-- Posted 22 September, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $902.05 | $42.05 |
Silver | $13.37 | $1.015 |
XAU | 149.64 | +7.35% |
HUI | 354.13 | +9.39% |
GDM | 1052.59 | +7.84% |
JSE Gold | 1833.13 | +87.36 |
USD | 76.01 | -1.66 |
Euro | 148.10 | +3.26 |
Yen | 95.03 | +1.88 |
Oil | $120.92 | +$16.37 |
10-Year | 3.826% | +0.057 |
T-Bond | 117.453125 | -0.703125 |
Dow | 11015.69 | -3.27% |
Nasdaq | 2178.98 | -4.17% |
S&P | 1207.09 | -3.82% |
The Metals:
Gold and silver steadily rose throughout most of world trade and ended at about their highs of the session with impressive gains of 4.89% and 8.22%. Both metals have also continued to gain in after hours access trade as the supposedly necessary bailout plan highlights the advantages of having sound investments.
Euro gold rose to about $610, platinum gained $95.50 to $1234, and copper gained another 8 cents to about $3.26.
Gold and silver equities again soared higher throughout most of the session and ended with roughly 8% gains.
The Economy:
There were no major economic reports today and there are none due out tomorrow, but there was plenty of talk over the $700 billion bailout plan that will likely gain congressional approval in an effort to rescue financial firms who made bad bets and want the taxpayer to pay for their losses.
From the World Market Update by Custom House:
“The Bush Administration is set to begin shelling out billions on near worthless derivative products in an effort to save the crippled financial industry from itself. Call it socialism, call it nationalization call it what you will so long as it cleans up the mess, seems to be the order of the day. Although this new government sponsored fund will make the savings and loan bailout of a generation ago look like small potatoes, there is no guarantee that the $700B USD that has been earmarked will be enough to meet the demand of banks and other financial institutions who are wishing to offload the toxic debt they have on their books.
The weekend was spent trying to win Congressional support for the plan, which will likely take the form of a buyout auction for illiquid and devalued debt and derivative instruments. The proposed reverse auction would call for the fund's administrators to name the type of security and amount that it is looking to purchase while financial institutions submit offer prices at which they would like to sell. The hope is that such a process will help to establish a fair price for the various collateralized debt obligations, mortgage backed securities and credit default swaps at the heart of this crisis, enabling the banks to offload them at a price which is fair to the taxpayer. The administrators will then employ a buy, hold and pray philosophy that these instruments will be sold at a breakeven or better price some years down the road, thereby destroying as little taxpayer wealth as possible.
Although the Group of Seven countries have been unified in their support of the US plan, no other nation has deemed it necessary to follow a similar blueprint. The world's leading industrial nations did however pledge over the weekend to participating in a coordinated and unified effort to inject liquidity into the system so as to ensure that the market continues to operate.”
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil topped $120 on short covering and the continued rush to hard assets as the U.S. dollar index fell substantially on worries over treasury actions and the success of the bailout plan. The October contract for oil expired today and a massive short squeeze appeared to push prices markedly higher at the close. While the October contract closed today at $120.92, tomorrow’s trading will be based on the November contract which closed near $109.
Treasuries traded mostly lower as the flight to safety bid was overcome by the massive issuing of new debt and worries that it will continue to be serviced.
Goldman Sacks converted to a commercial bank from an investment bank to avoid the investment risk that has caused the demise of so many others. Morgan Stanley joined Goldman in the conversion this past weekend and both can now ask the fed to access the discount window. The Dow, Nasdaq, and S&P fell for most of the day and ended over 3% lower in reaction to the dramatic steps deemed necessary to be taken to ensure stability.
Among the other big names making news in the market today were McAfee and Secure Computing, Exxon, CarMax, Microsoft, Nike, and Morgan Stanley and Mitsubishi UFJ Financial Group Inc (MUFG).
The Commentary:
“Dear Friends,
If the actions this weekend had not been undertaken, the world’s financial system would now be directly inside a category 5 hurricane. Between now and the election, intervention to keep markets somewhat calm is being undertaken
CONSEQUENCES is the word to remember.
The devil is in the details.
The purpose of this weekend's event is to attempt to consolidate a huge amount of OTC derivatives into one location in hopes of creating a wash. The point of this is to prevent OTC derivative counterparties from going broke.
When an OTC derivative fails, notional value becomes real value. They got a taste of what a broken counterparty meant when Lehman went Chapter 11. It wasn’t pretty.
Lehman Brothers, in Chapter 11, will be the first to benefit from the $700 billion to $1 trillion plus bailout.
Do not let your guard down. Continue to take all the precautionary measures spoken about here. The dollar is toast around election time. Gold will trade at $1200 and $1650.
The glory days of the naked short have passed even if they do not know it yet.
Respectfully yours,”- Jim Sinclair, JSMineset.com
“December Gold closed up 44.3 at 909. This was 26 up from the low and 0.5 off the high.
December Silver finished up 0.975 at 13.45, equal to the high and 0.49 up from the low.
Gold traded sharply higher supported by fresh safe haven flows, weaker Dollar action, a sharply higher CRB and ongoing fears of ongoing severe financial market risk. Uncertainty about the Treasury's rescue plan may have pressured the Dollar and sparked fresh safe haven flows to gold as the size of the bailout was thought to be set to expand. However, the weaker Dollar appeared to be the primary boost to the CRB. Gold may have also benefited from speculation the Treasury's bailout plan will ultimately lead to an extensive monetization of US debt. Investors may also be concerned about how quickly Congress will act on the bailout plan, as a slow response from Congress on the plan could revive selling pressure in global equity markets and in turn encourage even more "safe haven" flows to gold. The Gold market spiked above several critical resistance zones during the trade Monday, possibly supported by talk of renewed and aggressive interest for derivative gold instruments. The liquidity that governments continue to pour into the financial markets could encourage even more capital flows to commodity markets like gold and that may be prompting the talk of rapidly expanding investment flows toward gold.
Silver traded sharply higher apparently supported by spillover from a much stronger Gold market and the much weaker US Dollar. The Treasury's bailout plan has yet to reduce financial market fears and the details and cost of the plan remain uncertain. Silver appears to be benefiting from safe haven flows sparked by continued global financial market turmoil. Investor movement to hard assets may also partly explain today's rise in the precious metals.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Vietnam discovers that there's gold and 'gold'
Peter Brimelow: Radical gold bugs gloating but guarded
Treasury now ready to buy any bad debt, not just mortgages
Goldman, Morgan Stanley change status to get new Fed loans
Treasury's power grab begins to worry Congress
Dollar may get 'crushed' as traders weigh bailout
Clive Maund: Bailout will be inflationary, great for precious metals
Economists becoming skeptical of bailout plan
Almost Armageddon: Market was 500 trades from a meltdown
Gene Arensberg: Gold, silver ETFs add metal on strong buying
Indian women know that gold will never cheat them
Advisers to both Obama, McCain created market mess
We went all-out this year, so can you help us reload?
Bailout plan is vast patronage under cover of martial law
Bush would borrow $700 billion to buy bad mortgages
Asia makes big screens and we just watch TV
Joe Nocera: U.S. govt. has little idea of what it's doing
Max Keiser: Financial houses would acquire banks to rob them
Liberty Dollar founder defiant at Silver Summit
Citigroup report credits gold bugs for seeing danger of derivatives
The Statistics:
As of close of business: 9//2008
Gold Warehouse Stocks: | 8,641,934 | -3,293 |
Silver Warehouse Stocks: | 136,093,947 | -596,508 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 679.60 | 21,849,946 | US$ 18,983m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 115.81 | 3,723,368 | US$ 3,361m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.86 | 348,871 | US$ 315m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.22 | 843,113 | US$ 732m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 24.50 tonnes.
COMEX Gold Trust (IAU)
Profile as of 9/19/2008 | |
Total Net Assets | $1,709,078,546 | Ounces of Gold
in Trust | 1,986,283.805 |
Shares Outstanding | 20,150,000 | Tonnes of Gold
in Trust | 61.78 |
Note: Change in Total Tonnes from yesterday’s data: 1.84 tonnes were added to the trust.
Silver Trust (SLV)
Profile as of 9/19/2008 | |
Total Net Assets | $2,627,422,780 | Ounces of Silver
in Trust | 216,302,826.800 |
Shares Outstanding | 218,850,000 | Tonnes of Silver
in Trust | 6,727.77 |
Note: Change in Total Tonnes from yesterday’s data: 124.48 tonnes were added to the trust.
The Stocks:
IAMGOLD’s (IAG) exploration update, Claude Resources’ (CGR) asset sale, and U.S. Silver’s (USA.V) director resignation were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Northgate | NXG+58.42% $1.60 |
2. Banro | BAA 54.35% $3.55 |
3. Apex Silver | SIL +54.24% $1.82 |
LOSERS
1. US Gold | UXG -14.38% $1.37 |
2. Anglo American | AAUK -6.05% $21.42 |
3. Allied Nevada | ANV -2.42% $6.44 |
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:
U.S. Silver Announces Director Resignation - "U.S. Silver Corporation (CDNX:USA.V - News) ("U.S. Silver" or the "Company") announces today that Robert Munro tendered his resignation from the Company's Board of Directors, effective September 20, 2008." More
- September 22, 2008 | Item | E-mail
Black Tusk Minerals Announces Closing of Non-Brokered Private Placement - More
- September 22, 2008 | Item | E-mail
IAMGOLD Rosebel Progress Report and Exploration Objectives - "IAMGOLD Corporation ("IAMGOLD" or "the Company")(Toronto:IMG.TO - News)(IAG - News)(BOTSWANA: IAMGOLD) is pleased to provide an interim update on exploration activity in and around its 95%-owned flagship Rosebel Gold Mine in Suriname, South America." More
- September 22, 2008 | Item | E-mail
Crosshair's Plan of Arrangement Approved - More
- September 22, 2008 | Item | E-mail
Nevoro Inc. Extends Warrant Expiry - More
- September 22, 2008 | Item | E-mail
Reuters - More
- September 22, 2008 | Item | E-mail
Vena Resources Begins 3,000 Metre Uranium Drill Program at Lagunillas - More
- September 22, 2008 | Item | E-mail
Mountain Lake Reports a Substantial Resource Increase at Bobby's Pond, Newfoundland - More
- September 22, 2008 | Item | E-mail
Sacre-Coeur Announces Interim Resource Estimate for Zone 1 at Million Mountain: 451,397 Tr Oz Au - More
- September 22, 2008 | Item | E-mail
Queenston Announces First NI 43-101 Mineral Resource at Upper Beaver - More
- September 22, 2008 | Item | E-mail
Blue Note Drilling Confirms Continuity of Mineralization at Depth in Caribou Mine - More
- September 22, 2008 | Item | E-mail
Miranda Gold Reports Carlin-Style Gold Mineralization at Coal Canyon - More
- September 22, 2008 | Item | E-mail
St. Eugene Mining Targets Gold Production with Tartan Lake Mine Acquisition - More
- September 22, 2008 | Item | E-mail
Gladstone Pacific Nickel Ltd (ACN 104 261 887) - Final Results for the year ended 30 June 2008 - More
- September 22, 2008 | Item | E-mail
Global Uranium Corporation" Update on properties and drill programs - More
- September 22, 2008 | Item | E-mail
Claude Resources Sells Tartan Lake Mine Property - "Claude Resources Inc. (TSX:CRJ - News; AMEX:CGR - News) today announced that it has entered into an agreement to sell the assets of the Tartan Lake Gold Mining Property as well as the Amisk Lake Property to St. Eugene Mining Corporation Ltd. ("St. Eugene") (TSXv:SEM)." More
- September 22, 2008 | Item | E-mail
Wallbridge Mining Initiates Drilling on Parkin Offset Dyke - More
- September 22, 2008 | Item | E-mail
IMA Signs Drill Contract for the Island Copper Project - More
- September 22, 2008 | Item | E-mail
Black Pearl Closes First Tranche of Private Placement - More
- September 22, 2008 | Item | E-mail
Guyana Goldfields Inc. proposes new board of directors for Gold Port Resources Ltd. - More
- September 22, 2008 | Item | E-mail
American Uranium to Deliver Cash Refund to Subscribers - More
- September 22, 2008 | Item | E-mail
Uranium Hunter Confirms Further Positive Trenching Results at Ruhuhu - More
- September 22, 2008 | Item | E-mail
Union Reefs Operations Update - More
- September 22, 2008 | Item | E-mail
Fox Resources Ltd. Begins Exploration at Otter - More
- September 22, 2008 | Item | E-mail
Exploration Program Confirms Timmins 2 Geology, Targets Serpentinite for Drill Test - More
- September 22, 2008 | Item | E-mail
High River Gold Comments on Share Price Decline - More
- September 22, 2008 | Item | E-mail
Romios Gold's Metallurgical Test Hole at Its Galore Creek Area Newmont Lake Property Cuts Bonanza Grade Mineralization Grading 753.00 g/t(21.96 oz) Gold - More
- September 22, 2008 | Item | E-mail
Cadiscor: New Terms for the Acquisition of the Sleeping Giant Mine and Mill - More
- September 22, 2008 | Item | E-mail
Romarco Commences Drilling at Pinos Gold District, Mexico - More
- September 22, 2008 | Item | E-mail
MacDonald Mines Recommences Drilling Program on 5 Project Areas in Ring of Fire; Employs Advanced Modeling Process of Targets - More
- September 22, 2008 | Item | E-mail
Radisson Mining Announces Joint Venture with Aurizon Mines Will not Proceed and Embarks on Two Drill Programs - More
- September 22, 2008 | Item | E-mail
Gold Continues to Rise as Elray Bolsters Board of Directors - More
- September 22, 2008 | Item | E-mail
Kyrgyzstan Lifts Restrictions on Kola Mining's Gold Assets; Kola Mining Drills 40m of 1.89g/t Au at Bulakashu, Kyrgyzstan - More
- September 22, 2008 | Item | E-mail
Sherwood Reports Further High Grade Intercepts From Its Kutcho Copper Project - More
- September 22, 2008 | Item | E-mail
Silverado Announces New Drill Results At Nolan Creek Which Continue to Disclose Gold and Antimony Mineralization - More
- September 22, 2008 | Item | E-mail
Bannerman Resources Ltd-Etango Project: Resource Report & Preliminary Metallurgical Testwork Results - More
- September 22, 2008 | Item | E-mail
Inmet Takes Up Shares of Petaquilla Copper - More
- September 22, 2008 | Item | E-mail
Dumont shareholders approve shareholder rights plan - More
- September 22, 2008 | Item | E-mail
Pediment Retains Reyna Mining & Engineering for La Colorada Production Study; Data Review Update - More
- September 22, 2008 | Item | E-mail
Uranium Hunter Confirms Further Positive Trenching Results at Ruhuhu - More
- September 22, 2008 | Item | E-mail
Elray Resources Builds Portfolio With Heavily Mineralized Properties in SE Asia, N. America - More
- September 22, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 22 September, 2008 | |
