-- Posted 9 November, 2006 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $634.40 | +$17.50 |
Silver | $12.96 | +$0.48 |
XAU | 142.37 | +4.35% |
HUI | 341.05 | +4.14% |
GDM | 1084.20 | +4.31% |
JSE Gold | 2867.89 | -1.85% |
USD | 85.18 | -0.32 |
Euro | 128.33 | +0.66 |
Yen | 84.81 | -0.11 |
Oil | $61.16 | +$1.33 |
10-Year | 4.633% | UNCH |
T-Bond | 112.5625 | UNCH |
Dow | 12103.30 | -0.60% |
Nasdaq | 2376.01 | -0.37% |
S&P | 1378.33 | -0.53% |
The Metals:
Gold fell a few dollars in access trade late yesterday before it rebounded to near unchanged in Asia and traded mostly slightly higher in London. It then started to move higher in mid-London trade and continued to gain in New York ahead of China’s announcement that they are considering diversifying out of their foreign exchange reserves. That statement sent gold even higher in late morning trade and helped it to close near its highs with a gain of 2.84%. Silver followed a very similar pattern and outpaced gold with a gain of 3.85%.
Euro gold rose near €495, platinum gained $40 to $1,202, palladium gained $10 to $334, and copper gained nearly 10 cents to about $3.31.
Gold and silver equities steadily rose throughout trade and closed with over 4% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Import Prices | Oct | -2.0% | -1.0% | -2.0% |
Import Prices ex-oil | Oct | -0.6% | - | 0.2% |
Export Prices | Oct | -0.4% | -0.1% | -0.4% |
Export Prices ex-ag. | Oct | -0.5% | - | -0.3% |
Initial Claims | 11/04 | 308K | 318K | 328K |
Trade Balance | Sep | -$64.3B | -$66.0b | -$69.0B |
Michigan Sentiment | Nov | 92.3 | 93.5 | 93.6 |
Wholesale Inventories | Sep | 0.8% | 0.6% | 1.2% |
There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose over 2% on cold weather forecasts and on further reaction to yesterday’s poor inventory reports. Natural gas rose as inventories fell a much more than expected 7 billion cubic feet.
China recently reached over $1 trillion in foreign exchange reserves, the most ever held by a single country. Today, “Chinese central bank governor Zhou Xiaochuan said China was ‘considering lots of instruments’ in diversifying” its foreign exchange reserves.
The U.S. dollar index remained near unchanged after today’s mixed economic data, but it then fell off markedly after China’s announcement that it had a “clear” plan to diversify its reserves, which many assumed to be away from the US Dollar.
“The long-term impact is going to be dramatic and sustainable,” said Firas Askari, head currency trader at BMO Capital Markets in Toronto. “The dollar has long been the reserve currency for the entire world. Now with central banks saying they are going to diversify away from the dollar, the dollar will suffer. The euro will be one of the biggest beneficiaries of the trend.”
Treasuries rose slightly after the economically disappointing Michigan Sentiment report, fell back near unchanged after China’s comments, and remained near unchanged after a mediocre 10-year note auction. “China is the second-biggest foreign holder of U.S. Treasuries with $339.0 billion as of August, according to Treasury Department data.”
The Dow, Nasdaq, and S&P fell as traders continued to sell pharmaceuticals after it now seems clear that the Democrats won not only the House, but also the Senate. Higher energy prices also hurt the transports as mixed economic data concerned investors as well.
Among the big names making news in the market today were Fannie and Freddie, Goodyear, 3M, Cisco Systems, J.C. Penney, and Viacom.
The Commentary:
“What struck me was how important gold’s role is as a single barometer, and vote of confidence, of the current administration, and for that matter, for others recently in power in the US. GOLD IS THAT IMPORTANT! If gold were to rally today, with the US market under early pressure, the Orwellians in power in Washington feared it would indicate a lack of confidence in the US financial markets and what lies ahead for the next two years of a lame duck Administration.
The easiest way to allay those fears (which are lurking anyway) is to hit the price of gold, for Paulson and others in his Gold Cartel believe the uninformed out there (of which there are so many) will view a decline in the price of gold as soothing … that everything is still OK as far as the US markets are concerned. What child’s play! And how incredible that so many of the dumbed down out there always fall for it, or never question what is really transpiring.
The irony is that what The Gold Cartel, and those pulling in the strings in Washington are, doing is not only pitifully trite, it is boring and only delaying the inevitable. The Gold Cartel is a retreating army that is in the process of losing the GOLD WAR.” - From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“December Gold finished up 18.5 at 636.8, 0.2 off the high and 13.8 up from the low.
December Silver closed up 0.5 at 13.05. This was 0.385 up from the low and 0.02 off the high.
Apparently renewed Chinese diversification talk served to lift gold prices sharply. It seems that the Chinese diversification theme is gaining prominence, as a current Fed member brought up the prospect early this week and during the session Thursday a Chinese Governor reiterated that Chinese indeed planned to diversify its reserves. Some players might have taken the diversification argument to mean, less Dollar and others might have taken the move to mean that China would actually move to hold more physical gold. In the end, seeing such massive price gains in gold suggests that something big was developing and a lower Dollar and talk of diversification is a big start. It is also possible that more gains in energy prices contributed to the strength in gold, which managed to reach the highest level since September 7th.
A massive range up in silver took prices to the highest level since early September. Apparently the market is getting direct spill over speculative support from the idea of Chinese reserve diversification. Apparently recent bearish physical supply side developments are being discounted by the trade and the investment buzz is seemingly dominating the headlines. It is possible that the weakness in the US equity market and the slide in the Dollar on Thursday served to increase the financial focus of silver traders, which in turn has relegated the typical physical supply factors to the back seat.” - The Hightower Report, Futures Analysis and Forecasting
The Statistics:
As of close of business: 11/08/2006
Gold Warehouse Stocks: | 7,525,639 | -64 |
Silver Warehouse Stocks: | 107,388,456 | +570,336 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange (NYSE) AND Singapore Exchange (SGX) | Streettracks Gold Shares | 409.59 | 13,168,578 | US$ 8,206m |
LSE (London Stock Exchange) AND Euronext Paris | Gold Bullion Securities | 89.10 | 2,864,649 | US$ 1,815m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.25 | 329,388 | US$ 209m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 9.88 | 317,781 | US$ 198m |
Note: Change in Total Tonnes from yesterday’s data: The NYSE added 5.56 tonnes and the ASX added 0.13 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/08/2006 | |
Total Net Assets | $841,522,434 | Ounces of Gold
in Trust | 1,365,342.180 |
Shares Outstanding | 13,750,000 | Tonnes of Gold
in Trust | 42.47 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/08/2006 | |
Total Net Assets | $1,320,047,021 | Ounces of Silver
in Trust | 104,735,443 |
Shares Outstanding | 10,500,000 | Tonnes of Silver
in Trust | 3,257.6 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Barrick’s (ABX) waived minimum tender condition of its offer to acquire the outstanding common shares of NovaGold (NG), Pacific Rim’s (PMU) drill results, Exeter’s (XRA) Amex listing, Great Basin’s (GBN) Board changes and new CFO, Fronteer’s (FRG) drill results, Zhaojin Mining’s IPO, ECU’s (ECU.V) mill purchase, Apex Silver’s (SIL) quarterly results, Hecla’s (HL) quarterly results, and Silver Dragon’s (SDRG.OB) closed financing were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Minco Mining | MMK +11.11% $1.70 |
2. Mines MGMT | MGN +9.01% $5.93 |
3. Vista Gold | VGZ +8.97% $8.50 |
LOSERS
1. Solitario | XPL -5.61% $3.53 |
2. Hecla Mining | HL -4.61% $6.62 |
3. U.S. Energy | USEG -3.87% $4.47 |
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:
Barrick Waives Minimum Tender Condition in NovaGold Offer - "Barrick Gold Corporation announced today that it has waived the minimum tender condition of its offer to acquire the outstanding common shares of NovaGold Resources Inc. at a best and final price of US$16.00 cash per share. Previously, the offer was conditional on 50.1 per cent of the common shares being deposited to the offer at the expiry time. As a result of the waiver, all NovaGold shares deposited to Barrick's offer by 11:59 p.m. (Toronto time) on November 21, 2006 will be taken up and accepted for payment assuming continued satisfaction of the other conditions of the offer. Payment for those shares will be made on or before November 24, 2006." More
- November 09, 2006 | Item | E-mail
Molycor Gold Corp.: Company Completes Nevada Patent Purchase - More
- November 09, 2006 | Item | E-mail
Duncan Park Holdings Corporation: Drilling Update at Rock Creek Claims, Lander and Eureka Counties, Nevada - More
- November 09, 2006 | Item | E-mail
Exploration Update-Cheechoo Gold Project, James Bay, Quebec First Assay Results Expected in Two Weeks - More
- November 09, 2006 | Item | E-mail
CORRECTION FROM SOURCE: Uranium Energy Corp Reports Correction in Table of Reported Results for Its Goliad Project in South Texas - More
- November 09, 2006 | Item | E-mail
Network Exploration Acquires Gold and Copper Property in Chile - More
- November 09, 2006 | Item | E-mail
Pearl Asian Mining Industries, Inc. is Approved for Trading on Third Segment of the Frankfurt Stock Exchange - More
- November 09, 2006 | Item | E-mail
ECU Purchases Second Mill - "ECU Silver Mining Inc. 'the Company' is pleased to announce the purchase of a second mill located less then 100 meters away from the company's on-site lab enabling ECU the full use of the acquired mill without having to displace it from the current location. Furthermore, additional drills are to arrive on site shortly, and the Company's pyrite circuit is now at the commissioning stage." More
- November 09, 2006 | Item | E-mail
SIRIOS: Cheechoo Project, Opinaca Area, James Bay, Quebec Exploration Program Update - More
- November 09, 2006 | Item | E-mail
American Bonanza Drills High Grade Northshore Property - More
- November 09, 2006 | Item | E-mail
Great West Gold, Inc. -- Stockholder Communications - More
- November 09, 2006 | Item | E-mail
Normabec Mining Resources Ltd.: Drilling Started on the Tailings Piles of the Real De Catorce Silver Mining District - More
- November 09, 2006 | Item | E-mail
Geodex Minerals Ltd. Retains Renmark Financial Communications Inc. - More
- November 09, 2006 | Item | E-mail
Geodex Minerals Ltd. Retains Renmark Financial Communications Inc. - More
- November 09, 2006 | Item | E-mail
ITH Confirms Presence of a Major Gold Target on its West Tanana Project, Alaska - More
- November 09, 2006 | Item | E-mail
Exploration Update-Cheechoo Gold Project, James Bay, Quebec First Assay Results Expected in Two Weeks - More
- November 09, 2006 | Item | E-mail
Pershimco Update from Partner Dia Bras at Cusi, Drilling Intersects 188 g/t Silver Over 38 Meters - More
- November 09, 2006 | Item | E-mail
Lund Gold Ltd. and Oromin Explorations Ltd.: Phase 1 Exploration Completed at Carneirinho - More
- November 09, 2006 | Item | E-mail
Skygold Ventures Ltd. and Wildrose Resources Ltd.: Spanish Mountain Main Zone Continues to Grow; Regional Work Defines Additional Targets - More
- November 09, 2006 | Item | E-mail
UrAsia Energy Ltd. announces five new sales contracts - More
- November 09, 2006 | Item | E-mail
Vault commences drilling on Percy Lake VMS - More
- November 09, 2006 | Item | E-mail
American Bonanza Drills High Grade Northshore Property - More
- November 09, 2006 | Item | E-mail
Yukon Gold Announces Its Annual General Meeting - More
- November 09, 2006 | Item | E-mail
Globex: New Gold Zone Intersected at Russian Kid - More
- November 09, 2006 | Item | E-mail
Uranium Resources, Inc. Retains Kei Advisors LLC, Investor Relations Advisory Firm - More
- November 09, 2006 | Item | E-mail
Nuinsco Ranks High In Race To Find Next Uranium Super Deposit - More
- November 09, 2006 | Item | E-mail
Strathmore Acquires Near-Surface Uranium Deposits in Gas Hills, Wyoming - More
- November 09, 2006 | Item | E-mail
Olympus Opens Up Bong Mieu Underground With Exploration Decline - More
- November 09, 2006 | Item | E-mail
Altai Resources Inc. Announces Private Placement Closings - More
- November 09, 2006 | Item | E-mail
Verena Intersects 49 Metres @ 2.22 g/t Including 7 Metres @ 10.89 g/t at Volta Grande Project - More
- November 09, 2006 | Item | E-mail
Columbia Announces Addition To The Board Of Directors - More
- November 09, 2006 | Item | E-mail
Strait Gold Completes Magnetic Survey in Preparation for Drilling - More
- November 09, 2006 | Item | E-mail
MGM Mineral Resources Acquires La Victoria Mine - More
- November 09, 2006 | Item | E-mail
Golden Chalice Resources Inc.: Drilling on Senneville Property - More
- November 09, 2006 | Item | E-mail
Duran Announces New Gold and Silver Targets at the Aguila Project in Peru - More
- November 09, 2006 | Item | E-mail
Radius Provides Update on Its Gold Exploration Programs - More
- November 09, 2006 | Item | E-mail
Unico, Inc. Announces Final Report on New Electrical Substation for the Deer Trail Mine - More
- November 09, 2006 | Item | E-mail
Rocmec's Surface Drill Programme Intercepts an Anomalous Mineralised Structure at Depth - More
- November 09, 2006 | Item | E-mail
Goldcrest Acquires the 250 km(2) Danyoro Concession South of, and Contiguous to, its Souhouera and Malba Concessions - More
- November 09, 2006 | Item | E-mail
Namex Completes 8 Diamond Drill Holes on its Sudbury Area Properties. - More
- November 09, 2006 | Item | E-mail
Rusoro Mining commences trading on TSXV - More
- November 09, 2006 | Item | E-mail
Sutcliffe Update - More
- November 09, 2006 | Item | E-mail
Marifil Reports Preliminary Assay Results From San Roque Gold Project - More
- November 09, 2006 | Item | E-mail
Sea Green Capital Corp. Announces Drilling to Commence in Casa Berardi Region in Quebec - More
- November 09, 2006 | Item | E-mail
Grandview Announces Launch of New Media-Rich Website - More
- November 09, 2006 | Item | E-mail
Jinshan Appoints Roger Walsh as Vice President Corporate Development as Company Pursues New Growth Opportunities - More
- November 09, 2006 | Item | E-mail
Asia Gold Intersects 68 Metres Grading 3.2 g/t Gold at Tashlaka Hill, Bulgaria - More
- November 09, 2006 | Item | E-mail
Everton Provides a Drilling and Exploration Update on Opinaca Blocks "A" & "B" in James Bay, Quebec - More
- November 09, 2006 | Item | E-mail
Midlands Minerals Announces Good Progress on Diamond Core Drilling-Itilima Project Tanzania - More
- November 09, 2006 | Item | E-mail
High Grade Gold Mineralization Intersected at Uzboy - More
- November 09, 2006 | Item | E-mail
Revett Minerals Reports Operating and Financial Results to September 30, 2006 - More
- November 09, 2006 | Item | E-mail
Campbell Resources announces 3rd quarter results - More
- November 09, 2006 | Item | E-mail
Stellar amend price and terms on its private placement - More
- November 09, 2006 | Item | E-mail
NewWest Gold Corporation reports third quarter results - More
- November 09, 2006 | Item | E-mail
BrazMin Update on the Agua Branca Gold Project - More
- November 09, 2006 | Item | E-mail
Anvil Finalizes Agreement to Acquire an Additional 10% in the Mutoshi Copper-Cobalt Joint Venture - More
- November 09, 2006 | Item | E-mail
Aquila Drills 19.3 Meters @ 11.73% Zinc Gold Intercept 6 Meters @ 32.9 g/t Gold and 189.4 g/t Silver - More
- November 09, 2006 | Item | E-mail
Pacific Comox Resources Ltd.: Near Surface Intersection of 0.43% '8.9 Lbs/Ton' Molybdenum Over 20 Feet - More
- November 09, 2006 | Item | E-mail
Houston Lake Mining Reports 10.80 g/t Gold Over a 65 Metre Strike Length in Surface Sampling Program - More
- November 09, 2006 | Item | E-mail
Pacific Rim Mining Corp.: Santa Rita Gold Project Drill Program Underway; El Dorado Project Update - "With drill permits in place, surface rights agreements finalized and access roads upgraded and constructed, Pacific Rim Mining Corp. has today commenced a diamond drill program on its 100%-owned Santa Rita gold project in El Salvador." More
- November 09, 2006 | Item | E-mail
American Stock Exchange Lists Common Stock of Exeter Resources Corporation - "We are very pleased to welcome Exeter Resources Corporation to the American Stock Exchange," said John McGonegal, Senior Vice President of the Amex Equities Group. "As a world leader in mining listings, we are excited to add Exeter to our expanding list of companies in this sector. We are confident that they will benefit from our market structure and service offerings." More
- November 09, 2006 | Item | E-mail
Uranium Energy Corp Reports Excellent Drilling Results With Four Drilling Rigs Operating at Goliad Project in South Texas - More
- November 09, 2006 | Item | E-mail
East Asia Minerals acquires key Mongolian uranium property - More
- November 09, 2006 | Item | E-mail
Golden Patriot Negotiating to Hire European Investor Relations Team - More
- November 09, 2006 | Item | E-mail
Great Basin Announces Changes to the Board & Appointment of New Chief Financial Officer - "Great Basin Gold Ltd. announces changes to its Board of Directors and management team. Zelda Smit, CA, has joined the Company as the Chief Financial Officer and Patrick R. Cooke, CA, has been appointed to the Company's Board of Directors." More
- November 09, 2006 | Item | E-mail
Fronteer Makes New Gold Discovery at Pirentepe Project, NW Turkey - "Fronteer Development Group Inc. is pleased to announce that the first round of drilling on its new Pirentepe Gold Project, in northwestern Turkey, has intersected thick intervals of near surface gold mineralization with encouraging grades in two out of four holes for which results have been received." More
- November 09, 2006 | Item | E-mail
Zhaojin counting on pure-gold play for IPO - "Chinese gold miner Zhaojin Mining Industry Co. Ltd. is counting on its position as a pure-gold play to attract investors to its US$250 million to US$300 million initial public offering, but gold price fluctuations will affect company's earnings, analysts said." More
- November 09, 2006 | Item | E-mail
Apex Silver Reports on Third Quarter 2006 Results and San Cristobal Project Updates - "Apex Silver Mines Limited today reported net income of $72.2 million or $1.25 per share for the third quarter 2006 compared to a net loss of $12.1 million or $0.25 per share for the same 2005 period. In the third quarter of 2006, the company recorded a $119.8-million gain on the September 25, 2006 sale to Sumitomo Corporation of a 35% interest in Apex Silver's San Cristobal silver-zinc-lead project located in southwestern Bolivia." More
- November 09, 2006 | Item | E-mail
Good Performance for Hecla's Third Quarter: Increased Income, Revenue, Gross Profit and Cash Flow - "Hecla Mining Company today reported income applicable to common shareholders of $0.9 million, or 1 cent per share, for the third quarter of 2006, $9.6 million more than the loss of $8.7 million, or 7 cents per share, during the third quarter of 2005. Hecla's low average total cash cost per ounce of silver production of just 59 cents, combined with a 65% increase in the average silver price and a 42% increase in the average gold price for the quarter, contributed to the company's positive third quarter performance." More
- November 09, 2006 | Item | E-mail
Silver Dragon Resources Inc. Closes Further Financing for a Total of US$6.5 Million to Date in 2006 - "The Company plans to use the proceeds of the financing towards the production and development of the Cerro las Minitas silver mine in Durango, Mexico, to continue the exploration and development program presently under way at the Erbahuo silver project in China, as well as for general corporate purposes," stated Marc Hazout, President and CEO. "We are financed for our plans for the balance of this year and look forward to executing our vision for the company in the new year." More
- November 09, 2006 | Item | E-mail
- Chris Mullen, Gold Seeker Report
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2006
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted 9 November, 2006 | |
