Gold Seeker Closing Report – Gold & Silver Plunge Over 7% and 10%

	Close	Gain/Loss
Gold	$562.70	-$44.10
Silver	$9.84	-$1.19
XAU	120.08	-3.71%
HUI	273.73	-5.06%
GDM	874.38	-4.69%
JSE Gold	2360.10	-7.59%
USD	86.46	+0.50
Euro	125.47	-0.58
Yen	86.74	-0.82
Oil	$68.56	-$1.80
10-Year	4.961%	-0.026
T-Bond	108.34375	+0.25
Dow	10706.14	-0.80%
Nasdaq	2072.47	-0.90%
S&P	1223.69	-1.03%

Gold traded near $600 in Asia, dropped to about $590 in London, and then sold off throughout trade in New York and ended near its lows with 7.27% loss. Silver steadily dropped all the way through world trade and ended 10.79% lower.

Euro gold fell to about €450, platinum lost $49 to $1,111, palladium lost $36 to $272, and copper fell over 15 cents to about $2.95.

Gold and silver equities fell around 5% in early trade before cutting their losses heading into afternoon trade, but they then fell off into the close and ended near their lows of the session.

“An all out capital liquidation seemed to catch the gold market on Tuesday. While a higher Dollar, muted inflation, sagging oil prices and minimal geopolitical anxiety facilitated selling in gold, we suspect that technical stop loss selling caused the market to mostly fall apart. With commodities in general under attack, one certainly gets the sense that the rising Dollar was only a minor part of the liquidation effort and that significant concerns for the economy probably ended up being the main fundamental catalyst for the bear camp. With more soft numbers expected from the US and the US equity market also mostly weak it wouldn't seem like the markets sentiment will be easily altered. Even the Canadian (a commodity currency) suffered aggressive selling pressure on Tuesday and that highlights the domination of the current bear view.

While the sharp rise in the Dollar and the slump in gold provided the main undermine to silver on Tuesday, it is likely that aggressive stop loss selling gave the market biggest downside push. Some traders have suggested that the silver market might have translated into a net spec short positioned market with the slide Tuesday but that probably won't discourage additional selling in the event that the overall macro economic outlook continues to deteriorate. Some traders have suggested that silver might remain under pressure until after the June 28th US rate hike while others suggest that the market has already overdone the selling on the current fundamental setup.”

“This is no fun and painful financially, however, the big gold picture is becoming even more bullish in some ways. That's because markets are falling apart everywhere. This is going to put tremendous pressure on the US, and others, NOT to tighten to meet the hawkish Fed rhetoric. The result will lead to greater inflation and a weaker dollar. This will aid the next move up in the gold price, one which should be a doozy.”

Indeed, pain there is. And lots of it. I can tell by the sharp diminution in the e-mails all a-buzz about gold and silver now being at "buy" levels. We're watching our portfolios drop more and more almost each and every day. Yeah, sure, the general equity markets around the world are crashing, but we don't care you boob because we have GOLD stocks and they're crashing, too! Is there no safe harbor in gold?

I'm sure many gold newbies are selling off more and more with each new leg down to a lower plateau. Dr. Plunge beckons them to throw in the towel, and buy back in at higher levels. Can't say I don't blame them. At some point in the next half a dozen years we're going to get to the level where nearly everyone will consider the stock market as the cauldron of Hell, just as they did in the 1930s. If confidence in our system can be restored, it will be years and years before the masses will trust others with their money ever again. That all depends if our currency survives.

But, we're not here now to speculate on how low the US dollar will go. It's the pain you feel now with a glance at your gold portfolio that needs relief. It's aggravated even more by all the misleading bunk on CNBC; the leading trash story always being what the Fed will do - - not that the Fed is the reason for all of our woes and should be abolished, only how it will get us out of the pickle it's put the world in. Journalism at its worst. Controlled media at its finest.

The way I try to calm my emotional angst is to over and over again go to my technical analysis charts. Oh, baby, do I see bargains looming! Yes, I still have about 30-40% cash, the rest being in gold and silver equities, a couple of dropping uraniums, and one sorry natural gas stock. Like you I still have them because I didn't envision the severity of the sharp correction that is upon us (wait 'til next time....sure). The beauty in this whole rapid plunge and what it means is that the elixir for us is the bottoming of gold stocks will be reached more quickly, bottom, and then resume its bull market. We want to be there. We don't like cash. Yuk!

If your TA charts tell you that silver is bottoming at $9.20, or gold at $575 will you have enough courage (or cash) to buy them or their underlying stocks again? It's too late to sell, but too early to buy.

For right now, continue to build your cash pile, watch your TA charts, and get ready to pounce on an opportunity when no one else will. Rely on yourself! If you want to feel good about something, be thankful that man discovered what God put on this earth as the ultimate economic refuge for the common man. Now, you need only to ask God to give you the wisdom to do something about it. But, then, I bet none of you drop a silver dollar or a 1/10 oz. gold eagle into the collection plate on Sundays, right? There would be any one of three reasons why you don't do so: Without recognizing any distinction, you render unto God what is Caesar's, or you deprive your congregation of honest money which you hoard for yourself, and a third reason, and most likely, is YOU DON'T OWN ANY GOLD!

Oil fell markedly on speculation over falling demand in an environment of rising interest rates and inflation fears.

The U.S. dollar index gained on the outlook for further interest rate increases.

Treasuries rose as inflation worries brought in safe haven buying and pushed yields down near 2 month lows.

The Dow, Nasdaq, and S&P remained near unchanged for much of trade, but they then fell off to find significant losses by the close as interest rate worries continued to be a drag on the markets.

Among the big names making news in the market today were World Wrestling, Best Buy, Goldman Sachs, and Tenaris and Maverick.

Crystallex’s (KRY) comments on Venezuelan mining policy, Agnico-Eagle’s (AEM) closed offering of common shares, and Goldcorp’s (GG) acquired interest in Eastmain Resources (ER.TO) were among the big stories in the gold and silver mining industry making headlines today.

Amarillo Reports Assay Results from North Posse Deposit; Drill Testing Deeper Extension Confirms More Gold - More
- June 13, 2006 | Item | E-mail

Typhoon to Present its Business Plan at the CIM - More
- June 13, 2006 | Item | E-mail

Crystallex Comments on Venezuelan Mining Policy - "Crystallex International Corporation commented today that there has been considerable confusion resulting from yesterday's press coverage on possible revisions to the Venezuelan mining law, namely the incorporation of mixed companies as an exploitation structure in the mining sector. The Government stake in such mixed companies would be at least 51%." More
- June 13, 2006 | Item | E-mail

Drake Gold Resources Inc. Announces 100% Acquisition of Pegasus Oil Well Services as Part of the Expansion Into Oil and Gas Development - More
- June 13, 2006 | Item | E-mail

Jourdan Receives Conditional Approval for Reactivation and Arranges a Private Placement - More
- June 13, 2006 | Item | E-mail

Greencastle Resources Ltd.: Drilling Underway in Niger, West Africa - More
- June 13, 2006 | Item | E-mail

Azimut: Exploration Update - More
- June 13, 2006 | Item | E-mail

St Andrew Increases Interest to Approximately 34% in New Zealand Based Explorer Glass Earth Limited - More
- June 13, 2006 | Item | E-mail

Agnico-Eagle closes offering of common shares - "Agnico-Eagle Mines Limited announced that it has closed its US$250 million public offering of 8,455,000 common shares in Canada and the United States. The net proceeds of the offering, estimated at US$237.6 million, will be used to fund the completion of construction of the Lapa mine project, construction of the Kittila mine project, the exploration and development of Agnico-Eagle's other projects and for general corporate purposes, including possible acquisitions." More
- June 13, 2006 | Item | E-mail

Indian River Placer Project Shifts from Winter Exploration to Test Mining and Pre-Production Planning - More
- June 13, 2006 | Item | E-mail

IRC Closes On Western Australian Royalty And Receives First Royalty Payment - More
- June 13, 2006 | Item | E-mail

Douglas Lake Minerals President Attends Arab-African Investment Banking and Business Summit - More
- June 13, 2006 | Item | E-mail

ValGold completes 11,000 meter program & adds second drill to the Garrison Gold Project, Ontario - More
- June 13, 2006 | Item | E-mail

Superior Canadian Resources Inc.: 2006 Winter Drilling Results and Planned Summer Programs - More
- June 13, 2006 | Item | E-mail

Michigan Gold Acquires 11.3 Million Shares of Condor Gold in Preferred Share Issuance - More
- June 13, 2006 | Item | E-mail

Kimberly Gold Mines Hires Don Rolfe as Vice President and Chief Operating Officer - More
- June 13, 2006 | Item | E-mail

Cusac Secures Key Production Personnel and Equipment, Taurus II Exploration Program Underway - More
- June 13, 2006 | Item | E-mail

Gold Summit Stakes Gold Springs Vein Extensions: Monte Cristo Progress Report - More
- June 13, 2006 | Item | E-mail

General Minerals Corporation Completes Initial Metallurgical Tests on Two Samples from the Malku Khota Silver Project in Bolivia - More
- June 13, 2006 | Item | E-mail

Diadem Announces Revised Flow Through Equity Financing of Up to $1,000,000 - More
- June 13, 2006 | Item | E-mail

De Beira Provides Further Details on Titiribi Gold/Copper Project in Colombia - More
- June 13, 2006 | Item | E-mail

Goldcorp Acquires Major Interest in Eastmain - "Eastmain Resources Inc. is pleased to announce that it has closed its previously announced private placement with GOLDCORP INC. Pursuant to the private placement, Goldcorp acquired two million units of Eastmain at a price of $0.70 per unit and two million flow-through units of Eastmain at a price of $1.00 per unit, for total gross proceeds of $3.4 million." More
- June 13, 2006 | Item | E-mail

Crystallex Confirms Las Cristinas Position - "The company has a valid and binding contract to operate the Las Cristinas project, which is 100% owned by the Nation of Venezuela. We have been working closely with all the relevant institutions in Venezuela such as the Corporacion Venezolana de Guayana ("CVG"), the appropriate Ministries and the National Assembly to advance the Las Cristinas project. Just last week the Permanent Commission of the National Assembly petitioned the Minister of the Environment and Natural Resources ("MARN") in support of Crystallex commencing the Las Cristinas project as soon as possible." More
- June 13, 2006 | Item | E-mail

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