14) and price, and the support band that exists between 124.5 and 125…
TSX Updated Chart
The 2,000-point drop in the TSX during September and October has helped to unwind quite an extreme RSI(14) overbought condition on this 6-year monthly chart that persisted for nearly a year…the question now is, was this recent drop merely a correction within an ongoing bull market or was it the first major leg down in a new bear phase?…
This chart doesn’t give us that answer, but it does confirm that there’s major support around 14200 with Fib. resistance at 15800…the TSX’s 200-day moving average (SMA), currently at 14802, continues to rise and a sustained move back above that would be a very bullish sign…
Richmont Mines (RIC, TSX) Update
Another very strong quarter for Richmont Mines (RIC, TSX) which this morning reported adjusted Q3 2014 net earnings of $4.6 million CDN or 10 cents per share vs. an adjusted net loss of $1.1 million in Q3 2013…9–month adjusted net earnings for 2014 now total $8.3 million, or 19 cents per share, compared to an adjusted net loss of $4.5 million or 11 cents per share in the prior year period…
Gold sales of 24,635 ounces in Q3 2014, at an average price of $1,386 CDN, represented a 60% increase over prior year Gold sales of 15,438 ounces at an average price of $1,367 CDN (Richmont is clearly benefiting from a lower Canadian dollar)..
The company had cash and cash equivalents of nearly $40 million as of September 30 and long-term debt remains low at $5.8 million…
Richmont, which experienced a more than 10-fold increase in its share price between late 2008 and the fall of 2011, slumped all the way back down to a bargain basement price of $1 per share late last year…it started to reverse course with a vengeance after 2 important events this year – 1) The release April 1 of an updated resource calculation for its producing Island Gold Mine, including the Island Deep extension; and 2) The company’s return to profitability in Q2 of this year as it reported record revenues and net earnings of $4.7 million (10 cents per share) for the April-May-June period…
Recently, Richmont raised production guidance for 2014 to 85,000 to 90,000 ounces…importantly, they’re well-positioned to “seize the moment” with development of the Island Gold deep discovery which has NI-43-101 indicated resources of 456,000 ounces grading 11.52 g/t Au and inferred resources of 3.2 million tonnes grading 9.29 g/t Au…the discovery remains open in all directions after 100,000 meters of underground drilling in 2013…preparations are under way for mining of the first stopes in the lower resource, expected at the end this year…
RIC is up 33 cents at $2.61 as of 7:50 am Pacific…
Primero (P, TSX), Argonaut (AR, TSX) Report Q3 Losses
The red ink continues to flow at some other Gold producers…Primero Mining Corp. (P, TSX) reported a 42% increase in Gold equivalent ounces produced in Q3 2014 (59,673 vs. 41,998 in Q3 2013) but the company’s all-in sustaining costs were $1,154 (in line with expectations) and it reported a net loss of $105.9 million U.S. (66 cents per share) in Q3 2014, almost all of that due to a goodwill impairment charge of $99 million relating to the Brigus acquisition…
Argonaut Gold (AR, TSX) reported a $1.82 million U.S. Q3 2014 loss vs. a profit of $6.6 million in Q3 2013…third quarter revenue was $37.4 million from Gold sales of 29,410 ounces, compared to $42.4 million from Gold sales of 30,792 ounces in Q3 2013…cash cost per ounce sold in the third quarter was $786, compared to $680 in the same period the prior year…
TSX Gold Index Updated Chart
Yesterday, the beleaguered TSX Gold Index hit a low (128.54) not seen in nearly 13 years…it is, however, bouncing back this morning, up 7 points at 136 as of 7:50 am Pacific…
Keep in mind that this chart from John is a 15-year monthly chart, so it’s quite possible that the Index – despite a scary drop below 130 – may rally and hold monthly support in the band between 137 and 150…in other words, there is the possibility for a significant rally here…the 150 area will certainly provide resistance…
Note the downtrend line in place since the 2011 high of 455.38 (a whopping 72% correction since that time while the Venture’s decline since its 2011 high has been 69.7%)…
Madalena Energy Inc. (MVN, TSX-V) Update
It’s worth paying attention to Fib. resistance levels…since hitting Fib. resistance at 81 cents early this year, Madalena Energy (MVN, TSX-V) has struggled with problems compounded by share structure (a lot of paper issued since late last year) and the recent overall decline in the energy sector…
Any rallies in MVN in the foreseeable future at least are just that – rallies within the context of a bearish chart with the declining 50 and 100-day SMA’s (39 and 42 cents, respectively) providing significant near-term resistance…
MVN is off 2 pennies at 32.5 cents as of 7:50 am Pacific…
Note: John, Terry and Jon do not hold share positions in RIC or MVN.
I think this website should be renamed to bearmarket run.
Comment by Seedling — November 6, 2014 @ 8:19 am
That 747 should fly higher now as fuel for it is probaly a bit cheaper now, as frank Holmes said this morning, maybe a bit of fear is leaving and love is on it’s way back for gold and gold stocks. Let’s hope so…
Comment by Tombc — November 6, 2014 @ 9:52 am
I’ve been hoping for a turnaround for too long. Gold is going to 50. Bear market run indeed. TSXV is going to 0
Comment by cam — November 6, 2014 @ 10:28 am
stopped that ugly streak,,yeahh.
Comment by tombc — November 6, 2014 @ 1:05 pm
I think I’ll buy a new car with my my ggi winnings. I recall a stock I owned some years ago called Aurelian res. I bought it at .50 cents then one morning it was halted and opened at $5.00 on its way to $40.00. Been a while since i had a gapper like that but i sure could use one now.Good luck to all ggi holders. Hope we get some great news soon.
Comment by kc — November 6, 2014 @ 7:30 pm
GOLD AT 1154! MOVING UP! GGI FINANCING AT 20 CENTS!
Comment by STEVEN1 — November 7, 2014 @ 6:46 am
V-GGI a new financing of 1 million for fast track drill at mexico.
Why not do it after the drilling result du soon
May be to let take the advantage of the low price by management
Little disappointed
Comment by alain — November 7, 2014 @ 6:47 am
Very interesting news from GGI…I’m speculating, but I wouldn’t be surprised if this has something to do with the most previous news in late October…obviously it appears that the potential size and scale of Rodadero has really clicked with some people, hence now we’re seeing a rapid acceleration on the ground…it’s most intriguing that this news follows the Oct. 23 information that a leading international Silver and Gold producer has been on the property twice, plus interest from a private Chinese company…everything points toward GGI continuing to see very positive signs on the ground and in the core, I would suggest…
Comment by Jon - BMR — November 7, 2014 @ 6:59 am
Would I be correct that by doing a PP, it would lead to a better return for existing investors than them entering in to a JV at this point with a major who would take a share of what was in the ground. This assumes good drill results over the next few months.
Grizzly definitely on back burner until next Spring IMO. All cash to be spent in Mexico IMO.
Comment by Tom UK — November 7, 2014 @ 7:27 am
Why not release core results and then do a PP? If results are good, the PP will be done at a higher price?
Comment by Tom UK — November 7, 2014 @ 7:28 am
HEARD URANIUM PRICES ARE 39$ MOVING UP!
Comment by STEVEN1 — November 7, 2014 @ 7:38 am
Perhaps, Tom, some heavy hitters insist on getting in at what they see as a highly attractive price (plus of course the 2-year warrant at .30)…I see this as very encouraging…perhaps a much bigger PP later at a significantly higher price?…with this, GGI can go ahead and drill Rodadero like Swiss cheese with drilling costs under $100 a meter…they spray this whole area with drill holes and we may be able to retire…
Comment by Jon - BMR — November 7, 2014 @ 7:38 am
Thanks for the insight Jon, I’m very encouraged by the move. Things will move much quicker now. I have a small bid in at 19.5c, how do you think the SP will behave until the PP is filled? My guess is it won’t take long to fill it, unfortunately I am UK based and cannot take part.
Comment by Tom UK — November 7, 2014 @ 7:56 am
Just to sum up quickly with GGI.
The PP will raise $1mil and the first thing they will do is drill 9 holes in their 2nd target Tarachi. I’m guessing from the map that this is the area where high grade samples at surface have been found as per their PR of August 22nd
We are currently awaiting the results from 7 holes on Eagle Star, which will take us up to 13 holes reported results at that target. Surface samples show that high grade exists around 100m to the North of one of the holes drilled here and is closer to the surface.
The depth of holes drilled at Eagle Star seem to average around 70m due to the deposit being close to surface. Assuming that $900k of new financing is spent on drilling (at $100/m), that suggests that more than 120 holes could be drilled in the next few months. Let’s hope they hit some good grades at several of the targets.
Comment by Tom UK — November 8, 2014 @ 7:19 am
Hi Tom, I believe you’re on track with that, a few things to add. I visited GGI yesterday, Steve was extremely upbeat and I think you’ll see that in a new excerpt we have done with him, given yesterday’s developments, that we’ll be posting later today.
What has changed here based on not just “body language” but facts as they have been reported by GGI the last couple of weeks: #1, this “potentially important new zone of mineralization at surface, with silicified rock carrying visible galena as found at Silver Eagle”, is 150 north of the discovery hole (SE-14-01) which effectively could quickly double the strike length of this system—and also, it’s at a lower elevation which is interesting. #2, the interest shown in this project by a leading international producer, and a Chinese company, as reported Oct. 23, should be taken very seriously IMHO, and may (I’m speculating) have something to do with yesterday’s news.
Silver Eagle obviously commands a whole lot more drilling, in all directions, but there are also 10 other targets (identified to date) stretching 10 km x 5 km across this project. Silver Eagle was drilled first, not only because they liked what they saw there, it was the most easily accessible right off the bat. The hyperspectral data on Tarichi looks like it’s “off the charts” – the high-grade Silver at Silver Eagle transitions into a high-grade Silver-Gold-base metals environment going to the east and the southeast, right down to Tarichi. As of this moment, they have 9 holes plotted to drill there – essentially, a 2.5-km step-out from the original discovery hole at Silver Eagle. If they hit at Tarichi, look out – this will explode, I guarantee it (hence the financing now, some heavy hitters would probably prefer this at .20 than much higher levels). There are varying styles of mineralization at Rodadero North, different mineralogical packages, which suggests something quite robust exists here – it’s just a matter of spraying this area with enough holes to get the answers. There is certainly a good possibility of the discovery of a powerful epithermal-type deposit(s).
When Regoci talks about Rodadero representing the emergence of a new mineral camp in Sonora, that’s not a pie-in-the-sky theory. There are several very successful producing mines on all sides of Rodadero, the trend is very obvious to the eye—these are lined right up. Dollar-wise, with their own rig and also a second contracted rig if that’s the direction they go here now, they can drill this all-in for no more than $100 a meter. Exploration costs and development costs (to go into production) are cheap in this part of the world and that puts GGI in the driver’s seat. I would encourage investors, as part of their DD, to check out Yamana’s recent NI-43-101 on their Mercedes Project (a producer 100 miles N-NW of Rodadero) as in some ways it gives some valuable insight into the general area and what could develop at Rodadero.
Comment by Jon - BMR — November 8, 2014 @ 9:16 am