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1. Gold has traded between $1,466 and $1,475 so far today…as of 7:00 am Pacific, the yellow metal is off $4 an ounce at $1,468 as it continues to consolidate above important support at $1,450…Silver is off 4 pennies at $17.09…Nickel is up 2 cents at $6.50 after slipping as low as $6.38…Copper has retreated 3 cents to $2.63…Zinc is flat at $1.06 while Cobalt remains steady at $16.10…Crude Oil has jumped 78 cents a barrel to $57.79 on reports OPEC may extend its cuts while the Dollar Index has slipped one-tenth of a point to 97.82…unprecedented investment demand has helped to transform the Platinum market, shifting what was expected to be a surplus into a small deficit, according to the latest data from the World Platinum Investment Council (WPIC)…in economic data released this morning, the Philadelphia Federal Reserve’s manufacturing business outlook survey rose to a better-than-expected 10.4 in November…any reading above zero points to improving conditions…the Wall Street Journal reported this morning that China’s chief trade negotiator has invited his American counterparts for a new round of face-to-face talks as both sides are struggling to strike a limited deal to help de-escalate tensions between the world’s 2 largest economies…U.S. negotiators have indicated they would be willing to meet in person but that they would be reluctant to trek across the Pacific unless China makes it clear that it would make commitments on intellectual-property protection, forced technology transfers and agricultural purchases…Chinese Commerce Ministry spokesman Gao Feng said today that the 2 sides have been keeping in close touch…Chinese officials hope the in-person negotiations can take place before next Thursday’s Thanksgiving holiday in the U.S., but the U.S. side hasn’t committed to a date…
2. Former U.S. Secretary of State Henry Kissinger told an audience in Beijing today that China and the United States are in the “foothills of a Cold War”, warning that the current trade battle between the 2 nations could escalate into an armed conflict worse than World War I if left unresolved…Kissinger, who as President Nixon’s Secretary of State flew to Beijing to begin trade talks with Communist China in 1971, gave his take on modern U.S.-Chinese relations at the Bloomberg New Economy Forum…“If conflict is permitted to run unconstrained, the outcome could be even worse than it was in Europe,” he said…“World War I broke out because of a relatively minor crisis, and today the weapons are more powerful. That makes it, in my view, especially important that a period of relative tension be followed by an explicit effort to understand what the political causes are and a commitment by both sides to try to overcome those. It is far from being too late for that, because we are still in the foothills of a cold war”…China has taken issue with Washington over Congress’ passage of a bill aimed at protecting human rights in Hong Kong amid an escalating pro-democracy movement in the semiautonomous Chinese city…the U.S. has also criticized the detention of Muslims in China’s Xinjiang region, and both nations remain locked in a contentious strategic competition in the South China Sea…
3. Choosing to go long Gold after the precious metal settles at a solid support level will pay off next year, according to TD Securities…even though the metal can weaken to as low as $1,425 in the short-term, the long-term picture is looking very supportive of prices reaching the $1,650 level, TD says in its 2020 outlook…“Our analysis still shows that $1,650/oz Gold next year is in the cards, once the weak longs get shaken out and as modest global growth assure a low rate environment and continued Fed monetary accommodation,” the bank’s strategists said…Gold’s major rebound will come in the 2nd quarter of next year, according to TD (historically, Q1 is Gold’s strongest quarter), triggered by further Federal Reserve easing, slower economic growth, and central bank Gold buying…“The likelihood that the Fed will deliver more monetary accommodation, central banks will continue to buy Gold at a record clip and investors demand in the metal to hedge against equity market volatility, weaker U.S. dollar and negative interest rates are all factors making us ready to go long – once the yellow metal firmly settles at technical support levels,” the strategists said…the bank’s outlook projects that the Fed will cut rates twice by mid-2020 in moves that will be mirrored by the European Central Bank…“U.S. economic numbers are likely to print quite weak in the coming months. This should prompt markets to once again price in more Fed cuts. Weaker U.S. growth should continue to keep fiscal deficits elevated. This along with the potential of a Democratic win next election season implies that markets will worry about monetization via a modern monetary theory framework, which typically is remedied by Gold as a hedge”, TD concluded…
4. SilverCrest Metals (SIL, TSX) has cut 8.6 m (true width) grading 7,873 g/t AgEq, outside the current resource estimate and a new record for the Las Chispas Property in Sonora, Mexico…the current drill program on the Las Chispas and Giovanni veins is designed to expand high-grade precious metal mineralization by stepping out from historic underground workings along the down plunging mineralized trend towards intact and previously un-mined areas…results released this morning have established an initial footprint for this newly defined high-grade zone (now called Area 118) within a lower horizon of the Las Chispas and Giovanni veins…the approximate high-grade footprint of Area 118 is 300 m along strike by 125 m in height and includes 2 adjacent and intersecting veins, Las Chispas and Giovanni….the weighted average (true width, uncut and undiluted grades) of the defined initial high-grade footprint in this zone is 1.6 m grading 16.5 g/t Au and 1,837 g/t Ag, or 3,078 g/t AgEq…previously, hole BA18–122 in the Babicanora Area was the best intercept on the property…it returned an impressive 9.3 m (true width) intercept grading 6,336 g/t AgEq…despite a limited amount of exploration work done in Area 118 to date, this morning’s results outline the potential to delineate a new high-grade resource…CEO Eric Fier stated, “SilverCrest began drilling this district less than 4 years ago, and this recent discovery shows that there remains significant untested potential to add high-grade resources in the district. High-grade mineralization in Area 118 also suggests potential to extend the high-grade conceptual production profile as outlined in the first 5 years of the PEA. Given the value adding potential, we will attempt to include this work for reserve estimation in the ongoing feasibility study expected in Q2 2020. With a substantial backlog of in-fill and expansion holes in the lab along with a 17-rig drill program, we look forward to a constant news flow on an ongoing basis”…SIL has jumped 32 cents to $7.72 as of 7:00 am Pacific…
5. The Dow is off 29 points through the first 30 minutes of trading…Target (TGT, NYSE) hit the bull’s eye yesterday…the big-box retailer surged 14%, hitting an all-time intraday high after posting earnings and sales results for its fiscal 3rd quarter that handily beat Wall Street estimates…it’s up again in early trading today…in Toronto, the TSX is 22 points lower…the Gold Index, off 2 points at 245, is aiming for its 4th straight winning session…infill drilling by K92 Mining (KNT, TSX-V) in the southern part of Kora North, where extremely high grades are being documented, has returned 13 m (6.15 m true width) of 288.7 g/t Au, 104 g/t Ag and 0.77% Cu…KNT is up 11 cents at $2.13…John Lewins, K92 CEO, stated, “The reported results continue to demonstrate the high-grade pedigree and continuity of the Kora/Kora North system. The results also highlight the high potential for the mineralization to extend to depth, up-dip of Kora North and along strike to the south”…the Venture is up 4 points at 528 as cannabis stocks rebound for a 2nd straight day…Bee Vectoring Technologies (BEE, TSX-V) is off a penny at 43 cents…the stock firmed up yesterday on news that the company has sold out its planned Florida allocation of commercial bumblebee hives with its proprietary bee delivery system and Vectorite with CR-7…multiple Florida strawberry growers, including a 2nd top-tier producer to adopt the technology, will be using the system on a combined 150 acres of conventional and organic fields….
6. TSX company gets scammed in cyberattack for $2.1 million...Waterloo Brewing (WBR, TSX) reported this morning that it has been subject to a social engineering cyberattack by a sophisticated 3rd party that resulted in a $2.1 million wire transfer of the company’s funds to a fraudulent 3rd party account…to date, the company has not recovered any of the money…upon becoming aware of the incident this week, Waterloo initiated an analysis of all other transaction activity across all of its bank accounts, as well as a review of its internal systems and controls, including its computer networks…Waterloo has engaged its third-party IT services provider to conduct an independent investigation of the company’s systems and is working with its auditors and bank to ensure that appropriate steps have been taken to mitigate the chance of any future occurrences of similar cyberattacks…at this time, the company does not believe that its systems were breached or that any personal information of its customers is at risk…Waterloo added that it does not expect this incident to have a material impact on its business going forward or otherwise impact its near-term liquidity requirements or its ongoing operations…
7. Prime Minister Justin Trudeau has rolled out his new cabinet…of course Quebec is rewarded with a 25% jump in representation while the West gets screwed again…that’s the playbook of the Laurentian elites…meanwhile, Seamus O’Regan, who has no experience in the resource sector, was named Canada’s newest minister of Natural Resources, moving from Indigenous Services…at least he has wasted no time in visiting Calgary…he’s in Calgary today and plans on meeting with Alberta Energy Minister Sonya Savage tomorrow…“We are very proud of the number of Newfoundlanders and Labradorians who have helped build a great and proud industry in Alberta and Saskatchewan,” he said…those are accurate and nice words, but then he added, “We have to figure out, in a time when many Canadians are concerned with climate change, how we ensure their prosperity and their stability while, at the same time, meeting the concerns surrounding this transition” (our emphasis)…on a mission to “save the planet”, as opposed to saving Canada, the globalist Liberals are bent on transitioning the Canadian economy off fossil fuels…more of the same coming from this new minority Liberal government, unfortunately, which will only further damage the economy and fan the flames of Western alienation…
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Hi Jon
How does silver crest result on silver equivalent ounces compare to “ of 3.09 metres grading 6,476 grams per tonne silver was found in drill hole CA-1108, over 3 metres, a 7.00 stock vs a 40 cent SP for leverage etc with no silver equivalent for Ccw?
Comment by donald — November 21, 2019 @ 9:29 am
Very favorably, and that’s why CCW’s discovery at Castle East is so important, donald…especially when 70 million ounces have been mined within 2 km to the west…
Comment by Jon - BMR — November 21, 2019 @ 10:48 am
How about it jon, bring back the uptick rule? Sprott sure seems to think so. Sounds good.
Comment by Laddy — November 21, 2019 @ 4:23 pm
Absolutely…
Comment by Jon - BMR — November 21, 2019 @ 5:21 pm