-- Posted 11 December, 2008 | | Source: SilverSeek.com

The Metals:

Gold fell back off about 0.5% in Asia, but it then rallied back higher in London and climbed to as high as $834.60 with a gain of $25.90 by about 8:15AM EST before it pared those gains slightly for the rest of trade in New York and ended with a gain of 2.23%.  Silver also fell slightly in Asia before it climbed to as high as $10.528 by about 8:15AM EST and then ended with a gain of 2.56%.

The price of gold in British Pounds rose to a new record high over £552 an ounce, euro gold fell back near €618 on notable euro strength, platinum gained $1 to $830, and copper gained nearly 2 cents to about $1.49.

Gold and silver equities rose over 6% in the first hour of trade before they roughly halved their gains by late morning and then returned back near their highs by early afternoon, but they then fell back off again into the close as the major indices dropped and the miners ended slightly lower on the day.

The Economy:

Initial Jobless Claims rose to a new 26 year high.  Import and Export Prices both dropped a record amount.

House passes auto bailout, Senate prospects grim  Reuters

Bush's $14 Billion Automaker Bailout Lacks the Votes to Pass U.S. Senate   Bloomberg

U.S. households pay down debts for first time, Fed data show  MarketWatch

Tomorrow at 8:30AM EST brings PPI for November expected at -2.0%, Core PPI expected at 0.1%, Retail Sales for November expected at -2.0%, and Retail Sales excluding auto sales at -1.8%.  At 10AM is the Business Inventories report for October expected at -0.2% and Michigan Sentiment for December expected at 55.0.

The Markets:

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

Oil rose over 10% on talk over a “severe” OPEC cut and signs of rebounding demand as the U.S. dollar index plummeted about 2% on poor economic data and the prospect that the ECB may no longer cut interest rates along with the fed.

Treasuries rose as the Dow, Nasdaq, and S&P ended about 3% lower on worries over the economy and whether or not the automakers will get a bailout.

Among the big names making news in the market today were Eli Lilly, Costco, P&G, Boeing, and GM.

The Commentary:

“Dear Friends,

From the Dow Jones high in 1929 it took until 1932 to establish the absolute low. From the establishment of that low point in 1932 low it took 25 years to regain the 1929 high (1954).

It was no coincidence that Roosevelt went to fiscal stimulation in 1932 – 1933 in the form of jobs creation by proxy, such as the Civil Conservation Corp (CCC) and other make work programs. Roosevelt proposed conservation and other work programs as the means of unemployment relief during the 1932 presidential campaign. Senate Bill 5.598, the Emergency Conservation Work Act; was signed into law on March 31, 1933. This initiative is still on the books, having not been funded since 1941.

This is why liberal President Elect Obama will embrace fiscal stimulation with a vengeance, possibly as soon as at the Swear In Ceremony.

I am told that $1 trillion is only for starters.

Today is so different in substance than 1929 - 1932 even if it is a mirror image in unfolding chapters.

Monty is spot on regarding the total final cost of the Sin of OTC derivatives, saying that it will reach only $20 trillion if we are lucky.

CONSEQUENCES my friends. Consequences cannot be avoided.

While the Fed and Treasury take their lead into action from what went wrong with 1929 anti deflationary policies, no one is considering the consequences of their present economic acts that will go infinitely more wrong than any boo-boo in the 1929-1932 period.

Gold is going much higher than $1650. Alf Fields is right in his studies. My estimate of $1650 that I have held since 2000 is terribly conservative.

Be strong. Stop looking for why you are wrong and start knowing why we are right.

Bert Seligman taught me a simple truth:

“The weak succumb, the strong survive.”

Be strong in your commitment. Don’t let some wackjob with a second hand laptop and a bottle of cheap gin cause you to lose sleep.

Respectfully yours,”- Jim Sinclair, JSMineset.com

“Dear CIGAs,

Gold shot through another level of overhead resistance in convincing fashion before it was capped near the $830 level. The selling at that level was quite incongruous with the massive upside move in the Euro and the nearly $6.00 move higher in crude oil. With the Dollar falling completely out of bed as wave after wave of speculative sell stops were touched off, it made the obvious defense of $830 in gold by the bullion banks all the more laughable. Gee fellas, nothing like being discrete is there? Then again, they do not even bother to trying covering their footprints any more. Anyone with a lick of chart reading knowledge can see their handiwork Seriously, no amount of paper gold market shenanigans by these people can change the fact that the market seems to be coming to grips with the near infinite amounts of dollars which the feds insist on throwing at any business entity that can afford to hire enough lobbyists to endlessly recite why it is too big to fail. The rush into Treasuries, creating one of the biggest bubbles I have seen in that market and probably will not see again, has dropped yields to zero and in some cases below zero. With that kind of backdrop, it makes perfect sense for investors looking for a safe haven to move into gold considering that dollars are going to be dropping out of the sky.

It should be noted that the move higher in gold is not confined specifically to gold priced in Dollar terms alone. Gold priced in euros, or Euro-Gold as I prefer to call it, came in solidly above the 600 level today at the PM Fix with the price set at €624.011. Gold priced in pound sterling set another new all time high being fixed at 554.495. I will try to get some gold charts priced in various currencies up later today if time permits.

When you have gold moving higher in terms of all the major currencies plus the mining shares moving higher, it is always a positive. Keep in mind that tomorrow is Friday and after a move of the magnitude that gold has shown us this week, it is not to be unexpected that some profit taking by short term oriented longs will occur as they see the bullion bank selling appear.

Open interest saw a very good increase in yesterday’s big upmove; something which is technically friendly. We just might have finally bottomed out in the open interest after dropping from nearly 594,000 contracts to a low point of 261,000. That is one helluva market flush. We need to see a steady increase in this number to support any upside trending move. I have no doubt that a good number of those funds who had chased momentum lower and were selling into the weakness are now effectively out of the market after yesterday and today. Their buying helped propel prices higher as it was the sell stops that they had in place that were touched off. Fresh buying now must carry the load against what we all know will be the endless paper selling by the banks. Don’t forget – the best way to deal with these people is to continue taking delivery of physical gold and taking the gold OUT of the warehouses.”– Dan Norcini, More at JSMineset.com

“February Gold closed up 17.8 at 826.6. This was 4.1 up from the low and 4.7 off the high.

March Silver finished up 0.225 at 10.425, 0.015 off the high and 0.025 up from the low.

The gold market initially managed a rather impressive upward extension only to see a setback in the wake of the scheduled US data. From the pre-report high the February gold contract managed a setback of roughly $14.50 an ounce. In looking at the action in gold on today, it would seem like the market was to a degree tied to the ebb and flow in equity prices. It also goes without saying that the sharp downside washout in the Dollar provided gold with an initial lift but after the initial reaction, progressively weaker Dollar action seemed to lose its influence on gold prices.

The silver market exhibited a similar pattern of early strength but was generally unable to maintain a definitively up beat posture throughout the trading session. Clearly the slide in the Dollar provided the early lift to silver and a host of physical commodities, but weakness in the numbers, choppy action in the equity market and ongoing fears of severe slowing ultimately seemed to weigh on silver prices.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Fear triggers gold shortage, drives Treasury yields below zero

Growing controversy over gold backwardation

Ambrose Evans-Pritchard: Commodity crash tests faith in supercycle

The Statistics:

As of close of business: 12/10/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: No change in Total Tonnes from yesterday’s data.

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:

IAMGOLD’s (IAG) offer for Orezone (OZN), Claude’s (CGR) drill results, Aurizon’s (AZK) drill results, Rubicon’s (RBY) drill results, Apollo Gold’s (AGT) Bridge Facility, Crystallex’s (KRY) legal action update, Excellon’s (EXN.TO) first quarter financial results, Minefinders’ (MFN) closed bought deal offering, Hecla’s (HL) $21 million equity transaction, and Silver Standard’s (SSRI) drill 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:

New Technical Report received on Creston Molybdenum Deposit - More
- December 11, 2008 | Item | E-mail

New High Grade Gold Discovery at Sabodala - More
- December 11, 2008 | Item | E-mail

Gitennes reports on progress at the Urumalqui Silver-Gold Project - More
- December 11, 2008 | Item | E-mail

Grandview Gold Inc. CEO Issues Biannual Update to Shareholders - More
- December 11, 2008 | Item | E-mail

Canadian Orebodies Inc. - Orebodies completes airborne survey which identifies priority targets on Trump - More
- December 11, 2008 | Item | E-mail

Osisko Intersects 186 Metres Averaging 1.75 g/t Au at South Barnat - More
- December 11, 2008 | Item | E-mail

Acquisition of Patricia Mining Corp. by Richmont Mines Inc. Receives Securityholder Approval - More
- December 11, 2008 | Item | E-mail

Zaruma Resources reports on New Copper Discovery at Sapo-Carrizo and Updates Corporate Developments - More
- December 11, 2008 | Item | E-mail

Silverado Announces Results of Annual General Meeting - More
- December 11, 2008 | Item | E-mail

Excellon Reports Q1 Financial Results - "During the three month period ended October 31, 2008, the Company recorded net loss and comprehensive loss of $5,933,698 compared to net income and comprehensive income of $1,039,810 in 2007. Gross operating loss for the period was $751,712 compared to gross operating income of $6,109,798 in 2007. Net loss before income taxes for the period was $6,254,285, compared to net income before income taxes of $1,937,553 in 2007." More
- December 11, 2008 | Item | E-mail

Marathon Project accepted into MPMO Projects List - More
- December 11, 2008 | Item | E-mail

Iamgold to buy Orezone for West African deposit - "Iamgold Corp (IMG.TO: Quote, Profile, Research, Stock Buzz) has agreed to buy Orezone Resources (OZN.TO: Quote, Profile, Research, Stock Buzz) in an all stock deal worth about $139 million, which will boost its West African production base and lower its mining costs.

The deal between the two Canadian miners pushed Orezone's shares up by nearly 170 percent on the Toronto Stock Exchange." More
- December 11, 2008 | Item | E-mail

Capital Gold Announces First Fiscal Quarter Financial Results Conference Call - More
- December 11, 2008 | Item | E-mail

Indonesian MPs agree to pass mining law - Indonesia moved ahead on Thursday with plans to ease the path of international mining companies to exploit its mineral wealth.

An Indonesian parliamentary working committee agreed to pass a new bill on mining and coal, a legislator said on Thursday.

Parliament is due to hold a plenary hearing on Dec. 16, when it is expected to pass the bill." More
- December 11, 2008 | Item | E-mail

Geoinformatics Completes 100% Earn-In at Whistler Project, Alaska - More
- December 11, 2008 | Item | E-mail

Tamerlane announces up to C$400,000 financing - More
- December 11, 2008 | Item | E-mail

Orex Exploration Inc.: Positive Gold Assays in Previously Reported Drill Holes and New Intersections Discovered, Including 9.07 g/t Over 29.5m - More
- December 11, 2008 | Item | E-mail

Lundin Mining/HudBay Business Combination Update - More
- December 11, 2008 | Item | E-mail

Yukon Gold Amends Marg Acquisition Agreement - More
- December 11, 2008 | Item | E-mail

Avion Announces Final Exploration Results Program Best Drill Intercept of 26.94 g/t Au (Uncut) Over 16.9 Metres Core Length Segala and Tabakoto Gold Projects - More
- December 11, 2008 | Item | E-mail

Appalaches: Two Drills on the Dufferin Gold Mine Site in Nova Scotia - More
- December 11, 2008 | Item | E-mail

Claude Resources Intercepts More High Grade Gold at Madsen Fork Zone - "The current geological interpretation of the Fork Zone has identified at least two sub-parallel, moderately southeast-dipping shear systems that host southwest plunging ore-shoots. The mineralized shear systems have been intercepted over a strike length in excess of 450 meters and they remain open along strike and at depth." More
- December 11, 2008 | Item | E-mail

Infill drilling program completed at Joanna - 116 grams of gold per tonne over 2.7 metres intersected - "Aurizon Mines Ltd. (TSX: ARZ; NYSE Alternext U.S.: AZK) is pleased to announce the completion of an important infill drill program at its Joanna project, located 20 kilometres from Rouyn-Noranda, in north-western, Quebec." More
- December 11, 2008 | Item | E-mail

Rubicon Intersects 91.91 oz/ton Gold Over 1.6 feet In New F2 Step-Out Drilling And Announces 2009 Exploration Plans - "Rubicon Minerals Corporation (RMX.TSX:RBY.AMEX) is pleased to announce results of step-out drilling from barge and land based drilling at the 100%-controlled Phoenix Gold Project, located in the heart of the prolific Red Lake gold district of Ontario. Rubicon is also pleased to announce its 2009 exploration plans which include a minimum of 120,000 feet of surface and underground diamond drilling." More
- December 11, 2008 | Item | E-mail

HudBay Reports Progress in Lundin Acquisition - More
- December 11, 2008 | Item | E-mail

Africo Resources Wins Mines and Money Award - More
- December 11, 2008 | Item | E-mail

Forsys Corporate Quarterly Update - More
- December 11, 2008 | Item | E-mail

Minefinders Closes C$40 Million Bought Deal - "Minefinders Corporation Ltd. ("Minefinders" or the "Company") (Toronto:MFL.TO - News)(NYSE-A: MFN) today reported that the Company has closed its previously announced C$40,020,000 bought deal offering (the "offering") in which a syndicate of underwriters purchased 9,200,000 units (the "units") from Minefinders for sale to the public at a price of C$4.35 per unit. Each unit consists of one common share of the Company (a "common share") and one-half of one common share purchase warrant (a "warrant"). Each whole warrant entitles the holder to purchase one common share of the Company, at a price of C$5.00 per common share, on or before December 31, 2011." More
- December 11, 2008 | Item | E-mail

Breakwater Sells Interest in Coulon JV Property to Virginia - More
- December 11, 2008 | Item | E-mail

Douglas Lake Minerals CEO conference call with webcast - More
- December 11, 2008 | Item | E-mail

Canadian Mining Signs Formal Purchase Agreement with Exploraciones San Bernardo S.A. de C.V. - More
- December 11, 2008 | Item | E-mail

Apollo Gold Closes US$15 Million Bridge Financing Facility for the Black Fox Project - “I am happy that we have finalized the Bridge Facility with the Banks to ensure that the Black Fox Project keeps moving forward. I am confident that we can conclude the balance of the Banks’ due diligence process and therefore close the Project Facility, enabling us to bring Black Fox into production in April 2009 on schedule. In summary, we have a mill, we have started developing the open pit, equipment is on order, the refurbishment of the mill is underway and we continue towards finalization of the project finance facility.” More
- December 11, 2008 | Item | E-mail

Millstream Gives Update on Montana Joint Venture Deal - More
- December 11, 2008 | Item | E-mail

Virginia: Acquisition of a 100% Interest in the Coulon JV Property - More
- December 11, 2008 | Item | E-mail

U3O8 Corp. Granted Access to Previously Drilled Core in the Roraima Basin to Accelerate Exploration Strategy - More
- December 11, 2008 | Item | E-mail

Crystallex Updates Shareholders on Note Holder Legal Action - "Crystallex International Corporation (Toronto:KRY.TO - News) (NYSE-A: KRY) today reported that it has now been served with a Notice of Application by Computershare Trust Company of Canada ("Computershare") in its capacity as Trustee for the holders of certain senior unsecured notes of Crystallex due December 23, 2011. Computershare, on behalf of the debenture holders, is seeking a declaration from the Court that there has been a "Project Change of Control" event as defined in the First Supplemental Indenture made as of December 23, 2004 thereby requiring Crystallex to purchase all of the notes of each note holder who has so requested at a price equal to 102% of the principal amount of the notes, together with accrued and unpaid interest to the date of purchase." More
- December 11, 2008 | Item | E-mail

Northland Upgrades Resource Figures for Tapuli Magnetite Project - More
- December 11, 2008 | Item | E-mail

Azteca Gold Corp. Updates Two Mile Project Drilling and Announces $1.25m Financing - More
- December 11, 2008 | Item | E-mail

Hawk Uranium Inc. Proposes Amendments to Warrants - More
- December 11, 2008 | Item | E-mail

Searchlight Minerals Corp. Provides Clarkdale Operations Update - More
- December 11, 2008 | Item | E-mail

Augen Gold Announces Resignation of Director - More
- December 11, 2008 | Item | E-mail

Forsys Completes Restatement of Quarterly Results for the Year Ended January 31, 2008 - More
- December 11, 2008 | Item | E-mail

Significant uranium intersections continue to expand Rossing South mineralisation - More
- December 11, 2008 | Item | E-mail

Yukon-Nevada Gold Corp. announces increase to private placement - More
- December 11, 2008 | Item | E-mail

Hecla Announces $21 Million Equity Transaction - "Hecla Mining Company (NYSE:HL - News) today announced it has entered into a definitive agreement to sell securities to selected institutional investors for aggregate gross proceeds of $21 million. The offering will be made pursuant to Hecla’s existing Form S-3 shelf registration statement and base prospectus filed with the Securities and Exchange Commission (SEC). The offering is expected to close no later than December 15, 2008, subject to the satisfaction of customary closing conditions." More
- December 11, 2008 | Item | E-mail

IAMGOLD and Orezone Announce Business Combination - "IAMGOLD Corporation (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) and Orezone Resources Inc. (Toronto:OZN.TO - News)(AMEX:OZN - News) ("Orezone") jointly announced today that they have entered into a definitive arrangement agreement whereby IAMGOLD would acquire, via a plan of arrangement, all of the outstanding common shares of Orezone in a supported, all-share transaction. Total consideration is valued at approximately US$139 million." More
- December 11, 2008 | Item | E-mail

Silver Standard Resources Inc.: More High-Grade Silver Intersected at Maverick Springs - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News), as operator of the Maverick Springs joint venture, is pleased to report successful follow-up diamond drilling from the 2006 program in which MR-166 intersected 140 feet grading 7.65 ounces of silver per ton, including 40 feet grading 25.2 ounces of silver per ton, and hole 167 intersected 140 feet grading 11.1 ounces of silver per ton, including 15 feet grading 89.4 ounces of silver per ton." More
- December 11, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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