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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,208 and $1,217 so far today…as of 7:00 am Pacific, bullion is up $2 an ounce at $1,212…the support band between $1,204 and $1,194 has held nicely so far…Silver is flat at $14.01…base metals are inching higher today…Copper is up 4 pennies at $2.81, Nickel has gained 6 cents to $5.14 while Zinc has added 3 pennies to $1.20…Cobalt is 34 cents higher at $23.13…Reuters reported this morning that China has delivered a written response to U.S. demands for wide-ranging trade reforms, a move that could trigger more formal negotiations to resolve a withering trade dispute between the world’s top economies…President Trump has imposed tariffs on $250 billion of Chinese imports to force concessions from Beijing on the list of demands that would change the terms of trade between the 2 countries…China has responded with import tariffs on U.S. goods, but the Chinese will never win a tariff battle against the United States…Trump is expected to meet President Xi Jinping on the sidelines of a G20 summit in Argentina at the end of this month…Trump has repeatedly railed against Beijing over intellectual property theft, industrial subsidies, Chinese entry barriers to American businesses and the huge U.S. trade deficit with China…Crude Oil is trying to stabilize with WTI up 26 cents at $56.51…the U.S. Dollar Index, meanwhile, is flat at 96.99 after a mixed bag of U.S. economic data this morning…overseas, 2 British Cabinet ministers have resigned today in opposition to the Brexit deal struck by Prime Minister Theresa May with the EU – a major blow to her authority and ability to get the agreement pushed through Parliament…

2. Did President Trump outsmart the Saudis?…Oil market analysts say it now appears that Trump hoodwinked Saudi Arabia, fooling the regime into pushing the Oil market into oversupply and sparking a roughly 25% drop in Crude prices since the beginning of October…Trump, who re-emphasized his desire for low Oil prices in a news conference a week ago (“I don’t want to drive Oil prices up to $100 a barrel…because I’m driving them down”) has accomplished his goal of lowering energy costs for Americans while Oil-dependent nations like Saudi Arabia and others face the prospect of shrinking revenues…analysts say Trump essentially bamboozled the Saudis by threatening for months to implement sanctions against Iran so strictly, the Islamic Republic’s exports would go into free fall…but when the administration’s deadline for Oil buyers to quit Iranian Oil arrived on November 4, Trump instead dolled out 6-month exemptions to some of the country’s biggest customers…now that Trump has succeeded in bringing Oil prices down, let’s see if he starts taking aim again at the rising U.S. dollar which he helped “talked down” early in the year…

3. Atlantic Gold (AGB, TSX) has recorded net income of $8 million or 3 cents per share for Q3, lifting net earnings for the first 9 months of the year to $19 million…the company remains on track to deliver on its annual guidance of producing 82,000 – 90,000 ounces of Gold at its Moose River consolidated Gold mine in Nova Scotia with all-in-sustaining costs between $675 and $735 (CDN) per ounce…during the 3 months ended September 30, a total of 581,129 tonnes of ore was processed at an average grade of 1.54 g/t Au and average process recovery of 95.5% which exceeded the design process recovery of 94.0%…investors should keep an eye on Atlantic Gold’s well-funded neighbor, MegumaGold (NSAU, CSE), which has built a major land position in the area and has aggressive exploration plans…“We believe potential similarities to Nevada’s Carlin Gold district may be present within Nova Scotia’s Meguma Gold district, and continue to be excited by the exploration potential available to our well-financed operations,” stated MegumaGold CEO Regan Isenor…NSAU, trading at 13 cents, has 63 million shares outstanding and approximately $6 million in working capital to fund a near-term initial drill program…

4. “Progressives” in Canada, wedded to climate change extremism, have created a made-in-Canada energy crisis:  Now, Cenovus Energy (CVE, TSX) CEO Alex Pourbaix thinks current politicians who helped create the problem can actually fix it???…Pourbaix says Alberta is facing a “wholesale economic catastrophe” and is urging the provincial government to intervene directly in the market to cut the province’s Crude production and boost severely depressed prices…Pourbaix says current conditions justify the Alberta government departing from free-market principles and ordering companies to reduce their production of Oil…any move by Alberta to enact limits on the amount Oil producers can send to market would represent a major strategic shift in a province that historically has promoted free enterprise and open competition…however, Pourbaix stated:  “We really are in the middle of a full-blown economic crisis.  I don’t take any pleasure in suggesting we should have government intervention, but we are dealing with a complete failure of the market”…yes, the Oil sector in Canada, unlike its American counterpart, is in state of crisis but this is directly related to a failure of government – policies at the provincial and federal levels that have literally strangled the industry and sent Canadian Crude prices far below where they should be…Canadians across the country should be outraged…the same career politicians who created the problem are expected to fix it?…

5. Good grief:  Federal Natural Resources Minister Amarjeet Sohi said in Calgary yesterday that he shares Albertans’ “frustration” at billions of dollars being lost to the Canadian economy due to Oil-price discounts linked to export pipeline capacity constraints…however, he says Ottawa is focused on finding long-term solutions by getting approval for new export pipelines such as the Trans Mountain expansion project it bought in August and by pursuing Bill C-69 to reform the National Energy Board (unfortunately, the Liberals’ Bill C-69 will only make matters worse)…following a speech at an Energy Council of Canada forum in downtown Calgary, Sohi told reporters the key to building pipelines is building trust in regulatory processes and engaging affected parties early on so that approvals aren’t overturned (isn’t that funny, another failed politician is lecturing Canadians on “the key to building pipelines”)…

6. The Dow is down by triple digits for the 5th session in a row…as of 7:00 am Pacific, the Dow is off 111 points…in Toronto, the TSX is 10 points lower while the Venture has rebounded 2 points to 621…Cannabix Technologies (BLO, CSE), developer of the Cannabix Marijuana Breathalyzer for law enforcement and the workplace, announced this morning that it has engaged a leading B.C. based engineering and design firm for the development of a handheld breath collection device for its marijuana breathalyzer unit…MistyWest Engineering of Vancouver has started work on a portable handheld device that will provide for easy collection of breath samples at the point of care…MistyWest is a highly regarded engineering and design firm that has worked on several high profile and innovative product development projects in North America, demonstrating the ability to complete projects rapidly…Cannabix will use the new handheld unit for the collection of multiple samples from many users under a variety of conditions, quickly…

7. GFG Resources (GFG, TSX-V) and its partner, Newcrest Resources, a wholly-owned subsidiary of Newcrest Mining, have elected to suspend the Rattlesnake Hills drill program due to deteriorating field conditions…1,000 m of drilling was completed in 2 drill holes which did not reach their intended target depth and will be left open for completion in 2019…Brian Skanderbeg, GFG President and CEO commented, “Our timeline to complete drill testing of the deep porphyry and greenfield targets during the option period with Newcrest remains intact.  We look forward to working with Newcrest over the winter months to strengthen our understanding of the North Stock system as well as the entire district and to re-start the drill program in July 2019“…for the remainder of 2018 and 2019, GFG and Newcrest will continue to work together on re-modeling the district and deposit-scale geological and geophysical data, including VTEM, CSAMT, gravity and magnetic data, to drive both deep and greenfield drill targets…the program will also include the application of Corescan technology to historic deep drill holes and innovative machine-learning technology to constrain geochemical and mineralogical vectors related to Gold mineralization and further refine deep drill targets…meanwhile, GFG continues a minimum 5,000-m maiden drill program at its West Timmins Project in pursuit of a new high-grade Gold discovery in the region…

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Visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,197 and $1,204 so far today…as of 7:00 am Pacific, bullion is flat at $1,202…a strong support band stretches from $1,204 to $1,194…Silver has added 6 cents to $14.05…Copper is up 2 pennies at $2.77…Nickel is off slightly at $5.07 while Zinc is relatively unchanged at $1.16…signs are mounting of a slowdown in the global economy…Germany reported today that its economy shrank for the first time in 3-and-a-half years – 0.8% in annualized terms in the 3rd quarter – confirming that Europe’s anchor economy is losing steam after years of strong expansion…meanwhile, Japan’s economy contracted at an annualized pace of 1.2% in the same period while a slowdown in China, driven in part by a crackdown on risky financing and jitters over the trade dispute between Beijing and Washington, is hurting spending on cars, other consumer products and property, according to official data released today…the raft of weakening data across the globe stands in contrast with a U.S. economy that grew at an annualized rate of 3.5% in Q3, underpinned by robust consumer and government spending…Crude Oil is trying to end a record-breaking 12-session losing skid…WTI is up $1.06 a barrel to $56.75 while the U.S. Dollar Index is off slightly at 96.89…

2. Bitcoin’s moment of relative stability ended abruptly today…the world’s largest cryptocurrency hit its lowest level of the year, falling as much as 9% to a low of $5,640…Bitcoin had been trading comfortably around the $6,400 range for the majority of the fall after a very volatile 1st half of the year…other cryptocurrencies have fared even worse today…Ether fell by as much as 13% while XRP, the 3rd largest cryptocurrency by market capitalization, dropped 15%…analysts believe the rout is likely being spurned by uncertainty around Bitcoin cash…the entire cryptocurrency market capitalization has dropped by about $15 billion over 24 hours, according to CoinMarketCap.com…the total market cap is now roughly $85 billion, down more than 70% since the start of this year…

3. Oil is rebounding today, recouping some of the previous session’s slide, on the growing prospect of OPEC and allied producers cutting output at a meeting next month to prop up the market…Reuters reported that OPEC and its partners are discussing a proposal to cut output by up to 1.4 million barrels per day, a larger figure than officials mentioned previously…the Oil market has quickly moved from concerns about too little supply, due to the Iran embargo and Venezuela’s output struggles, to fears about over-supply driven by a ramping up in OPEC and U.S. production at a time when the global economy appears to be slowing…

4. Pan American Silver (PAAS, TSX) knows a good deal when it sees it – the company announced this morning that it’s acquiring troubled Tahoe Resources (THO, TSX) in a friendly transaction that represents a premium of 62.8% to Tahoe’s VWAP for the 20-day period ending yesterday based on total consideration (includes the base purchase price and the contingent purchase price related to a restart of the Escobal mine in Guatemala)…Michael Steinmann, President and CEO of Pan American Silver, commented:  “The combination of Pan American and Tahoe will establish the world’s premier Silver mining company with an industry-leading portfolio of assets, superior growth opportunities and attractive operating margins.  This transaction doubles our Silver reserves and further improves our cost profile.  We will build on that strong foundation, optimizing these high-quality assets to deliver profitable growth and superior returns”…Kevin McArthur, Executive Chair of Tahoe Resources, stated: “This transaction allows our shareholders to participate in the creation of the world’s premier Silver company with the contribution of the world-class Escobal mine to Pan American’s existing asset base.  In addition to the upfront premium, we will continue to participate in the upside inherent in a restart of Escobal through the CVRs.  Pan American’s excellent track record of developing mines and fostering strong, mutually beneficial relationships with local stakeholders gives us confidence that the combined company will be best positioned to maximize value for shareholders”…at closing, existing Pan American and Tahoe shareholders will own approximately 73% and 27% of Pan American, respectively…upon satisfaction of the payment conditions under the terms of the CVR, Pan American and Tahoe shareholders will own approximately 68% and 32%, respectively, of the combined company…PAAS has fallen $2 a share to $16.68 in early trading while THO has jumped $1.30 to $4.20…

5. Canadian cannabis producer Canopy Growth (WEED, TSX) posted a bigger-than-expected quarterly net loss today on higher spending before the full legalization of recreational use of pot in mid-October…revenue was $23.3 million (CDN) in the quarter, well short of the average analyst expectation of $60 million despite growing 33% from the prior year’s 2nd quarter…the results represent Canopy’s first sequential top-line decline…the rate of growth also trailed that of rivals Tilray (TLRY, NASDAQ) and Aphria (APH, TSX)…pot producers have been growing revenues but expenses have also been on a significant upswing for the sector…Canopy of course is no exception which is why it was fortunate to draw a multi-billion dollar investment from Corona beer maker Constellation Brands (STZ, NYSE) over the summer…in the reported quarter, Canopy’s operating expenses rose more than 6 times to $180.6 million (CDN) from $27.7 million a year earlier…the company said that going ahead, it expects marketing expenses to drop after formal legalization…in its medical marijuana business, the number of patients grew 34% to 84,400 in the quarter, while sales rose 9% to 2,197 kilograms…Canopy’s net loss widened to $330.6 million or $1.52 per share in the quarter ended September 30…WEED opened $4 lower this morning at $46.73…

6. The Dow has rebounded 154 points as of 7:00 am Pacific, but trading remains volatile…Apple’s decline from its recent all-time high now totals more than 20%…investors have grown concerned that the Cupertino, California-based company, renowned for years of innovative technology, will suffer declines in iPhone unit sales over the next couple of years…in Toronto, the TSX has climbed 83 points while the Venture is down 3 points at 623…this marks a new low for the year for the Venture…extreme RSI(2) conditions indicate a rebound is quite likely as early as tomorrow or Friday…Sun Metals (SUNM,TSX-V) gapped up at the open this morning on news of full assay results for drill hole SD-421 at the company’s Stardust Project in north-central British Columbia…a 100-m intersection, outside of the current NI-43–101 resource estimate, returned 2.5% Copper, 3 g/t Au and 52.5 g/t Ag for a 4.99% Copper equivalent, downhole from the previously reported best-ever intercept at the deposit…drilling by Sun Metals has intersected consistently stronger and more pervasive mineralization than historically encountered at Stardust by previous operators…geologists are attempting to track a major mineralizing fluid pathway toward the heart of the high-grade system…

7. Chemesis International (CSI, CSE) announced this morning that it has entered into a multi-year licensing deal with Kevin Smith and Jason Mewes (also known as Jay and Silent Bob) for the development and promotion of cannabis products in the United States, including flower, oils, extracts, prerolls, cones, edibles and other consumer products having recreational adult and medicinal uses.  “Kevin Smith is many things to many people,” stated Edgar Montero, CEO of Chemesis.  “To us, he is one of the most prolific content creators of our generation and the foremost authority on all things comedy, comics, and superfandom. His fans respect him because he views the world with a critical eye for excellence and authenticity, but he also is able to sit back and enjoy the moment.  What better way to enjoy the moment than with our products, and what better critics to assure their quality than Kevin and Jay”…Kevin Smith is a filmmaker, actor, comic book writer, author and podcaster well known for his comedy film Clerks, which he also starred in as the character Silent Bob…Jason Mewes is also an actor known for his work in Clerks as the character Jay…both Jay and Silent Bob have since appeared in Smith’s follow-up films Mallrats, Chasing Amy, Dogma, Clerks 2 and Jay and Silent Bob Strike Back…

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Check back later today for Daniel’s Den, and visit the BMR comments section throughout the day for updates and helpful information!

1. Gold has traded between $1,196 and $1,206 so far today…as of 7:00 am Pacific, bullion is up $1 an ounce at $1,201…a support band stretches from $1,204 to $1,194…Silver is flat at $14.00…Copper is up 2 pennies at $2.77 while Nickel and Zinc are unchanged at $5.14 and $1.16, respectively…hurting Nickel is the fact that Shanghai rebar steel prices have tumbled to their lowest since late July, pressured by worries over slowing demand in top consumer China over the seasonally weak winter period…Crude Oil is down for the 12th straight session as a record breaking losing streak continues…OPEC has cut its forecast for Oil demand growth in 2019 for the 4th consecutive month…the producer group said increased supply from non-OPEC countries would outpace growth in demand, “leading to widening excess supply in the market”…President Trump chimed in, “Hopefully, Saudi Arabia and OPEC will not be cutting Oil production.  Oil prices should be much lower based on supply!”…the Dollar Index, meanwhile, continues to push above 97…the strong U.S. economy’s continued success in the coming years will depend largely on infrastructure, Commerce Secretary Wilbur Ross said today…“Corporate earnings certainly have been very, very strong, there’s no question about that.  And it’s also no question that market’s job is to look ahead,” Ross said…“I think a lot will have to do with whether infrastructure gets the kind of treatment that it really deserves”…

2. Kudlow slams Navarro:  President Trump’s top economic advisor, Larry Kudlow, has disavowed comments from White House trade adviser Peter Navarro who last week lambasted Wall Street influence in U.S.-China trade negotiations in comments that helped weaken equity markets…“He was not speaking for the President, nor was he speaking for the administration,” Kudlow told CNBC this morning.  “His remarks were way off base.  They were not authorized by anybody.  I actually think he did the President a great disservice”…Navarro, known for his hawkish economic views toward China, has encouraged President Trump’s tough talk with Beijing as trade tensions have escalated between the two countries…he doubled down on his aggressive tone last week, saying any agreement between the U.S. and China will be on Trump’s terms and not subject to Wall Street intervention…

3. Gold could face further pressure if the metal falls below the $1,190 level, according to TD Securities…“Messy European politics, along with a Fed which is set to remain on its tightening trajectory, have kept the Dollar Index above 97, which continues to add to downside pressure on Gold, as we expected,” TDS says. “While CTAs (Commodity Trading Advisers) have now pared back much of their record-setting shorts, we suspect that a break below $1,190/oz would prompt the algos to once again increase their short positioning as downside momentum firms”…meanwhile, the Gold/Silver ratio has risen to its highest level in roughly a quarter century, with Silver suffering from both weakness in precious metals lately but also dragged down by pessimism about base metals…“The Silver price has been very weak in recent days – in both absolute and relative terms….the Gold/Silver ratio has risen to 86, its highest level in 25 years,” said a research note from analysts at Commerzbank…

4. Even as local production cuts help alleviate pipeline bottlenecks, Canadian heavy Crude prices plunged below $18 (U.S.) a barrel yesterday for the first time in nearly 3 years – dragged down by global Oil prices…Oilsands producers including Canadian Natural Resource, Devon Energy, Cenovus Energy and Athabasca Oil have announced curtailments that may total 140,000 barrels a day or more, after a localized glut sent heavy Western Canadian Select Crude plunging to a $50 (U.S.) discount to West Texas Intermediate futures, the widest in Bloomberg data going back a decade…since then, WCS’s discount has narrowed to about $42 (U.S.) a barrel, but the absolute price has plunged along with world Crude benchmarks amid concerns of oversupply…the U.S. has granted 8 nations waivers to continue buying Iranian Oil, OPEC and Russia have boosted production while U.S. shale production also continues to ramp up…in the midst of all of this, President Trump has made clear his desire for low Oil prices to keep overall economic growth on track…

5. Why aren’t Canada’s national political leaders standing up for Canada as this country’s economy loses at least $50 million a day due to a lack of Oil pipeline capacity?…production gains at Western Canada’s Oil companies have not been matched, of course, by export pipeline capacity gains, and the cost to the Canadian economy is staggering…Oil producers have filled storage facilities to bursting while they wait for a solution to appear (they’ll have to keep waiting)…the price discounts or “differentials” that had mainly affected heavy Oil have now spread to light Oil and upgraded synthetic Oilsands Crude as pipeline space tightens…estimates on the cost to the economy vary wildly, but the Canadian Association of Petroleum Producers officially estimates the impact as at least $13 billion in the first 10 months of 2018…it estimates the cost at about $50 million per day in October, though some economists are saying that figure is much higher…CAPP boss Tim McMillan says, “The differential has blown out to such an extreme level for two reasons, the lack of access to markets and the fact we really have only one customer, the United States”…the Trudeau Liberals, who are obviously much more interested in getting pot to market than Oil to market, overturned the approval for the Northern Gateway Pipeline in 2016 which would have greatly improved Canada’s access to Asia…recently, of course, they bungled the TransMountain Pipeline regulatory process so badly the government now actually owns the pipeline because the private sector wanted out…this is no way to run a country…

6. The Dow, after a drubbing yesterday, is off slightly through the first 30 minutes of trading…the Dow got a boost pre-market after Home Depot reported earnings that handily topped expectations…sentiment was also lifted after The Wall Street Journal reported Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He had resumed trade talks…the report comes ahead of a meeting between President Trump and Chinese President Xi Jinping…Goldman Sachs estimates Apple will produce 6% fewer iPhones next year than expected after key supplier Lumentum reduced its shipment outlook…“We are concerned that end demand for new iPhone models is deteriorating,” Goldman said in the note.  “We note this could easily right itself given the bulk of demand comes in late December but we feel more prudent sell through forecasts are warranted due to the timing and magnitude of this warning”…in Toronto, the TSX is up 45 points while the Venture is flat at 638…Benchmark Metals (BNCH, TSX-V) continues to show strength, up 1.5 cents at 27 cents as of 7:00 am Pacific…late last week the company reported results of new and historical surface samples that provided geological evidence for widespread Gold and Silver mineralization across much of its 100 sq. km Lawyers Project in NW B.C.’s Golden Triangle, 45 km northwest of the past producing Kemess South open-pit Copper-Gold mine…exploration at Lawyers began in the late 1960’s and peaked in the 1980’s, identifying numerous showings, prospects and deposits culminating in the development of the Lawyers Gold-Silver mine that operated from 1989–1992 and produced 171,000 ounces of Gold and 3.6 million ounces of Silver over the 4-year period…5 underground developments remain in place, in addition to historic resources and new targets…approximately 90% of the land package has not been systematically explored…Benchmark launched diamond drilling and RC drilling in September with initial results pending…

7.  It takes 3 times as much energy to produce 1 dollar’s worth of bitcoin than 1 dollar’s worth of Gold, according to a new research study (“Quantification Of Energy And Carbon Costs For Mining Cryptocurrencies”)…more specifically, it requires 17 megajoules of energy to digitally mine 1 dollar’s worth of bitcoin versus 5 megajoules needed to physically mine the same value in Gold…other cryptocurrencies, including Ethereum, Litecoin, and Monero, also require higher amount of energy than real Gold…the timeframe for the study was between January 2016 and June 2017…

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