Gold Seeker Closing Report: Gold and Silver Gain Slightly As Financial Worries Worsen

	Close	Gain/Loss
Gold	$928.10	+$1.50
Silver	$17.44	+$0.12
XAU	173.94	+0.24%
HUI	410.19	+0.29%
GDM	1228.25	+0.10%
JSE Gold	2199.97	+30.93
USD	72.67	-0.18
Euro	157.42	+0.39
Yen	93.06	+0.35
Oil	$124.73	+$1.47
10-Year	4.018%	-0.093
T-Bond	115.03125	+1.21875
Dow	11131.08	-2.11%
Nasdaq	2264.22	-2.00%
S&P	1234.37	-1.86%

Gold fell to $922.30 by midmorning in New York before it ran back higher to $933.00 by late morning, but it then fell back off into the close and ended with a gain of just 0.16%. Silver rose to $17.50 by midday in London before it dropped to $17.21 by late morning in New York, but it then rallied back higher in the last couple of hours of trade and ended with a gain of 0.69%.

Euro gold rose to about €589, platinum climbed to $1768.50, and copper remained at $3.71.

Gold and silver equities rose over 1% by late morning before they fell back off a bit in afternoon trade, but they still ended with slight gains.

There were no major economic reports released today, but the Bush administration released a budget deficit estimate of a record high $482 billion. Tomorrow at 10AM EST brings Consumer Confidence for July expected at 50.0.

Pipeline attacks in Nigeria and nuclear talk out of Ahmadinejad from Iran sent oil prices higher, though gains were somewhat limited as Ahmadinejad also said he “would be open to a "new approach" from the U.S. in seeking a peaceful resolution to his country's nuclear ambitions.”

Two more bank failures announced late Friday raised worries about the health and solvency of the financial system and sent the U.S. dollar index and the Dow, Nasdaq, and S&P lower while treasuries found nice gains.

Among the big names making news in the market today were Toyota, GM, Kraft Foods, KKR, and Verizon.

FDIC Insurance quoted by all banks to calm the fear of depositors is another exercise in smoke and mirrors. This can be seen in the recent commentary from FDIC on last week’s takeover of the insolvent banks, First National and First Heritage.

The FDIC notes that this bailout cost only $862 million dollars, or 0.30 percent of the $13.4 trillion dollars insured at approximately 8500 insured institutions.

We know the FDIC had net assets of $53 billion before IndyMac, which according to the FDIC will cost them between $4 billion and $8 billion. Taking the lower estimate and last week’s double-header, the FDIC’s available assets would have been reduced from $53 billion to $48 billion. We therefore have $48 billion in available funds guaranteeing $13.4 trillion in deposits. By rounding out the total FDIC assets, they represent 0.35% of what is insured.

This amounts to a vastly undercapitalized insurance company that makes outrageous claims, guaranteeing all US depositors up to $100,000 through 8,500 institutions.

I estimate that with the failure of one more major bank and ten reasonably sized regional banks the FDIC will be screaming for additional capital. That is monetizing bankrupt banks. This is true because the funds will come from public money.

Think about the other smoke and mirror game called SIPC that your broker assures you will take care of any loss in client assets, which is capitalized at $1.5 billion. Any of the big 6 has more than that in customer assets. It is possible that just one account at one of the big six has that amount alone.

You might consider all the calming brokers speaking about the additional insurance they carry for their clients, written to the firm for the benefit of their clients, even though your name is not on it. Now we all trust our brokers to do right by us, don’t we?

I wonder how long a bankruptcy judge would take to distribute the secondary funds to clients. I am sure it would take at least a few years.

If such an event were to occur, I imagine the dollar would be confetti by the time of distribution.”- Jim Sinclair, JSMineset.com

“August Gold finished up 0.9 at 927.7, 3.8 off the high and 5.2 up from the low.

September Silver closed up 0.09 at 17.465. This was 0.16 up from the low and 0.025 off the high.

The gold market maintained a very tight trading range until the opening of the US markets, which seemed to usher in a bout of selling. However, the gold contract managed to reject that initial sell off an in the process managed a low to high bounce of nearly $10 an ounce! However, in the face of a slightly better than expected Chicago Fed Midwest manufacturing Index reading the gold market seemed to come back under some renewed selling pressure. While the US equity market was generally under pressure, oil prices were firm and the Dollar was mostly lower, the fact that some of the US numbers were solid seemed to knock down the flight to quality psychology.

Like the gold market, the silver market showed an aggressive early slide before mounting an impressive 22 cent mid session bounce. However, also like gold the silver market seemed to be undermined as a result of the second set of US economic readings. With the silver market seemingly tracking copper and platinum prices over gold prices, one gets the impression that physical supply and demand side issues were somewhat more important to silver than to gold during the Monday trade.”- The Hightower Report, Futures Analysis and Forecasting

Paramount’s (PZG) assay results, International Royalty’s (ROY) royalty updates, Minco Silver’s (MSV.TO) COO appointment, U.S. Silver’s (USA.V) silver production, and MAG’s (MVG) assay results 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.

La Quinta increases and ammends proposed financing - More
- July 28, 2008 | Item | E-mail

Mantis Mineral Corp. acquires Potash permits in Saskatchewan - More
- July 28, 2008 | Item | E-mail

Ditem Explorations: $750,000 Non-Brokered Private Placement - More
- July 28, 2008 | Item | E-mail

Volta commences a 2,000 metre RC drilling program at its Bansié Gold Project, Burkina Faso - More
- July 28, 2008 | Item | E-mail

Inmet Mining Mails Offer to Petaquilla Copper Shareholders - More
- July 28, 2008 | Item | E-mail

Mayfair Mining and Minerals, Inc., Forms a Joint Venture Mining Company and Expands Activities Into Malawi - More
- July 28, 2008 | Item | E-mail

Minco Silver Appoints Chief Operating Officer - "Minco Silver Corporation (the "Company" or "Minco Silver") (Toronto:MSV.TO - News) is pleased to announce that Mr. Christopher Zahovskis has been appointed as Chief Operating Officer for Minco Silver. Mr. Zahovskis will be based at the Head Office in Vancouver, Canada and will be responsible for the day-to-day operations of the Company." More
- July 28, 2008 | Item | E-mail

Bayswater Discovers Uranium at North Thelon Basin Project - More
- July 28, 2008 | Item | E-mail

Solid retains Kevin Moore to provide consulting services and closes private placement - More
- July 28, 2008 | Item | E-mail

Baja Mining Receives $90 Million & Ramps Up Construction Activities - More
- July 28, 2008 | Item | E-mail

Mainstream Minerals Applies for Coal Permits Near Hudson Bay, Saskatchewan - More
- July 28, 2008 | Item | E-mail

Altius Minerals Corporation (TSX: ALS) Reports Annual Net Earnings of $12.1 Million - More
- July 28, 2008 | Item | E-mail

Duran Ventures and MacMillan Gold Contract to Drill Pasacancha - More
- July 28, 2008 | Item | E-mail

Northern Gold Announces Commencement of Diamond Drilling at the New High Grade Gold Discovery on the Kirana Property - More
- July 28, 2008 | Item | E-mail

Delta Uranium to Restructure Its Non-Uranium Assets - More
- July 28, 2008 | Item | E-mail

Matamec Explorations Inc.: Gold Mineralization up to 53 metres on Matheson JV Gold Property - More
- July 28, 2008 | Item | E-mail

Advisory Board Members Join Lions Gate Metals - More
- July 28, 2008 | Item | E-mail

Millstream Submits NI 43-101 Report on Tamarack Gold Property - More
- July 28, 2008 | Item | E-mail

Alberta Star Begins Drilling Program at the Eldorado & Contact Lake IOCG and Uranium Projects - More
- July 28, 2008 | Item | E-mail

Initial Gravity Concentration Tests Yield up to 99.4 Percent Gold Recovery - More
- July 28, 2008 | Item | E-mail

Atlas Minerals Presents NI 43-101 Resource Estimate For Tres Chorreras - More
- July 28, 2008 | Item | E-mail

TIEX INC. announces commencement of diamond drilling at its Gold Creek property - More
- July 28, 2008 | Item | E-mail

Forsys Appoints Valencia General Manager - More
- July 28, 2008 | Item | E-mail

Victoria Resource Corporation: Name Change to Victoria Gold Corp. and Outcome of Annual and Special Meeting - More
- July 28, 2008 | Item | E-mail

Virgin Metals Announces Receipt of a Positive Pre-Feasibility Study on the Los Verdes Molybdenum-Copper Project, Sonora, Mexico - More
- July 28, 2008 | Item | E-mail

Champion Bear commences resource definition drilling at Eagle Rock Cu-Ni-PGE property in the Dryden area - More
- July 28, 2008 | Item | E-mail

Prophecy drills 45.5 metres of 0.33% copper and 0.003% Molybdenum at Okeover, continues to expand the resource at the North Lake Zone - More
- July 28, 2008 | Item | E-mail

Amerigo Resources Ltd.: Cash Flow From Operations of US$8.1M in Q2-2008 - More
- July 28, 2008 | Item | E-mail

Positive Feasibility Study provides basis for Copper Mountain Production Decision - More
- July 28, 2008 | Item | E-mail

Buchans River completes plan of arrangement with Royal Roads - More
- July 28, 2008 | Item | E-mail

Argentex Mining shares begin trading on the TSX Venture Exchange under the symbol "ATX" - More
- July 28, 2008 | Item | E-mail

Wesdome's second quarter production exceeds expectations - More
- July 28, 2008 | Item | E-mail

Aquila Intersects Copper and Gold Rich South Limb Massive Sulfide - More
- July 28, 2008 | Item | E-mail

MMX Mineração e Metálicos S.A. Publicly Held Company Material Fact - More
- July 28, 2008 | Item | E-mail

China Shen Zhou Mining & Resources, Inc. Retains DME Capital LLC to Provide a Global Investor Relations Program - More
- July 28, 2008 | Item | E-mail

Wits Basin Receives NI 43-101 Compliant Technical Report on Bates-Hunter Mine Project - More
- July 28, 2008 | Item | E-mail

Great Western Minerals Group Updates Activities - More
- July 28, 2008 | Item | E-mail

Mexoro Minerals Intersects High Grade Mineralization at Its Cieneguita Project, Mexico, Including 94 Meters of 1.21 g/t Au, 79.81 g/t Ag, 0.78% Pb and 1.19% Zn - More
- July 28, 2008 | Item | E-mail

Endeavor Explorations Inc. Exploration Update - More
- July 28, 2008 | Item | E-mail

Paramount Announces Further Assay Results Under the Strategic Alliance With Mexoro From the Cieneguita Project - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) is pleased to announce assay results from three additional drill holes at the Cieneguita Project under the strategic alliance with Mexoro Minerals. Mexoro continues drilling at the Cieneguita project with great success. To date, 42 holes have been completed with assay results back from 33 drill holes." More
- July 28, 2008 | Item | E-mail

U.S. Silver Reports June Silver Production Up 37% Over 1st Quarter - "U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company") is pleased to announce that June silver production was 161,000 ounces which is 37% higher than average monthly production in the 1st quarter 2008 and 61% higher than the average monthly production from 2007. This is an annualized rate of approximately 1.93 million ounces." More
- July 28, 2008 | Item | E-mail

International Royalty updates investors on key royalties - "International Royalty Corporation (AMEX: ROY, TSX: IRC) (the "Company" or "IRC") is pleased to report on key updates to the Company's royalty portfolio. IRC's large royalty portfolio can make it difficult for investors to track activities occurring on the variety of projects affecting the Company. Therefore, IRC is pleased to provide an update on select recent events." More
- July 28, 2008 | Item | E-mail

Intrepid Mines Limited: Inaugural Resource at Tujuh Bukit Confirms Multi-Million Oz Potential - More
- July 28, 2008 | Item | E-mail

MAG Silver Reports High Grade Silver on East End of Valdecanas Vein - "MAG Silver Corp. (Toronto:MAG.TO - News)(MVG - News) ("MAG") reports on behalf of Minera Juanicipio SA (a joint venture between Fresnillo plc (56%) and MAG (44%)) new assay results from the Valdecanas Vein for Holes OF and QF." More
- July 28, 2008 | Item | E-mail

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