-- Posted 10 November, 2008 | | Source: SilverSeek.com

The Metals:

Gold rose as much as $33.70 or 4.6% to $767.95 and silver climbed $0.555 or 5.6% to $10.535 by about 9AM EST before both metals fell back off for most of the rest of trade, but they still ended with gains of 1.8% and 2.6%.

Euro gold rose to about €585, platinum remained at $849.50, and copper gained over 5 cents to about $1.75.

Gold and silver equities rose over 7% at the open before they fell back near unchanged by early afternoon, but they then rallied back higher into the close and ended with over 4.5% gains.

The Economy:

There were no major economic reports today, but many were talking about China’s stimulus plan to spend around $586 billion over the next two years on infrastructure and other things to try to help the economy.  More US government aid to AIG was also revealed.

“The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral… Bloomberg News has requested details of the Fed lending under the U.S. Freedom of Information Act and filed a federal lawsuit Nov. 7 seeking to force disclosure.”

There were also two more bank closures announced over the weekend, “bringing the number of failures of federally insured banks this year to 19.”  There are no major economic reports due out tomorrow.

The Markets:

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

Oil rose to over $65 in overnight trade before it dropped to a new 18 month low by midday in New York, but it then rallied back higher into the close and ended with a decent gain on optimism that China’s stimulus plan will help spur demand.

The U.S. dollar index fell as China's stimulus package encouraged market participants to put cash to work, but the dollar rallied back higher by the close as people looked into the plan and found that it basically just outlines money that was mostly already earmarked in the past for things like earthquake relief.

Treasuries rose as today’s 3-year note auction drew better than expected demand and the Dow, Nasdaq, and S&P erased early gains and ended about 1% lower on continued economic concerns and mostly poor company reports.

Among the big names making news in the market today were GM, Nortel, McDonald’s AIG, Fannie Mae, Circuit City, Deutsche Post, and Dish.

The Commentary:

“Dear CIGAs,

The Federal Reserve cannot be the lender of last resort to all nations near and dear and to all major US and international employers. President Obama’s 20 economic advisors will not accomplish anything real. The Federal Reserve under Bernanke has entered dangerous territory that up to now has been the bastion of academics.

As the world turns to the Fed to be bailed out, the question will soon be who will bail out the Fed. The answer is clear - no one. The US dollar is in grave danger due to this shift to so far failed (Japan) academic solutions. In truth, all other solution are failing as well.

This situation is bigger than the US Federal Reserve. The US Federal Reserve cannot accomplish what they have undertaken. If you don’t know that you simply lack a calculator with enough zeros.

The US dollar as the common share of the USA cannot enjoy a bull market while their balance sheet is being torn to shreds.

Gold is a currency, not a commodity. It has always been a currency. Industrial demand is a trivial constituent to the price of gold. There is no question about that. Gold as a currency moves inverse to the US dollar. It has always been so. It will always be so.

Do not fail to protect yourself. You will need every avenue of protection that I have suggested to you.

The US dollar is headed to .72, .62 and .52 on the USDX as a product of the move of the Fed into the “strategy of quantitative easing.”

There is no doubt in the mind of those blessed by understanding that gold is headed to at least $1650.

Order your shares as paper certificates while you still can.

Potential confiscation of retirement plans now being discussed in legislative testimony is the most disturbing scenario I have ever heard.

Consider gold confiscation now a potential whereas it was simply a bad dream before.

Consider that Gold ETFs fit into the confiscation scenario assuming such a draconian act could actually be taken.

Look for juniors that have strong characteristics of selection. These include juniors with strong management with proven track records that are willing to fight for their shareholders, ones with proven resources in the ground, ones that operate in politically sound countries, ones with no derivatives exposure and ones that have internal financing already in place. No we cannot provide you with a list - this is up to you to research on your own.

If I were to construct such a vehicle it would be incorporated outside the USA, do business in a third country and trade outside the USA. Most importantly, the shares should be paper certificated with those certificates in my hands, not the hands of a US brokerage firm.”- Jim Sinclair, JSMineset.com

“December Gold closed up 12.3 at 746.5. This was 4.5 up from the low and 19.5 off the high.

December Silver finished up 0.257 at 10.22, 0.27 off the high and 0.06 up from the low.

The gold market started out like a physical commodity cheered on by the massive Chinese stimulus package. However, in the face of a reversal in the US equity market and renewed fears of serious US job losses, the gold market and a host of physical commodity prices gave back a large portion of their early gains. Surprisingly the Dollar remained lower but seeing crude oil prices fall to a fresh new low seemed to rekindle deflationary concerns again. The inability to make a fresh new high for the move early Monday seemed to discourage a number of gold bulls and that could have prompted some stop loss selling by spec traders, especially as the market fell back into the prior trading session's range.

The silver came into the US session with a positive head of steam and around the highs, the December silver contract was as much as 61 cents above the prior session's low. Clearly the silver market was unnerved by the sharp setback in the US equity market which in turn seemed to be prompted by classic economic slowing fears. At one point in the early afternoon December silver prices were as much as 48 cents below the early highs. With the Dollar generally staying in negative territory, the source of the selling interest in silver seemed to be attributable either the slumping equity market are renewed slowing fears.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Fed's bank loans look like secret patronage

China OKs domestic spending boost; Europe plans more rate cuts

Gold seen outperforming oil as recession brews

What if every Chinese got his own Treasury bond to spend?

The Statistics:

As of close of business: 11/10/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.38 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:

Freeport’s (FCX) molybdenum production curtailment and plans to defer the restart of Climax, Orezone’s new resource estimate, Great Basin’s (GBN) mill testing, Anatolia’s (ANO.TO) flotation test results, Vista’s (VGZ) quarterly results, and Silver Bear’s drill results and quarterly results 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:

Copper Reef Gold Rock Drilling Update - More
- November 10, 2008 | Item | E-mail

Melkior Appoints Nathalie Hansen Director - More
- November 10, 2008 | Item | E-mail

Technical Report proposes immense mineral potential tonnages in polymetallic black shale at Dumont's SBH Property, Alberta - More
- November 10, 2008 | Item | E-mail

Alturas Director Resigns - More
- November 10, 2008 | Item | E-mail

BacTech Provides Test Work Update on Castle Mine Tailings - More
- November 10, 2008 | Item | E-mail

Premier - Sutter Drilling Expands High Grade Gold Mineralization at Santa Teresa Including 24.40 gpt (0.71 opt) Across 2.0 Metres - More
- November 10, 2008 | Item | E-mail

Plexmar Teams Up With Peruvian Company for Bolsa Del Diablo Project - More
- November 10, 2008 | Item | E-mail

Dia Bras Increases Resources at its Bolivar Cu-Zn Project and Plans New Mill on Site - More
- November 10, 2008 | Item | E-mail

Unico, Inc. Announces Acquisition and Delivery of Crushing Plant at the Deer Trail Mine Site - More
- November 10, 2008 | Item | E-mail

Cartier Confirms Extension of North Gold Zone Over 1 km - More
- November 10, 2008 | Item | E-mail

Spider Resources Inc. Announces Private Placement - More
- November 10, 2008 | Item | E-mail

Summary of Hinge Zone Results Including New High Grade Gold Intersections - More
- November 10, 2008 | Item | E-mail

Mirasol Resources Corporate Update - More
- November 10, 2008 | Item | E-mail

Pacific Gold Corp. Announces Oregon Gold Spin Off - More
- November 10, 2008 | Item | E-mail

Silver Reserve Corp. - New acquisition - More
- November 10, 2008 | Item | E-mail

Rockgate Capital to Acquire Delta Exploration - More
- November 10, 2008 | Item | E-mail

Helio Resource Corp. - SMP Gold Project, Tanzania - More
- November 10, 2008 | Item | E-mail

3D IP Survey Completed Over Past Producer El Gochico Mine - More
- November 10, 2008 | Item | E-mail

Normabec Updates its Resource Calculation on the Real de Catorce Silver Project in Mexico - More
- November 10, 2008 | Item | E-mail

High River Gold Re-Starts Mill at Taparko-Bouroum and Provides Update on Strategic Process, Board, and Operations - More
- November 10, 2008 | Item | E-mail

Farallon Updates G-9 Production Status While Managing Project Expenditures - More
- November 10, 2008 | Item | E-mail

Quest Uranium Announces First Closing of $675,000 Private Placement - More
- November 10, 2008 | Item | E-mail

Lake Shore Gold Reports Timmins West on Schedule for Production in First Quarter 2009 - More
- November 10, 2008 | Item | E-mail

Vantex Cuts 11.70 Metres Grading 1.326 g/t Au - More
- November 10, 2008 | Item | E-mail

USPR Announces the Completion of an NI 43-101 Compliant Technical Report - More
- November 10, 2008 | Item | E-mail

Houston Lake Participates in Chicago Resource Expo - More
- November 10, 2008 | Item | E-mail

Ecuador says to introduce mining bill this week - "Ecuadorean President Rafael Correa said he will introduce this week a new mining law key for the nascent sector, and warned his allies in the legislature not to make deep changes to the bill.

Correa, a leftist former economy minister, has said he wants to jump-start mining of precious metals to diversify the oil-dependent economy and share its revenues with the poor." More
- November 10, 2008 | Item | E-mail

Paladin Energy Ltd.: Financial Report for Quarter Ending 30 September 2008 - More
- November 10, 2008 | Item | E-mail

AuEx Ventures, Inc.: West Pequop Reports 73 Feet at 0.37 Ounces Gold Per Ton, Including 44.3 Feet at 0.50 Ounces Gold Per Ton - More
- November 10, 2008 | Item | E-mail

Uranium Resources, Inc. Reports Third Quarter 2008 Results - More
- November 10, 2008 | Item | E-mail

Largo Continues to Report Encouraging Results From Northern Dancer Tungsten Project, Yukon - More
- November 10, 2008 | Item | E-mail

Merit Mining Corp. Scales Back its Greenwood Gold Operations - More
- November 10, 2008 | Item | E-mail

Imperial Reports 2008 Third Quarter Financial Results - More
- November 10, 2008 | Item | E-mail

Continental Precious Minerals Inc. Adopts Shareholder Rights Plan - More
- November 10, 2008 | Item | E-mail

Explor Resources Inc.: Private Placement - More
- November 10, 2008 | Item | E-mail

Metallum Resources Inc. Appoints Carl B. Hansen As New Director - More
- November 10, 2008 | Item | E-mail

AmMex Report Drill Results at Concha Project, Zacatecas, Mexico - More
- November 10, 2008 | Item | E-mail

Orezone Almost Triples Gold Resource at Bombore Project - "Orezone Resources Inc. (Toronto:OZN.TO - News)(AMEX:OZN - News) is pleased to announce the results of a new National Instrument 43-101 compliant gold resource estimate for its Bombore Project in Burkina Faso, West Africa making it the second largest gold resource in the country. Orezone's Essakane Project, currently being developed, is the country's largest gold resource at over 4.0Moz." More
- November 10, 2008 | Item | E-mail

Great Basin Gold's Hollister Project Completes Third Test Batch at Newmont's Midas Mill - "Processing of the ore was completed in September and October 2008 at the Midas mill of Newmont Mining Corporation ("Newmont"), located 20 miles from Hollister. The Midas mill processed a test batch of 11,239 tons with a gold head-grade over 1.428 ounces per ton and a silver grade of 11.61 ounces per ton. Hollister Project realized net revenue of approximately $10 million based on the split of payable metal, 80% to Hollister and 20% to Newmont. The Midas mill recovers gold and silver using direct cyanidation, counter-current decantation and a Merrill Crowe recovery system." More
- November 10, 2008 | Item | E-mail

Ecuador plans 5 pct royalty in mining law -official - "Ecuador's draft mining law that will be sent to the legislature this week proposes companies pay royalties of at least 5 percent, although they would be able to deduct some operational costs, a deputy minister said on Monday." More
- November 10, 2008 | Item | E-mail

Silver Bear Announces Additional High Grade Results from 2008 Drill Program at Mangazeisky, Third Quarter Financial Results - "Silver Bear Resources Inc. ("Silver Bear" or the "Company") (TSX:SBR - News) today announced further positive results from exploration drilling at its 100% owned Mangazeisky silver project, its strong liquidity position and financial results for the three and nine-month period ended September 30, 2008. All dollar amounts are in Canadian dollars unless otherwise stated." More
- November 10, 2008 | Item | E-mail

Freeport-McMoRan Copper & Gold Inc. Announces Molybdenum Production Curtailment and Plans to Defer Restart of Climax Molybdenum Mine - "Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX - News) announced today in response to the recent sharp decline in molybdenum prices plans to reduce production from its Henderson primary molybdenum mine and to defer the restart of the Climax molybdenum mine." More
- November 10, 2008 | Item | E-mail

Anatolia announces encouraging flotation test results at Karakartal copper-gold porphyry target - "Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX: ANO - News) announces flotation test results for its 100% owned Karakartal copper-gold porphyry property in east-central Turkey. Karakartal is located approximately 15 km southeast of Anatolia's Copler Gold Project, which is currently under construction." More
- November 10, 2008 | Item | E-mail

Vista Gold Corp. Reviews Corporate and Project Activities and Announces Third Quarter 2008 Results and Conference Call with Management - "Our consolidated net loss for the three-month period ended September 30, 2008 was $2.8 million or $0.08 per share, compared to a consolidated net loss of $2.0 million or $0.07 per share for the same period in 2007. Our consolidated net loss for the nine-month period ended September 30, 2008 was $7.0 million or $0.20 per share, compared to a consolidated net loss of $5.4 million or $0.19 per share for the same period in 2007." More
- November 10, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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