Gold Seeker Closing Report: Gold and Silver End Near Unchanged After Over 3% Gains Earlier

	Close	Gain/Loss
Gold	$1,002.05	+$3.55
Silver	$20.22	-$0.39
XAU	200.23	-2.98%
HUI	505.76	-1.77%
GDM	1517.27	-2.32%
JSE Gold	2806.58	+41.43
USD	71.44	-0.23
Euro	157.22	+0.85
Yen	102.87	+2.09
Oil	$105.68	-$4.53
10-Year	3.314%	-0.107
T-Bond	121.484375	+0.78125
Dow	11972.25	+0.18%
Nasdaq	2177.01	-1.60%
S&P	1276.60	-0.90%

JPMorgan will buy Bear Stearns for $2 a share and this values Bear Stearns at $240 Million, a Tenth of its Value Last Week. This is just roughly 1% of its value 16 days ago and reportedly less than half the value of Bear’s office building in New York. So how could JPMorgan get such a good “deal’? Bear’s “risk positions” total some $33 billion in what could be leveraged losses and JPMorgan takes control of those as well. JPMorgan received some help from the fed who took on $30 billion in collateral from Bear in what is basically a loan from the fed to do the deal and bring liquidity and that is perhaps a loan only JPMorgan could get as the fed effectively acts to bail out the financial system and absorb those potential losses. President Bush and Treasury Secretary Paulson signed off on the deal. Lehman Brothers, Washington Mutual, and Citigroup saw notable losses today on fears that problems experienced at Bear Stearns are prevalent in other financial firms as well. JPM closed up over 10%.

The fed cut its emergency lending rate from 3.5% to 3.25% last night and also extended loan availability to investment banks. These emergency steps come ahead of the fed’s normally scheduled meeting tomorrow that is expected to cut the fed funds rate as much as 100 basis points from the current 3% level. Others speculate the fed will only do 50 basis points in contrast to last week’s expectation of 75 basis points as last night’s steps may be the extra measures the fed thinks it needs to fix the system rather than resort to only large interest rate cuts.

Gold soared over 3% to as high as $1031.85 in early Asian trade before it dropped back near unchanged to as low as $999.22 by early trade in New York and then rallied back higher to about $1015 by late morning, but it then fell back off into the close and ended with a gain of just 0.35%.

Silver rose to $21.34 in Asia before it dropped to $19.91 by about 9:30AM EST and then rebounded to about $20.70 by late morning, but it also fell back off into the close and ended with a loss of 1.9%.

The dramatic action came as some traders tried to get in to metals on a safety bid while others got out on margin calls that force them to liquidate profitable positions in order to cover for losses in other areas, but when all was said and done gold did end at a new all-time high and above $1,000 for the first time ever.

Euro gold fell to about €637 on euro strength, platinum lost $60 to $2010, and copper fell over 13 cents to about $3.71.

Gold and silver equities saw slight gains in morning trade before they fell to trade nearly 5% lower by mid-afternoon, but they then rallied back higher into the close and ended with only about 2% losses.

Report	For	Reading	Expected	Previous
NY Empire State Index	Mar	-22.2	-7.4	-11.7
Net Foreign Purchases	Jan	$62.0B	$60.0B	$56.5B
Capacity Utilization	Feb	-0.5%	-0.1%	0.1%
Industrial Production	Feb	80.9%	81.3%	81.5%

Also making economic news today was the National Association of Home Builders home builder sentiment survey which remained near the record low of 18 at 20 in March.

Tomorrow at 8:30AM EST brings PPI for February expected at 0.3%, Core PPI expected at 0.2%, Housing Starts for February expected at 995,000, and Building Permits expected at 1,020,000. The highly anticipated FOMC Policy Statement comes at 2:15PM.

Oil neared $112 overnight, but it then tumbled as much as $6 as investors liquidated profitable positions to cover for losses in other areas. Fears over a recession that would cut into demand also added to selling pressure.

The U.S. dollar index plummeted to a new all-time low of 70.70 soon after the Bear Stearns news hit Sunday night, but speculation over the size of tomorrow’s interest rate cut and rumors of coordinated central bank intervention to stem the dollar’s dramatic slide pared the index’s losses by the close and it ended just slightly lower.

Treasuries rose as the Dow, Nasdaq, and S&P mostly fell on worries over the stability of the financial system. The Dow however closed slightly higher thanks to having JPM as one its 30 components.

Among the big names making news in the market today were JPMorgan and Bear Stearns, CME and Nymex, International Paper and Weyerhaeuser, Goldman Sachs, Wilber Ross and Option One, and the sovereign funds.

“You cannot and will not preserve the purchasing power of a currency by expanding the monetary base at an 18% annualized rate. But that route has been taken and the sacrifice of the US Dollar will be one of the many victims of such a policy. So when mass consciousness accepts that their paper Dollars, Euros, etc are nothing more than fool’s gold, there will be a stampede back into history’s only true gold standard.

We are at point where gold could become even more explosive. Short-term moves could amaze even some of the more bullish observers. Yet one should not discount a sizeable pullback either. Volatility is explosive and overall risks to the market remain to the upside, especially when taking a mid-to-longer-term view.”- Peter Spina, www.goldforecaster.com

“The action of the Federal Reserve in declaring their lending on any collateral (which means no collateral in real value terms) to investment banks as well as commercial banks only institutionalizes what the Fed has been doing since all this started.

The most recent change in rates is an attempt to camouflage the enormous increase in the M3 that is inherent in the action to bailout an entire system now falling over.

I credit the Fed with making the situation obscure, but the problem is going to continue to accelerate. There is no practical solution.

Gold last night ran to $1033 then settled back to the key number of $1024 where it sat until Washington woke up at 6:30am. $1000 to $1050 is an area that will try unsuccessfully to restrain gold.

When a commodity improves 665% the companies owning this commodity can only reflect that bull market, regardless of how hard any fund or funds try to stop it. Any such company with significant internal development will outperform.

Stay calm. Gold is heading to $1650 and I am almost certain that is much too conservative.”- Jim Sinclair, JSMineset.com

“April Gold finished up 3.1 at 1002.6, 14.9 off the high and 2.6 up from the low.

May Silver closed down 0.355 at 20.3. This was 0.23 up from the low and 0.45 off the high.

After seeing a massive range up thrust off the latest financial crisis, gold seemed to become fearful of a widespread deflationary contraction, as gold and a host of other physical commodity markets saw prices recoil from early strength. Perhaps seeing the US Dollar bounce prompted some gold traders to fear a coordinated intervention against the Dollar slide. Perhaps seeing the Fed provide increasingly more aggressive layers of liquidity to the marketplace downplayed anxiety, but in the end it would not seem like overall uncertainty levels were reduced. With silver, copper, platinum, energies and even grain prices coming under intense liquidation it is possible that some inflationary holders of gold were indeed fretting a tempering of inflation fears. In the end, the fear of too much slowing in the US seemed to at least temporarily trump the idea that gold was a flawless flight to quality instrument.

The silver market showed initial strength but it started to come off its early highs well ahead of the setback in the gold market. However, the silver market seemed to be tracking the weakness in copper and platinum early in the session, but renewed weakness in energy prices later in the session seemed to add to the long liquidation interest in the silver market. As in the gold market it would seem like a combination of economic slowing fears and perhaps a measure of deflationary selling served to pull the silver market away from its recent inflation/flight to quality mode.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: StreetTRACKS added 0.92 tonnes, the ASX added 0.40 tonnes, and the JSE added 0.13 tonnes.

Note: Change in Total Tonnes from yesterday’s data: 30.73 were added to the trust.

Paramount’s (PZG) response to the SEC and assay results, Gold Fields’ (GFI) additional power and “flip-up” scenario, Eldorado’s (EGO) MOU with BHP over future iron ore sales, Kirkland’s (KGI.TO) third quarter results, ECU’s (ECU.TO) new vein discovery, and Silver Wheaton’s (SLW) agreement to purchase all of the silver produced by Mercator Minerals (ML.TO) were among the big stories in the gold and silver mining industry making headlines today.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Journey and Grenville Gold Announce Amendment to the Joint Venture on Silveria Project - More
- March 17, 2008 | Item | E-mail

North American Gem Inc. Submits Samples from the Whiskey Gap Project - More
- March 17, 2008 | Item | E-mail

Copper Reef Intersects 33.5 Feet of Near Solid Sulphides in MN-08-46 - More
- March 17, 2008 | Item | E-mail

StrataGold Commences 2008 Exploration Program at White Creek, Guyana - More
- March 17, 2008 | Item | E-mail

Altius Minerals Corporation (TSX: ALS) Reports Third Quarter Net Earnings of $604,000 - More
- March 17, 2008 | Item | E-mail

Andover Announces Possible Acquisition of Interest in Chief Consolidated Mining Company - More
- March 17, 2008 | Item | E-mail

Franc-Or Completes 3,500 Meter Drilling Campaign and Hits 42.75 Meters With 1.05 g/t Gold and 8.75 Meters With 658 G/T Silver at Mario, Peru Property - More
- March 17, 2008 | Item | E-mail

European Goldfields Added to S&P/TSX Composite Index - More
- March 17, 2008 | Item | E-mail

WSR Gold Inc.: Definitve Agreement Executed for the Big Mac Property, James Bay Lowlands - More
- March 17, 2008 | Item | E-mail

Capella Resources Reports 22.8% Lead and 8.8% Zinc Assay Results in Additional Grab Samples - Nova Scotia - More
- March 17, 2008 | Item | E-mail

Duran Ventures and MacMillan Gold Report Positive Pasacancha Tunnel Results from Peru - More
- March 17, 2008 | Item | E-mail

Gold Eagle Mines Ltd. - 2007 year end financial results - More
- March 17, 2008 | Item | E-mail

Vicarage Capital Publishes Research on Acero-Martin Exploration Inc. - More
- March 17, 2008 | Item | E-mail

Nilam Resources Inc. is Pleased to Announce Additional Gross Revenues From "Tailings" of $72,000,000 USD From its Llipa Property - More
- March 17, 2008 | Item | E-mail

Linux Gold Corp. Receives New Technical Report on the Granite Mountain Property in Western Alaska - More
- March 17, 2008 | Item | E-mail

Uranerz Initiates Drilling on Arkose Property - More
- March 17, 2008 | Item | E-mail

Alberta Star Intersects 43.50 Meters of 40.9 g/ton Silver Mineralization at the Eldorado IOCG & Uranium Project - More
- March 17, 2008 | Item | E-mail

Platinum Group Metals Ltd.: War Springs Resource Increased to 1.7 Million Ounces - More
- March 17, 2008 | Item | E-mail

RSM Gold-Silver Exploration Drilling Results at Dixie-Comstock Property Churchill County, Nevada - More
- March 17, 2008 | Item | E-mail

Peak Gold earns $14.6 million in Company's first year - More
- March 17, 2008 | Item | E-mail

Red Lake Exploration, Inc. Begins Exploration Program at the Camila Copper-Gold Property in Chile - More
- March 17, 2008 | Item | E-mail

Ascendant Copper's Acquisition of St. Genevieve Resources Overwhelmingly Approved by Shareholders - More
- March 17, 2008 | Item | E-mail

Anglo Canadian Uranium Corp.: Uranium Exploration Progress Report - More
- March 17, 2008 | Item | E-mail

Oriental Minerals Inc.: Updated Resource Estimate of 68 Million Tonnes of O.29% WO3 & 0.05% MoS2 Inferred and 13 Million Tonnes of 0.32% WO3 & 0.06% MoS2 - More
- March 17, 2008 | Item | E-mail

Farallon Updates G-9 Resource Estimate - More
- March 17, 2008 | Item | E-mail

American Creek discovers more high grade at Electrum Project - More
- March 17, 2008 | Item | E-mail

American Creek reports additional positive drill results from Treaty Creek Project - More
- March 17, 2008 | Item | E-mail

International Minerals Announces 187% Increase in Reserves at Pallancata Mine, Peru - More
- March 17, 2008 | Item | E-mail

Gold Fields' South African Operations Receive Additional Power - "Gold Fields Limited ("Gold Fields") (NYSE, JSE, DIFX: GFI) Gold Fields Limited is pleased to confirm that the national electricity utility, Eskom, on Friday, March 14, informed Gold Fields that the company had been granted an additional 26MW of power for use at its Kloof and Driefontein gold mines in South Africa." More
- March 17, 2008 | Item | E-mail

Northland Resources Comments on Infrastructure Discussions - More
- March 17, 2008 | Item | E-mail

AuEx Acquires First Projects in Santa Cruz Province, Argentina - More
- March 17, 2008 | Item | E-mail

Nevada Copper Announces Positive Preliminary Economic Results - More
- March 17, 2008 | Item | E-mail

Southwestern Resources Sells Exploration Properties in Peru to Maxy Gold Corp. - More
- March 17, 2008 | Item | E-mail

Brookmount Explorations Adds Additional Executive and Technical Expertise to its Board of Directors and Advisory Board - More
- March 17, 2008 | Item | E-mail

Geocom Terminates Iliamna Equity Interest Sale - More
- March 17, 2008 | Item | E-mail

Uranium Resources, Inc. Reports Fourth Quarter and Year End 2007 Results - More
- March 17, 2008 | Item | E-mail

Century Mining Responds To Cease Trade Order Issued By BCSC - More
- March 17, 2008 | Item | E-mail

Rusoro Mining Ltd. - News Release - More
- March 17, 2008 | Item | E-mail

Nu-Mex Uranium Corp. Announces Name Change to Uranium International Corp.; Symbol Change to URNI - More
- March 17, 2008 | Item | E-mail

Paramount Gold and Silver Corp. Extends Southern Limit of 'Clavo 99' Within the High Grade San Miguel Vein - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(AMEX:PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) is pleased to announce assay results from two additional drill holes in the San Miguel Zone of its San Miguel project in the Guazapares Mining District, Mexico. Drill hole SM-19 was drilled at the southern end of the drill pattern, and SM-20 was drilled below mineralized SM-08 and SM-09, designed to test the vein approximately 50 meters below these two holes." More
- March 17, 2008 | Item | E-mail

China to Assume Mantle as Top Gold Producer This Year - "China is expected to increase its annual gold output by over 10% to 300 tonnes this year, which would see it overtake South Africa as the world's largest gold producer again, a senior official with the China Gold Association (CGA) told Interfax today." More
- March 17, 2008 | Item | E-mail

Paramount Gold and Silver Corp. Responds to SEC - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(AMEX:PZG - News) (Frankfurt:P6G.F - News)(WKN: A0HGKQ) - Christopher Crupi, CEO, is pleased to announce that today Paramount has responded to inquiries from the American Stock Exchange and the SEC regarding the temporary trading halt in the USA. Paramount disputes all allegations made in the SEC order. Management is working expeditiously to resolve the matter to the satisfaction of all regulatory bodies." More
- March 17, 2008 | Item | E-mail

ECU Silver has New Discovery Near Terneras Vein - "ECU Silver Mining (TSX:ECU - News; "ECU Silver" or the "Company") is pleased to announce the discovery of a new vein yielding an average of 29 g/t Au, 808 g/t Ag, 10% Pb and 0.6% Zn over a width of 0.48 metres (1.57 feet). The Company has also encountered a new zone with disseminated type mineralization. Both of these new discoveries are located approximately 20 to 30 metres north of the eastern extension of the east-west lying Terneras Vein." More
- March 17, 2008 | Item | E-mail

Silver Wheaton Acquires Life of Mine Silver Production From Mercator Minerals - "Silver Wheaton Corp. ("Silver Wheaton") (Toronto:SLW.TO - News)(NYSE:SLW - News) is pleased to announce that it has agreed to purchase all of the silver produced by Mercator Minerals Ltd. ("Mercator") (Toronto:ML.TO - News), at its copper-molybdenum-silver Mineral Park Mine in Arizona." More
- March 17, 2008 | Item | E-mail

Eldorado Gold Corporation: Vila Nova Iron Ore Project - "Eldorado Gold Corporation ("Eldorado" or "the Company") (Toronto:ELD.TO - News)(AMEX:EGO - News) is pleased to announce that it has signed a non-binding Memorandum of Understanding ("MOU") with BHP Billiton regarding the future sale of iron ore from Eldorado's Vila Nova Iron Ore Project in Amapa State, Brazil ("the Project"). We expect to finalize terms of a binding Long Term Supply Agreement ("LTSA") with BHP Billiton in the next few weeks." More
- March 17, 2008 | Item | E-mail

Kirkland Lake Gold Inc.: Third Quarter Results, Fiscal 2008 - "We are pleased with the development of the South Mine Complex and the high ore grades realized from the area. We expect this trend to continue throughout fiscal 2008/9 as considerable management time and resources continues to be dedicated to infrastructure development and increasing reserves in this area." More
- March 17, 2008 | Item | E-mail

Mvela Resources and Gold Fields Agree on 50 Million Shares Should "Flip-up" Proceed - "Gold Fields Limited (Gold Fields) (JSE, NYSE and DFIX: GFI) and Mvelaphanda Resources Limited (Mvela Resources) (JSE: MVL) are pleased to announce that the parties have agreed that Mvela Resources will receive 50 million Gold Fields shares if and when Mvela Resources' future stake of 15% in GFI Mining South Africa (Proprietary) Limited (GFIMSA) Limited is exchanged at the instance of either Gold fields or Mvela Resources, for shares in Gold Fields. GFIMSA is the vehicle that owns and houses the South African assets of Gold Fields." More
- March 17, 2008 | Item | E-mail

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