Check back for the latest Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,218 and $1,227 so far today…as of 7:00 am Pacific, bullion is up $5 an ounce at $1,226…holdings in global Gold exchange-traded funds have risen to a 3-month high, thanks in part to weakness in equity markets…“With macroeconomic risk now being supplemented by concerns over systemic financial risk, we expect portfolio allocation towards Gold to edge higher towards year end,” stated BMO…Silver has gained 19 cents to $14.48…Copper has added 3 cents to $2.83…Nickel is down slightly at $5.01 while Zinc has gained a penny to $1.21…Cobalt, above $25 a pound for the first time this month, is steady at $25.06…Crude Oil, after another big drop yesterday, has rebounded $1.24 a barrel to $54.67…Western Canada Select (WCS) is trading at a discount to WTI of $35.83 (U.S.) this morning…in the currency markets, the U.S. Dollar Index has retreated one-tenth of a point to 96.71…the U.S. economy will not head into a recession in the next 2 years despite fears in the market that one may be on the horizon, Goldman Sachs‘ Peter Oppenheimer told CNBC this morning…Oppenheimer, chief global equity strategist at Goldman, expects the U.S. economy to grow but at a much slower pace of 1.6% in 2020…keep in mind,. though, that analysts have consistently underestimated the strength of the Trump economy…equity markets are selling off for several reasons, Oppenheimer said, citing global trade worries, fears of weak profit growth in the next few years, and rising interest rates…economic data released this morning showed that orders to U.S. factories for big-ticket manufactured goods fell by the largest amount in 15 months in October with a key category that tracks business investment showing weakness for a 3rd straight month…the Commerce Department announced said orders for durable goods dropped 4.4%…it was the 3rd decline in the past 4 months with the October drop led by a huge decline in the volatile areas of commercial and military aircraft…
2. Oil rebounded this morning after a more than 6% plunge yesterday, lifted by a report late yesterday from the American Petroleum Institute (API) of an unexpected decline in U.S. Crude inventories…however, in a report just out, the Energy Information Administration (EIA) said Oil inventories actually rose by 4.9 million barrels…who to believe?…worried by the prospect of a new supply glut, OPEC is musing about a U-turn just months after increasing production…OPEC, Russia and other non-cartel producers are considering a supply cut of between 1 million barrels per day (bpd) and 1.4 million bpd at a December 6 meeting, according to various reports…still, Saudi Arabia may find taking action to support prices harder given U.S. pressure to keep them low and President Trump standing by the Saudi crown prince in the wake of the murder of journalist Jamal Khashoggi…Trump has leverage on the Saudi crown prince and can be expected to use it, though standing behind such a thug has its risks for the President…
3. With Bitcoin now below $4,600, down 75% from its all-time high nearly a year ago, U.S. regulators are reportedly expanding their investigation into cryptocurrencies to see whether last year’s massive Bitcoin move was triggered by market manipulation…at the centre of the investigation is an allegation that traders used Tether – another cryptocurrency – to control Bitcoin’s price during its unprecedented surge which saw prices jump from around $5,500 in November of last year to nearly $20,000 a month later…it’s suspected that traders used the crypto exchange Bitfinex to move Bitcoin prices illegally, according to a Bloomberg report citing three unnamed sources…some of the suspicious activity being investigated includes “spoofing,” which is otherwise known as placing fake orders to boost prices and then pulling out…the criminal probe into cryptocurrencies was first opened by the U.S. Justice Department earlier this year to look into allegations of price manipulation by crypto traders…
4. Quebec remains hostile to shale gas: The Globe and Mail reported this morning that for a new Premier who wants to make Quebec “the best place to invest,” Francois Legault is off to a shaky start…Legault’s Coalition Avenir Quebec last month broke a nearly 50-year Liberal-PQ duopoly in provincial politics by promising to focus on improving Quebec’s economic competitiveness…however, so far, Legault has said a lot more to discourage potential investors than he has done to make his province a magnet for new business…significantly, he has poured cold water on the hopes of Calgary-based Questerre Energy that a CAQ government would keep a more open mind than its predecessors regarding shale gas development. “We are open to looking at (Oil and gas) projects in taking into account their environmental impact, but we aren’t open to shale gas projects in Quebec,” Legault told Le Devoir, appearing to slam a door that the CAQ had previously kept open…he has, however, at least left the door slightly ajar to shale gas projects in rural areas of Quebec that would welcome the much-needed development…Questerre is seeking a court injunction to invalidate regulations adopted in August that prohibit fracking in the St. Lawrence River Valley…
5. The Dow is rebounding into Thanksgiving, up 145 points as of 7:00 am Pacific after plunging more than 900 points the last 2 sessions…the S&P 500 declined 1.8% yesterday, extending its pullback to 10% since the index hit its high point in September…meanwhile, the TSX closed at its lowest level in 2 years yesterday, weighed down by a steep drop in Crude Oil…the TSX has recovered 182 points in early trading today while the Venture has rallied 6 points to 605…
6. MegumaGold (NSAU, CSE) has commenced a Phase 1, 20,000-m reverse circulation (RC) drill program on key targets across its 170,000-hectare Meguma Gold Belt property portfolio in Nova Scotia…the company intends to confirm the presence of Gold mineralization on at least 10 of its priority targets, identified by an aggressive pre-drilling target definition program which took place over the preceding 9 months and consisted of 1) a 12,342-km helicopter-borne magnetics and radiometric geophysical survey; 2) an extensive airborne survey; 3) re-logging of numerous historical drill holes from known disseminated Gold deposits in the area and collection of over 1,100 outcrop samples…as a result of these efforts, the company has developed a unique prospectivity model for identification of depositional Gold environments within its district-scale land holdings…MegumaGold views this program as a facsimile to what is currently being conducted in parallel by Atlantic Gold (AGB, TSX) whose Toquoy Gold mining complex is on pace to produce 82,000 to 90,000 ounces at a cash cost of $500 to $560 (CDN) per ounce in 2019 (see AGB Nov. 15 news release)…targeting, geology and exploration methodology are centered on expanding the disseminated-style Gold mineralization model in the Meguma Gold Belt which the company believes is the largest land base of potentially anomalous anticlinal structures hosting disseminated Gold…
7. Marathon Gold (MOZ, TSX) continues intersecting multiple intervals of en echelon stacked QTP veining with moderate and high-grade Gold values at open-pit depths in the southwestern part of the Marathon deposit…drill holes MA-18–323, MA-18–325, MA-18–330 and MA-18–334 all succeeded in intersecting significant intervals (10 m @ 8 g/t, 6 m @ 5.1 g/t, 11 m @ 8.8 g/t and 6 m @ 5.7 g/t, respectively) as the company continues to further define the main mineralized corridor in this southwestern part of the Marathon deposit, focusing on widening the shallow open-pit resources and decreasing strip ratio…“The coming 2019 drilling season will see our efforts focused primarily on converting strategic inferred open-pit resource blocks into indicated resources,” stated Phillip Walford, President & CEO of Marathon Gold…”The 2018 infill drilling campaign has been very successful at upgrading Inferred to Measured and Indicated resource categories at the Marathon deposit as well as discovering new zones of high-grade Gold for further drilling within the pit shells. The results released today are part of the continued successful infill drilling program. I look forward to the drilling, metallurgy, engineering and environmental studies generating a positive preliminary feasibility study in 2019″…
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Jon, looks like someone tried hard to take ggi down under dollar land today. What are your thoughts on the recent share price action, support and outlook with the current volatility within the markets? Are you still adding to GGI?
Comment by Donnelly7 — November 21, 2018 @ 7:11 pm
Donnelly7, I actually love the current share price action in GGI because it’s setting up a similar situation to 2017, except the stock will be starting from a significantly higher base. I’d only be concerned about the share price if things weren’t progressing on the ground as they should. Nickel Mountain is showing every sign of becoming a new mine – Lightfoot would confirm that, along with every other geo on site. It took Calpine and Consolidated Stikine 109 drill holes to convince the masses that Eskay Creek was real, and GGI will hit that number in 2019. It takes perseverance in the challenging but prolific Eskay Camp to prove up a deposit but GGI is showing that perseverance and has all the funds and skill sets it needs to nail this thing. As I’ve pointed out on multiple occasions, factors unrelated to developments on the ground (overall markets, Nickel prices, Sprott handcuffed for now at being able to buy more, sharks trying to scare retail, chart, etc.) have been the driving force in the drop in the share price. To take an Eskay Camp example, investors in Seabridge saw their stock explode from pennies to $6, down to $2, up to $38, down to $8, back up to $40 all through the discovery process at KSM…you need to be able to deal with volatility, and make it work for you and not against you…
Comment by Jon - BMR — November 22, 2018 @ 5:18 am
Thanks Jon for your response and reminding us of the “facts” that you have told us numerous times! When the share price drops so much and family and friends think you’ve lost touch with reality I find it hard to focus on the “facts”! I guess this is the difference in an experienced stock investor and a newbie …. and why I rely so heavily on your/BMR’s advice and reassurance!! Thanks!
Comment by Ciara — November 22, 2018 @ 6:01 am