-- Posted 17 December, 2008 | | Source: SilverSeek.com

The Metals:

Gold and silver held only part of yesterday’s after hours post-fed gains in Asia and London before they rose markedly in New York to new highs of $880.85 and $11.57 by about 10:15AM EST and then fell back off a bit in the last few hours of trade, but they still ended with gains of 6.9% and 3.2%.

Euro gold fell to about €606 on even more euro strength, platinum gained $13 to $859, and copper fell slightly to about $1.35.

Gold and silver equities rose roughly 4% by late morning, but they then fell back off into the close with the major indices and ended about 1% lower.

The Economy:

There were no major economic reports today, but the “Mortgage Bankers Association said U.S. mortgage applications climbed last week as 30-year mortgage rates fell near the lowest on their records.”  Also announced was the third quarter current account deficit at a huge 4.8% of GDP at $174.1 billion, but that amount was smaller than expected and also less than the second quarter.  “For all of last year, the current account deficit totaled $731.2 billion, which meant the country needed to borrow $2 billion a day from foreigners to finance its activities.”

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 12/13 expected at 558,000 and at 10AM is the Leading Economic Indicators report for November expected at -0.5% and the Philadelphia Fed survey expected at -40.0.

The Markets:

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

Oil saw slight gains in early trade as OPEC announced a 4.2 million barrel cut from September’s levels, but that includes 2 million barrels that were previously announced and results in an effective cut of another 2.2 million barrels.  While the 2.2 million barrels was still slightly more than the 2 million barrels expected, many doubts exist over whether or not OPEC will actually be able to enforce the cuts and have member nations follow the pledge to cut output, so oil ended the day back down near $40 at a new four and a half year low.

The U.S. dollar index fell yet again and treasuries rose even more in continued reaction to the fed’s decision to try and print its way out of a problem caused by too much printing in the first place.

The Dow, Nasdaq, and S&P mostly fell on worries for the need of the fed’s severe actions yesterday and also concern that nothing else can be done should financial problems worsen.

Among the big names making news in the market today were Apple, General Mills, Honda, Morgan Stanley, Chrysler, Newell Rubbermaid, and Adobe.

The Commentary:

“Dear CIGAs,

Today’s action in nearly every single market that trades can best be described by one phrase – “It’s all about the Fed”. Their decision to basically print as much money as needed to liquefy the financial system is a signal that the Dollar be damned as far as they are concerned. They will create as many of those little green things as they feel is necessary to free up the logjam in the credit markets. The Forex markets wasted no time whatsoever in administering a sound “arse whooping” to the greenback as it has utterly collapsed. We have been saying at this site for years now that the Fed would burn the dollar to the ground rather than allowing the stock market and the general economy to slump into a depression. That prediction has been vindicated I think it is safe to say. It really did not take a rocket scientist to figure this out; one merely had to read Chairman Bernanke’s own writings where the strategy is laid bare for anyone who wanted to see it. The only question in my mind at this point is exactly how fast the monetary authorities are prepared to let the dollar fall since it is no longer a matter of “IF” it will fall – they want it down. No one is going to want the dollar to drop off the face of the earth – what they ideally want is a “controlled descent” if such a thing is possible now that any fundamental support beneath the dollar has been eliminated.

When you throw in the fact that the incoming administration has made it clear that their intent is to create a government works project modeled after the New Deal of the 1930’s, the whole thing has an eerie, surreal feeling as if we have been here before. Budget deficits into the future as far as the eye can see coupled with free money being thrown into the system is a recipe for the demise of the Dollar. All this translates to much higher gold prices especially with the absolutely pathetic yields that investors can now hope to obtain on US Treasuries.” Dan Norcini, More at JSMineset.com

“February Gold closed up 25.8 at 868.5. This was 10.5 up from the low and 13 off the high.

March Silver finished up 0.715 at 11.42, 0.13 off the high and 0.28 up from the low.

The gold market started off the session stronger and then built on gains as a sharp break in the Dollar and rally in the Euro sparked strong buying in physical commodities. The gold market saw follow through strength as the Fed's latest effort to stimulate the economy by dropping rates to near zero seemed to revive concerns over inflation down the road. With US Treasury yields at ultra low rates and the Treasury flooding the market with debt supply, gold has become very appealing to investors as a store of value. With the focus primarily on the Dollar, the gold market paid little attention to a dip in oil prices as the currency action appears to have revived inflation expectations despite the current deflationary economic environment.

Silver was pushed to a new high for the move as the metal traded higher on gold's coattails. Silver has gained steadily this month despite fresh evidence of global economic slowing. Some of the gains in silver may be tied to expectations that the White House will come through with an auto sector bailout plan this week. But silver appears to be trading mostly as a precious metal with the market benefiting from revived inflation expectations tied to the sinking Dollar. In fact, it is impressive that silver held firm despite an early push lower in copper this session.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Somebody tell Ecuador it has a lot of gold, and gold is money too

James Turk: Whatever it takes

Thom Calandra: Why did that coin dealer give up gold for dollars?

'People used to buy certificates. Now they want physical gold.'

Comex concentration hints that shorts are all government now

Monetizing debt is next, Fed says

The Statistics:

As of close of business: 12/17/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: SPDR added 3.98 tonnes to a new record high holding.

COMEX Gold Trust (IAU)

 Note: Change in Total Tonnes from yesterday’s data: 0.77 tonnes were added to the trust.

Silver Trust (SLV)

 Note: Change in Total Tonnes from yesterday’s data: 33.77 tonnes were added to the trust.

The Stocks:

Anglo American’s (AAUK) projects in Peru, Freeport’s (FCX) lawsuit, Seabridge’s (SA) addition to the S&P/TSX Global Gold Index and Global Mining Index, Claude’s (CGR) drill program, NovaGold’s (NG) update on corporate activities, US Gold’s (UXG) drill results, Kinross Gold’s (KGC) completed project interest acquisition, Great Basin’s (GBN) trading on the New NYSE Alternext Exchange, Kirkland’s (KGI.TO) project development, MAG’s (MVG) corporate update, and Endeavour’s (EXK) private placement 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:

Cigma Metals Corporation Announces the Results of 2008 Drilling Program on the Quartzite Gorka Prospect, Dostyk Gold-Copper Project in Kazakhstan - More
- December 17, 2008 | Item | E-mail

Jasper Mining Corporation - Five more drill holes having in excess of 0.2% copper equivalent, including 212.43 m grading 0.265% cu.eq. - More
- December 17, 2008 | Item | E-mail

HARTE Announces Private Placement Financing and Conversion of Debt to Equity - More
- December 17, 2008 | Item | E-mail

Yukon Gold Appoints J.L. Guerra, Jr. President & CEO - More
- December 17, 2008 | Item | E-mail

Aurora Gold Corporation Announces Completion of Ground Geophysics at the So Joo Gold Project Areas Located in the Tapajos Gold Province, Para, Brazil - More
- December 17, 2008 | Item | E-mail

Everton Adopts a Shareholder Rights Plan - More
- December 17, 2008 | Item | E-mail

Anglo's Peru projects on track despite capex cuts - "Global miner Anglo American Plc (AAL.L: Quote, Profile, Research, Stock Buzz), which on Wednesday announced it will cut spending by more than half in 2009, said its two projects in Peru are moving ahead despite the recent collapse in commodity prices." More
- December 17, 2008 | Item | E-mail

Castillian Agrees to Acquire Ferus Resources Ltd. - More
- December 17, 2008 | Item | E-mail

Dia Bras Applies New Geologic Model at Bolivar and Produces High-Grade Intercepts in the Newly Discovered Guadalupe Area - More
- December 17, 2008 | Item | E-mail

HuntMountain Releases New High-Grade Assays from La Josefina Gold-Silver Project - More
- December 17, 2008 | Item | E-mail

Evolving Gold Expands the Size of the Gold System at Rattlesnake Hills, Wyoming - More
- December 17, 2008 | Item | E-mail

Nix, Patterson & Roach Launches Website in Class Action Against Freeport-McMoRan - "Nix, Patterson & Roach, LLP and other attorneys representing the plaintiffs in a major class action lawsuit against mining giant Freeport-McMoRan Copper & Gold, Inc. (NYSE: FCX - News) have launched Cleanupblackwell.com, a website focusing on the legal action and the environmental contamination underlying it.

Blackwell is a town of 7,000 located in north-central Oklahoma. The community is contaminated with 58 million pounds of lead, arsenic, and other toxins left behind by the Blackwell Zinc Smelter, at one time the largest smelter of its type in the world. As successor-in-interest to the company that owned the smelter, Freeport-McMoRan is legally responsible for any related contamination." More
- December 17, 2008 | Item | E-mail

Alberta Star Development Corp. Provides Corporate Update - More
- December 17, 2008 | Item | E-mail

Victoria Gold Corp. Announces Closing of Business Combination with Gateway Gold Corp. - More
- December 17, 2008 | Item | E-mail

EurOmax intersects massive sulphides at Ceovishte - More
- December 17, 2008 | Item | E-mail

Altius Signs Exploration and Royalty Agreement on Labrador Iron Ore Properties With Kennecott - More
- December 17, 2008 | Item | E-mail

Paladin Energy Ltd. Files Documents Regarding Takeover Bid for Fusion Resources Limited - More
- December 17, 2008 | Item | E-mail

Seabridge Gold to be Added to S&P/TSX Global Gold and Global Mining Indices - "Seabridge Gold (Toronto:SEA.TO - News)(NYSE ALTERNEXT US: SA) announced today that its common shares will be added to the S&P/TSX Global Gold Index and Global Mining Index effective at the open of trading on Monday December 22, 2008." More
- December 17, 2008 | Item | E-mail

Claude Resources Launches Madsen Underground Drill Program - "The initial underground drill targets include the plunge and strike extensions of the 8 Zone as well as conceptual targets associated with the 8 Zone shear system. The 20-hole Phase 1 program is anticipated to continue through to the end of the second quarter." More
- December 17, 2008 | Item | E-mail

Eurasian Minerals Inc. Acquires 27 Exploration Licenses in Haiti and the Historic Meme Copper-Gold Mine - More
- December 17, 2008 | Item | E-mail

First Uranium receives $50 million from Gold Wheaton Barbados Corporation as the first tranche payment of a gold stream transaction - More
- December 17, 2008 | Item | E-mail

Virgin Metals Announces Acquisition and Provides Update on Activities - More
- December 17, 2008 | Item | E-mail

AIM Finalizes Agreement to Sell Kelly Rock Limited - More
- December 17, 2008 | Item | E-mail

Sheltered Oak Resources Corp. - Name and Symbol Change - More
- December 17, 2008 | Item | E-mail

Southwestern Resources Corp.: Corporate Update - More
- December 17, 2008 | Item | E-mail

Iberian Minerals Corp. Subsidiary Signs Exploration Joint Venture With Cadillac Ventures in Andalusia Region - More
- December 17, 2008 | Item | E-mail

Cadillac Announces Joint Venture in Spain - More
- December 17, 2008 | Item | E-mail

NovaGold Provides Update on Corporate Activities - "NovaGold Resources Inc. (Toronto:NG.TO - News)(NYSE-A: NG) is not aware of any reason for the significant increase in the market price of its common shares over the past several days. As previously disclosed, NovaGold continues to review strategic alternatives. NovaGold has been in discussions with numerous parties concerning potential debt and equity financing. NovaGold is in discussions with Auramet Trading LLC concerning the possible extension of some or all of the US$20M bridge loan due on December 29, 2008. No assurances can be given that any of these strategic or financing alternatives will be completed." More
- December 17, 2008 | Item | E-mail

ARM forms JV with Vale to develop TEAL assets - More
- December 17, 2008 | Item | E-mail

Golconda Resources Ltd. Announces Acquisition of Lyncorp Drilling Services Inc. - More
- December 17, 2008 | Item | E-mail

Georox Resources Inc. closes private placement of 2,730,000 units - More
- December 17, 2008 | Item | E-mail

Bannerman Resources Announces Board Changes and Issue of Draw-Down Notice - More
- December 17, 2008 | Item | E-mail

Uranium International Corp. Enters Into Letter Option Agreement With Geoforum Scandinavia AB for Mineral Lease Option on Uranium Properties in Sweden - More
- December 17, 2008 | Item | E-mail

Bannerman Resources Announces Settlement of Savanna Litigation - More
- December 17, 2008 | Item | E-mail

African Queen Mines Commences Trading on the Frankfurt Stock Exchange - More
- December 17, 2008 | Item | E-mail

Arehada Announces Bank Loan Payment Extension - More
- December 17, 2008 | Item | E-mail

PDX Resources Advised of Drill Results From Detour Gold's Drilling Program at Detour Lake, Ontario - More
- December 17, 2008 | Item | E-mail

WSR Gold Inc. Announces Shareholder Approval of Proposal to Consolidate its Common Shares and Change Name - More
- December 17, 2008 | Item | E-mail

Corriente in talks to sell itself, stock leaps - More
- December 17, 2008 | Item | E-mail

US Gold Intersects Impressive High-Grade - "US GOLD CORPORATION (Toronto:UXG.TO - News)(NYSE ALTERNEXT US: UXG)(Frankfurt:US8.F - News) announces a successful conclusion to its first year in Mexico and a bright outlook for 2009! Drilling from two projects within the Magistral District, located in Sinaloa State continues to intersect exciting high-grade results (Figure 1)." More
- December 17, 2008 | Item | E-mail

MAG Silver Provides Corporate Update - "MAG has approved an exploration budget of approximately CDN$17.0M for 2009. These monies are earmarked for the drilling of almost 30,000 metres on five MAG-owned properties in Mexico. Diamond drilling is expected to continue on the "Jose Manto" at Cinco de Mayo where MAG is outlining a new and potentially significant sulphide silver/lead/zinc carbonate replacement discovery. Drilling is also planned to commence in early 2009 at Sierra Ramirez/El Pavo, Lagartos SE and Salemex. Drilling at Juanicipio is expected to continue at roughly the same level as this year (25,000 metres). Relying on the same experienced team that discovered the Juanicipio Vein, MAG will aggressively continue to pursue high priority targets." More
- December 17, 2008 | Item | E-mail

Rio Tinto's selling, but who's buying? - "Mining giant Rio Tinto (RIO.L: Quote, Profile, Research, Stock Buzz) is hiving off assets to pay down $40 billion in debt after BHP Billiton withdrew a $66 billion bid, but in these turbulent times, who's buying?

Bankers and analysts say the world's largest miner BHP (BHP.AX: Quote, Profile, Research, Stock Buzz)(BLT.L: Quote, Profile, Research, Stock Buzz), Brazil's Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz)(RIO.N: Quote, Profile, Research, Stock Buzz), Switzerland's Xstrata Plc (XTA.L: Quote, Profile, Research, Stock Buzz) and China's aluminum giant Chinalco, parent of Chalco (2600.HK: Quote, Profile, Research, Stock Buzz) (601600.SS: Quote, Profile, Research, Stock Buzz), are all eyeing Rio's diverse collection of assets.

Most have the cash to pounce on any near-term opportunities." More
- December 17, 2008 | Item | E-mail

Endeavour Silver Arranges CA$4 Million Special Warrant Private Placement - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(NYSE ALTERNEXT US: EXK)(DBFrankfurt: EJD) announces that it has arranged a CA$4 million private placement financing of special warrants brokered by certain Canadian placement agencies. The agents have an oversubscription right to place up to an additional CA$1 million and the financing is expected to close no later than December 30, 2008, subject to TSX and regulatory approvals." More
- December 17, 2008 | Item | E-mail

Kinross Completes Acquisition of 40% Interest in Lobo-Marte Project in Chile From Anglo American - "Kinross Gold Corporation ("Kinross") (Toronto:K.TO - News)(NYSE:KGC - News) announced today that it has completed its acquisition of a 40% interest in Minera Santa Rosa SCM ("Minera") from certain subsidiaries of Anglo American plc ("Anglo") for an aggregate purchase price of US$140 million. 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
- December 17, 2008 | Item | E-mail

Great Basin Gold Trades on the New NYSE Alternext Exchange - "With the acquisition of the American Exchange (AMEX) by the NYSE, the ensuing merger has resulted in a new exchange and trading platform. The new exchange will be known as the NYSE Alternext.

On December 1, 2008 all NYSE Alternext US stocks began trading on the New York Stock Exchange's next generation market model which is now located on the NYSE's trading floor." More
- December 17, 2008 | Item | E-mail

Kirkland Lake Gold Inc.: Update on South Mine Complex Development - "Kirkland Lake Gold Inc. ("Kirkland Lake" or the "Company") (TSX:KGI - News; AIM:KGI) announces today that, after a review of the proposed development plan, the Company has decided to carry out the development of the South Mine Complex Project (SMC or the "Project") at its mine in Kirkland Lake, Ontario, with its own Company employed workforce rather than using external resources as previously announced on 29th October 2008." More
- December 17, 2008 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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