-- Posted 11 July, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $958.85 | +$18.30 | +2.93% |
Silver | $18.69 | +$0.48 | +2.81% |
XAU | 194.93 | +4.03% | +3.29% |
HUI | 454.30 | +5.01% | +4.21% |
GDM | 1348.75 | +4.66% | +3.83% |
JSE Gold | 2307.86 | +74.71 | -0.23% |
USD | 71.94 | -0.55 | -1.09% |
Euro | 159.24 | +1.35 | +1.47% |
Yen | 94.00 | +0.58 | +0.36% |
Oil | $145.08 | +$3.43 | -0.14% |
10-Year | 3.940% | +0.129 | -0.83% |
Bond | 115.84375 | -1.46875 | -0.03% |
Dow | 11100.54 | -1.14% | -1.67% |
Nasdaq | 2239.08 | -0.83% | -0.28% |
S&P | 1239.49 | -1.11% | -1.85% |
The Metals:
Gold and silver traded with modest gains in Asia and London before they soared roughly higher 3% in early New York trade and made highs of $967.85 and $18.88 by around 10AM EST. Both metals than consolidated their winnings in late morning trade and fell over 1% from their highs by about noon, but they then rallied back higher in the last hour and a half of trade and ended with advances of 1.95% and 2.64%.
Euro gold rose to over €603, platinum gained $49 to $2038.50, and copper gained a couple of cents to about $3.75.
Gold and silver equities rose over 4% by late morning and remained near their highs into the close despite significant losses in the major indices.
The Economy:
Report | For | Reading | Expected | Previous |
Import Prices | June | 2.6% | 2.0% | 2.6% |
Import Prices ex-oil | June | 0.9% | - | 0.7% |
Export Prices | June | 1.0% | - | 0.4% |
Export Prices ex-ag. | June | 0.9% | - | 0.3% |
Trade Balance | May | -$59.8B | -$62.2B | -$60.5B |
Michigan Sentiment | July | 56.6 | 55.5 | 56.4 |
Treasury Budget | June | $50.7B | $34.0B | $27.5B |
All of this week’s economic reports:
Next week’s economic highlights include Retail Sales, PPI, the NY Empire State Index, and Business Inventories on Tuesday, CPI, Net Foreign Purchases, Capacity Utilization, Industrial Production, and FOMC minutes on Wednesday, and Building Permits, Housing Starts, Initial Jobless Claims, and the Philadelphia Fed survey on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose to a new record high of $147.27 on rumors Israeli warplanes were using US bases in Iraq to practice for an attack on Iran. Prices fell from their highs after the pentagon and the Israeli military denied those rumors, but oil still ended with a decent gain and just 21 cents from new record closing high on geopolitical worries heading into the weekend.
The Dow, Nasdaq, and S&P fell on serious concern about the health and future of Fannie Mae and Freddie Mac who hold or guarantee about $5 trillion worth of mortgages. Early rumors of a government bailout of some sort were not verified by Treasury Secretary Paulson a couple hours into trade, but many expect some sort of deal to be reached over the weekend. All three indices remained near their lows despite the fact that Fannie Mae and Freddie Mac came off their lows mid-session, but stocks did finally come back a bit and ended only about 1% lower after Bernanke was rumored to have opened the discount window to Fannie and Freddie in late trade. At the time of writing that rumor has not yet been confirmed by the fed.
The U.S. dollar index fell on continually mounting credit worries. Treasuries fell on speculation the coming rescue of Fannie Mae and Freddie Mac will involve some kind of debt issuance.
Among the big names making news in the market Friday were Fannie Mae and Freddie Mac, GE, InBev and Anheuser-Busch, Ashland and Hercules, Lehman Brothers, and Rockwell Collins.
The Commentary:
“The growing sense of concern over the stability of the financial system is starting to teeter on the edge of a panic. There remain many, even those within the gold industry, ignorant to the severity of the unfolding financial turmoil. As the education process continues and the significance of situation deepens in severity, the destruction of confidence will translate into greater flow of capital into both gold and silver. Confidence in gold and silver’s monetary integrity is backed up by many attributes including history itself.
Mining stocks have particularly been depressed and further short-term downside risks do remain. The valuations of these mining investments continue to diverge from the current metal prices and future prospects. There will be, sometime in the coming months, the start of a tremendous influx of capital flow into these mining equities. The risk to reward opportunities here are quite incredible. I believe that once these metal prices establish new record highs that will be the likely trigger for many institutional and retail funds to pour into these equities.
Next week gold has the opportunity to build on gains and once again challenge the $1,000 level and potentially higher. Once we break past the prior record levels, I expect the next leg higher to ensue. Is this another false start? Next few weeks will be telling!”- Peter Spina, www.goldforecaster.com
“IMO, the standard of living in the US will drop some 30%, which will make it seem like a depression for many people. My role is to point out what I see coming and why, not to moralize over it. The moralizing from me is about the politicians and bankers in this country who have ruined the free market system in the US due to their rigging of the markets, which has made them dysfunctional to a certain degree.
There will be great times had by many in our camp in the years ahead. I surely expect to enjoy my life to the utmost. All I can do is point things out. If I am right, those people invested in gold and silver will do just fine ... more than fine. The spectacular moves in this tiny sector are coming and will occur when the general public realizes this will be the number one sector to make money in over the coming years.
The events of the past weeks and months are bringing us closer to that day. The frustration over the insanely horrendous action of many of the shares will soon become a distant memory. The key will be to be onboard when the train pulls out of the station. Those out of position will not want to pay up and will wait for corrections to buy in … corrections which won’t occur until much higher prices. Ironically, much of the money to be made will come from momentum investors, who will jump on for the rocket launch. Many veteran, tired gold/silver investors will have left the table, leaving the chips to newbies who know one third as much about the sector.”- From yesterday’s Midas report by Bill Murphy of LemetropoleCafe.com
“August Gold finished up 18.6 at 960.6, 6.7 off the high and 3.6 up from the low.
September Silver closed up 0.5 at 18.82. This was 0.19 up from the low and 0.115 off the high.
At the end of the week the gold market was clearly back into vogue. While some players might point to renewed inflationary concerns off recovering oil prices, others might have embraced the most recent weakness in the Dollar and yet others might have simply looked to the potential for escalating geopolitical tensions in the Middle East but in the end it was clear that the number of bullish themes in the market place had proliferated. In fact, the biggest flight to quality or safe haven development might have been the ever mounting concern toward US Agencies, major US brokerage firms and in general the US governments capacity to finance repeated financial and credit market related bailouts.
Like gold, the silver market clearly benefited from a growing list of uncertainties some of which could be considered quite significant from a historical perspective. In fact, the whole talk of a US Agency issue bailout would mean that safe haven interest is based on problems that are not out of the realm of possibility. In fact, given the ongoing saber rattling between Iran and other countries, the whole flight to quality argument continues to have multiple sides.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Russia aggressively using energy deals in foreign policy
U.S. plots takeover of two mortgage giants
Russia is most likely midwife of a fairer world economic order
The Statistics:
As of close of business: 7/10/2008
Gold Warehouse Stocks: | 7,691,099 | -6,824 |
Silver Warehouse Stocks: | 135,951,128 | -483,416 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) | SPDR® Gold Shares | 659.91 | 21,216,763 | US$ 19,929m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 117.92 | 3,791,294 | US$ 3,646m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 349,154 | US$ 336m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.19 | 938,380 | US$ 881m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.92 tonnes and the JSE added 0.25 tonnes.
COMEX Gold Trust (IAU)
Profile as of 7/10/2008 | |
Total Net Assets | $1,851,463,962 | Ounces of Gold in Trust | 1,967,972.052 |
Shares Outstanding | 19,950,000 | Tonnes of Gold in Trust | 61.21 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 7/10/2008 | |
Total Net Assets | $3,504,611,354 | Ounces of Silver in Trust | 192,905,122.800 |
Shares Outstanding | 19,500,000 | Tonnes of Silver in Trust | 6,000.02 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Midway’s (MDW) title claim and Sabina’s (SBB.V) interim update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Jaguar | JAG +9.85% $11.26 |
2. Seabridge | SA +9.11% $21.08 |
3. Randgold | GOLD +8.59% $51.09 |
LOSERS
1. Cardero | CDY-5.45% $1.891 |
2. Metalline | MMG -4.00% $1.20 |
3. US Gold | UXG -3.38% $2.00 |
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:
Sabina Silver Announces Interim Update on Corporate Initiatives on Hackett River Work - "Sabina Silver Corporation (CDNX:SBB.V - News) announced today an update on work progressing at its 100% owned Hackett River silver-zinc project in Nunavut, Canada as well as an update on interim corporate initiatives currently underway." More
- July 11, 2008 | Item | E-mail
Appointment of a director and issue of incentive options - More
- July 11, 2008 | Item | E-mail
Eastern Goldfields, Inc. Common Stock Cleared for Listing on the OTC Bulletin Board - More
- July 11, 2008 | Item | E-mail
Miranda Gold Corp. Exploration and Company Update - More
- July 11, 2008 | Item | E-mail
Solex Resources Corp. confirms granting of drill permit on Macusani South - More
- July 11, 2008 | Item | E-mail
Jasper Mining Corporation continues to announce high grade molybdenum results from McFarlane property - More
- July 11, 2008 | Item | E-mail
MacDonald Mines Drill Program Underway in James Bay Lowlands - More
- July 11, 2008 | Item | E-mail
Threegold Resources Completes $162,000 Private Placement - More
- July 11, 2008 | Item | E-mail
Copper Reef Returns Large Copper Intersections - More
- July 11, 2008 | Item | E-mail
Andover Ventures Inc. - Board member has new role as a consultant - More
- July 11, 2008 | Item | E-mail
Bonaventure Announces Strategic Joint Venture to Advance Foster Lake Uranium Project in Northern Saskatchewan - More
- July 11, 2008 | Item | E-mail
Tao Minerals Updates Website to Include Information About the El Colmillo Gold Mine Project - More
- July 11, 2008 | Item | E-mail
Maya Gold & Silver Inc.: Private Placement - More
- July 11, 2008 | Item | E-mail
Chancery Resources Reports on Sampling Results of the Yarumalito Sector at the El Cafetal Mine - More
- July 11, 2008 | Item | E-mail
Etruscan reports second quarter 2008 results - More
- July 11, 2008 | Item | E-mail
International PBX Ventures Ltd.: Tierra de Oro Project Update - More
- July 11, 2008 | Item | E-mail
Asian Mineral Resources: Closes Financing - More
- July 11, 2008 | Item | E-mail
Ascendant Copper Corporation announces Name Change - More
- July 11, 2008 | Item | E-mail
MBMI Announces Confirmatory Grade Control Drill Results From Alpha - More
- July 11, 2008 | Item | E-mail
Goldex Resources Begins Fieldwork in Mexico - More
- July 11, 2008 | Item | E-mail
Uracan Options Large Land Package Surrounding Pipewrench Lake Property Discovery - More
- July 11, 2008 | Item | E-mail
Midway Perfects Title to Spring Valley - "This dispute was recently settled by the Court, validating Midway's claim to the Seymork Parcel. Midway's court victory allowed it to purchase the Promissory Notes against the property for approximately US$598,000. In the future, Midway may elect to sell up to 27.6 square miles of interests in lands included in the purchase (9.1 square miles of net surface, 19 square miles net minerals) but not needed for development of the Spring Valley project to recover a portion of the cost." More
- July 11, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 11 July, 2008 | |