-- Posted 20 October, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $787.60 | +$1.65 |
Silver | $9.76 | +$0.415 |
XAU | 95.06 | +10.73% |
HUI | 222.69 | +9.38% |
GDM | 663.30 | +10.02% |
JSE Gold | 1750.09 | +11.59 |
USD | 83.07 | +0.67 |
Euro | 133.22 | -0.92 |
Yen | 98.11 | -0.31 |
Oil | $74.25 | +$2.40 |
10-Year | 3.886% | -0.052 |
T-Bond | 113.484375 | +0.4375 |
Dow | 9265.43 | +4.67% |
Nasdaq | 1770.03 | +3.43% |
S&P | 985.40 | +4.77% |
The Metals:
Gold rose as much as $24.15 to $810.10 in Asia before it fell back off for most of trade in London and New York and briefly saw slight losses at as low as $784.65 by about noon EST, but it then rallied back higher in afternoon trade and ended with a gain of 0.21%. Silver rose over 6% to $9.94 before it fell to see just a $0.112 gain at $9.457 by late morning in New York, but it also rallied back higher into the close and ended with a healthy gain of 4.44%.
Euro gold rose to about €592, platinum gained $21 to $880.50, and copper fell over 6 cents to about $2.11.
Gold and silver equities rose over 4% by about an hour into trade before they halved those gains by late morning, but they then rose to new highs in afternoon trade and added about 10% by the close.
The Economy:
Report | For | Reading | Expected | Previous |
Leading Indicators | Sep | 0.3% | -0.1% | -0.9% |
Bernanke spoke before congress today endorsing the idea of another stimulus plan and Paulson detailed the banking plan as both men continue to try to ease the credit markets. There are no major economic repots due out tomorrow.
Home prices to fall another 10 percent: Fitch Reuters
Bernanke, White House warm to another stimulus plan Reuters
Paulson Says Plan to Purchase Stakes in Qualifying Banks Has Enough Funds Bloomberg
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose again on the increasing possibility that OPEC will announce a production cut or even stages of cuts at their meeting this Friday.
Treasuries rose on worries over the economy, but gains pared after Bernanke spoke about the possibility of another stimulus plan which also boosted the U.S. dollar index and sent the Dow, Nasdaq, and S&P over 3% higher on hopes of recovery in the credit market.
Among the big names making news in the market today were Sun Microsystems, Hasbro, Mattel, Exelon and NRG, Merrill Lynch, Wells Fargo, and Halliburton.
The Commentary:
The Bullion Market Versus The Paper Gold Market - An Explanation
“Dear Friends,
- It is axiomatic that the most leveraged gold market most often (95 percent of the time) sets the price of any cash market. First derivatives (listed futures) commands price.
- This remains true as long as the COMEX warehouse of gold is NOT meaningfully depleted by long gold contracts by taking delivery from the exchange warehouse.
- As long as an exchange maintains a warehouse that historically overwhelms historical demand for delivery the first derivative, The COMEX listed gold future, will be the primary cause of price.
- Taking delivery from the COMEX warehouse is not an easy process as the system is designed not to violate your contract but to be a world-class pain in the ass.
- The COMEX requires re-assays, assuming you wish to re-deliver. This then places another raving pain in the ass in your way.
- The COMEX market is effectively an international 24-hour market as there is no location where you cannot buy or sell a COMEX clone.
- Cash bullion gold as opposed to the semi cash markets that non-USA banks trade is the only totally private means of buying and selling gold.
- As currency problems increase, first the knowledgeable public such as you clean out the coin market.
- This is the first time that the international coin markets have been cleaned out everywhere. This did not happen globally in the 70s.
- Large gold bars are still available in major markets but the backup inventory is getting low.
- As long as the COMEX warehouse remains adequate and large bars still are available, the paper market, the leveraged COMEX market, will rule the price.
- Only with a decline in COMEX warehouse inventories and a run down in large bar supplies of the cash market will the cash bullion market command the price of the COMEX futures market.
- It was not the buying by the Hunts that caused silver to move above $30 into the $50 area, but rather the universal belief that they would take delivery, which would deplete or exceeded the COMEX warehouse supply.
- The War between paper gold and bullion gold is a war to determine which will take command of the price of gold, nothing more, nothing less. There will be no two markets trading at different prices. All this battle is about is IF the bullion gold market is going to take the lead in making the singular price away from the traditional axiom that the most leveraged market makes the price. I believe the bullion, in these most unique conditions, will command the one gold price making it hard to impossible to manipulate the gold price via the paper gold market, as is the practice every day.”- Jim Sinclair, JSMineset.com
“December Gold closed up 2.3 at 790. This was 0.9 up from the low and 7.5 off the high.
December Silver finished up 0.355 at 9.69, equal to the high and 0.175 up from the low.
The gold market continued to waffle around both sides of the prior closing value on Monday but in general the market seemed content to sit in a range that was significantly below last week's highs and only marginally above the recent lows. Clearly a stronger Dollar served to undermine gold but it also seemed as if macro economic uncertainty was on the decline and that prompted some weak handed longs to exit on the Monday morning bounce. However, with a higher equity market, somewhat positive US leading indicator readings and gains in several physical commodity markets on Monday, the gold market simply wasn't as concerned about the recent deflationary selling wave as it was at times late last week.
With the Dollar soaring to a new high for the move just after mid session Monday and gold unable to sustain its early morning strength, it wasn't surprising to see silver spend most of the trading session below the prior session's highs. With copper prices failing to join in the short covering rally some silver bulls might have been discouraged from making fresh buys of silver, despite the prospect of a slight improvement in macro economic psychology.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Peter Brimelow: Paranoid but still prescient?
ECB council member foresees 'tri-polar' currency system
James Turk: Gold's new records
Jim Sinclair: The bullion market vs. the paper gold market
No credit? No assets? No problem at U.S. Treasury!
Economist Mundell says China should buy all IMF gold
John Embry: Rescue will send gold to surreal price level
Even Mark Hulbert now admits possibility of gold manipulation
Heavy secret gold leasing may explain disparity in gold prices
The Statistics:
As of close of business: 10/17/2008
Gold Warehouse Stocks: | 8,565,237 | +3,760 |
Silver Warehouse Stocks: | 133,370,674 | -211,589 |
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 | 756.86 | 24,333,868 | US$ 19,086m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 123.52 | 3,971,338 | US$ 3,146m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.89 | 382,101 | US$ 303m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.22 | 842,873 | US$ 661m |
Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.08 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/17/2008 | |
Total Net Assets | $1,655,338,092 | Ounces of Gold
in Trust | 2,108,859.706 |
Shares Outstanding | 21,400,000 | Tonnes of Gold
in Trust | 65.59 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/17/2008 | |
Total Net Assets | $2,118,845,331 | Ounces of Silver
in Trust | 221,698,064.200 |
Shares Outstanding | 224,400,000 | Tonnes of Silver
in Trust | 6,895.58 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Central Sun’s (SMC) strategy update, Barrick’s (ABX) JV with Midway (MDW), Gold Fields’ (GFI) production loss due to worker deaths last week, ITH’s (THM) exploration results, Paramount’s (PZG) assay results, Coeur’s (CDE) convertible notes sale, and Silvercorp’s (SVM.TO) normal course issuer bid were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Seabridge | SA +36.21% $9.63 |
2. Jaguar | JAG +24.93% $4.41 |
3. Great Basin | GBN+23.23% $1.22 |
LOSERS
1. Apex Silver | SIL -9.73% $1.67 |
2. Solitario | XPL -3.48% $2.635 |
3. International Royalty | ROY -2.35% $1.68 |
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:
Eaglecrest Shareholder Update: Building New Gold Targets at San Simon - More
- October 20, 2008 | Item | E-mail
Ontex Resources Limited Announces Additional Drill Results and NI 43-101 Technical Report Progress - More
- October 20, 2008 | Item | E-mail
Hawk Completes First Phase of Drilling on the Soocana Vein System; Metallurgical Testing of the Black Sands Zone Underway From the Holdsworth Gold Project - More
- October 20, 2008 | Item | E-mail
Jasper Mining Corporation announces further high grade molybdenum results from McFarlane property - More
- October 20, 2008 | Item | E-mail
Global Uranium commences drilling on its White Cloud property, Nevada - More
- October 20, 2008 | Item | E-mail
Central Sun Corporate Strategy Update - "Central Sun is a producing gold mining company which currently operates the cash flow positive Limon Mine in Nicaragua. The Company also owns the Orosi Mine which is in the final stages of construction which was expected to be completed and operating at the end of the first quarter of 2009. To date the Company has spent approximately US$31million of the required US$47 million to complete the project." More
- October 20, 2008 | Item | E-mail
Barrick to Joint Venture Midway's Spring Valley Project, Nevada - "Midway Gold Corp. ("Midway") (CDNX:MDW.V - News)(NYSE-A: MDW) is pleased to announce that it has signed a term sheet with Barrick Gold Exploration Inc., a wholly owned subsidiary of Barrick Gold Corporation (ABX - News)(Toronto:ABX.TO - News) for an exploration agreement and option to joint venture Midway's Spring Valley gold project, Pershing County, Nevada." More
- October 20, 2008 | Item | E-mail
Mining accidents cost Gold Fields 9,645 ounces - "South Africa's Gold Fields (GFIJ.J: Quote, Profile, Research, Stock Buzz), the world's No. 4 producer, said on Monday it lost a total of 9,645 ounces of the metal when it shut two of its gold mines last week after workers died.
Gold Fields shut its largest and biggest Africa mine Driefontein on Wednesday after two workers died following a earth tremors. It got the government green light to restart operations on Thursday evening, losing some 75 kg of gold." More
- October 20, 2008 | Item | E-mail
Noront Comments on Flawed RiskMetrics Report - More
- October 20, 2008 | Item | E-mail
Complete turnover on the Board of Directors - Businessman Rolland Veilleux now in command - More
- October 20, 2008 | Item | E-mail
Pacific Gold Corp. Redeems Convertible Debentures - More
- October 20, 2008 | Item | E-mail
Geoinformatics Closes Private Placement with Geologic Resource Partners - More
- October 20, 2008 | Item | E-mail
Unico, Inc. Announces Results From Geological Work Conducted by Behre Dolbear and Company at the Deer Trail Mine - More
- October 20, 2008 | Item | E-mail
Cardero Produces Premium Direct Reduced Iron Grade Pellets from Pampa de Pongo Iron Deposit in Peru - More
- October 20, 2008 | Item | E-mail
Aurora Introduces Michelin Project Community Panel Members - More
- October 20, 2008 | Item | E-mail
Sparton Selected to Join Ontario Government Environmental Mission to China - More
- October 20, 2008 | Item | E-mail
Newstrike Resources Ltd. Declines Option on Jean Property - More
- October 20, 2008 | Item | E-mail
Rare Element Resources-Newmont Gold Venture Makes Progress with 2008 Exploration Program and Provides Financial Position Update - More
- October 20, 2008 | Item | E-mail
Rochester Provides Updated NI 43-101 Technical Report on Mina Real Property, Nayarit, Mexico - More
- October 20, 2008 | Item | E-mail
Nuinsco Receives Further Positive Drill Results From Berta Project - More
- October 20, 2008 | Item | E-mail
Volta not to proceed with Predictive Discovery Proprietary Limited (PDPL) BUI Framework Agreement on specified BUI Belt licenses in Ghana - More
- October 20, 2008 | Item | E-mail
Canadian Arrow Mines Ltd. - Exploration Update - More
- October 20, 2008 | Item | E-mail
Gravity West Reports Assay Results of Massive Ilmenite Surface Samples, Averaging 42.08% Titanium Oxide and 52.73% Iron Oxide Totalling 94.81% from Saint Urbain - More
- October 20, 2008 | Item | E-mail
TALON METALS Files NI 43-101 Technical Report on Sao Jorge Gold Project on SEDAR - More
- October 20, 2008 | Item | E-mail
HuntMountain Reports More Outstanding Drill Results from La Josefina - More
- October 20, 2008 | Item | E-mail
Valencia Ventures Settles Liabilities Relating to Jacobina Mine - More
- October 20, 2008 | Item | E-mail
Aberdeen Elects to Convert Gold Royalty Loan Into Simmer & Jack Shares - More
- October 20, 2008 | Item | E-mail
Boss exploration - Five new zones of copper-gold mineralization located - More
- October 20, 2008 | Item | E-mail
Victory Nickel Acquires Additional Common Shares of Independent Nickel - More
- October 20, 2008 | Item | E-mail
Don Lake Uranium Project - Uranium City, Saskatchewan, Canada Exploration Update - More
- October 20, 2008 | Item | E-mail
First Nickel Places Lockerby Mine on Care and Maintenance - More
- October 20, 2008 | Item | E-mail
Algeria to miss gold output target-minister - "OPEC member Algeria will fail to achieve an ambitious plan aimed at increasing its gold output to three tonnes this year from less than a tonne, Energy and Mines Minister Chakib Khelil was quoted on Sunday as saying." More
- October 20, 2008 | Item | E-mail
Victory Nickel Acquires Additional Common Shares of Independent Nickel - More
- October 20, 2008 | Item | E-mail
Castle Resources Announces Termination of Cobalt Claim Package Purchase - More
- October 20, 2008 | Item | E-mail
Aurora Announces 2008 Exploration Program at Pacific Ridge Baker Lake Basin Uranium Project - More
- October 20, 2008 | Item | E-mail
ITH Defines High-Grade Surface Copper-Gold Anomalies at BMP Project, Alaska - "International Tower Hill Mines Ltd. ("ITH" or the "Company") (CDNX:ITH.V - News)(NYSE-A: THM)(Frankfurt:IW9.F - News) is pleased to announce recent exploration results from its BMP Project in Alaska. Surface sampling of massive sulphide mineralization intimately associated with a significant 9 kilometre long geophysical anomaly returned values up to 25g/t gold, 673g/t silver, 13.8% copper, 10.1% lead and 30% zinc (see Table 1)." More
- October 20, 2008 | Item | E-mail
Paramount Gold and Silver Corp. Reports High Grade Gold Assays at Clavo 66 - "Paramount Gold and Silver Corp. (Toronto:PZG.TO - News)(AMEX:PZG - News)(Frankfurt:P6G.F - News)(WKN: A0HGKQ) has received assays from hole LU-20 drilled at depth in Clavo 66 to test continuity between existing holes previously intercepting significant gold mineralization. Drill hole LU-20 intercepted a hanging wall structure grading 9.60 g/t Gold across a true thickness of 4.40 meters." More
- October 20, 2008 | Item | E-mail
Coeur Completes Sale of $50 Million of Senior Secured Floating Rate Convertible Notes - "Coeur d'Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today that it sold $50 million in aggregate principal amount of senior secured floating rate convertible notes under an effective shelf registration statement on file with the U.S. Securities and Exchange Commission. The Company has also sold to the purchaser a warrant to purchase up to an additional $25 million aggregate principal amount of notes." More
- October 20, 2008 | Item | E-mail
Silvercorp Increases Normal Course Issuer Bid - "Silvercorp Metals Inc. ("Silvercorp") (Toronto:SVM.TO - News) today announced that it is increasing the maximum number of shares that it intends to acquire under its previously announced Normal Course Issuer Bid ("NCIB") from 2,988,029 to 10,601,212 shares." More
- October 20, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 20 October, 2008 | |
