-- Posted 31 October, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $719.15 | -$18.50 | -1.44% |
Silver | $9.73 | -$0.02 | +4.91% |
XAU | 81.06 | -4.95% | +14.39% |
HUI | 193.87 | -4.34% | +14.95% |
GDM | 574.95 | -4.38% | +15.08% |
JSE Gold | 1689.38 | +9.82 | +18.91% |
USD | 85.67 | +0.89 | -0.87% |
Euro | 127.50 | -1.95 | +1.34% |
Yen | 101.49 | +0.06 | -3.93% |
Oil | $67.81 | +$1.85 | +5.71% |
10-Year | 3.970% | +0.031 | +7.38% |
Bond | 113.125 | -1.1875 | -3.27% |
Dow | 9325.01 | +1.57% | +11.29% |
Nasdaq | 1720.95 | +1.32% | +10.88% |
S&P | 968.75 | +1.54% | +10.49% |
The Metals:
Gold fell $16.60 to $721.05 by late trade in Asia before it rallied see a slight gain at $740.83 in New York, but it then fell back off into the close and ended near its new session low of $716.55 with a loss of 2.51%. Silver dropped $0.55 or 5.6% to $9.20 by late trade in Asia and then rallied to as high as $9.96 in New York before it fell back off into the close and ended with a loss of 0.21%.
Euro gold fell to about €564, platinum lost $12 to $810.50, and copper fell over 4 cents to about $1.84.
Gold and silver equities fell over 4% at the open before they rebounded back to unchanged by mid-afternoon, but they then fell back off into the close and ended with over 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Employment Cost Index | Q3 | 0.7% | 0.7% | 0.7% |
Personal Income | Sep | 0.2% | 0.1% | 0.5% |
Personal Spending | Sep | -0.3% | -0.2% | 0.0% |
Chicago PMI | Oct | 37.8 | 48.0 | 56.7 |
Michigan Sentiment | Oct | 57.6 | 57.5 | 70.3 |
Personal Spending fell the most in four years and Michigan Sentiment reported the largest monthly drop since the survey began in 1978.
All of this week’s economic reports:
Next week’s economic highlights include Construction Spending and the ISM Index on Monday, Factory Orders on Tuesday, ADP Employment and ISM Services on Wednesday, Initial Jobless Claims and Productivity on Thursday, and October’s jobs data, Pending Home Sales, Wholesale Inventories, and Consumer Credit on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil spent most of the day slightly lower on continued demand worries, but it then spiked higher in the last minutes of trade and ended with a decent gain as traders positioned themselves for the end of the week and month.
The U.S. dollar index rose as the euro fell on the continued view that Europe is worse off than the US going forward. The Bank of Japan gave mixed indications with its rate cut. Their policy board was split 4-4 on the decision and the central bank governor’s vote in favor carried the motion to cut its base lending rate 0.20% to 0.30%. Three of the four dissenting votes came from board members who had sought a larger cut of 0.25%, but it leaves the door open for another cut of 0.20% to 0.10% to avoid going all the way to 0% if/when another cut may be needed.
Treasuries fell as the Dow, Nasdaq, and S&P followed European shares higher despite disappointing economic data.
Among the big names making news in the market Friday were Ford, Chevron, Washington Post, and Burger King.
The Commentary:
“Dear Friends,
There is absolutely no question in my mind that gold will trade at $1650 on or before (probably much before) January 14th, 2011.
Regardless of what financial TV or popular analysts claiming never to have made an error say, we are correct.
Stay the course. Do not let your guard down. Protect yourself as the most significant dislocation economically in world history for major nations is at our doorstep. In fact it is one foot through your door already. Are you prepared?
You ask why? Then read on!
There seems to be some degree of assumption that each action by the Fed brings the credit lockup closer to being corrected.
There are many challenges to this assumption.
Will banks use funds to patch up their pillaged balance sheet or actually start loaning in a progressive manner? The answer is balance sheet as they really have no alternative.
As in the case of AIG below, is any cash bailout enough to bail out losers? We need to remember that what OTC derivatives do not do to financial or any other entity, the drop in earnings will. Whatever is left over litigation will pick the bone clean of.
Regulators went from 12 to 1 leverage to 40 to 1 leverage where a 2-˝% change in total asset value would bust financial institutions. The losses taken are not bookkeeping, but are hard and real.
The only thing bookkeeping did was allow these losses to be maintained in full value because they were OTC derivatives, not listed derivatives with a clearinghouse guarantee.
Clearinghouses demand losers pay in and winner are paid out daily while there is no such facility for OTC derivatives. Because of no clearinghouse function, banks and other entities carried the declining value in OTC derivatives at full value at 40 to 1 leverage.
The bailout funds are simply putting a thumb into the leak in the dyke as more holes open up from earnings declines, slow business and serious litigation.
The TIC report is looking quite bad, indicating that dependence on non-US entities to finance a budget deficit that is about to go ballistic cannot be depended on.
All that we have seen is emergency action without limits to hold financial zombies from being discovered by the general public.
The US Fed is in fact holding up the entire world that is near and dear to them. One of the methods is through swaps, which are a form of OTC derivatives and just like the disease, are off balance sheet items.
There is no limit to what the US Fed and Treasury will do in the next few months. It will be discovered in the not too distant future that the US dollar has moved into critical oversupply. At that point expect to the see the US dollar drop like a stone and gold trading at $1200 and $1650.
The US dollars will see.72 again prior to .62 and .52.
The limiting factor to the present terminal financial condition under the Fed and Treasury bandage bailout is the US dollar. There is no escaping the event of publicly recognized dollar oversupply, the ineffectual nature of bailouts and the appearance of hyper-inflation in the midst of non-recovering business conditions.
Keep firmly in mind that retired Chairman Volcker has described this situation as "We have a failed financial structure." He went on to describe the condition of the financial situation as "Code Blue."
What you see now is only the beginning of a great economic drama, out of control and nowhere nears its end.
This is it. It is now!
Gold is the only entity that has the capacity of insuring your future buying power, maybe even more.
Enough said.
Respectfully,”- Jim Sinclair, JSMineset.com
“December Gold closed down 20.3 at 718.2. This was 0.7 up from the low and 21 off the high.
December Silver finished down 0.055 at 9.73, 0.02 off the high and 0.43 up from the low.
The gold market waffled around both sides of unchanged on Friday but it was clear that outside market forces were generally favoring the bear camp. With the Dollar remaining strong and a host of physical commodity markets generally remaining under pressure, the fear of deflationary selling always seemed to be waiting in the wings. However, the bull camp in gold was at least temporarily cheered by the fact that Personal Income for September came in better than expected. It also seemed like the mid morning recovery in the stock market provided the gold bulls with the resolve to push up prices temporarily.
For a portion of the trade the silver market outperformed the gold market and typically divergence between gold and silver prices hints at a lack of definitive resolve. Clearly the silver market was held back by the strength in the Dollar and periodic weakness in gold prices but seeing silver try to forge a positive session had to embolden the bull camp. In fact, the silver bulls were probably also heartened by the strength in the platinum market. In the end, the silver market seemed to be forced to carry the weight of weaker gold, energy and copper prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
GMAC aims to become bank, tap U.S. Treasury for cash
IMF denies selling or leasing gold this year
Fed official can see interest rates close to zero
Japan's desperate bid to kick-start economy
AngloGold, Newmont CEOs cite gold production decline
The Statistics:
As of close of business: 10/30/2008
Gold Warehouse Stocks: | 8,560,830 | -8,902 |
Silver Warehouse Stocks: | 130,442,394 | -48,100 |
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 | 749.21 | 24,087,741 | US$ 18,186m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 121.30 | 3,899,860 | US$ 2,835m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.59 | 372,364 | US$ 271m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.21 | 842,752 | US$ 636m |
Note: Change in Total Tonnes from yesterday’s data: The ASX subtracted 0.05 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/30/2008 | |
Total Net Assets | $1,528,679,969 | Ounces of Gold
in Trust | 2,074,377.938 |
Shares Outstanding | 21,050,000 | Tonnes of Gold
in Trust | 64.52 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/30/2008 | |
Total Net Assets | $2,173,950,825 | Ounces of Silver
in Trust | 217,056,464.200 |
Shares Outstanding | 219,700,000 | Tonnes of Silver
in Trust | 6,751.21 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Buenaventura’s (BVN) developing gold project and Goldcorp’s (GG), Centerra’s (CG.TO), Eldorado’s (EGO), and Coeur’s (CDE) third quarter results were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Allied Nevada | ANV +44.96% $3.45 |
2. Vista Gold | VGZ +17.89% $1.45 |
3. MAG Silver | MVG +14.96% $4.15 |
LOSERS
1. Apex Silver | SIL -10.74% $1.33 |
2. Ivanhoe | IVN -9.80% $2.67 |
3. DRDGOLD | DROOY-9.00% $3.64 |
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:
Goldcorp, Harmony continue gloomy gold reports - "Stubbornly high production costs have pressured quarterly earnings at major gold miners, adding to what has been seen as an underwhelming reporting period for the industry.
Both Canada's Goldcorp (G.TO: Quote, Profile, Research, Stock Buzz) and South Africa's Harmony Gold (HARJ.J: Quote, Profile, Research, Stock Buzz) reported core profits on Friday that fell short of analyst estimates, following a similar result from top producer Barrick Gold (ABX.TO: Quote, Profile, Research, Stock Buzz) on Thursday." More
- October 31, 2008 | Item | E-mail
Opawica Acquires 100% of Maybrun-Atikwa Lake Property - More
- October 31, 2008 | Item | E-mail
Yale Samples 14.2m Grading 2.14 % Cu, 151.8 G/T Ag and 0.96 % Zn Above La Verde Grande Mine - More
- October 31, 2008 | Item | E-mail
Sunridge Gold Files Emba Derho Technical Report - More
- October 31, 2008 | Item | E-mail
Peru's Buenaventura says La Zanja safe from crisis - "Precious metals miner Buenaventura (BUEv.LM: Quote, Profile, Research, Stock Buzz) (BVN.N: Quote, Profile, Research, Stock Buzz) is moving ahead with plans to develop its La Zanja gold project in northern Peru despite the global economic crisis, the company's chief executive said on Friday." More
- October 31, 2008 | Item | E-mail
PolyMet Completes Strategic Agreements With Glencore - More
- October 31, 2008 | Item | E-mail
Coronation Minerals announces the expiration of the Wellgreen Project Option - More
- October 31, 2008 | Item | E-mail
Altius Reports on 2008 AGM Results - More
- October 31, 2008 | Item | E-mail
Copper Mountain board makes decision to develop Copper Mountain Project - More
- October 31, 2008 | Item | E-mail
Takeover talk circles handful of Canadian juniors - "Merger and acquisition activity in Canada's mining patch will heat up again, but it is tough to predict when big miners will decide the time is right.
"The increasing valuation gap between the senior and intermediate producers and the junior explorers/developers suggests to us that M&A activity will likely heat up going into 2009," Dundee Securities said in a note to clients." More
- October 31, 2008 | Item | E-mail
Threegold Resources Inc.: Exploration and Field Activities Update - More
- October 31, 2008 | Item | E-mail
Capella Proposes Share Consolidation - More
- October 31, 2008 | Item | E-mail
Tiger Resources Issues September 2008 Quarterly Report - More
- October 31, 2008 | Item | E-mail
Atna Reports Third Quarter Progress at Pinson Gold Project, Nevada - More
- October 31, 2008 | Item | E-mail
Caledonia Announces Board Changes - More
- October 31, 2008 | Item | E-mail
High River Gold Update on Corporate Liquidity and Review of Strategic Alternatives - More
- October 31, 2008 | Item | E-mail
High River Gold Advises That Closing of Prognoz Acquisition Transaction Has Been Extended - More
- October 31, 2008 | Item | E-mail
Centamin Egypt Reports on Activities in the Quarter Ended September 30, 2008 - More
- October 31, 2008 | Item | E-mail
Carpathian Gold Corporate and Exploration Update on the RDM Gold Project, Brazil - More
- October 31, 2008 | Item | E-mail
Mirabela Announces New Drilling Results - Initial Underground Target Area - More
- October 31, 2008 | Item | E-mail
Coeur Reports Third Quarter Results Reflecting Continued Ramp-up at San Bartolome: Major Progress Continues at Palmarejo - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today announced sales of metal for the first nine months of 2008 of $147.1 million, down from $155.4 million in the first nine months of 2007. The Company’s net loss of $4.3 million during the first nine months of 2008 includes $23.3 million of pre-development costs and non-cash mark-to-market adjustments related to metal sales yet to be finalized with smelters." More
- October 31, 2008 | Item | E-mail
Goldcorp Cash Flow Increases 14% in Third Quarter - "GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) today reported increased gold production of 557,400 ounces for the quarter ended September 30, 2008. Reported net earnings amounted to $297.2 million, or $0.42 per share, for the third quarter, which includes a non-cash foreign exchange gain on the revaluation of future income tax liabilities. Adjusted net earnings(1) in the quarter were $64.7 million, or $0.09 per share." More
- October 31, 2008 | Item | E-mail
Centerra Gold Reports Third Quarter Earnings of $0.08 Per Share - "Centerra Gold Inc. (TSX:CG - News) today reported third quarter net earnings of $16.9 million or $0.08 per common share based on revenues of $139.4 million compared to net earnings before unusual items of $4.8 million or $0.02 per common share on revenues of $98.0 million in the same quarter of last year. In the third quarter of 2007 after reflecting unusual items, the Company recorded a loss of $90.4 million or $0.42 per common shares." More
- October 31, 2008 | Item | E-mail
Eldorado Gold Corporation: Q3 2008 Financial and Operating Results-Revenue, Net Income, Gold Production All Increase - "Paul N. Wright, President and Chief Executive Officer of Eldorado Gold Corporation, ("Eldorado" "the Company" or "we") (Toronto:ELD.TO - News)(NYSE-A: EGO), is pleased to report on the Company's financial and operational results for the third quarter ended September 30, 2008. "This was a very solid quarter for us. Our Kisladag and Tanjianshan mines produced more than 72,000 ounces of gold at a cash operating cost of $283 per ounce." More
- October 31, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 31 October, 2008 | |
