-- Posted 14 July, 2008 | | Source: SilverSeek.com

The Metals:

Gold fell over $5 to $953.40 and silver dropped over 1% to $18.496 by a little past 8AM EST after both metals had traded over 0.5% higher in earlier Asian trade, but they then rallied back higher throughout most of the rest of trade in New York and ended near their highs of $974.80 and $19.22 with gains of 1.41% and 2.22%.

Euro gold rose to about €611, platinum lost $21.50 to $2017, and copper gained nearly 2 cents to about $3.77.

Gold and silver equities rose over 2% in the first hour of trade before they fell off to trade just a little over 1% higher by about noon EST, but they then rallied to new highs in afternoon trade and ended with over 3% gains.

The Economy:

There were no major economic reports today, but there was plenty to digest after Treasury Secretary Paulson announced details surrounding the government’s support behind Fannie Mae and Freddie Mac and regional bank “IndyMac Bancorp was shut down by federal regulators late Friday and opened for business Monday as IndyMac Federal Bank.  “Paulson, speaking yesterday on the stairway to the Treasury facing the White House, asked Congress for authority to buy unlimited stakes in the companies and lend to them, aiming to stem a collapse in confidence. The Federal Reserve separately authorized the firms to borrow directly from the central bank.”

Tomorrow at 8:30AM EST brings the NY Empire State Index for July expected at -8.0, PPI for June expected at 1.3%, Core PPI expected at 0.3%, and Retail Sales for June expected at 0.4%.  At 10AM is the Business Inventories report for May expected at 0.5%.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil chopped around near unchanged and ended slightly higher and just 11 cents from new record closing high as demand destruction concerns battled supply issues of a strike in Brazil and a developing storm in the Atlantic.  Also of note on the energy front was President Bush’s official announcement that he was lifting the executive ban on offshore drilling.

The U.S. dollar index erased most of its early gains and treasuries rose while the Dow, Nasdaq, and S&P rose markedly at the open on short covering after Paulson’s plan was digested, but all three indices soon fell back off to trade mostly modestly lower for the rest of the day as worries mounted about the solvency of several regional banks and doubt started to creep in about whether or not Paulson’s plan will be effective and/or is appropriate.

Among the big names making news in the market today were Lehman Brothers, InBev and Anheuser-Busch, Waste Management and Republic, Apple, and Fannie Mae and Freddie Mac.

The Commentary:

“Investors had the weekend to further digest the latest unfolding financial debacle and wondering where their insurance policy is. Those who have assessed the risk the way I view it are driving the investment demand in the gold and silver markets. I do not believe there is much of a speculative premium in the gold market as other have suggested. I could see another pullback to the low $900’s, but the door is now open for gold to stage another rally to record levels. Again, this gold rally may be another false start but I now believe there will not be many more false starts going forward, under this climate of failing banking and financial institutions.

The news of Fannie and Freddie is just confirmation that the Federal government is willing to effectively nationalize and print money to bailout these monstrous (ticking) financial time bombs. With the news of the second largest bank failure on Friday afternoon also adding to the financial jitters, one must now question the integrity of the FDIC with some $50 billion to work with. Once the FDIC reserve is extinguished, where will further billions come from when more and more banks continue to crumble? Confidence is deteriorating and that will only foster this secular gold bull market!

It is not too difficult to see the path we are on and headed. Investors who now understand this are flocking into the metals.” - Peter Spina, www.goldforecaster.com

“August Gold finished up 13.1 at 973.7, 1.5 off the high and 16.7 up from the low.

September Silver closed up 0.43 at 19.25. This was 0.49 up from the low and 0.035 off the high.

The gold market remained in favor off a clear cut flight to quality angle on Monday. Certainly weakness in the Dollar and ideas that oil prices might continue to rise added into the bullish bias, but in the end a large portion of the metals trade was focused on the potential uncertainty in the US financial sector. The failure of IndyMac and the scare toward the GSE's is certainly a rather severe combination for the market to absorb and it could take some time before the trade will downplay the flight to quality environment. In fact, if the Dollar manages to fall to the lowest level in the last 5 months that could increase interest in gold as a substitute for the Dollar. In fact, with the US stock market unable to hold a very impressive early rally it would seem like flight to quality fears aren't going to be erased easily.

The silver market continued to rise in the face of rising US financial uncertainty. However, weakness in the Dollar and spillover buoying from the gold market seemed to add to the bullishness in silver despite growing concern that the spec positioning in silver was becoming over extended. It is also possible that upcoming monthly US inflation reports were providing silver with inflation based buying, even if oil prices were mostly choppy and a host of physical commodity markets were under pressure.”- The Hightower Report, Futures Analysis and Forecasting

The Statistics:

As of close of business: 7/11/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from Friday’s data: SPDR added 45.99 tonnes to a new record high holding.

SPDR Gold Trust sets record-high bullion holdings  ninemsn

COMEX Gold Trust (IAU)

Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Gammon Gold’s (GRS) quarterly results, International Royalty’s (ROY) closed acquisition, Buenaventura’s (BVN) road blockade, Barrick’s (ABX) offer for an energy company, Claude’s (CGR) effort to monetize non-core assets, AngloGold’s (AU) market update, Agnico-Eagle’s (AEM) investment in Comaplex Minerals, Metalline’s (MMG) drill results, Silver Dragon’s (SDRG.OB) Definitive Agreement with its state-owned Chinese joint venture partner, and Mines Management’s (MGN) approved Hard Rock Mining Impact Plan were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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:

The Board of Cigma Metals Corporation Is Pleased to Announce the Appointment of Agustin Gomez de Segura as President and Chief Executive Officer of the Company - More
- July 14, 2008 | Item | E-mail

Agreement for Sandon Concentrate Reached - More
- July 14, 2008 | Item | E-mail

Newstrike Resources: Jean Property Update - More
- July 14, 2008 | Item | E-mail

Tanqueray Resources Ltd. - News Release - More
- July 14, 2008 | Item | E-mail

Adanac Molybdenum Corp.: Management Reorganization - More
- July 14, 2008 | Item | E-mail

GoldSpring to Appoint New Director - More
- July 14, 2008 | Item | E-mail

Gammon Gold Confirms the Third Consecutive Quarter of Improvements in Several Key Performance Indicators with a 23% increase in Production - "Gammon Gold Inc. ("Gammon") (TSX:GAM and AMEX:GRS): Gammon confirmed today that Q2 2008 production and cash flow performance has successfully built on the strong results achieved in Q1 2008 and is reporting another consecutive quarter of best ever production and operating cash flow in the history of the company." More
- July 14, 2008 | Item | E-mail

Sacre-Coeur Minerals Commences Drilling Key Targets at Northwest Gold Project - More
- July 14, 2008 | Item | E-mail

Nevada Exploration Inc. Announces Phase II Drilling at Hot Pot - More
- July 14, 2008 | Item | E-mail

Duran Ventures and MacMillan Gold Report Over 1% Copper Equivalence Averages Over Entire 90 Metre Hole 7B and Entire 522 Metre Hole 8 - More
- July 14, 2008 | Item | E-mail

International Royalty completes Rio Tinto Australian royalty acquisitions - "International Royalty Corporation (AMEX: ROY, TSX: IRC) (the "Company" or "IRC") today announced the closing of the Australian royalties from IRC's December 2007 acquisition of the Rio Tinto royalty portfolio, following receipt of the Australian Foreign Investment Review Board approval and the expiration of all existing first rights of refusals. These first rights of refusal existed on the Bell Creek and Merlin Orbit royalties. Completion of this transaction brings IRC's total royalty count to approximately 80 royalties. Selected details on the acquired Australian royalties are shown below." More
- July 14, 2008 | Item | E-mail

Uranium Bay Identifies Another 21 New Discrete Uranium Anomalies on Kauschiskach Uranium Property That are Worthy of Follow-Up - More
- July 14, 2008 | Item | E-mail

RSM Progress at Goldwedge Property, Nye County, Nevada - More
- July 14, 2008 | Item | E-mail

Buenaventura's Orcopampa Mine Road Blockade - "Compania de Minas Buenaventura S.A.A. (the "Company" or "Buenaventura") (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru's largest publicly traded precious metals mining company announced that the Chilcaymarca community has blocked the access road leading to the Orcopampa mine. This happened after the community decided to reject a current agreement with the Company." More
- July 14, 2008 | Item | E-mail

Breakwater Reaches Labour Agreement With Myra Falls Employees - More
- July 14, 2008 | Item | E-mail

Metalline Mining Company Announces Silver Polymetallic Zone Drilling Results - "Hole D1080318 intersected 6 meters of mineralization between 144 and 150 meters (m) with an average grade of 350.3 grams silver per tonne, 2.50% copper, 18.20% zinc, which includes 2 m of 34.23% zinc, and 0.5% lead. This hole is an offset confirmation hole to hole D1071124, announced in a press release on March 12, 2008, which averaged 440 gm/tonne silver, 0.17% copper, 11.8% Zn, and 3.0% lead over an intersect of similar length. We intend to continue exploration on this zone with drilling from the surface." More
- July 14, 2008 | Item | E-mail

Barrick considers C$354 million bid for Cadence - "Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz) may make a C$354 million ($350 million) all-cash takeover offer for Cadence Energy Inc (CDS.TO: Quote, Profile, Research, Stock Buzz), the two companies said on Monday, as the gold miner looks to mitigate high energy costs." More
- July 14, 2008 | Item | E-mail

High River Gold Releases Q2/2008 Production Results - More
- July 14, 2008 | Item | E-mail

Osisko Intersects 178 Metres Averaging 2.44 g/t Gold at South Barnat - More
- July 14, 2008 | Item | E-mail

OroAndes Resource Corp.: Check Assays Confirm High Gold and Silver Values at Alto El Toro - More
- July 14, 2008 | Item | E-mail

Kingsman Resources Inc. - Excellent grades across significant widths returned in Pathfinder trenching - More
- July 14, 2008 | Item | E-mail

Strategic drilling program and greenfield camp expansion highlight important summer for Schaft Creek project - More
- July 14, 2008 | Item | E-mail

Yukon-Nevada Gold Corp. intersects 6.4 meters of 40.1 g/t gold at Jerritt Canyon, Nevada - More
- July 14, 2008 | Item | E-mail

Alberta Star Receives Final Approval for a "Class A"-5 Year Drill Permit for the Eldorado South IOCG and Uranium Project - More
- July 14, 2008 | Item | E-mail

SearchGold Completes a $500,000 Financing. - More
- July 14, 2008 | Item | E-mail

Bancroft Uranium Announces Findings of N.I. 43-101 Engineering Report on Monmouth Project - More
- July 14, 2008 | Item | E-mail

Hawk Extends Soocana Vein to 750 metres, Chip Sample Returns 42.5 g/mt on the Holdsworth Gold Property - Wawa Area, Northern Ontario - More
- July 14, 2008 | Item | E-mail

Balkans Gold acquires West African gold assets - More
- July 14, 2008 | Item | E-mail

Uranium Energy Corp Completes Non-Brokered Financing - More
- July 14, 2008 | Item | E-mail

Northland Begins to Outline New Open Pit Iron Resources at Pellivuoma, Sweden - More
- July 14, 2008 | Item | E-mail

Victoria Resource Corporation: Drill Hole NW-10 at Cove-McCoy Intersects 6.1 m (20 ft) Grading 6.33 g/t (0.185 oz/ton) Gold Within 162 m (535 ft) Mineralized - More
- July 14, 2008 | Item | E-mail

Nevada Exploration Inc. Announces Phase II Drilling at Hot Pot - More
- July 14, 2008 | Item | E-mail

Maximus Ventures Begins a 3,600m Drilling Program at the Unity Project in Idaho - More
- July 14, 2008 | Item | E-mail

Temex intersects high grade gold on Timmins Gold Project - More
- July 14, 2008 | Item | E-mail

Opawica Explorations Inc. Announces Atikwa Lake Results and Project Updates - More
- July 14, 2008 | Item | E-mail

Northern Shield and East West Option Agreement on Max Property Accepted for Filing by TSX Venture Exchange - More
- July 14, 2008 | Item | E-mail

El Capitan Precious Metals, Inc. Reports on Exploration Drilling Permit Progress - More
- July 14, 2008 | Item | E-mail

Sherwood Copper Reports High Grade Intercepts from the Kutcho Drill Program - More
- July 14, 2008 | Item | E-mail

Clifton Star Drill Hole Returns Values of 113.80 g/t Au Over 3.60 Meters - More
- July 14, 2008 | Item | E-mail

High gold price swells ranks of illegal miners - "Poor men and women in Ghana, ex-militia fighters in steamy eastern Congo and farmers in Peru are among those joining the ranks of illegal miners and risking their lives as they seek to profit from soaring gold prices." More
- July 14, 2008 | Item | E-mail

International Barytex Resources Ltd.: Shituru Project Contract Review - More
- July 14, 2008 | Item | E-mail

Century Mining Reports First Quarter 2008 Financial Results - More
- July 14, 2008 | Item | E-mail

Barrick Proposes Innovative Transaction to Mitigate Energy Cost Pressures - "Barrick Gold Corporation (ABX - News) (Toronto:ABX.TO - News) announced today that it has proposed to make an all cash offer of $6.00 per share to acquire Cadence Energy Inc. ("Cadence") for a total cost of $354 million." More
- July 14, 2008 | Item | E-mail

Silver Dragon Signs Definitive Agreement with Exploration Unit of North China Nonferrous Geological Exploration Bureau - "Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce the Company signed a Definitive Agreement (``Agreement'') with its state-owned Chinese joint venture partner, Exploration Unit of North China Nonferrous Geological Exploration Bureau, also known as Huaguan Industrial Corp. (``HIC''), pursuant to the Letter of Intent reached on June 10, 2008 (see press release of June 10, 2008)." More
- July 14, 2008 | Item | E-mail

Claude Resources Inc. Puts Oil & Natural Gas Assets on the Market - "Claude Resources Inc. (CRJ.TSX : CGR.AMEX) today announced that it has put its oil and natural gas interests on the market as it executes its corporate strategy of monetizing non-core assets." More
- July 14, 2008 | Item | E-mail

AngloGold Ashanti Market Update - "Following the successful completion of its recent rights offer to raise US$1.7 billion, AngloGold Ashanti is pleased to announce that it has made substantial progress ahead of schedule in the reduction of its hedge book, to benefit from improved participation in the spot gold price earlier than anticipated." More
- July 14, 2008 | Item | E-mail

State of Montana Approves Montanore Hard Rock Mining Impact Plan - "In accordance with the Montana Hard-Rock Mining Impact Act, the Plan is based on a study of the socio-economic impact to the communities in the Montanore Project area. The Plan underwent a statutory 60-day public notice period, during which the Hard Rock Mining Impact Board received no objections to amendments proposed by the Company. The Plan was subsequently approved unanimously." More
- July 14, 2008 | Item | E-mail

Agnico-Eagle agrees to purchase investment in Comaplex Minerals - "Agnico-Eagle Mines Limited ("Agnico-Eagle" or the "Company") today announced that it has agreed to purchase 7,628,571 common shares, or approximately 14.5%, of Comaplex Minerals Corp. ("Comaplex") from Troy Resources NL ("Troy") in a private transaction. Upon the closing of the transaction, Agnico-Eagle's interest in Comaplex would be 8,228,571 common shares (approximately 15.6% of the outstanding common shares), which Agnico-Eagle believes would make it the largest single shareholder of Comaplex. The agreement is subject to customary closing conditions." More
- July 14, 2008 | Item | E-mail

AngloGold Q2 output beats forecast, trims gold hedge - "South Africa's AngloGold Ashanti (ANGJ.J: Quote, Profile, Research, Stock Buzz) said on Monday it expects its second quarter production to be 3 percent above its previous guidance at 1.25 million ounces, and that it had cut its gold hedge position." More
- July 14, 2008 | 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:

• http://www.capitalupdates.com
• http://www.goldseek.com
• http://www.silverseek.com
• http://www.goldreview.com 

© Gold Seeker 2008

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.

Latest Articles Gold Seeker Closing Report: Gold and Silver Fall Over 2% More 13 December, 2011 Gold Seeker Closing Report: Gold and Silver Fall Almost 3% 12 December, 2011 Gold Seeker Weekly Wrap-Up: Gold and Silver Fall Slightly on the Week 9 December, 2011 Gold Seeker Closing Report - Article Archive List