-- Posted 12 November, 2008 | | Source: SilverSeek.com

The Metals:

Gold and silver rose roughly 1% in Asia to $738.90 and $9.91 before they fell back off in London and New York to as low as $713.30 and $9.328 by about 11AM EST and then rallied back roughly 1% higher in the last two and a half hours of trade, but they still ended with losses of 2.1% and 3.1%.  At the time of writing both metals have fallen back under today’s session lows in after hours access trade.

Euro gold fell to about €573, platinum gained $3.50 to $819.50, and copper rose slightly to about $1.65.

Gold and silver equities fell throughout trade and ended with over 10% losses.

The Economy:

The Troubled Asset Relief Program (TARP) as we previously knew it is no more.  What was sold to congress to get passed was a plan to buy troubled assets like devalued mortgages to help save financial institutions deemed to big to fail as it was argued their failure would bring down the entire financial system and wreck the global economy due to their systemic risk.  But Paulson today announced a dramatic change to instead use the money to rescue consumer lending and help increase the availability of car loans, student loans and credit cards.  “Buying ‘illiquid’ mortgage-related assets -- the reason the Troubled Asset Relief Program was established a month ago -- is no longer being considered, he said.”

Bailouts now seem to be open to companies like GM and others and not just to banks as was originally planned.  There is no telling whether or not the originally proposed $700 billion will be even close to enough to bail out seemingly anyone and everyone who asks for it, except for the tax payer it seems who of course gets to fund it all.

Text of Paulson remarks on TARP  MarketWatch

Global Confidence Remains Near Lowest Level in a Year as Recession Looms   Bloomberg

Paulson Scraps Plan to Buy Troubled Assets, Shifts Focus to Consumer Loans   Bloomberg

Home values drop for 7th straight quarter  Yahoo

U.S. Slump May Be Longest in Three Decades as Economy `Fell Off a Cliff'  Bloomberg

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 11/08 expected at 479,000 and the Trade Balance for September expected at -$57.0 billion.  At 2PM is the Treasury Budget for October expected at -$134.0 billion.

The Markets:

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

Oil fell to the lowest since January 2007 on more demand worries while the U.S. dollar index rose slightly as traders continue to raise cash.  Many were also starting to prepare for this weekend’s G20 meeting.

Treasuries rose on safe haven buying while a 4 week bill auction drew a yield of just 0.07%.

The Dow, Nasdaq, and S&P fell markedly yet again on uncertainty over the TARP change and on more bad news from several companies.

Among the big names making news in the market today were American Express, GM, Macy’s, and Best Buy.

The Commentary:

"Dear Comrades In Golden Arms,

Quantitive Easing - the direction the Fed is taking, saying they no longer are interested in buying toxic OTC derivatives with little or no value.

This change may well be a result of Bloomberg's suit to force the Fed to reveal what these assets are on their balance sheet. This forced change to Quantitive Easing is the strongest tool for blasting trillions into economies.

If you know anything about, monetary science, gold is down on one of the greatest positive gold factors.

In the Japanese experience banks and other institutions did not renew lending significant enough for any positive effect. Many simply took the funds to rebuild their shattered balance sheets.

Quantitive Easing does not provide a basis for dollar strength, no matter what the algorithms say.

Not only was it an internal failure but it took the Yen down about 20%.

The talking heads are now saying that the dollar is the measure of how bad the economy will become. That is foolish in today's situation.”- Jim Sinclair, JSMineset.com

“December Gold closed down 14.5 at 718.3. This was 3.3 up from the low and 10.7 off the high.

December Silver finished down 0.325 at 9.48, 0.14 off the high and 0.08 up from the low.

The gold bulls have to be very disappointed in the markets ongoing track with physical commodity markets. However, despite some two sided action in the US Dollar the Greenback action was generally a detriment to the gold market during the trade Wednesday. It also appeared as if weakness in the equity market was negative to gold prices and it probably goes without saying that more new lows for the move in the energy markets added to the pressure in gold prices. With demand destruction being feared in a number of markets and the fear of severe slowing present in almost every headline it wasn't surprising to see gold behave like a mere physical commodity facing a recession.

Like the gold market and a host of other physical commodity markets, the silver market continued to feel the tug of the impending global recession. While the Dollar might have added to the weakness in the silver market, the currency influence didn't seem to be as important during the session today. It did appear as if periodic gains in copper and platinum prices served to prop up silver price but the fact that equity prices were under moderate pressure probably mitigated the supportive potential of the minor recovery attempts in copper and platinum prices.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

David Bond: A black market in silver, right out in the open

Goldman big winner in government's revised bailout of AIG

Russia signals depreciation of ruble

The Statistics:

As of close of business: 11/11/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.90 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:

Barrick’s (ABX) Record of Decision (ROD) approving the Environmental Impact Statement (EIS) for the Cortez Hills project in Nevada, Anatolia’s (ANO.TO) reserves, Great Basin’s (GBN) quarterly results, Gammon Gold’s (GRS) quarterly results, Fronteer’s (FRG) drilling, and U.S. Silver’s (USA.V) director appointments were among the big stories in the gold and silver mining industry making headlines today.

WINNER

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:

Ur-Energy to Discuss Q3 Activities-Webcast Tomorrow - More
- November 12, 2008 | Item | E-mail

Castle Gold Files NI 43-101 Technical Report on La Fortuna Project, Indicated Resources Total 308,000 Ounces Contained Gold - More
- November 12, 2008 | Item | E-mail

Barrick Receives Record of Decision on Cortez Hills - "This is a vitally important achievement for Barrick and for the communities where we do business in Nevada," said Greg Lang, President of Barrick's North America region. "The Cortez Hills project creates new economic development and job opportunities in rural Nevada at a time when other industry projects in Nevada are being shelved and jobs are being lost." More
- November 12, 2008 | Item | E-mail

Ormet Releases Financial Results - More
- November 12, 2008 | Item | E-mail

2008 Drill Results for the Silver Coin Project - More
- November 12, 2008 | Item | E-mail

Diamond Frank Acquires a 50 % Option on a Gold-Bearing Property - More
- November 12, 2008 | Item | E-mail

Typhoon Grants a 50% Option on One of its Gold-Bearing Properties - More
- November 12, 2008 | Item | E-mail

Seafield Provides Gold Assay Results From Elora Drill Program - More
- November 12, 2008 | Item | E-mail

Brookmount Explorations, Inc. Retains Premier Media Services Inc. to Lead Investor and Public Relations Efforts - More
- November 12, 2008 | Item | E-mail

Houston Lake Mining Begins Phase 2 Drilling on the Dubenski Gold Property - More
- November 12, 2008 | Item | E-mail

El Nino Ventures Inc. - Update on exploration projects in the Democratic Republic of Congo - More
- November 12, 2008 | Item | E-mail

Wesdome's profits rise with gold price - More
- November 12, 2008 | Item | E-mail

Lydian Corporate Update - More
- November 12, 2008 | Item | E-mail

Abcourt Mines Inc. Announces the Approval by its Board of a Shareholder Rights Plan - More
- November 12, 2008 | Item | E-mail

HuntMountain Enhances El Capitan Silver-Gold Project by Acquiring Historic Mine - More
- November 12, 2008 | Item | E-mail

High Desert Gold Corporation Provides Update on Shareholder Rights Plan - More
- November 12, 2008 | Item | E-mail

Colibri intersects disseminated gold mineralization in reverse circulation and percussion drilling on the Colibri Project, Sonora, Mexico - More
- November 12, 2008 | Item | E-mail

Tao Minerals Provides Update of Mine Progress and Posts New Photos of Its El Colmillo Gold Mine on Website - More
- November 12, 2008 | Item | E-mail

Newport Drills on the TJYZ Property J-V Partner Noront Resources Ltd. - More
- November 12, 2008 | Item | E-mail

Red Metal Resources Retains Barwicki Investor Relations Co. - More
- November 12, 2008 | Item | E-mail

Metals Creek Resources Corp. announces high grades assays from the Dogpaw Lake area, in Western Ontario - More
- November 12, 2008 | Item | E-mail

Lions Gate Metals Quarterly Letter From the President - More
- November 12, 2008 | Item | E-mail

BacTech To Repurchase C$3 Million Debenture With Cash and Shares - More
- November 12, 2008 | Item | E-mail

Douglas Lake Minerals provides updates on recent trip to China and its Mkuvia gold property - More
- November 12, 2008 | Item | E-mail

International KRL Resources Corp. announces resignation of Director - More
- November 12, 2008 | Item | E-mail

International PBX Ventures Ltd.: Company Update - More
- November 12, 2008 | Item | E-mail

Creston Molybdenum Deposit Update: Final Results Received From Drilling at Red Hill Zone - More
- November 12, 2008 | Item | E-mail

Katanga Mining Limited: Damage to Luilu Transformer - More
- November 12, 2008 | Item | E-mail

PDX Resources Advised by Detour Gold of Additional Drill Results From Phase II Program at Detour Lake Project - More
- November 12, 2008 | Item | E-mail

I-Zone Returns High-Grade Gold at Mengold-Solomon's Goldcreek Project - More
- November 12, 2008 | Item | E-mail

Colombia Goldfields Provides Q3 2008 Exploration and Corporate Updates - More
- November 12, 2008 | Item | E-mail

Canadian Arrow Mines releases Atikokan drill results - More
- November 12, 2008 | Item | E-mail

Dynacor: Custom milling capacity increases by 75% at Acari plant - More
- November 12, 2008 | Item | E-mail

Whetstone announces finalization of amendments to the exercise price of options, warrants and promissory notes - More
- November 12, 2008 | Item | E-mail

Detour Gold Reports Additional Drill Results From Phase II Program at Its 100% Owned Detour Lake Property in Ontario - More
- November 12, 2008 | Item | E-mail

Trelawney Intersects Gold Values up to 7.52 g/t Gold Over 2.5 Metres - More
- November 12, 2008 | Item | E-mail

Melkior: Drilling Returns 60.27 g/t Gold Over 1.8 Meters - More
- November 12, 2008 | Item | E-mail

Colorado Goldfields' Gold Discovery Breakthrough "LIVE!" - More
- November 12, 2008 | Item | E-mail

Indonesia to pass mining law mid-Dec -lawmaker - "Indonesia's parliament expects to pass a long-delayed mining law by the middle of next month, a legislator said on Wednesday, a move that could provide more certainty for firms considering investing in the mining sector.

The mining law, which has been in the works for several years, has been held up by a parliamentary special committee which has struggled to agree on whether to apply the law only to new contracts or to existing contracts." More
- November 12, 2008 | Item | E-mail

Corriente Resources Inc.: Ecuador Government Advances Zamora Hydroelectric Complex - More
- November 12, 2008 | Item | E-mail

Thunder Mountain Gold Announces Assay Results on Sulfide Intercept at South Mountain - More
- November 12, 2008 | Item | E-mail

Frontera Copper Reports on Financial Results and Operational Performance for the Third Quarter of 2008 - More
- November 12, 2008 | Item | E-mail

Anatolia technical report confirms Copler gold-silver reserves and positive economics for Phase 1 - "Proven and probable reserves included in the Phase 1 mine plan are 40.8 million tonnes grading 1.65 grams per tonne ("gpt") gold and 3.75 gpt silver (Proven: 32.8 million tonnes grading 1.69 gpt gold and 4.08 gpt silver; Probable: 8.0 million tonnes grading 1.50 gpt gold and 2.44 gpt silver). During this initial phase, 15,500 tpd will be delivered to the three stage crushing facility, crushed to a nominal 1/2 inch size and placed on the heap leach pad for processing." More
- November 12, 2008 | Item | E-mail

U.S. Silver Corporation Appoints Three New Directors - "U.S. Silver Corporation ("U.S. Silver") (CDNX:USA.V - News) announces the appointment of three new Directors: John S. Brock, Gordon Pridham and Wade Black. "These new Directors bring extensive capital markets and mineral exploration experience to our Board," says Bobby Cooper, Chairman. "Working together with the existing board, they will add considerable value to U.S. Silver as it continues to develop and grow." More
- November 12, 2008 | Item | E-mail

Great Basin Reports Progress in Quarter Ending September 30 2008 - "The Company incurred a loss of CDN 15 cents compared to the CDN 16 cents loss for the June 2008 quarter. No revenue was recognized during the quarter as the batch processing of ore material at Newmont's Midas Mill was still underway. Pre-development expenses for both projects decreased from CDN$32.5 million to CDN$28.5 million quarter on quarter." More
- November 12, 2008 | Item | E-mail

Gammon Gold Reports Q3 2008 Financial Results Along with a Progress Update on Key Expansion Initiatives - "Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS) in reporting third quarter unaudited financial results for the three-months ended September 30, 2008, the Company is also pleased to announce that it continues to successfully deliver on a number of key milestones related to its expansion program while continuing to deliver on the turnaround strategies established in December, 2007. All figures reported are in U.S. dollars unless otherwise indicated." More
- November 12, 2008 | Item | E-mail

Fronteer JV Update: Drilling Begins at Agi Dagi Gold Project - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(AMEX:FRG - News) is pleased to announce that Teck's Turkish subsidiary ("TCAM") has begun drilling at the companies' Agi Dagi gold project, part of a newly developing gold and copper-gold mineral district in northwestern Turkey's Biga region." More
- November 12, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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