-- Posted 27 August, 2008 | | Discuss This Article - Comments:
Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $827.95 | +$5.35 |
Silver | $13.51 | -$0.07 |
XAU | 151.26 | +2.56% |
HUI | 346.50 | +1.77% |
GDM | 1043.55 | +1.94% |
JSE Gold | 1811.55 | +57.41 |
USD | 77.02 | -0.24 |
Euro | 147.29 | +0.76 |
Yen | 91.29 | +0.09 |
Oil | $118.15 | +$1.88 |
10-Year | 3.772% | -0.012 |
T-Bond | 118.796875 | +0.171875 |
Dow | 11502.51 | +0.79% |
Nasdaq | 2382.46 | +0.87% |
S&P | 1281.66 | +0.80% |
The Metals:
Gold rose over 1.5% to $834.90 by midday in London before it fell to a tiny loss at $822.45 in New York, but it then rallied back higher by the close and ended with a gain of 0.65%. Silver rose over 2% to $13.86 and fell $13.39 before it also rallied back higher, but it still ended with a loss of 0.52%.
Euro gold rose to about €563, platinum gained $20.50 to $1437, and copper rose a few cents to about $3.47.
Gold and silver equities rose over 2% at the open before they fell back near unchanged midday, but they then rallied back higher into the close and ended with about 2% gains.
The Economy:
Report | For | Reading | Expected | Previous |
Durable Orders | July | 1.3% | 0.0% | 1.3% |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 8/23 expected at 425,000, second quarter GDP expected at 2.7%, and the Chain Deflator expected at 1.1%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Hurricane Gustav became Tropical Storm Gustav as it lost steam crossing over Haiti, but forecast models call for it to turn back into a hurricane as it enters the Gulf of Mexico and most predictions now call for it to head straight into many oil and natural gas rigs. Many energy companies are already evacuating installations as a precaution and rigs are already shutting down, but the question now is what long term damage, if any, will occur, and how soon will these rigs get back into production after the hurricane passes. If no major damage is done and the Gulf of Mexico remains calm after, then most rigs could likely be back into production within a week. Oil rose on these storm threats while traders also had to factor in today’s inventory report that showed crude inventories fell 100,000 barrels, gasoline inventories fell 1.2 million barrels, and distillates remained unchanged.
The U.S. dollar index fell over night as the euro rose on hawkish comments from the ECB’s Weber, but the durable goods data took the index well off its lows and it ended with just a modest loss.
Treasuries ended higher after a strong 2-year note auction.
The Dow, Nasdaq, and S&P rose on better than expected durable goods data and hopes that a bailout of Fannie and Freddie may longer be necessary.
Among the big names making news in the market today were FDIC and the Treasury, Dollar Tree, Pimco, Boeing, Fannie and Freddie, Grupo Mexico, and Northrop Grumman.
The Commentary:
“The USA and to a lesser degree the rest of the West’s financial system is broken like a shattered eggshell. It will be lied about, covered up, hidden after Fridays and rescued only when you are not looking. It will be labeled anything but the bailout it is. All of that is a rehash of what got us here in the first place. It does not have even a small chance of fixing the problem for even a short period. - Because the financial system of the USA is broken to a much larger degree than that of any other country on the planet, the US dollar has limited ability to rally regardless of the arguments being blasted out by Financial TV and all who make their living as purveyors of paper so-called assets casting your attention to competitive levels of economic activity away from the real why of all of this.
- Geopolitics are deteriorating with the greatest risk of all being Pakistan. That risk is reaching critical levels. The price of Crude can easily be put on a course of plus $100 from whatever level it is trading at when Pakistan blows.
- The Fed is jawboning against inflation and practicing verbal intervention by placing an outlook for increased interest rates in the minutes of the last Fed meeting.
- The message that would be sent by a September increase in interest rates would trigger the need for more rescues, more loans to develop electric cars and more funding for Freddie and Fanny as starters.
- The Case Shiller approach to predict housing market and render valuation for the many forms of credit and mortgage derivatives only looks back with accuracy. Projecting forward is its major weakness.
You must act to defend yourselves by reducing your exposure to financial agents, ignoring the lies and spin being thrown at you until you are covered by six feet of fabricated crap.
The USA has adopted a plan of inflating monetary policy and lying in order to save USA Inc. from bankruptcy. The US dollar is the common share of the USA Inc. If you are a bull on the dollar you have bought the bull blasted at you.
You can always have a bear market rally in the common share of USA Inc., but it is limited by major cash sellers and the distasteful event in government agencies.
Gold will trade at $1200 and $1650. The US dollar will trade at .62 and .52 on the USDX as bull cannot change a pig's ear into a silk purse.
The argument that the USA is the major of the major power militaristically is what collapses in currency are made of, not a universal acceptability as the warmongers would have you believe. That is exactly what happened when the Ruble became rubble as the USSR went broke and imploded.
Maybe standing back and watching the flow is better than locking onto some isolated event that I receive so many questions on.
Respectfully yours,”- Jim Sinclair, JSMineset.com
“December Gold finished up 5.9 at 834, 5.3 off the high and 6 up from the low.
December Silver closed down 0.11 at 13.568. This was equal to the low and 0.182 off the high.
The gold market forged a series of stair steps down from the early morning highs but generally gold prices seemed to prefer positive ground. Clearly the weakness in the Dollar failed to live up to initial expectations for the bull camp and that wasn't surprising considering that the US Durable Goods report was better than most expectations. Surprisingly the gold market didn't seem to get a definitive added lift from what seemed to be escalating geopolitical tensions between Russia and the EU. Some gold traders suggested that until the September Dollar Index consistently trades below the 77.00 level, the currency impact for gold might not be definitively supportive.
After an early morning slide off the overnight highs, the silver market managed a weak drawn out attempt to rally off the post report sell off. Clearly silver underperformed the entire metals complex with gold, platinum and copper prices clearly strong and silver flirting with both sides of unchanged throughout the trading session.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Greg Peel: The great U.S. gold shortage
FDIC weighs tapping Treasury as funds run low
The Statistics:
As of close of business: 8/26/2008
Gold Warehouse Stocks: | 8,583,732 | +100,401 |
Silver Warehouse Stocks: | 139,146,031 | +320,307 |
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$ 17,313m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 115.68 | 3,719,213 | US$ 3,081m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.87 | 348,972 | US$ 289m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 8/25/2008 | |
Total Net Assets | $1,617,025,183 | 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 8/25/2008 | |
Total Net Assets | $2,715,219,179 | Ounces of Silver
in Trust | 208,145,124.600 |
Shares Outstanding | 210,500,000 | Tonnes of Silver
in Trust | 6,474.04 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
South Africa’s cost cutting, Apollo’s (AGT) repaid loan, Gammon’s (GRS) settled lawsuit, Paramount’s (PZG) acquired remaining interest in the San Miguel project, Gold Reserve’s (GRZ) comments on Rusoro’s offer, Metalline’s (MMG) letter from the President to shareholder’s, and ECU’s (ECU.TO) and Golden Tag’s (GOG.V) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Northern Dynasty | NAK +22.52% $6.42 |
2. Rubicon | RBY +9.76% $1.80 |
3. Metalline | MMG +9.57% $1.03 |
LOSERS
1. US Gold | UXG-9.16% $1.19 |
2. Timberline | TLR -6.84% $2.18 |
3. Alexco | AXU -4.90% $2.72 |
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:
Gold Reserve Reports on Offer from Rusoro Mining Ltd. - "Gold Reserve Inc. (TSX:GRZ - News) (AMEX:GRZ - News) announced that it received an unsolicited non-binding expression of interest from Rusoro Mining Ltd. (“Rusoro”) (CDNX:RML.V - News) to complete a 100% business combination by issuing two shares of Rusoro for each share of Gold Reserve." More
- August 27, 2008 | Item | E-mail
Aura Silver to Focus on Emerging Higo Blanco Jasperoid Prospect - More
- August 27, 2008 | Item | E-mail
Apollo Gold Repays RMB Resource Loan of US$1.7 Million Early - "Apollo Gold Corporation (“Apollo”) (TSX: APG - News) (AMEX: AGT - News) announces that it has repaid early the balance of the facilities agreement owing to RMB Resource Inc. of US$1,654,000 mainly from proceeds of unwinding its hedge position with a maturity date of September 26, 2008 as more fully described below." More
- August 27, 2008 | Item | E-mail
Duluth Metals Announces Extension of Exercise Period for Class A Warrants to September 30, 2009 - More
- August 27, 2008 | Item | E-mail
MacMillan Gold Options The La Sarita Project in Mexico - More
- August 27, 2008 | Item | E-mail
Gammon Gold Resolves Suit by Midas Fund, Inc. - "Gammon Gold Inc. ("Gammon Gold") (TSX:GAM and AMEX:GRS) is pleased to announce that it has reached an agreement with Midas Fund, Inc. ("Midas") to settle a lawsuit filed against Gammon and several of its officers and directors in U.S. District Court New York. Midas will dismiss the lawsuit in exchange for a US$200,000.00 cash payment by Gammon. The settlement does not constitute an admission of liability on the part of Gammon or any of the other defendants." More
- August 27, 2008 | Item | E-mail
Marathon Acquires Remaining Discovery Shares Pursuant to Compulsory Acquisition - More
- August 27, 2008 | Item | E-mail
Infinito Arranges $18,000,000 Convertible Note Financing To Fund Crucitas Development - More
- August 27, 2008 | Item | E-mail
Coro Mining Corp. Closes Initial $3 Million Private Placement - More
- August 27, 2008 | Item | E-mail
Vault Technology, Inc. Announces Appointment of New Officer and Board Member - More
- August 27, 2008 | Item | E-mail
Pancontinental Uranium Releases Initial Results From Charley Creek, Northern Territory, Outcrop Chip Samples; Air Core Drill Results Being Analyzed - More
- August 27, 2008 | Item | E-mail
First Metals Updates Fabie Mine Exploration and Operations - More
- August 27, 2008 | Item | E-mail
Uravan - Boomerang Uranium Project Update - More
- August 27, 2008 | Item | E-mail
Benton Resources Corp ("Benton") advised of latest drill results from Marathon's drill program on the BCF Property - More
- August 27, 2008 | Item | E-mail
Paramount Gold and Silver Corp. Acquires 100% of the San Miguel Project - "Paramount Gold and Silver Corp. (AMEX:PZG - News)(Toronto:PZG.TO - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) has signed an agreement to acquire 100% of its San Miguel project in Chihuahua, Mexico. Paramount Gold and Silver Corp. (Paramount) will purchase the remaining 30% of the San Miguel project from Tara Gold Resources Corp. for all stock consideration of 7.35 million restricted common shares of Paramount. The transaction is expected to close on September 10, 2008 and is subject to stock exchange approvals and other conditions." More
- August 27, 2008 | Item | E-mail
Adventure Gold Intersects Significant Gold Values in the Extension of the Beaufor Mine, Val D'or, Quebec - More
- August 27, 2008 | Item | E-mail
Underworld Reports Additional Intersection at Yukon Gold Discovery; Drill Program Expanded - More
- August 27, 2008 | Item | E-mail
Atomic and Everett Resources announce signing of letter of intent for sale of 932 claims located on the Dolores Anticline Property in Colorado - More
- August 27, 2008 | Item | E-mail
Uranium International Corp. Receives a NI 43-101 Resource Calculation From Dalton Pass, New Mexico Property - More
- August 27, 2008 | Item | E-mail
Uranium International Corp. Receives a NI 43-101 Mineral Resource Calculation for Its Nose Rock, New Mexico Property - More
- August 27, 2008 | Item | E-mail
Business Review Update - More
- August 27, 2008 | Item | E-mail
Amarc commences drilling on the Aspira property - More
- August 27, 2008 | Item | E-mail
Timmins Gold Corp.: Picacho Property Acquisition, Sonora, Mexico - More
- August 27, 2008 | Item | E-mail
Northland Resources: Annual General Meeting and Amended Q2 Reporting Date - More
- August 27, 2008 | Item | E-mail
Marathon Intersects 1.05g/t PGM and Au and 0.30% Cu over 32m on BCF JV Property - More
- August 27, 2008 | Item | E-mail
Piedmont Mining Company Reports on Annual Meeting of Stockholders - More
- August 27, 2008 | Item | E-mail
Sherwood Reports Continued Strong Financial Results for the Three Months Ended June 30, 2008 - More
- August 27, 2008 | Item | E-mail
President's Letter to Metalline Mining Company Shareholders - "As Metalline (Amex: MMG - News) announced July 29, 2008, the understanding of the nature of the zinc resource at Sierra Mojada has changed appreciably since we started evaluating it in 2005. As a result of continued drilling, and application of a less constrained geologic framework, we now have a new resource model that more than doubles the zinc metal content of the Oxide Zinc mineralization and which now includes an appreciable amount of silver." More
- August 27, 2008 | Item | E-mail
Golden Tag Resources Ltd. and ECU Silver Mining Inc.: Additional High-Grade Silver Intercepts and New Veins at San Diego Property, Mexico - "Golden Tag Resources Ltd. (TSX VENTURE:GOG - News; "Golden Tag") and ECU Silver Mining Inc. (TSX:ECU - News; "ECU") are pleased to report significant results from the remaining assays received from the Phase 3 exploration program at the jointly held San Diego Property in Durango State, Mexico. The drilling program, initiated in October 2007, entailed the completion of 16 new holes for a total of 6,655 metres and brings the cumulative drilling on the property to 13,245 metres." More
- August 27, 2008 | Item | E-mail
SAfrica gold firms battle costs, falling output - "Faced with falling gold prices and production, new chief executives of Africa's top three gold producers are seeking novel ways to cut costs and expand output to stay afloat.
AngloGold Ashanti , Gold Fields and Harmony Gold so far this year have been bailed out by a strong gold price." More
- August 27, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 27 August, 2008 | | Discuss This Article - Comments:
