-- Posted 22 August, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $827.05 | -$6.30 | +5.26% |
Silver | $13.52 | -$0.22 | +5.46% |
XAU | 148.84 | -3.21% | +8.34% |
HUI | 342.84 | -2.92% | +8.67% |
GDM | 1028.49 | -2.97% | +7.80% |
JSE Gold | 1749.49 | -19.98 | +0.51% |
USD | 76.81 | +0.70 | -0.44% |
Euro | 147.73 | -1.28 | +0.67% |
Yen | 90.86 | -1.32 | +0.39% |
Oil | $114.59 | -$6.59 | +0.72% |
10-Year | 3.867% | +0.00.29 | +0.39% |
Bond | 117.6875 | -0.046875 | +0.17% |
Dow | 11628.06 | +1.73% | -0.27% |
Nasdaq | 2414.71 | +1.44% | -1.54% |
S&P | 1292.20 | +1.13% | -0.46% |
The Metals:
Gold rose about 0.5% to $837.90 in Asia before it dropped all the way to $820.85 by early trade in New York, but it then rallied back higher into the close and ended almost 1% off that low with a loss of just 0.76%. Silver rose 21 cents to $13.95 in Asia before it dropped to see a 44 cent loss at $13.30 in early New York trade, but it also rallied back higher into the close and ended with a loss of just 1.6%.
Euro gold fell to about €559, platinum lost $14.50 to $1438.50, and copper fell over 7 cents to about $3.47.
Gold and silver equities fell about 4% by mid-afternoon before they rallied back higher into the close, but they still ended with about 3% losses.
The Economy:
There were no major economic reports today, but there were several notable names making comments. Bernanke called the inflation outlook “uncertain” and said that the financial storm “has not yet subsided, and its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment.” Warren Buffet said that the “game is over” for Fannie and Freddie as independent companies and he pointed out that they “don't have any net worth.” Bloomberg speculated that “Treasury Secretary Henry Paulson's response to the sinking fortunes of Fannie Mae and Freddie Mac might boil down to picking which investors get hurt and by how much.”
All of this week’s economic reports:
Next week’s economic highlights include Existing Home Sales on Monday, Consumer Confidence, New Home Sales, and FOMC minutes on Tuesday, Durable Goods Orders on Wednesday, GDP and Initial Jobless Claims on Thursday, and Personal Income and Spending, Chicago PMI, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil erased all of yesterday’s $5.62 gain and more as Russia started pulling out of Georgia and Tropical Storm Fay finally turned North and decidedly away from operations in the Gulf of Mexico. Reports showing an increase in OPEC output and another showing an expected decline in US travel this upcoming Labor Day holiday weekend also turned the supply/demand valuation more bearish on both counts.
The U.S. dollar index rose after Warren Buffet stated in a CNBC interview that he had no bets against the dollar and a weak UK economic growth report reiterated the view that central banks in and around Europe will likely not be raising interest rates anytime soon and may even more biased towards cutting rates. This premise of relative dollar strength is however based on the assumption that the fed may be more biased towards raising rates for their next move and that supposition is certainly up for debate. Any change in either of these views or a reversal of both will certainly be very bearish for the dollar. In fact it could be said that the current mindset of the market for interest rate differentials is as good as it can get right now for the dollar. And if the mindset can’t get any better than it should go without saying that it can only get worse in the coming weeks and months as views change. The tide turn for the dollar’s recent bear market rally may well be upon us as noted with a couple of the many other reasons this may be the case in yesterday’s report.
Treasuries fell as the Dow, Nasdaq, and S&P rose nicely at the open on rumors over a buyout for Lehman Brothers. Gains moderated a bit midday, but stocks then rose back to nearly equal or surpass their earlier highs after oil added to its losses heading into its close. Market participants seemed undaunted by Bernanke’s comments about a slow economy, an uncertain outlook for inflation, and an overall perception that this is still the most trying time for the markets in recent history.
Among the big names making news in the market Friday were Ore Hill Partners, Lehman Brothers, King Pharmaceuticals and Alpharma, and Ann Taylor.
The Commentary:
“December Gold finished down 5.5 at 833.5, 2 off the high and 6.3 up from the low.
December Silver closed down 0.253 at 13.59. This was 0.03 up from the low and 0.05 off the high.
The gold market started out weak on Friday morning but after an early morning slide, prices managed to recover and for a short period of time the gold futures managed to regain the 200 day moving average. However, residual strength in the Dollar and a slight decline in overall financial sector anxiety in the US markets seemed to prompt a profit taking setback in gold and other flight to quality instruments. In fact, even the crude oil market came down sharply in what seemed to be a flight to quality liquidation. Perhaps soothing comments from the US Fed Chairman and upbeat US dialogue from Warren Buffet simply prompted an exodus from gold. In the end, seeing the US equity market manage a sharp rise for a large portion of the trading session clearly seemed to shake out as a negative for the gold market.
The silver market saw early morning weakness but at times the silver contract was able to rise by as much as 35.5 cents above the mid morning lows. However, the silver market was clearly undermined by the recovery in the Dollar, weakness in oil prices and weakness in a host of physical commodity markets. In fact, seeing the crude oil market at times down by more than $4 a barrel and seeing equity prices up sharply simply seemed to take the bullish wind out of the silver market from the prior trading session.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Ted Butler: The smoking gun
Richard J. Greene: Amateur hour in the precious metals markets
Who could have anticipated such demand for gold?
Congressman extracts statement from Mint on gold coin shortage
The Statistics:
As of close of business: 8/21/2008
Gold Warehouse Stocks: | 8,491,181 | +157,145 |
Silver Warehouse Stocks: | 138,231,229 | -289,857 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 651.37 | 20,942,246 | US$ 17,450m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 115.69 | 3,719,420 | US$ 3,063m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 348,991 | US$ 288m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.17 | 937,947 | US$ 781m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 8/21/2008 | |
Total Net Assets | $1,638,360,932 | 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 8/20/2008 | |
Total Net Assets | $2,806,317,245 | Ounces of Silver
in Trust | 205,970,411.000 |
Shares Outstanding | 208,900,000 | Tonnes of Silver
in Trust | 6,406.40 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Crystallex’s (KRY) project update in Venezuela, Gold Fields’ (GFI) summons, U.S. Energy’s (USEG) completed sale, and AngloGold’s (AU) received criticism for docking pay of mourning workers were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Gold Reserve | GRZ +23.48% $1.63 |
2. Paramount | PZG +5.77% $1.10 |
3. Northern Dynasty | NAK +2.93% $5.27 |
LOSERS
1. New Gold | NGD-9.41% $5.20 |
2. Solitario | XPL -6.49% $3.46 |
3. Jaguar | JAG -5.19% $6.76 |
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:
Verena Intersects 7.10 g/t Gold Over 14.30 Metres at Volta Grande - More
- August 22, 2008 | Item | E-mail
Pelangio Provides Update on Arrangement and Schedules Hearing for Final Order - More
- August 22, 2008 | Item | E-mail
Augen Gold grants options to consultants - More
- August 22, 2008 | Item | E-mail
RT Minerals Corp. Announces Completion of Initial Public Offering - More
- August 22, 2008 | Item | E-mail
Augyva Mining Resources Inc./Update on Duncan Iron Project Agreement and Drilling Program - More
- August 22, 2008 | Item | E-mail
Coro Enters Into Financing Arrangement to Fund Acquisition of Cerro Negro Copper Mine, Chile - More
- August 22, 2008 | Item | E-mail
Midlands Minerals and PMI Gold Clarify New Ghana Property Acquisition by PMI Gold - More
- August 22, 2008 | Item | E-mail
Independent Nickel Board of Directors Special Committee Appoints Paradigm Capital as Financial Advisor - More
- August 22, 2008 | Item | E-mail
Guyana Goldfields Announces Carmelo Marrelli CA as New CFO - More
- August 22, 2008 | Item | E-mail
Uruguay Mineral Exploration Hedges 70% of its Gold Production for the Last Nine-Months of Fiscal 2009 - More
- August 22, 2008 | Item | E-mail
Crystallex spikes on Venezuela mine optimism - "Crystallex International (KRY.TO: Quote, Profile, Research, Stock Buzz) shares spiked briefly to a four-month high on Friday after the Venezuelan government hinted the much-delayed Las Cristinas gold project may be closer to an official go-ahead.
Crystallex shares soared nearly 20 percent before retreating again on news that Venezuela was open to proposed modifications to the project. The stock has dropped 60 percent over the past 12 months as the permitting process for the 17-million-ounce gold mine has dragged on." More
- August 22, 2008 | Item | E-mail
Gold Fields Receives Summons From Randgold and Exploration - "Gold Fields Operations Limited, (formerly known as Western Areas Limited) ("WAL") a subsidiary of "Gold Fields" (NYSE, JSE, DIFX: GFI) announced today that on 21 August 2008 it had received a summons from Randgold and Exploration Company Limited ("Randgold") and African Strategic Investment (Holdings) Limited. The summons claims that during the period that WAL was under the control of Brett Kebble, Roger Kebble and others, WAL was allegedly part of a scam whereby JCI Limited unlawfully disposed of shares owned by Randgold in Randgold Resources Limited ("Resources") and Afrikander Lease Limited, now Uranium One." More
- August 22, 2008 | Item | E-mail
Glass Earth Gold - Drilling update - More
- August 22, 2008 | Item | E-mail
Skyline Announces Closing of Private Placement - More
- August 22, 2008 | Item | E-mail
Gemini Explorations, Inc. Reports Potential for Economic Recovery of Copper and Lead From New Ore Zone at La Tapata Gold Mine - More
- August 22, 2008 | Item | E-mail
Rocmec Grants Options Under a Stock Option Plan - More
- August 22, 2008 | Item | E-mail
Tiger Resources Limited Announces Correction to Drilling Result at the Kileba Copper Deposit - More
- August 22, 2008 | Item | E-mail
Redcorp Ventures Ltd.: $85 Million Loan Facility Arranged With HSBC Bank Canada - More
- August 22, 2008 | Item | E-mail
EurOmax closes $0.75 million financing - More
- August 22, 2008 | Item | E-mail
Quest Acquires Uranium Property in the LG4 Area, James Bay Region, Quebec - More
- August 22, 2008 | Item | E-mail
Malaga: Q2 2008 financial results and outlook for 2008 - More
- August 22, 2008 | Item | E-mail
Randsburg International Gold Corp. Announces Agreement to Sell Its Interest In the Elephant Property to Duncan Park Holdings Corporation - More
- August 22, 2008 | Item | E-mail
Wits Basin Executes $45 Million Letter of Intent with London Mining - More
- August 22, 2008 | Item | E-mail
U.S. Energy Corp. Completes Sale of Interest in Sutter Gold Mining Inc. to RMB Resources Ltd. - "U.S. Energy Corp. (Nasdaq:USE) (``USE'' or the ``Company'') today announced that it has completed the sale of an aggregate of 39,062,720 common shares (the ``Purchased Shares'') of Sutter Gold Mining Inc. (CDNX:SGM.V - News) (``SGMI'') representing approximately 49.9% of the outstanding common shares of SGMI to RMB Resources Ltd. (``RMB''), as trustee for the Telluride Investment Trust, for an aggregate purchase price of approximately Cdn. $5.4 million, or Cdn. $0.138/share in accordance with the terms of a share purchase agreement (the ``Purchase Agreement'') previously announced on June 13, 2008. Under the terms of the agreement, USE retained an equity position of approximately 3,550,361 shares and a Net Profits Royalty on the project." More
- August 22, 2008 | Item | E-mail
Crystallex Updates Shareholders on the Las Cristinas Project and a Letter From the Ministry of Environment - "CRYSTALLEX INTERNATIONAL CORPORATION (Toronto:KRY.TO - News)(KRY - News) wishes to advise its shareholders and stakeholders that it has received an official letter from the Venezuelan Ministry of the Environment and Natural Resources ("MinAmb") in response to the report on modifications to the Las Cristinas project ('report") submitted to MinAmb and referred to in the Crystallex press release of August 14th 2008." More
- August 22, 2008 | Item | E-mail
Union criticises AngloGold over mourning penalty - "South Africa's mineworkers union on Friday criticised AngloGold Ashanti (ANGJ.J: Quote, Profile, Research, Stock Buzz), the world's No. 3 gold producer, for docking the pay of its members who stopped work to mourn a dead colleague." More
- August 22, 2008 | Item | E-mail
Gold Fields faces $1.44 bln claim over Western Areas - "Gold Fields (GFIJ.J: Quote, Profile, Research, Stock Buzz), the world's No. 4 gold producer, said on Friday it had received summonses over claims totalling 11 billion rand ($1.44 billion) from companies alleging fraud by a subsidiary of the group." More
- August 22, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 22 August, 2008 | |
