Gold fell about $15 in Asia and held around $595 in London before it fell further in morning New York trade to as low as $582.40 at one point, but it then rebounded a bit into the close and ended with a loss of 3.13%.Silver fell about 40 cents to around $11.75 in Asia and London before it fell even further in New York and ended near its lows with a loss of 8.66%.
Euro gold fell to about €465, platinum lost $31 to $1,186, palladium lost $15 to $312, and copper fell roughly 15 cents to about $3.40.
Gold and silver equities fell about 6% in early trade and dropped another 1-2% during the rest of trade to end with losses of more than 7% on the session.
The Economy:
There were no major economic reports today, but some inflation talk from fed bank president Poole did have some talking.The normally Hawkish Poole noted that the fed’s credibility is at stake when they don’t keep inflation low, but also if they don’t keep unemployment low.Tomorrow at 8:30AM EST is the Trade Balance for July expected at -$65.5 billion.
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Oil fell to new 5 month lows as OPEC kept output steady and Iran opened itself up to new talks about uranium enrichment.
The U.S. dollar fell versus the euro on hints that the ECB will hike interest rates in October, but it rose versus the yen as falling Japanese factory orders indicated that the Bank of Japan may not hike interest rates anytime soon.
Treasuries fell a bit as traders prepared for a 10-year note auction and some inflation data later in the week.
The Dow, Nasdaq, and S&P fell slightly in early trade and rose to find slight gains in early afternoon trade after Poole’s comments, but they then fell back off into the close and ended near unchanged with small gains.
Among the big names making news in the market today were Freescale, Genentech, Ipsco and NS Group, Iliad, Dell, Merrill Lynch, Morgan Stanley, and JPMorgan.
The Commentary:
Grandich Letter Special Alert
Monday, September 11, 2006 9:30 a.m. EDT Gold $592
By Peter Grandich
Just a quick note on gold. An expanded commentary should be out in the coming days.
A few weeks ago, I pondered the thought of welcoming gold breaking below $600 and creating a washout buying opportunity. However, it appeared the $610 area was going to hold. Some in the gold community were speculating the Washington Accord participants were going to fall substantially short of their quota ending September 26th. Unfortunately, the heavy selling the last few trading sessions has all the earmarks of central bank selling.
Since bottoming around $250, gold has risen in near textbook-style, secular bull market fashion. Sharp and fast gut-wrenching declines, which lead to beliefs that the bull run is over, came out of left field, but exited almost as fast. I believe such should be the case again.
As early as later today or tomorrow, we should see a sharp reversal to the upside, followed by some base-building. During that period, sentiment indicators should be tilted to the bearish side, which should end up giving us the emotional bottom needed to move on to the next leg of this secular bull market. - Peter Grandich,Grandich Letter
“Can there be a trading similarity in 2006 leading up to the election with 2002? Can the markets be manipulated, ie, gold and oil down, to get incumbents re-elected?
“December Gold closed down 20 at 597.3. This was 7.7 up from the low and 7.7 off the high.
December Silver finished down 1.055 at 11.24, 0.74 off the high and 0.04 up from the low.
While the rumors of central bank sales started to circulate late last week, the market seemed to have plenty of other issues forcing prices downward. With the news that the Bank of Portugal sold 20 tons of gold, it would seem that the talk of Central Bank sales were real, but if the market declines of the last several sessions were based on that type of sale the market seems to have overreacted. On the other hand, the outlook for the economy was bearish, the Dollar early in the session was bearish and with the energy complex down sharply there was more than 1 theme feeding into the bearish psychology. While the Gold market at times rejected part of the selling pressure with a mid day bounce, one can hardly conclude that the selling wave was thrown off. With the oil market remaining down on the session and the market even discounting production cut talk from OPEC, it is clear that the negative bias toward oil prices is still very present in the marketplace. In addition to the gold market discovering a minimal Central Bank gold sale, the second most positive development on the session was the mid afternoon bounce in the equity market off what some players suggested were favorable comments from the Fed's Poole.
Unlike the gold market the silver market showed very little interest in bouncing throughout the session. In fact, with the based metals and energy complex acting as if a recession were ahead it is not surprising that silver remained down with the broad losses in broad based commodity indexes. While the silver market was talking up the idea of bargain hunting buying, the market might have to see some positive leadership in other markets to convince the buyers to come off the bench. In the near term a number of traders have suggested that the correlation between the equity market and the copper market will be closely respected and that the silver market will need an improved macro economic outlook to stem the liquidation tide.” - The Hightower Report,Futures Analysis and Forecasting
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 09/08/2006
Total Net Assets
$844,905,123
Ounces of Gold in Trust
1,386,124.118
Shares Outstanding
13,950,000
Tonnes of Gold in Trust
43.11
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 09/08/2006
Total Net Assets
$1,257,462,606
Ounces of Silver in Trust
102,327,450
Shares Outstanding
10,250,000
Tonnes of Silver in Trust
3,182.7
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) agreement with Gold Fields (GFI) on the South Deep asset, Rubicon’s (RBY) drill results, Pacific Rim’s (PMU) drill results, Cambior’s (CBJ) drill results, Taseko’s (TGB) drill results, Freeport-McMoRan’s (FCX) note conversion, First Majestic’s (FR.V) and First Silver’s (FSR.TO) business combination, and Hecla’s (HL) expected increase its silver resource were among the big stories in the gold and silver mining industry making headlines today.
No “winners” today.
LOSERS
1.Seabridge Gold
SA -16.07% $11.33
2.Tanzanian Royalty
TRE -14.17% $5.39
3.Great Basin
GBN -12.66% $1.38
4.Meridian Gold
MDG -12.42% $26.10
5.Fronteer
FRG -12.33% $5.26
6.Vista Gold
VGZ -11.28% $10.15
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
All of today's gold and silver stock news:
Verena Minerals Corporation Closes Private Placement with Kinross Gold Corporation - More - September 11, 2006 | Item | E-mail
Tamija Gold & Diamond Exploration Granted Additional Governmental License & Increase in Territory - More - September 11, 2006 | Item | E-mail
Cadiscor Shares Listed on the Frankfurt Stock Exchange - More - September 11, 2006 | Item | E-mail
Marifil Mines Limited: News Release - More - September 11, 2006 | Item | E-mail
Anvil Finalises the Acquisition of an Additional 10% in the Kinsevere-Nambulwa Copper-Cobalt Joint Venture, Democratic Republic of Congo - More - September 11, 2006 | Item | E-mail
Rubicon and Crosshair Expand High-Grade Gold Mineralization at Golden Promise - "David W. Adamson, President and CEO of Rubicon Minerals Corporation is pleased to announce results from the recently completed 2006 Phase 1 diamond drill program (15 drill holes; 2,415 metres) at the Golden Promise Project located in north-central Newfoundland, 35 kilometers west of Grand Falls-Windsor." More - September 11, 2006 | Item | E-mail
Goldbelt announces initial results from previously unexplored Hounde region - More - September 11, 2006 | Item | E-mail
Manicouagan Minerals confirms and expands copper-silver mineralization at Lac Maugue - More - September 11, 2006 | Item | E-mail
International Gold Resources Update on Brazil - More - September 11, 2006 | Item | E-mail
Vencan Intersects 4.22% Zinc Over 16.85 Meters- Identifies Potential New Zinc Deposit- Fall Drill and Exploration Program to Begin in Late September - More - September 11, 2006 | Item | E-mail
Goldcorp Declares Ninth Monthly Dividend Payment for 2006 - "GOLDCORP INC. is pleased to declare its ninth monthly dividend payment for 2006 of $0.015 per share. Shareholders of record at the close of business on Friday, September 22, 2006 will be entitled to receive payment of this dividend on Friday, September 29, 2006." More - September 11, 2006 | Item | E-mail
Pacific Rim Mining Corp.: El Dorado Project Exploration Drilling Confirms Extensions to Gold Mineralization in Minita-South Minita Area - "Follow-up drilling is currently focusing on extending two significant new drill hits. Drill hole P06-459 intersected 2.7 meters averaging 17.41 g/t gold in the Deep Minita vein zone between the Minita and South Minita deposits. Hole P06-448 drilled through the Nueva Esperanza resource into the Los Jobos vein to the east, which averaged 15.84 g/t gold over a width of 1.15 meters. Los Jobos is a N-NE striking vein that splays off the main Minita vein zone and has high grades over potentially mineable widths on the surface." More - September 11, 2006 | Item | E-mail
High Grade Zone Grows Larger, 8m of 22.72 g/t PGM & Au - More - September 11, 2006 | Item | E-mail
Vault Minerals to Raise $600,000 - More - September 11, 2006 | Item | E-mail
Robert Boaz Appointed as a Director of Aura Silver Resources Inc./Paul Macdonell Resigns as a Director - More - September 11, 2006 | Item | E-mail
El Alacran Gold Mine Corp. Completes Acquisition of the Alacran-Scorpio Mine - More - September 11, 2006 | Item | E-mail
Unico, Inc. Shows New Pictures of Reconstruction of Mill and Processing Facility at Deer Trail Mine - More - September 11, 2006 | Item | E-mail
Tara Gold Resources Joint Ventures Las Minitas for Advancement - More - September 11, 2006 | Item | E-mail
Codelco Exercises Right of First Refusal Over Jeronimo Interest - More - September 11, 2006 | Item | E-mail
Results from Initial Exploration Program on Yukon's Sagar Uranium/Gold Property Spark Immediate Implementation of Second Phase Initiative - More - September 11, 2006 | Item | E-mail
Raven Gold Corp. and Tara Gold Resources Corp.: Raven Gold Corp. Acquires Major Silver Project-Las Minitas - More - September 11, 2006 | Item | E-mail
Intrepid Mines Limited: Codelco Exercises Right of First Refusal Over Jeronimo Interest - More - September 11, 2006 | Item | E-mail
Pan African Mining Corp. in Joint Venture With Manica Minerals for Two Gold Projects in Mozambique; Field Exploration Underway - More - September 11, 2006 | Item | E-mail
Golden Odyssey Leases Additional Claims on the Palmetto Project, Walker LaneTrend, Nevada - More - September 11, 2006 | Item | E-mail
Konigsberg Corporation Completes Property Payments - More - September 11, 2006 | Item | E-mail
Aquila Drills New Gold Intercept and More Masssive Sulphides - More - September 11, 2006 | Item | E-mail
De Beira Goldfields Inc.: Completion of Capital Raising - More - September 11, 2006 | Item | E-mail
First Majestic Resource Corp. and First Silver Reserve Inc. Shareholder Approval for Plan of Arrangement - "The resolution to approve the Arrangement was approved by 99.70% of the votes cast by all shareholders and 98.32% of the votes cast by the shareholders excluding First Majestic and other insiders. First Silver then made application to the Supreme Court of British Columbia for a final order approving the Arrangement and was granted the Final Order on September 8, 2006. Closing is anticipated to occur on Thursday, September 14, 2006. The Effective Date, as defined in the Arrangement, is anticipated to occur on September 15, 2006. Upon completion of the Arrangement, First Silver will be a wholly-owned subsidiary of First Majestic." More - September 11, 2006 | Item | E-mail
Cambior Inc.: Positive Results from Westwood-Mooshla Underground Exploration Project - "Cambior Inc. is pleased to report some positive drilling results from its Westwood-Mooshla underground exploration project. A surface drilling program realized between November 2002 to October 2004 resulted in the discovery of the Westwood deposit, located two kilometres east of the Doyon mine. Following this initial success, Cambior initiated the Westwood-Mooshla underground exploration project. This $25 million, five-year exploration program aims at identifying new deposits along the prolific Cadillac belt, on the Doyon property where Cambior is currently operating its Doyon and Mouska mines." More - September 11, 2006 | Item | E-mail
Taseko Mines Limited: Drilling Indicates Lateral & Vertical Expansion with Increasing Grade for Resources at Gibraltar - "We are very excited with the results of the 2006 drilling program. With a new geological interpretation and modelling, and a willingness to invest in a focused drill program, we are finding that we could, after 30 years of production, be on the verge of a major change to Gibraltar's reserve profile in terms of tonnage and grade. These new mineralized zones - below, adjacent and between the existing pits - will significantly increase the size and grade of the Gibraltar ore body." More - September 11, 2006 | Item | E-mail
Freeport-McMoRan Copper & Gold Inc. Announces Conversions of $286.1 Million of its 7% Convertible Senior Notes due 2011 - "In this transaction, holders representing approximately 98% of the remaining $293.2 million in Notes agreed to convert their Notes into 9.3 million shares of FCX common stock (based on the $30.87 per share conversion price under the terms of the Notes). FCX will pay $25.7 million in cash to the holders for the premium of $90 per Note plus $0.6 million in accrued interest. Final settlement of this transaction is expected on Tuesday, September 12, 2006." More - September 11, 2006 | Item | E-mail
Hecla Expects Increase in Silver Resource - "Hecla Mining Company today announced it expects to increase its silver resource base by approximately 30 million ounces in 2006, or about 20%. The anticipated resource increase has been identified at Hecla's Lucky Friday silver mine in northern Idaho and at the HughZone on the San Sebastian exploration property in central Mexico." More - September 11, 2006 | Item | E-mail
Gold Fields to Acquire 50% of South Deep From Barrick, Increase its Stake in Western Areas to 34.7% With an Option to go to 41%, and to Make a General Offer - "Gold Fields Limited is pleased to announce three separate transactions, collectively worth more than US$2.5 billion, which will significantly increase Gold Fields' interest in the South Deep Gold Mine in South Africa. South Deep is one of the most important developing gold mines in the world, with reserves of 29.3 million ounces contained in a resource of 67 million ounces." More - September 11, 2006 | Item | E-mail
Barrick Reaches Agreement with Gold Fields on South Deep Asset - "This agreement brings value and makes sense for all concerned: Gold Fields has great expertise in deep level mining and there are synergies that they can realize in conjunction with their nearby flagship operations in South Africa," said Greg Wilkins, President and Chief Executive Officer. "Barrick's employees in South Africa will remain focused on advancing the Sedibelo platinum project and providing support and services to Barrick operations and projects in Africa." More - September 11, 2006 | Item | E-mail
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Grandich Letter Special Alert
