-- Posted 20 November, 2008 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $748.50 | +$12.20 |
Silver | $9.12 | -$0.21 |
XAU | 70.08 | -2.54% |
HUI | 167.01 | -1.06% |
GDM | 500.55 | -2.19% |
JSE Gold | 1415.89 | -101.11 |
USD | 87.99 | +0.32 |
Euro | 124.61 | -0.17 |
Yen | 106.33 | +2.02 |
Oil | $49.62 | -$4.00 |
10-Year | 3.144% | -0.247 |
T-Bond | 125.75 | +3.65625 |
Dow | 7552.29 | -5.56% |
Nasdaq | 1316.12 | -5.07% |
S&P | 752.44 | -6.71% |
The Metals:
Gold climbed nearly 2% in London to almost $750 by about 8:15AM EST before it erased all of its gains in midmorning New York trade and saw a 60 cent loss at $735.70 at about 10:15AM, but it then rallied back higher into the close and ended near its new session high of $752.80 with a gain of 1.66%. Silver rose 12 cents to $9.45 by a little before 8AM EST before it dropped all the way to see a 5.57% loss at $8.81 at about 10AM, but it then rallied back higher in the last three and a half hours of trade and ended with a loss of just 2.25%.
Euro gold rose to about €597, platinum lost $32 to $780.50, and copper fell a couple of cents to about $1.57.
Gold and silver equities fell roughly 6% by about an hour into trade before they rallied to find over 4% gains by early afternoon, but they then fell back off into the close along with the major indices and ended with about 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Initial Claims | 11/15 | 542K | 503K | 515K |
Leading Indicators | Oct | -0.8% | -0.6% | 0.1% |
Philadelphia Fed | Nov | -39.3 | -35.0 | -37.5 |
Initial Jobless Claims rose to the highest since 1982 and the Philadelphia fed’s business activity index fell to a new 18 year low. There are no major economic reports due out tomorrow.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell under $50 for the first time since May 18, 2005 on more worries over slowing demand due to economic contraction.
The U.S. dollar index and treasuries rose on more cash raising and safe haven buying. The yield on the 10-year note fell to its lowest in 50 years!
The Dow, Nasdaq, and S&P fell markedly at the open before reversing to find decent gains in early afternoon trade on hopes a solution could be reached to save the automakers, but all three indices then fell back off to new lows by the close and ended over 5% lower as it became clear that any aid package will not be passed until at least next month.
Among the big names making news in the market today were JPMorgan, Goldman Sachs, Barnes & Noble, Microsoft, PepsiCo, Citigroup, GMAC, GM, Ford, and Chrysler.
The Commentary:
“Dear Friends,
There are only two things you need to know:
1. Hyperinflation takes birth and is currency-visible during major economic upheavals. There is NO historical truth that business recovery is a necessary criterion to transmute massive increases in money supply into hyperinflation.
2. What has been the major cause of the transmutation of massive liquidity into hyperinflation has been one form or another of Quantitative Easing combined with a loss of confidence in the inflator.
Quantitative Easing does not sterilize its offspring - violent inflation. We will see this offspring not in the far future but in 2009, 2010, 2011 and maybe much further.
It is akin to the Japanese Sci-Fi out of the 70s titled “The Green Blob That Ate The Earth.” It just grew and grew until it consumed everything.
For the moron financial TV hosts claiming that major inflation is well down the road because inflation requires a business recovery to occur, tell them to review:
Angola 1991-1999
Argentina 1981 – 1992
Belarus 1993 – 2008
Bolivia 1984 – 1986
Bosnia – Herzegovina 1992 – 1993
Brazil 1986 -1994
Chile 1971 – 1981
China 1948 – 1955
Georgia 1993 -1995
Germany 1919 -1923
Greece 1943 – 1953 At the high point prices doubled every 28 hours. Greek inflation reached a rate of 8.5 billion percent per month.
Hungry 1944 – 1946
Israel 1971 – 1985 (price controls instituted)
Japan 1934 – 1951
Nicaragua 1987 – 1990
Peru 1987 – 1991
Poland 1990 – 1994
Romania 1998 – 2006
Turkey 1990 – 2001
Ukraine 1992 – 1995
USA 1773 – not worth a Continental
Yugoslavia 1989 – 1994
Zaire 1989 – present (now the Congo)
Zimbabwe – 2000 to present. November of 2008 – inflation rate of 516 quintillion percent
From http://en.wikipedia.org/wiki/Weimar Republic”- Jim Sinclair, JSMineset.com
“December Gold closed up 12.7 at 748.7. This was 11.9 up from the low and 1.3 off the high.
December Silver finished down 0.285 at 9.025, 0.195 off the high and 0.135 up from the low.
The gold market was able to rally in the face of a stronger Dollar and perhaps more importantly even in the face of lower equity prices. In fact, the gold market also managed to firm in the face of an afternoon recovery in the stock market, so it would seem like gold was focused on something other than the action in the equity market action. Some traders are suggesting that a serious breakdown in sentiment is ahead or that the amount of stimulus being interjected into the market could spark inflation and therefore it is possible that gold is getting support from both sides of the economic coin. Historically low Treasury yields would seem to give the crisis an even higher pedigree and that in turn probably prompted some fresh speculative buying of gold during the trade Thursday.
While the persistent strength in gold seemed to pull silver up off its lows, the silver market was clearly dancing to a different tune than the gold market on Thursday. In fact, the silver market did show some positive correlation to the equity market bounce just after mid session, but silver, platinum and copper were clearly behaving like physical commodities facing a sustained slowdown, while the gold market was apparently being seen as some form of flight to quality instrument. One would have expected a historical decline in long term Treasury rates to provide at least some measure of support to silver, but for the time being the silver trade continues to be concerned about ongoing deflationary pressures.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Kemp: Quantitative easing has begun
Two former Fedsters recommend monetizing U.S. debt
Paul again squanders chance to press the crucial questions
Bob Chapman: The last days of the crooked Comex
Fed's cash injections risk eclipsing main interest rate
24hGold devises trackers for real prices of gold and silver
Adrian Douglas: The second London Gold Pool is dying
Wachovia Securities won't broker precious metals anymore
The Statistics:
As of close of business: 11/19/2008
Gold Warehouse Stocks: | 8,108,978 | - |
Silver Warehouse Stocks: | 128,663,340 | -57,000 |
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 | 752.00 | 24,177,465 | US$ 18,419m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 117.03 | 3,762,528 | US$ 2,825m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 369,082 | US$ 278m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.94 | 866,181 | US$ 660m |
Note: Change in Total Tonnes from yesterday’s data: SPDR added 3.06 tonnes and the ASX subtracted 0.08 tonnes.
COMEX Gold Trust (IAU)
Profile as of 11/19/2008 | |
Total Net Assets | $1,511,146,769 | Ounces of Gold
in Trust | 2,053,895.409 |
Shares Outstanding | 20,850,000 | Tonnes of Gold
in Trust | 63.88 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 11/19/2008 | |
Total Net Assets | $2,020,299,166 | Ounces of Silver
in Trust | 214,983,944.900 |
Shares Outstanding | 217,700,000 | Tonnes of Silver
in Trust | 6,686.75 |
Note: Change in Total Tonnes from yesterday’s data: 61.41 tonnes were removed from the trust.
The Stocks:
Seabridge Gold’s (SA) drill results, Northern Dynasty’s (NAK) drill results, Kinross Gold’s (KGC) project acquisition, Fronteer’s (FRG) drill results, IAMGOLD’s (IAG) acquired shares of Euro Resources S.A., and Silver Dragon’s (SDRG.OB) acquisition of 52% of the equity interests in Sanhe Sino-Top Resources & Technologies, Ltd. were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Allied Nevada | ANV +13.57% $2.26 |
2. Newmont | NEM+2.68% $23.00 |
3. Goldcorp | GG +2.20% $19.03 |
LOSERS
1. NovaGold | NG -36.27% $1.30 |
2. Freeport | FCX -13.04% $17.60 |
3. Anglo American | AAUK -10.54% $7.30 |
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:
Constellation Copper announces delay in filing interim financial statements - More
- November 20, 2008 | Item | E-mail
Euro Ressources - Tocqueville Asset Management Will Tender its Shares (c.5% of EURO's Share Capital) to IAMGOLD's EUR1.20 Cash Offer - "IAMGOLD Corporation notes with satisfaction that Tocqueville Asset Management ("Tocqueville") has announced on November 19, 2008 that it will tender its shares of Euro Ressources S.A. ("EURO") to IAMGOLD's public cash offer." More
- November 20, 2008 | Item | E-mail
GWR Clarifies Size of New Man-Prime Cu-Au Property, BC - More
- November 20, 2008 | Item | E-mail
Southern Copper eyes selling direct to Asia - More
- November 20, 2008 | Item | E-mail
Chancery Resources Announces Acquisition of Mineral Exploration Property in B.C., Canada - More
- November 20, 2008 | Item | E-mail
43-101 Update Moves Kinbauri's El Valle/Carles Project Towards Feasibility; Measured & Indicated Resource at BSN and A107 Zones Up Over 80 Pct - More
- November 20, 2008 | Item | E-mail
Nunavik Nickel Project Exploration Update: New Mineralization Discovered; High-Grade Massive Sulphides Intersected at Cominga - More
- November 20, 2008 | Item | E-mail
Bayswater Identifies Significant New Uranium Trend at Boiteau Lake Central Mineral Belt of Labrador - More
- November 20, 2008 | Item | E-mail
Severstal Resources acquires a controlling stake in High River Gold - More
- November 20, 2008 | Item | E-mail
GA Capital Corp.: Kimpar Resources Inc. Completes National Instrument 43-101 Report - More
- November 20, 2008 | Item | E-mail
Gold Fields Announces Form 20-F Filing - "Gold Fields Limited (Gold Fields) (NYSE, JSE, DIFX: GFI) today announced that it has filed its annual report on Form 20-F for the year ended 30 June 2008 with the U.S. Securities and Exchange Commission." More
- November 20, 2008 | Item | E-mail
Chief Mines Inspector of Sweden Grants Exploitation Concession for Northland's Tapuli Project - More
- November 20, 2008 | Item | E-mail
Metanor Resources Inc.: New Discovery-Extension of the West Zone on the Hewfran Property Adjacent to Bachelor - More
- November 20, 2008 | Item | E-mail
Mexivada forms Sierra Leone subsidiary; Company update - More
- November 20, 2008 | Item | E-mail
Cantex announces option agreement with Vale - More
- November 20, 2008 | Item | E-mail
Trevali Receives Highly Positive Hard-Rock Metallurgical Results From Santander Silver-Lead-Zinc Mine Project in Peru - More
- November 20, 2008 | Item | E-mail
Golden Harp intersects 1.45 g/t gold over 8.8 m, including 5.05 g/t gold over 1 m at Golden Sylvia; geophysical surveys identify new targets - More
- November 20, 2008 | Item | E-mail
Paladin Energy Ltd: Kayelekera Uranium Project, Malawi - More
- November 20, 2008 | Item | E-mail
Quest Uranium Receives Encouraging Uranium Results From George River Area Projects, Northeastern Quebec - More
- November 20, 2008 | Item | E-mail
Crowflight Provides Bucko Lake Nickel Mine Update - More
- November 20, 2008 | Item | E-mail
Inmet to Acquire Remainder of Petaquilla Project from Teck Cominco - More
- November 20, 2008 | Item | E-mail
Continental Nickel Intersects More High Grade Nickel at Three Zones at the Nachingwea Project, Including: 4.38% Nickel and 0.72% Copper Over 9.0 Metres - More
- November 20, 2008 | Item | E-mail
Northland Signs MOU with Port Authority of Kemi and City of Kemi/Appoints Director to the Board - More
- November 20, 2008 | Item | E-mail
HudBay Files Fenix Project Technical Report - More
- November 20, 2008 | Item | E-mail
Vantex Starts a 1000 Metre Drilling Program on Santa-Anna - More
- November 20, 2008 | Item | E-mail
Colorado Goldfields Inc. Restates Management's Commitment to The Pride of the West Mill - More
- November 20, 2008 | Item | E-mail
Centenario Copper Completes Partial Copper Hedge Monetization for USD $26 Million of Net Proceeds - More
- November 20, 2008 | Item | E-mail
Bannerman CEO Address to Shareholders - More
- November 20, 2008 | Item | E-mail
GBS Gold Commences Trading on the NEX Under the Symbol GBS.H - More
- November 20, 2008 | Item | E-mail
Norilsk considers closing foreign assets -paper - More
- November 20, 2008 | Item | E-mail
Shengda Group Acquires 52 Percent of Sino-Top From Silver Dragon's Chinese Joint Venture Partner - "Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce that Gansu Shengda Group Ltd. (Shengda), a private Chinese conglomerate, has agreed to acquire 52% of the equity interests in Sanhe Sino-Top Resources & Technologies, Ltd. (``Sino-Top'') from Huaguan Industrial Corp. (``HIC''), Silver Dragon's state-owned Chinese joint venture partner." More
- November 20, 2008 | Item | E-mail
Higher Grade Mineralization Encountered at Seabridge Gold's Mitchell Zone - "Seabridge Gold (Toronto:SEA.TO - News)(NYSE-A: SA) announced today that its 2008 drill program has found further evidence of a higher-grade body within the Mitchell Zone at its 100% owned KSM project. Drill hole M-08-86 intersected a 106 meter wide breccia zone with copper values six times higher than the average grade of the Mitchell resource model. The remaining 700 meters of the hole yielded above average grades including 155 meters grading 1.08 grams of gold and 0.30% copper." More
- November 20, 2008 | Item | E-mail
Northern Dynasty Minerals Ltd. - Pebble Deposit Drilling Results Update - "Northern Dynasty Minerals Ltd. ("Northern Dynasty" or the "Company") (TSX: NDM - News; AMEX: NAK - News) reports that core drilling activities at the Pebble Limited Partnership's ("PLP", "Pebble Partnership" or the "Partnership") project site in southwest Alaska continue to intersect long intervals of higher grade mineralization, and demonstrate a very high level of continuity within the Pebble deposit." More
- November 20, 2008 | Item | E-mail
Kinross to Acquire 100% Interest in Lobo-Marte in Chile From Teck and Anglo American - "Kinross Gold Corporation ("Kinross") (Toronto:K.TO - News)(NYSE:KGC - News) announced today that it has entered into separate agreements with Teck Cominco Limited ("Teck") and certain subsidiaries of Anglo American plc ("Anglo") pursuant to which Kinross will acquire a 100% interest in Minera Santa Rosa SCM ("Minera") for an aggregate purchase price of approximately US$250 million, plus a royalty. Minera owns 100% of the Lobo-Marte gold project located in the Maricunga district of northern Chile, roughly midway between Kinross' Maricunga and La Coipa mines." More
- November 20, 2008 | Item | E-mail
Drilling Strengthens Continuity at Fronteer's Northumberland Gold Deposit - "Fronteer Development Group Inc. ("Fronteer" or the "Company") (Toronto:FRG.TO - News)(NYSE-A: FRG) is pleased to announce that recent drilling has strengthened the continuity and expansion potential of the Company's 100%-owned Northumberland deposit." More
- November 20, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 20 November, 2008 | |
