Check back later today for additional posts including Daniel’s Den, and visit the BMR comments section throughout the day for updates and helpful information.
1. Gold has traded between $1,269 and $1,281 so far today…as of 7:00 am Pacific, the metal is up $4 an ounce at $1,274 with strength across the commodity sector today…Silver has jumped 25 cents to $16.93…Copper has added 2 pennies to $3.13 while Nickel has surged 10 cents to $5.66 after climbing as high as $5.86 overnight…Crude Oil is up 56 cents at $54.94…U.S. commercial Crude inventories fell by 2.4 million barrels in the week to October 27, compared with analysts’ expectations for a decrease of 1.8 million barrels…U.S. Oil production also ticked up by 46,000 barrels per day (bpd) to 9.55 million bpd while weekly American Crude Oil exports rose to an all-time high of 2.13 million bpd…the U.S. Dollar Index has jumped more than one-quarter of a point to 94.83…
2. The aggregate value of all cryptocurrencies hit a record high of around $184 billion today, according to industry website Coinmarketcap, making their reported market value worth around the same as that of Goldman Sachs and Morgan Stanley combined…the latest surge in bitcoin – which has seen an eye-popping increase of almost 800% in the past 12 months – was driven by news yesterday that CME Group, the world’s largest derivative exchange operator, is planning to launch bitcoin futures by year-end…virtual currencies appear to be the new “hedge against chaos” which may help explain the notable downturn in the Gold retail business…sales this year of American Eagles, a popular Gold coin and a proxy for retail sales of physical Gold, have fallen to their lowest levels in a decade according to the U.S. Mint…mind you, some small investors who used to buy Gold coins, jewelry or watches are getting Gold exposure through exchange-traded funds which are much easier to buy and sell…investors have poured more than $8.5 billion into State Street’s Gold ETF, the largest Gold ETF, since the end of 2015…that reversed 3 years of net outflows and marks the biggest period for inflows since 2009, according to FactSet…
3. Chilean state-owned miner Codelco says Copper can surpass $10,000 a ton during 2018 (it’s $7,000 a ton now) as the supply-demand balance shifts into “substantial” deficits…that statement echoed the bullish mood emanating from London Metal Exchange week where traders and strategists from around the world descended on England’s financial center for various seminars and the annual LME dinner held last night…the consensus emerging from industry operatives interviewed by the Wall Street Journal has been one of steady growth for Copper demand over the coming year with mild global economic growth and China’s clampdown on low-grade scrap combining as bullish drivers…
4. The U.S. economy continues to surge with private sector job growth increasing more than expected in October to a robust 235,000…goods-producing companies and the construction industry led the way in ADP numbers released this morning…the ADP count comes 2 days ahead of the government’s non-farm payrolls report…economists largely expect a sharp rebound from September’s weather-related loss of 33,000 jobs…meanwhile, the ISM index for October came in slightly higher than expected this morning, albeit off marginally from September’s reading which was the best for the service sector index since August 2005…
5. Wall Street is certainly riding a wave of momentum thanks to a strong economy, deregulation and looming tax cuts…in addition, President Trump is expected to name Fed Governor Jerome Powell, broadly viewed as a market-friendly choice, as the new Fed Chair to replace Janet Yellen when her reign expires in early February…in terms of sentiment, the difference between bulls and bears hasn’t been this high in 30 years, according to the latest Investors Intelligence reading…back then, stocks were bubbling their way toward the worst single-day sell-off in history when the Dow collapsed 22% on October 19, 1987…bulls in this week’s Investors Intelligence survey totaled 63.5% against just 14.4% for bears…that’s a spread of 49.1 points, well above the level the editors believe represents potential danger in the market…
6. Equity markets in North America are trading robustly to begin the day…the Dow has surged 120 points as of 7:00 am Pacific…the TSX has added 71 points while the Venture has started November with a bang, up 5 points at 790…Garibaldi Resources (GGI, TSX-V) has firmed up this morning after closing its $10 million financing with strategic investors while also announcing that initial assay results from Nickel Mountain, the Golden Triangle’s first-ever high-grade Nickel-Copper discovery, are expected shortly…AIS Resources (AIS.H, TSX-V), a rapidly emerging Lithium player in Argentina that has gone unnoticed by most investors due to its .H status which is now expected to be lifted imminently, has completed an over-subscribed $4 million financing and is now preparing to launch a major program at its Guayatayoc Property where a pilot plant is already in place…Wolfden Resources (WLF, TSX-V), on the verge of closing its deal to acquire one of the highest-grade undeveloped VMS deposits in North America, has hit a new 52-week high on a bullish jump in volume…Datametrex AI (DM, TSX-V), a big data company for retail, brands and other organizations, announced this morning that it is positioned to complete its previously announced acquisition of Nexalogy Environics on or about November 20th in conjunction with a $5 million private placement…DM will issue 50 million units at 10 cents per unit with each unit including a full warrant exercisable into 1 common share at 15 cents per share for a period of 18 months…Castle Silver Resources (CSR, TSX-V) has announced that it has signed a provisional mill agreement with Granada Gold (GGM, TSX-V) whereby CSR will be the operator of the mill to be installed at the historic Castle mine near Gowganda…the mill would process ore from the Granada Gold mine across the border in Quebec, and potentially serve the needs of the broader northern Ontario Cobalt district where CSR and others are targeting Cobalt production…
7. Orca Gold (ORG, TSX-V) announced this morning that it has successfully expanded water resources at its Block 14 Gold Project in the Republic of the Sudan, increasing the estimated volume capacity of the Area 5 aquifer to 100 million cubic meters through a second program of 6 boreholes…this important development removes water availability as a constraint on throughput, enabling the company to approve the design of a processing facility at GGS of 6 million tonnes per year vs. 3.4Mtpa outlined in the revised Preliminary Economic Assessment released earlier this year…the completion of the Feasibility Study incorporating the new design scope is expected in early Q2 2018…Richard Clark, Orca CEO, stated: “With the expansion at Area 5, GSS can now be developed to its full design potential. The decision by our Board to proceed with a 6.0 Mtpa operation is a game changer for the project, almost doubling the production throughput from the revised PEA. This is expected to increase annual Gold production in excess of 200,000 ounces, making GSS and Block 14 one of the most exciting pre-development stories in Africa today. With the early success of our most recent resource expansion program we anticipate that our Feasibility Study will highlight a mine with an impressive annual production and financial profile and a significant mine life.”
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Anyone think we will get a BIG Friday surprise?
Comment by TradingAgent — November 1, 2017 @ 1:20 pm
I’m liking the Orca news. I think Orca is going to be huge some day. They have a proven management and billionaire investors. We talk about Eric Sprott with Garibaldi, what about Ross Beatty with Orca
Comment by Tfred — November 1, 2017 @ 3:57 pm
TFred, don’t forget the Lundin’s are the largest shareholders in ORCA so they are backed by two billionaires. Top-notch ownership and management tends to make successful problem-solving the norm, not the exception.
Jon (not BMR Jon)
Comment by AFchief — November 1, 2017 @ 5:21 pm