Monday, July 27, 2009
Moly Makes $15, Silver Breaks $14
It is 5:59 AM, the coffee pot is whistling and metals are on the march. Last week the ole Colonel drew a line in the sand of $15 for molybdenum and by golly Friday we made it! We are nearly half way to the 2008 highs and have almost doubled the March lows. Silver is another star hitting $14.10 at high noon today in London. As the Brits say, that's a proper way to start the week.
And it will be a full week as we head to the end of July with Barrick reporting their second quarter results Thursday at 6:30 AM (PDT) and a new GDP(Gross Domestic Product) estimate coming from the government Friday. The latter is important since GDP or the value of all goods and services produced by the economy, is a key measure to gauge if the end of recession is near.
Most economists expect that the second quarter has contracted at about a 1.5% annual rate, marking it the fourth consecutive decline. That's actually good news considering the economy, shrank by 6.3% in the fourth quarter and 5.5% in first. Economists instead of fretting about a depression are now seeing a little light at the top of the mineshaft.
Much of this can be explained by the stronger than expected performance of China and other BRIC countries which has caused the recent lift in commodity prices. Stimulus in our country is starting to take hold although there are renewed concerns about the banking industry given default rates on commercial properties and credit cards.
The Report will track all of this and remember buckaroos, the Colonel is watching your backside. I can't imagine a better town to wait out the recession with moly and precious metals on the rise. Bart Melek of BMO Capital Markets sums it all up with his outlook on gold,"Notwithstanding any possible short-term correction, gold's impressive seven-year run is expected to continue well into 2011." (InfoMine, 7/27/09).
Enough talk, let's walk the walk:
Oil is down $0.07 to $67.98 in early trading (September contract); Gold is up $1.7 to $954.8 (August contract); Silver is cranking up 0.160 to $14.035(September contract); Copper is up $0.0375 to $2.5595 (September contract); Molybdenum likes $15.
The DOW is down 28.41 points to 9064.83; the S&P 500, down 2.68 points to 976.58. The miners are mixed today:
Barrick (ABX) $34.04 up 0.85%
Newmont (NEM) $41.90 up 0.34%
General Moly (Eureka Moly, LLC) (GMO) $2.66 down 0.56%
Freeport McMoran (FCX) $60.30 up 0.80% (a bellwether mining stock spanning gold, copper & molybdenum)
Steel stocks are mixed (a "tell" for General Moly):
Nucor (NUE) $44.94 up 0.25% - domestic steel manufacturing
ArcelorMittal (MT) $37.92 up 1.36% - global steel producer
POSCO (PKX) $96.96 down 1.41%- South Korean integrated steel producer
The Eureka Miner's Grubstake Portfolio is up 0.38% to $1,094,668.26