-- Posted 14 August, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $808.70 | -$16.50 |
Silver | $14.21 | -$0.58 |
XAU | 142.62 | -4.33% |
HUI | 327.35 | -4.33% |
GDM | 991.97 | -4.45% |
JSE Gold | 1845.58 | +4.70 |
USD | 76.69 | +0.41 |
Euro | 148.14 | -1.00 |
Yen | 91.17 | -0.11 |
Oil | $115.01 | -$0.99 |
10-Year | 3.892% | -0.055 |
T-Bond | 116.90625 | +0.828125 |
Dow | 11615.93 | +0.72% |
Nasdaq | 2453.67 | +1.03% |
S&P | 1292.93 | +0.55% |
The Metals:
Gold rose over $10 to $836.65 and silver climbed more than 30 cents to $15.11 by late trade in Asia, but both metals then fell back off for most of the rest of trade and ended near their lows of $804.35 and $14.10 with losses of 2% and 3.92%.
Euro gold fell to about €546, platinum lost $15 to $1491.50, and copper fell nearly 5 cents to about $3.32.
Gold and silver equities fell roughly 4% by early afternoon before they rebounded to trade only about 3% lower, but they then fell back off to new lows in the final hour and ended with over 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 8/09 | 450K | 436K | 460K |
CPI | July | 0.8% | 0.4% | 1.1% |
Core CPI | July | 0.3% | 0.2% | 0.3% |
“Banks repossessed almost three times as many U.S. homes in July as a year earlier and the number of properties at risk of foreclosure jumped 55 percent as falling prices made it harder to sell or refinance.” “Existing U.S. home sales fell to a 10-year low in the second quarter and the median price for a single-family house dropped 7.6 percent as the real estate recession deepened.”
Tomorrow at 8:30AM EST brings the NY Empire State Index for August expected at -5.0. At 9AM is the Net Foreign Purchases report for June expected at $57.5 billion, at 9:15 is Capacity Utilization for July expected at 79.8% and Industrial Production expected at 0.0%, and at 10AM is Michigan Sentiment for August expected at 62.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell as the U.S. dollar index rose again on euro weakness since the “euro-zone economy shrank 0.2 percent in the second quarter” and reinforced the view that the ECB will not be raising rates anytime soon.
Treasuries rose on the hope that a weak economy will help curb inflation in the future.
The Dow, Nasdaq, and S&P opened lower on the unexpectedly large jump in CPI, but stocks soon turned higher and ended with decent gains on the view that the worst is behind the US while the rest of the world is still dealing with the harsh impacts of the credit crunch.
Among the big names making news in the market today were Morgan Stanley, JPMorgan, GM, Sirius XM, Estee Lauder, InBev, and Wal-Mart.
The Commentary:
“We have just witnessed the first massive act of intervention coming off the .7199 USDX and $1.5974 Euro. We have covered why this happened and its meaning in terms of the instatement of currency parities, albeit this time on a floating basis.
Now you need to understand how intervention works when repeated over time:
1. Currency intervention is like being addicted to a controlled substance. Your first experience at the height of the controlled substance produces mind-altering feelings and emotions. From this point forward you require more and more of the controlled substance to reach anything near the first experience. When you fail to get the fix, the pain and/or downer is unbearable.
2. Each subsequent experience of foreign exchange intervention demands more vocalizing and funds. That being said, you have just seen the most success you will see in the Euro via intervention - and thence gold
3. Eventually it becomes much too expensive to sell a more valuable and appreciating currency in return for fundamentally weak and therefore depreciating dollars.
4. The operation loses capital input because it is the reverse of what central banks in the East wish to be a part of.
5. The operation runs out of capital as one central bank after another uses intervention to covertly unload US treasury instruments into demand.
6. The operation runs out of power as the market senses a wounded strategy. The seven trillion dollar a day turnover in the world dollar market now fades it. That means taking the opposite position to the desired impact of the intervention earlier and earlier in the process.
7. Eventually the operation moves to 75% verbal intervention and 25% capital-driven intervention.
8. As the price of the fade comes in closer, the power of the strategy weakens. The USD troops will move up in price as a secondary line of defense for the ongoing operation.
9. Eventually the strategy fails at that level. This is why you have heard many times that intervention in foreign exchange markets always fails. Intervention in foreign exchange markets never has nor ever will change the trend in any currency.
Intervention can only have legs when it floats the temporary parities in the direction of the major market trend. Understand this and you will understand why and how much of an influence the strategy will produce. When the vocal instruments get louder, the reactions become smaller until the strategy at that level of floating parity is checkmated by the world marketplace.”- Jim Sinclair, JSMineset.com
“December Gold finished down 17 at 814.5, 22.7 off the high and 4.5 up from the low.
September Silver closed down 0.615 at 14.23. This was 0.09 up from the low and 0.55 off the high.
The gold market attempted a rally Thursday but then failed to sustain those gains. Surprisingly the gold market wasn't supported by a hot CPI reading, news that President Musharraf of Pakistan would step down or by the talk that the Russian situation has the potential to return to a cold war status. In conclusion the gold market didn't seem to be that interested in potentially supportive geopolitical developments. Perhaps the sharp slide in oil and metals prices downplayed the inflation argument and in retrospect the gold market didn't seem to be in a position to embrace any of the prospective flight to quality angles.
While the silver market did manage a fleeting bounce on Thursday morning back above the $15.00 level, the silver market was simply unable to hold that move into the close. In fact, the silver market seemed to come under progressively more negative pressure as the session progressed possibly because of the weakness in oil prices and perhaps because of the residual strength in the US Dollar. With platinum down at times by as much as $35 an ounce and gold down by as much as $21 an ounce it was clear that silver was feeling the weight of weakness in the outside markets on Thursday afternoon.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Richard Daughty: The great variety of poor rich people
Jim Sinclair: European Central Bank intervention is out in the open
The Statistics:
As of close of business: 8/13/2008
Gold Warehouse Stocks: | 8,432,300 | - |
Silver Warehouse Stocks: | 138,362,244 | +327,559 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 659.03 | 21,188,547 | US$ 17,339m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 118.76 | 3,818,112 | US$ 3,096m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 349,023 | US$ 283m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 30.16 | 969,548 | US$ 793m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.62 tonnes.
COMEX Gold Trust (IAU)
Profile as of 8/11/2008 | |
Total Net Assets | $1,622,760,910 | Ounces of Gold
in Trust | 1,967,280.000 |
Shares Outstanding | 19,950,000 | Tonnes of Gold
in Trust | 61.19 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 8/11/2008 | |
Total Net Assets | $2,888,097,452 | Ounces of Silver
in Trust | 198,259,922.600 |
Shares Outstanding | 199,000,000 | Tonnes of Silver
in Trust | 6,166.57 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Ivanhoe’s (IVN) second quarter results, Crystallex’s (KRY) shareholder update, Orezone’s (OZN) debt facility, Apollo Gold’s (AGT) drill results, Royal Gold’s (RGLD) fiscal 2008 results, New Gold’s (NGD) second quarter results, MAG’s (MVG) second quarter results, Silvercorp’s (SVM.TO) dividend, and Silver Bear’s (SBR.TO) drill and financial results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. US Gold | UXG+7.69% $1.12 |
2. Kimber | KBX+6.85% $1.25 |
3. Alexco | AXU+4.41% $2.84 |
LOSERS
1. Almaden | AAU-12.1% $1.38 |
2. Endeavour | EXK -9.28% $2.15 |
3. Apex Silver | SIL -8.40% $3.38 |
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:
SRA Reports Third Quarter 2008 Results - More
- August 14, 2008 | Item | E-mail
Richview Files Second Quarter Statements - More
- August 14, 2008 | Item | E-mail
Redcorp Updates Progress at Portugal Base Metal and Gold Exploration Projects - More
- August 14, 2008 | Item | E-mail
Passport Metals Inc.-Board Appointment - More
- August 14, 2008 | Item | E-mail
Results of Mindoro annual general meeting - More
- August 14, 2008 | Item | E-mail
Yankee Hat Acquires Two Additional Tungsten Properties - More
- August 14, 2008 | Item | E-mail
Golden Phoenix Minerals Issues President's Letter to Shareholders Following Release of Q2 Financials - More
- August 14, 2008 | Item | E-mail
American Creek discovers promising iron ore targets on Goldmist Project - More
- August 14, 2008 | Item | E-mail
Constitution Mining Completes US$4,005,840 Financing - More
- August 14, 2008 | Item | E-mail
Avnel Gold Mining Limited (AVK: TSX) announces second quarter 2008 results - Period ended June 30, 2008 - More
- August 14, 2008 | Item | E-mail
441 g/t Silver Over 2.35 Metres Sampled From Underground at the Rosario Area, Urique Project - More
- August 14, 2008 | Item | E-mail
Jet Gold Corp.: Exploration Update - More
- August 14, 2008 | Item | E-mail
Exploration Program Confirms Multi-Kilometric Magnetite-rich Taconite Iron Formation on Champion Minerals' Attikamagen Iron Property; Diamond Drilling set to Co - More
- August 14, 2008 | Item | E-mail
MAG Silver Reports Second Quarter Financial Results - "The Company's loss for the six months ended June 30, 2008 amounted to $3.9 million or $0.07 per share as compared to $4.4 million or $0.11 per share for the same period last year. The loss for the six months ended June 30, 2008 includes $2.4 million as a non-cash charge for Stock Based Compensation ($2.7 million for the same period in 2007)." More
- August 14, 2008 | Item | E-mail
Ivanhoe Mines Issues Financial Results and Review of Operations for the Second Quarter of 2008 - "In Q2'08, Ivanhoe Mines recorded net income of $127.5 million (or $0.34 per share (basic)), compared to a net loss of $74.2 million (or $0.20 per share (basic)) in Q2'07, representing a $202.4 million increase. This increase was the result of the $201.7 million gain on sale of long-term investments recognized by Ivanhoe Mines on the sale of its interest in Jinshan Gold Mines Inc. Offsetting this gain was $67.3 million in exploration expenses, a decrease of $11.9 million from Q2'07." More
- August 14, 2008 | Item | E-mail
Sage Gold Inc.: 2.23% Cu, 0.75g Au/T, 55g Ag/T Over 11.27 Metres- Drill Results- Lynx - More
- August 14, 2008 | Item | E-mail
Carlisle Goldfields Limited - Drilling at the Maclellan Gold Mine continues to intersect multiple high grade intervals - More
- August 14, 2008 | Item | E-mail
Puget Ventures Inc. and Benton Resources Corp. Sign Letter of Intent for Werner Lake-Rex Lake Area Claims - More
- August 14, 2008 | Item | E-mail
Uruguay Mineral Exploration clarifies typographical errors - More
- August 14, 2008 | Item | E-mail
North Atlantic Issues Financial Statements and MDA for the Second Quarter - More
- August 14, 2008 | Item | E-mail
Silvermet Announces Retirement of the Chairman - More
- August 14, 2008 | Item | E-mail
Northern Gold Mining Announces Additional High Grade Gold Assays 552.96 g/t (16.13 oz/t) on Its Kirana Property - More
- August 14, 2008 | Item | E-mail
Andover closes second tranches placement - More
- August 14, 2008 | Item | E-mail
Aranka Gold Inc. Announces Carmelo Marrelli CA as New CFO - More
- August 14, 2008 | Item | E-mail
Coronation Minerals Announces Carmelo Marrelli CA as New CFO - More
- August 14, 2008 | Item | E-mail
Zinccorp Resources Expands Michelle Property and Adds Second Drill - More
- August 14, 2008 | Item | E-mail
Quadra Mining profit rises 78 pct on higher output - More
- August 14, 2008 | Item | E-mail
Cameco quarterly profit sags, outlook trimmed - More
- August 14, 2008 | Item | E-mail
Golden Valley Mines Ltd.: Abitibi Grassroots Exploration Program Update Diamond Drill Program Underway-Venus New Prospect (Val-D'or, Quebec) - More
- August 14, 2008 | Item | E-mail
Atna Resources Reports Second Quarter 2008 Results - More
- August 14, 2008 | Item | E-mail
Crosshair Provides Exploration Update & Announces Start of Drilling - More
- August 14, 2008 | Item | E-mail
Victoria Engages Renmark Financial Communications Inc. and Exploration Status at Victoria's Cove-McCoy and Hilltop Projects - More
- August 14, 2008 | Item | E-mail
Cameco Reports Second Quarter Earnings and Announces Redemption of Convertible Debentures - More
- August 14, 2008 | Item | E-mail
PC Gold Starts Drilling at Historic Pickle Crow Gold Mine - More
- August 14, 2008 | Item | E-mail
Iberian Minerals Corp. Announces Change to the Board of Directors - More
- August 14, 2008 | Item | E-mail
Blue Note Mining Reports Second Quarter Results - Concentrate Tonnage Sales Increase by 42% - More
- August 14, 2008 | Item | E-mail
Maximus and NFX Announce Maximus' Vesting in Larder Lake Gold Project - More
- August 14, 2008 | Item | E-mail
EurOmax intersects 42 metres at 2.05 g/t gold, 0.76% nickel and 0.06% cobalt - More
- August 14, 2008 | Item | E-mail
European Goldfields Ltd. - Results for Q2 2008 - Stratoni production up 38% - Certej definitive feasibility study - More
- August 14, 2008 | Item | E-mail
Anaconda Announces Initial Resource Estimate for San Gabriel Iron Project - More
- August 14, 2008 | Item | E-mail
Romios Announces Joint Venture With Roca Mines Inc on Galore Creek Property - More
- August 14, 2008 | Item | E-mail
General Moly Announces Electrical Transmission Service Agreements for the Mt. Hope Project - More
- August 14, 2008 | Item | E-mail
General Metals Receives Interim Drilling Report for 2007-2008 Exploration Program - More
- August 14, 2008 | Item | E-mail
GoldSpring Enters into Agreement to Acquire Mineral Rights to Properties in Comstock Lode - More
- August 14, 2008 | Item | E-mail
Copper Mesa Announces Financial Results of 2nd Quarter 2008 - More
- August 14, 2008 | Item | E-mail
Solex Resources Corp. announces delivery of metallurgical test facility - More
- August 14, 2008 | Item | E-mail
Silver Dragon to Commence Update of NI 43-101 Technical Report for Cerro las Minitas, Mexico - More
- August 14, 2008 | Item | E-mail
Colorado Goldfields' Board of Directors' Lock-up - More
- August 14, 2008 | Item | E-mail
Duluth Metals continues infill drilling on the Nokomis Deposit - More
- August 14, 2008 | Item | E-mail
China Shen Zhou Mining & Resources, Inc. Announces Second Quarter 2008 Financial Results - More
- August 14, 2008 | Item | E-mail
VMS Expands Copper-Rich Mineralization With an Additional Nine Drill Holes at Its Reed Lake Discovery Zone at Snow Lake, Manitoba - More
- August 14, 2008 | Item | E-mail
Ivernia Inc. Reports Second Quarter 2008 Financial Results - More
- August 14, 2008 | Item | E-mail
Silverado Announces Continued High Grade Gold and Antimony Mineralization in Drill Cores at Nolan Creek - More
- August 14, 2008 | Item | E-mail
Acadian Mining Corporation Announces Private Placement - More
- August 14, 2008 | Item | E-mail
Acadian Mining reports Q-2 loss from operations - Production outlook for Q-3 is positive - More
- August 14, 2008 | Item | E-mail
I-Star Provides More Details From Exploration Results, Discusses Plans for Next Phase of Exploration - More
- August 14, 2008 | Item | E-mail
Crystallex Updates Shareholders on the Las Cristinas Permitting Dialogue - "CRYSTALLEX INTERNATIONAL CORPORATION (Toronto:KRY.TO - News)(KRY - News) today updated shareholders and stakeholders regarding the ongoing dialogue and process between the Venezuelan Ministry of Environment and Natural Resources ("MinAmb") and Crystallex regarding Authorization to Affect Natural Resources (the "Permit") at the Las Cristinas Gold Project." More
- August 14, 2008 | Item | E-mail
Orezone Essakane Debt Facility Increased and Approved at US$330 Million - "Orezone Resources Inc. (Toronto:OZN.TO - News)(OZN - News) is pleased to announce that Bayerische Hypo- und Vereinsbank AG, a member of UniCredit Group ("HVB") and The Standard Bank of South Africa Ltd have received final credit approvals to fully underwrite and provide US$300M in project debt and a US$30M cost over-run facility for the Company's Essakane gold project in Burkina Faso, West Africa." More
- August 14, 2008 | Item | E-mail
Apollo Gold Announces the Results from Its First Round of Drilling at Its Huizopa Property - "Apollo Gold Corporation (“Apollo”) (TSX:APG - News)(AMEX:AGT - News) is pleased to announce the results from the core drilling program completed in the second quarter 2008 on the Puma De Oro exploration target on its Huizopa Property in the Sierra Madres in the State of Chihuahua, Mexico." More
- August 14, 2008 | Item | E-mail
Silvercorp Increases Dividend 60%-Q1 Dividend CAD$0.02 - "Silvercorp Metals Inc. (the "Company" or "Silvercorp")(Toronto:SVM.TO - News), China's largest primary Silver producer, announced that its Board of Directors has declared its first quarterly dividend of CAD$0.02 per share, to be paid on October 21, 2008 to shareholders of record at the close of business on September 30, 2008." More
- August 14, 2008 | Item | E-mail
Royal Gold Reports Record Revenue and Record Free Cash Flow for Fiscal 2008 - "Royal Gold, Inc. (Nasdaq: RGLD - News; TSX: RGL - News), the leading precious metals royalty company, today announced record revenues of $69.4 million for fiscal 2008 (ended June 30), a 43% increase over revenues of $48.4 million in fiscal 2007. The Company also reported net income of $26.1 million for fiscal 2008, up 32% compared to net income of $19.7 million for fiscal 2007." More
- August 14, 2008 | Item | E-mail
New Gold Announces Second Quarter Results & Management Appointment - "New Gold Inc. ("New Gold") (TSX and AMEX - NGD) is pleased to announce excellent results from its Cerro San Pedro operation and achievement of significant milestones at its New Afton development project in the second quarter. In addition, New Gold announces the appointment of Jim Currie as Vice President Operations who has recently joined the management team." More
- August 14, 2008 | Item | E-mail
Silver Bear Announces High Grade Results from 2008 Drill Program at Mangazeisky and Second Quarter Financial Results - "Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR - News) today announced results from the first 12 of 44 exploration holes drilled at its Mangazeisky silver project in the Russian Federation and financial results for the six months ended June 30, 2008." More
- August 14, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 14 August, 2008 | |
