-- Posted 23 September, 2008 | | Source: SilverSeek.com

The Metals:

Gold and silver chopped around at modestly lower levels in Asia and London before they briefly rose to see slight gains at $903.60 and $13.53 in early New York trade, but they then fell back off into the close and made new session lows of $879.60 and $12.947 ahead of a late rally back higher that left them nearly 1% from those lows with losses of 1.78% and 2.32%.  At the time of writing both metals have nearly erased those losses in after hours access trade.

Euro gold fell to about €606, platinum lost $30 to $1204, and copper fell nearly 10 cents to about $3.17.

Gold and silver equities fell over 4% by early afternoon before they rebounded back to see only about 1% losses, but they then fell back off in late trade and ended with about 3% losses.

The Economy:

There were no major economic reports today, but the Federal Housing Finance Agency reported that home prices fell a record 5.3% in July.

Dominating today’s headlines was the testimony before the Senate Banking Committee by Treasury Secretary Paulson, fed Chairman Bernanke, Federal Housing Finance Agency director James Lockhart, and SEC Chairman Cox.  All four faced some tough questions as they tried to sell the committee on their $700 billion bailout plan, but few expect very many members of congress to actually vote against the plan.  The group testifies before the House Financial Services committee tomorrow and a congressional vote on the plan is hoped for by Friday.

Tomorrow at 10AM EST brings the Existing Home Sales report for August expected at 4.93 million.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil fell on worries that the ongoing financial crises will result in a drop in world energy demand.

The U.S. dollar index rose slightly and treasuries fell as worry over the bailout plan eased a bit, but many more questions still remain and few see an end to this financial crisis anytime soon no matter what the proposed solution.

The Dow, Nasdaq, and S&P traded mostly slightly higher in morning action, but they then fell back off in afternoon trade on worries over the global economy while members of the Senate Banking Committee struggled to get straight answers and details about the bailout plan from Paulson, Bernanke, and others.

Among the big names making news in the market today were Nomura and Lehman, DuPont, Air Products, AIG, and Circuit City.

The Commentary:

“Dear Extended Family,

Today's events have put two very important criterion in place for the markets that you must be aware of going into January 14, 2011.

1. The dollar has a solid roof above it that now cannot be penetrated.

2. Gold has a solid floor underneath it that now cannot be penetrated.

Selling the dollar on strength and buying gold on weakness with attention to what I have taught you has lost 90% of its risk factor.

With a solid floor under gold, the gold mining business becomes a more sound investment than it ever has been. That is simple logic and is now fact.

With diminishing reserves and very few potential mines coming online, the juniors with the real thing will transition to valuation based on the value of their underlying assets and the quality of deals they make with partners. This will effectively end the rein of the short seller, both illegal and legal.

This understanding will be of great value to you as we move towards 2011.

The more dynamic the event, the less words are required for you to grasp the CONSEQUENCES.

Respectfully yours,”- Jim Sinclair, JSMineset.com

“December Gold closed down 17.8 at 891.2. This was 2.2 up from the low and 17.6 off the high.

December Silver finished down 0.28 at 13.17, 0.36 off the high and 0.11 up from the low.

The Gold market gave back part of Monday's surge with apparent pressure from lower crude prices, and a rebound in the Dollar. Investor uncertainty about whether the anticipated Congressional bailout plan for ailing US banks will be effective or if the plan will ultimately be inflationary or deflationary seems to have temporarily chilled safe haven flows to Gold and may have sparked some profit taking in the precious metals. Gold bounced from early lows possibly due to uncertainty about the bailout package, but resumed to its slide as crude prices traded to the days low.

Silver and Gold appear joined at the hip with Silver trading lower and tracking weaker Gold prices. A slight dip in risk aversion in the early trade may have sparked light selling of Silver as equity markets and the Dollar seemed to stabilize. Silver surged in Monday's trade apparently supported by investor safe haven flows possibly sparked by fears that the anticipated 700 billion bailout plan may be inflationary. But inflation concerns were eased as crude oil turned weak and the Dollar firmed which seemed to spark modest liquidation selling of the precious metals this session. Some investors may be pondering the possible deflationary impact on prices should the bailout plan fail to avert a deeper global slowdown. Silver rebounded from the day's lows mid-session with possible support coming from ongoing uncertainty about the details and speed of enactment of the bailout plan by Congress.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ted Butler: Time out or about time?

Bailout will discredit all currencies, help gold, Tocqueville's Hathaway says

'Hitler gets a margin call,' but what a difference a week makes

Wall Street Journal thinks central banks might start liking gold again

The Statistics:

As of close of business: 9/22/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 30.02 tonnes to a new record high holding the LSE subtracted 0.53 tonnes.

COMEX Gold Trust (IAU)

Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

Almaden’s (AAU) assay results, NovaGold’s (NG) expiring warrants, Banro’s (BAA) exercised over-allotment option, Northgate’s (NXG) drilling, Anatolia’s (ANO.TO) mine construction, Coeur’s (CDE) court appeal, Hecla’s (HL) exercised over-allotment option, Fortuna’s (FVI.V) exploration results, Endeavour’s (EXK) exploration update, and Fresnillo’s (FRES.L) acquired shares in MAG Silver (MVG) were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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:

Coeur Continues Appeal in Supreme Court for the Original Kensington Tailings Plan Permitting; is Terminating Permitting Process for Alternative Tailings Plan - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today announced that, due to further substantial delay in the Environmental Assessment process triggered by a federal agency’s recent actions, the Company has requested the Forest Service to terminate the permitting process for a potential alternative Kensington paste tailings plan. The Company continues to pursue its original tailings plan for Kensington, which is pending in the U.S. Supreme Court. A decision on the appeal is expected in the first or second quarter of 2009." More
- September 23, 2008 | Item | E-mail

Pershimco Announces Results of its Annual Meeting of Shareholders - More
- September 23, 2008 | Item | E-mail

MAX begins drilling at Indata Gold/Copper project in B.C. - More
- September 23, 2008 | Item | E-mail

Moss Lake announces shares for debt transaction - More
- September 23, 2008 | Item | E-mail

Victoria and Gateway to Complete Definitive Agreement for Victoria's Acquisition of Gateway by September 30, 2008 - More
- September 23, 2008 | Item | E-mail

Baffinland Expands Board With the Addition of Russ Cranswick - More
- September 23, 2008 | Item | E-mail

Hecla Announces Exercise of Over-Allotment Option for 3.35 Million Shares - "Hecla Mining Company (NYSE:HL) (“Hecla”) announced that the underwriters have exercised their over-allotment option resulting in the issuance of an additional 3.35 million shares in connection with the company’s recent offering of common stock. The issuance of the additional common shares closed today." More
- September 23, 2008 | Item | E-mail

Coro Mining Appoints Geoff Chater Vice President Business Development - More
- September 23, 2008 | Item | E-mail

Cadiscor reports gold reserves at Sleeping Giant Mine - More
- September 23, 2008 | Item | E-mail

Andover and SNS complete loan agreement - More
- September 23, 2008 | Item | E-mail

Almaden Minerals Ltd.: 54.86 Metres Grading 1.31 g/t Gold Intersected at Caballo Blanco, Mexico - "Almaden Minerals Ltd. ("Almaden", "the Company") (Toronto:AMM.TO - News)(AAU - News) is pleased to report that it has received additional assay results from the Cerro la Paila gold target and the Pedrero and Porvenir porphyry gold-copper targets of its Caballo Blanco project in Veracruz, Mexico from operating partner Canadian Gold Hunter Corp. Core hole 08CBN-018 intersected 13.72 meters grading 3.21 g/t (grams per metric tonne) Au (gold) within a broader 54.9 metre interval grading 1.31 g/t Au in iron-oxide-cemented, vuggy silica breccias on the Cerro la Paila gold target in the Northern Zone." More
- September 23, 2008 | Item | E-mail

GoldSpring Expands Exploration Program - More
- September 23, 2008 | Item | E-mail

Palladon Announces Changes to Board of Directors - More
- September 23, 2008 | Item | E-mail

Fortuna Develops Soledad Vein, Caylloma Mine, Peru; Cuts High Grades Including 52,224 g/t Ag 105 g/t Au Over 0.55 Meters - "Fortuna Silver Mines Inc. (CDNX:FVI.V - News)(BVL: FVI) is pleased to report that underground exploration and development on the Soledad and Silvia veins at its Caylloma Mine located in southern Peru has confirmed high-grade silver mineralization." More
- September 23, 2008 | Item | E-mail

Continent Closes $2 Million Non-Brokered Private Placement - More
- September 23, 2008 | Item | E-mail

Fresnillo raises stake in MAG Silver to 14.7 pct - "London-listed Mexican miner Fresnillo Ltd (FRES.L: Quote, Profile, Research, Stock Buzz) said it has increased its stake in Canada's MAG Silver Corp (MAG.TO: Quote, Profile, Research, Stock Buzz) (MVG.A: Quote, Profile, Research, Stock Buzz) to 14.7 percent.

Shares of MAG Silver rose about 16 percent in afternoon trade on the Toronto Stock Exchange following the announcement." More
- September 23, 2008 | Item | E-mail

American Uranium to Deliver Cash Refund to Subscribers - More
- September 23, 2008 | Item | E-mail

Romarco Intercepts 37 m of 7.9 g/t & 55 m of 6 g/t at Haile - More
- September 23, 2008 | Item | E-mail

SLAM Exploration Discovers New Massive Sulphide Discovery in Bathurst Mining Camp - More
- September 23, 2008 | Item | E-mail

Melkior Closes Acquisition of McFauld's East Rim Nickel and West Rim Nickel Properties - More
- September 23, 2008 | Item | E-mail

Firstgold Completes Initial Drilling at Honorine Gold Property - More
- September 23, 2008 | Item | E-mail

Enlarged Mineralized System at Depth on Matamec's Matheson JV Gold Property - More
- September 23, 2008 | Item | E-mail

Fortune Minerals Limited retains Renmark Financial Communications Inc. - More
- September 23, 2008 | Item | E-mail

Kria Resources Announces Updated Resource Estimate for Ruttan Project - More
- September 23, 2008 | Item | E-mail

Zoro Mining Executes Earn-In/Option Agreement for Escondida Project Development, Region III, Chile - More
- September 23, 2008 | Item | E-mail

J.A.G. Mines Ltd./Drilling Campaign on the Belletere Property: Positive Results - More
- September 23, 2008 | Item | E-mail

James Bay Resources Appoints Brad Leonard as Exploration Manager - More
- September 23, 2008 | Item | E-mail

Skybridge Development to Complete Non-Brokered Private Placement - More
- September 23, 2008 | Item | E-mail

Endeavour Silver Exploration Update: Additional Drilling Continues to Expand Three New Silver Zones in San Pedro Area, Guanacevi, Durango - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(EXK - News)(DBFrankfurt:EJD) announces that additional exploration drilling on its San Pedro properties at the Guanacevi Mines project in Durango State, Mexico continues to expand three new zones of high grade silver-gold (lead-zinc) mineralization." More
- September 23, 2008 | Item | E-mail

Cadiscor Reports New Gold Reserves & Resources at the Sleeping Giant Mine - More
- September 23, 2008 | Item | E-mail

Strateco Resources/Matoush: NI 43-101 Available on SEDAR - More
- September 23, 2008 | Item | E-mail

Nord Resources Provides Update on Reactivation Progress at Johnson Camp Copper Mine - More
- September 23, 2008 | Item | E-mail

RSM: Goldwedge Project, Nye County, Nevada: Underground Development has Identified a New Gold Zone - More
- September 23, 2008 | Item | E-mail

Andina Moves to Strengthen Management Team to Advance Development of the Volcan Gold Project - More
- September 23, 2008 | Item | E-mail

Bear Lake Gold Completes Share Consolidation - More
- September 23, 2008 | Item | E-mail

NovaGold TSX Listed Warrants to Expire October 1, 2008 - "NovaGold Resources Inc. (Toronto:NG.TO - News)(NG - News) reminds holders of its TSX listed share purchase warrants (Toronto:NG-WT.TO - News) that all outstanding share purchase warrants will stop trading on Wednesday, October 1, 2008 at 9:00 am Pacific time (12:00 pm EST) and will expire that day at 4:30 pm Pacific time (7:30 pm EST)." More
- September 23, 2008 | Item | E-mail

Metallum Resources Inc. Continues to Intersect High Grade Gold on McMillan Gold Mine Property - More
- September 23, 2008 | Item | E-mail

Iberian Minerals Corp.-Update on Aguas Tenidas Stockwork Drilling Program - More
- September 23, 2008 | Item | E-mail

Banro announces exercise of over-allotment option - "Banro Corporation ("Banro" or the "Company") (AMEX - "BAA"; TSX - "BAA") is pleased to announce that RBC Capital Markets, on behalf of itself, CIBC World Markets Inc., UBS Securities Canada Inc. and Raymond James Ltd. (collectively the "Underwriters"), has given notice to the Company that the Underwriters wish to exercise their over-allotment option to acquire 1,000,000 additional common shares of the Company at a price of U.S.$1.60 per common share and 500,000 additional warrants of the Company at a price of U.S.$0.30 per warrant, for gross proceeds to the Company of U.S.$1,750,000." More
- September 23, 2008 | Item | E-mail

Fission Energy First Phase Drill Program at Waterbury Lake Northeast Identifies New 'Discovery Bay Zone': Further Exploration Planned - More
- September 23, 2008 | Item | E-mail

Mosquito Announces Another Excellent Intersection at Pine Tree, Hole 17 Intersects 1140 Feet Grading 0.90% Copper Equivalent/0.080% Molybdenite Equivalent - More
- September 23, 2008 | Item | E-mail

Golden Eagle Reports on Effects of Current Political Unrest in Bolivia on C Zone Gold Operation - More
- September 23, 2008 | Item | E-mail

Golden Valley Mines: Abitibi Grassroots Exploration Program Update Diamond Drill Program Underway-Lock-Out Prospect, Val-d'Or, Quebec - More
- September 23, 2008 | Item | E-mail

Opawica Announces Atikwa Lake Drill Results and Private Placement - More
- September 23, 2008 | Item | E-mail

Merrex Increases Ownership to 100% in Siribaya Gold Project - More
- September 23, 2008 | Item | E-mail

Noront Continues to Outline World Class Chromite Mineralization at Blackbird One and Two - More
- September 23, 2008 | Item | E-mail

Adex Reports Fire Tower Zone Drill Results, Including Six Metres of 0.77% Tungsten and 0.43% Molybdenum - More
- September 23, 2008 | Item | E-mail

Quest Receives Positive Results from Airborne Geophysical Surveys, Kenora North Project, Northwestern Ontario - More
- September 23, 2008 | Item | E-mail

Zoloto Resources - Phase 1 drilling complete & initial exploration results from Ozherelie Project - More
- September 23, 2008 | Item | E-mail

Romarco Intercepts 37 m of 7.9 g/t & 55 m of 6 g/t at Haile - More
- September 23, 2008 | Item | E-mail

Northland Resources Inc.: The Finnish Government Outlines Its Support for Mine Development - More
- September 23, 2008 | Item | E-mail

Colombia Goldfields to focus on Marmato project analysis - More
- September 23, 2008 | Item | E-mail

Colorado Goldfields, Inc. Announces Milestone 50 Foot Mogul Intercept - More
- September 23, 2008 | Item | E-mail

Uranium Star Finds Strong Indications of Gold on Madagascar Properties; Ramps Up Gold Exploration - More
- September 23, 2008 | Item | E-mail

RD-08-55 Intersects 61.96 Metres of 5.96% Copper at VMS Discovery Zone Near Snow Lake, Manitoba - More
- September 23, 2008 | Item | E-mail

New Zone of Gold Mineralization Discovered at Uzboy - More
- September 23, 2008 | Item | E-mail

Sacre-Coeur Minerals Grants Stock Options and Resets Exercise Price of Outstanding Stock Options - More
- September 23, 2008 | Item | E-mail

Pacific Ridge Gains Aurora Energy as a Partner for the Baker Uranium Project - More
- September 23, 2008 | Item | E-mail

Aurora Expands Uranium Pipeline to Baker Basin, Nunavut - More
- September 23, 2008 | Item | E-mail

Bluerock Updates Mining and Development Project Status of US Uranium Mining Operations - More
- September 23, 2008 | Item | E-mail

Rimfire and Northgate Commence Drilling at Boulevard, Yukon - "Rimfire Minerals Corporation, TSX-V:RFM, is pleased to announce that in partnership with Northgate Minerals Corporation, TSX:NGX, drilling has commenced at its new gold discovery on the Boulevard Property. The Boulevard Property is located approximately 135 kilometres south of Dawson City, Yukon. Gold bearing mineralization, including 7.04 g/t gold over 6.0 metres, was discovered in two of three trenches over a 300 metre trend (see Rimfire news release PR08-12, August 20, 2008). The diamond drilling program will consist of 4 to 6 holes averaging 150 metres in length and is expected to be completed by mid-October." More
- September 23, 2008 | Item | E-mail

Anatolia Minerals commences Copler Gold Mine construction - "Anatolia will begin mobilization of the main earthworks and civil works contractor immediately. Construction management is being provided by SNC Lavalin. The project schedule targets first gold pour in late 2009. Anatolia will then ramp up production throughout 2010 to achieve full production goals by 2011." More
- September 23, 2008 | Item | E-mail

Fresnillo plc acquisition of shares in MAG Silver - "Fresnillo plc, the world's largest primary silver producer, announces that on 22 September it acquired 5 million common shares of MAG Silver Corp (TSX: MAG, AMEX: MVG) ("MAG Silver") through the facilities of the Toronto Stock Exchange at a price of $5.31 Canadian dollars per share." More
- September 23, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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