Gold Seeker Closing Report: Gold and Silver Surge Higher After Hours As Bailout Plan Fails

	Close	Gain/Loss
Gold	$889.10	+$5.70
Silver	$12.945	-$0.465
XAU	133.0	-3.82%
HUI	321.10	-2.45%
GDM	948.00	-2.90%
JSE Gold	1806.29	-83.49
USD	77.57	+0.58
Euro	144.47	-1.77
Yen	96.01	+1.79
Oil	$96.37	-$10.52
10-Year	3.632%	-0.195
T-Bond	119.78125	+2.34375
Dow	10365.45	-6.98%
Nasdaq	1983.73	-9.14%
S&P	1106.55	-8.78%

Gold fell $16.90 to $866.50 by late trade in Asia and rose $23.65 to $907.05 by about 10AM EST in New York before it moderated into the close, but it still ended with a gain of 0.65%. Silver fell to $12.63 and rose to $13.363 before it also fell back off a bit into the close and ended with a loss of 3.47%. At the time of writing in after hours access trade, gold is up over $25 and silver is up over 20 cents in reaction to the House’s failure to pass the bailout plan.

Euro gold rose €13 to about €618, platinum lost $14 to $1081.50, and copper dropped nearly 17 cents to about $2.92.

Gold and silver equities fell over 4% by early afternoon before they rebounded in the last couple of hours of trade, but they still ended with over 2% losses as roughly 8% losses in the Dow and other major indices overcame a higher gold price.

Report	For	Reading	Expected	Previous
Personal Income	Aug	0.5%	0.2%	-0.6%
Personal Spending	Aug	0.0%	0.2%	0.1%

In what was quite a surprise to many the bailout plan failed to pass the House vote today with 228 against and 205 for. A new deal will likely be worked out soon, but that uncertainty is certainly taking its toll on the markets and due to Jewish Holidays the next potential vote will not come until at least Thursday.

Also making economic news early this morning was the fed who significantly expanded the availability of cash to financial institutions:

“Under one new step, the Fed will boost the amount of 84-day cash loans available to U.S. banks. The Fed is increasing the amount to $75 billion, up from the current $25 billion starting on Oct. 6. Banks bid on a slice of the loans at an auction.

That move will triple the supply of 84-day loans to $225 billion, from $75 billion, the Fed said.

Meanwhile, the Fed will continue to make $75 billion worth of shorter, 28-day loans available to banks.

All told, the total amount of cash loans -- 84-day and 28-day -- available to banks will double to $300 billion from $150 billion, the Fed said.

Moreover, the Fed made an extra $330 billion available to other central banks. That boosted to $620 billion the total amount available to the central bank through currency "swap" arrangements, where dollars are traded for their currencies. That total is up from $290 billion previously being made available through such arrangements.”

While relatively insignificant, certainly noteworthy is that the senate also approved 25 billion dollars in loan guarantees for the financially strapped US auto industry.

Tomorrow at 9:45AM EST is Chicago PMI for September expected at 54.0 and at 10AM is Consumer Confidence for September expected at 55.0.

Oil fell over 10% on demand worries as it became obvious the financial crisis is hurting other world markets as well while problems in the US deepen with the so far failure of the bailout plan.

The U.S. dollar index rose on the prospect that it is not the worst currency in the world today. Other world currencies like the euro and British pound proved they were more worthless today as the financial crisis proved its prevalence in Europe as well. The dollar ended well off its highs after the failure of the bailout plan, but it still ended with a modest gain.

Treasuries rose markedly as the Dow, Nasdaq, and S&P plummeted and ended AT their lows of the session with huge losses after the House voted against the bailout bill and raised concern that anything can or will be done to save the financial markets. If there weren’t so much else going on today the main story that is worthy of attention would have been that Citigroup took over Wachovia in yet another necessary banking absorption.

Among the other big names making news in the market today were Fannie and Freddie, Walgreen, Morgan Stanley, Goldman Sachs, Merrill Lynch, and Apple.

“Gold is pushing against the $900 technical resistance area as the financial crisis ensues and elevates. Yes, the US Dollar Index is doing well, but remember that it is just a relative measurement against other paper currencies. The true measure is against gold and today we are witnessing gold rise against a strong US dollar meaning it is rising even more in € gold terms and other foreign currencies.

When you have a slowdown of credit creation you have a liquidity crisis and as the situation accelerates to new levels, more desperate actions are being taken. Today the Federal Reserve announced new measures to keep the system from collapsing. By increasing short-term loans (84-day loans) to $225 billion from $75 billion and another $75 billion of 28 day loans, doubling short-term loans to $300 billion.

Even more staggering is $620 billion being made available to other central banks, up from $290 billion in these currency swaps. We still await the bailout deal but with fear at very high levels, it is sure to receive broad support.

The US Dollar has been sentenced to death. Only the execution date is yet to be announced…”- Peter Spina, www.goldforecaster.com

You can be absolutely sure that gold is the only completely safe currency to hold when a worldwide meltdown of OTC derivatives is pulling at the seams of all financial institutions.

Due to the enormous increase in US dollars outstanding when Central Banks wish to diversify out, the dollar can be manipulated, at least temporarily. No manipulation in the entire history of a market has ever been able to change the trend.

The bailout deal is a total dud in terms of fundamental ability to make any difference.

The shorts in many very good juniors are making Custard's Last Stand. Please do not let the pool and naked shorts run you out by squeezing your emotions and thereby clouding your ability to reason.

“December Gold closed up 5.9 at 894.4. This was 13.4 up from the low and 15.1 off the high.

December Silver finished down 0.478 at 13.025, 0.355 off the high and 0.16 up from the low.

The gold market waffled around both sides of unchanged throughout the trading session, with the morning action generally favoring the bull camp. Surprisingly the sharp rise in the Dollar didn't preclude the gold market from forging some initial flight to quality gains and that was somewhat surprising. But perhaps seeing Wachovia and two other European banking entities become the latest victims of the credit crisis was enough to drive investors to gold despite the currency move. Gold regained traction in the afternoon session on additional safe haven buying, as financial markets sunk on news the House of Representatives couldn't pass the banking bailout plan. Exchange traded index funds were seen as strong buyers of gold but some gold traders were still a little disappointed in the magnitude of the gold gains in face of what seemed to be a historic meltdown in US equity prices.

Surprisingly, silver broke its strong connection to gold and fell sharply during the session with it apparently pressured by a stronger Dollar and deepening economic concerns. As an industrial metal, silver was certainly undermined by reports of more banking problems in the US and Europe which raises the odds for a global economic recession to take hold. A steep drop in oil and copper prices along with a strong Dollar added a deflationary tone to the market and that also seemed to inspire selling in silver market.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.92 tonnes and the LSE added 0.54 tonnes.

Note: Change in Total Tonnes from yesterday’s data: 1.38 tonnes were subtracted from the trust.

IAMGOLD’s (IAG) corporate update and update on Ecuador's constitutional referendum, Northern Dynasty’s (NAK) permitting process in Alaska, Gammon Gold’s (GRS) NYSE listing, Seabridge’s (SA) drilling, Fronteer’s (FRG) drill results, AngloGold’s (AU) mine death, Gold Fields’ (GFI) annual report, KazakhGold’s (KZGq.L) offer approach from Polyus (PLZLq.L), ECU Silver’s (ECU.TO) concentrate sales agreement, Genco’s (GGC.TO) feasibility study, UC’s (UC.V) drilling, Silvercorp’s (SVM.TO) shareholder rights plan, and Apogee’s (APE.V) drill results were among the big stories in the gold and silver mining industry making headlines today.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Merrex Incentive Stock Options Granted - More
- September 29, 2008 | Item | E-mail

Noront Resources Ltd. Options Two More Properties in the Ring of Fire; Noront Resumes Agoracom Agreement; Acceptance of 43-101 Report for Filing - More
- September 29, 2008 | Item | E-mail

UEX reports N.I. 43-101 compliant mineral resource for Horseshoe Deposit containing 18.693 million pounds of U(3)O(8) in the indicated category - More
- September 29, 2008 | Item | E-mail

Valley High Ventures and Coro Mining Corp. Complete Mexican Transaction - More
- September 29, 2008 | Item | E-mail

Maestro Adds Significant Polymetallic Project in Western Nevada - More
- September 29, 2008 | Item | E-mail

Sulliden announces the excerise of warrants - More
- September 29, 2008 | Item | E-mail

IAMGOLD Corporate Update - "IAMGOLD Corporation ("IAMGOLD" or "the Company") (Toronto:IMG.TO - News)(IAG - News)(BOTSWANA: IAMGOLD) is pleased to provide an update on recent progress focused on optimizing operational performance, cost reduction initiatives and exploration and project development acceleration." More
- September 29, 2008 | Item | E-mail

Network to exhibit at Toronto Resource Investment Conference - More
- September 29, 2008 | Item | E-mail

Lakota Resources Inc. Completes $1.25m Financing And Options Granted to New Board Members - More
- September 29, 2008 | Item | E-mail

Miranda Advancing New Copper-Molybdenum Target at Redlich - More
- September 29, 2008 | Item | E-mail

2008 Drill Results Have Extended the High Grade Silver - Massive Sulphide Horizon on the BA claims over at least 800 meters in Strike Length and 400 Meters Down - More
- September 29, 2008 | Item | E-mail

Strike action resolved at Hitura Nickel Mine - More
- September 29, 2008 | Item | E-mail

Golden Oasis Exploration Corp.: High-Grade Gold Intersected at Courtney B Fault Target, Toiyabe Project, Nevada-5 Feet @ 0.427 Oz/Ton Gold - More
- September 29, 2008 | Item | E-mail

Caldera Resources Inc.: Potash Option at Cromer Cone Project - More
- September 29, 2008 | Item | E-mail

Santa Fe Gold Updates Progress of Construction at Summit Silver-Gold Mine - More
- September 29, 2008 | Item | E-mail

MPH Ventures Drills 23 Metres of .38% Mo & 29 Metres of .18% Mo Near Surface at Pidgeon Molybdenum Deposit in NW Ontario - More
- September 29, 2008 | Item | E-mail

Freewest Intersects 110 Metres of Chromite Mineralization in 1.6 Kilometre Step-Out Hole Testing the Black Thor Chromite Zone on Its 100%-Owned McFaulds Propert - More
- September 29, 2008 | Item | E-mail

High Desert Gold Announces Acquisition of New Gold Target: Artillery Peak - More
- September 29, 2008 | Item | E-mail

Gowest to Acquire New Texmont's 50% Interest in Frankfield Project - More
- September 29, 2008 | Item | E-mail

Inter-Citic Reports Results from 50 Drill Holes at Dachang Gold Project-All Holes Report Gold Mineralization - More
- September 29, 2008 | Item | E-mail

Colossus Minerals Drills More High Grade Gold-Platinum-Palladium at Serra Pelada - More
- September 29, 2008 | Item | E-mail

$10 million exploration update from CanAlaska's AGM - More
- September 29, 2008 | Item | E-mail

Cadiscor: Positive Scoping Study on Discovery - More
- September 29, 2008 | Item | E-mail

USCorp Reports Phase One Drilling Completed at Twin Peaks Gold Property and Phase Two Nears Launch - More
- September 29, 2008 | Item | E-mail

Western Warrior announces mailing of information circular and proxy statement with respect to annual and special meeting of shareholders - More
- September 29, 2008 | Item | E-mail

GMV Minerals Inc. Options RHG Project - More
- September 29, 2008 | Item | E-mail

New Dawn Mining Corp. Appoints New Director - More
- September 29, 2008 | Item | E-mail

Extract Resources - Strongly mineralised uranium zones continue at Rossing South - More
- September 29, 2008 | Item | E-mail

Newcrest Commences Drilling at Serengeti's Croy Bloom/Davie Creek Property - More
- September 29, 2008 | Item | E-mail

PC Gold Announces 2008 Year End Financial Results - More
- September 29, 2008 | Item | E-mail

Largo to Defer Scoping Study for Northern Dancer Due to Encouraging Results From 2008 Drill Program - More
- September 29, 2008 | Item | E-mail

AuEx Ventures, Inc.: Long Canyon Venture Drilling Extends Gold Mineralization 400 Meters Northeastward Along Strike - More
- September 29, 2008 | Item | E-mail

Elray Resources Provides Overview to Analhi Project Located in Mineral-Rich Region - More
- September 29, 2008 | Item | E-mail

Kalimantan Gold Corporation Limited: Jelai Drilling Produces More High-Grade Gold Intercepts - More
- September 29, 2008 | Item | E-mail

Copper Fox Applauds Advancement of Northwest Power Line - More
- September 29, 2008 | Item | E-mail

Asian Mineral Resources Limited-Ban Phuc Project Suspension - More
- September 29, 2008 | Item | E-mail

ECU Silver Signs Concentrate Sales Agreement - "ECU Silver Mining (Toronto:ECU.TO - News) (the "Company") is pleased to announce that it has entered into a contractual agreement with MK Metals Trading S.A. de C.V., a division of Nexxtrade ("MK Metals"), an international broker, for the sale of both our lead concentrates and our zinc concentrates. This is an important event for the Company as it underscores the ability of the Company to realize value for its lead and zinc concentrates in a market where sales of mineral concentrates to smelters has been very difficult and limited for several junior mining companies." More
- September 29, 2008 | Item | E-mail

IAMGOLD: Positive Results Expected in Ecuador's Constitutional Referendum - "IAMGOLD Corporation ("IAMGOLD" or "the Company")(Toronto:IMG.TO - News)(IAG - News)(BOTSWANA: IAMGOLD) is pleased to provide an update on Ecuador's constitutional referendum which includes the mandate to form a new policy for mining development. The referendum was held on Sunday, September 28, 2008 and based on media reports and on communications from IAMGOLD's management team in Ecuador, the results are expected to be favourable. Once the official results are released, likely within the next ten days, IAMGOLD will provide a further update." More
- September 29, 2008 | Item | E-mail

Genco's Feasibility Study Nears Completion - "Genco Resources Ltd. (TSX-GGC) announced today that its independent mining consultant, Kappes Cassidy & Associates of Reno, Nevada, is nearing completion of the feasibility study respecting expansion of Genco's La Guitarra Mine. The study is now anticipated to be completed and announced in mid-October." More
- September 29, 2008 | Item | E-mail

UC to Commence Drilling at McFaulds Lake - "UC Resources is pleased to announce that Billiken Management has begun the mobilization of a drill to the McFaulds Lake project in northern Ontario where UC Resources has the right to earn up to 55% of the East and West blocks currently held by Spider Resources Inc. (TSX VENTURE:SPQ - News) and KWG Resources Inc. (TSX VENTURE:KWG - News). As previously mentioned in a press release dated July 28, 2008, UC has committed to an initial 2500 metre drill program. The first target, known as the "hook target", is located to the southwest of the Noront (TSX VENTURE:NOT - News) Eagle One discovery. The drill program is slated to commence the week of October 6th." More
- September 29, 2008 | Item | E-mail

Silvercorp Shareholders Approve Shareholder Rights Plan - "Silvercorp Metals Inc. (Toronto:SVM.TO - News) ("Silvercorp" or the "Company") held its Annual General Meeting (the "Annual Meeting") on September 26, 2008. All matters placed before the shareholders were approved, including the adoption of the proposed shareholder rights plan." More
- September 29, 2008 | Item | E-mail

Alaska Leadership Team Prepares Pebble Project for Permitting - "Northern Dynasty Minerals Ltd. ("Northern Dynasty" or the "Company") (TSX: NDM - News; AMEX: NAK - News) reports that the Pebble Limited Partnership ("PLP", "Pebble Partnership" or the "Partnership") executive and management team that will oversee completion of a Prefeasibility Study in the second half of 2009, and lead the Pebble Project into permitting, is largely in place in Anchorage, Alaska." More
- September 29, 2008 | Item | E-mail

Gammon Gold Approved to Trade on the New York Stock Exchange - The First Canadian Company Headquartered Solely in Atlantic Canada to Achieve a NYSE Listing - "Gammon Gold Inc. ("Gammon") (TSX:GAM and AMEX:GRS): is pleased to announce that the New York Stock Exchange (NYSE) has approved Gammon's application to list its common stock on the NYSE. The company anticipates that its common shares will begin trading on the NYSE at the opening of trading on October 14, 2008 under its current U.S. trading symbol "GRS". The company's shares will continue to trade on the AMEX until the close of trading on October 13, 2008. Gammon will continue to trade on the Toronto Stock Exchange under the ticker symbol "GAM"." More
- September 29, 2008 | Item | E-mail

Sulphurets Zone Grows at Seabridge Gold's KSM Project - "Results of an off-set drill hole on the Sulphurets zone from this summer's program at the Kerr-Sulphurets-Mitchell ("KSM") project confirms the extension of a higher grade breccia zone in the Sulphurets resource area, prompting Seabridge to drill two more off-set holes in this year's program. The Sulphurets drilling appears likely to expand the Sulphurets resource model down-dip and along strike to the northwest and northeast." More
- September 29, 2008 | Item | E-mail

Apogee Intersects 32.6 Meters Grading 445 g/t Silver Including 1,148 g/t Silver Over 11 Metres at the Pulacayo Deposit, Bolivia - "Apogee Minerals Ltd. (TSX VENTURE:APE - News) today announced it has received the assay results from seventeen diamond drill holes completed at the Pulacayo Deposit in southern Bolivia (Figure 1 & 2). These results are the final drill results from the just completed drill campaign to delineate a NI 43-101 resource for the upper part of the Pulacayo deposit. All data has been transferred to Micon International who will provide the independent third party resource estimate. Micon initiated their assessment in August and they have indicated that they expect to provide the updated resource estimate within two weeks." More
- September 29, 2008 | Item | E-mail

Drilling Extends Strike 400 Metres at Fronteer's Long Canyon Gold Project - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(FRG - News) is pleased to announce that step-out drilling has extended high-grade, oxide gold mineralization by 400 metres along strike at its Long Canyon Project in Nevada." More
- September 29, 2008 | Item | E-mail

Annual Report of Gold Fields Limited for Financial Year to 30 June 2008 - "Gold Fields Limited today issued and mailed its Annual Report for the financial year to 30 June 2008 to shareholders and other interested parties." More
- September 29, 2008 | Item | E-mail

KazakhGold says has offer approach from Polyus - "Kazakh gold miner KasakhGold (KZGq.L: Quote, Profile, Research, Stock Buzz) said on Monday it had received a possible cash and shares offer for 50.1 percent of the company from Russia's top gold producer Polyus Gold (PLZLq.L: Quote, Profile, Research, Stock Buzz).

The part offer is for $7.95 in cash and 0.298 Polyus Gold shares for every Kazakhgold share, valuing each share at $14.73 and the company at just under $750 million." More
- September 29, 2008 | Item | E-mail

One killed at AngloGold S.Africa mine - "A mineworker was killed after an earth tremor caused a rock fall at AngloGold Ashanti's (ANGJ.J: Quote, Profile, Research, Stock Buzz) Tautona mine in South Africa, the company and mining union NUM said on Saturday." More
- September 29, 2008 | Item | E-mail

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