Gold Seeker Closing Report: Gold and Silver End Mixed While Stocks Rebound

	Close	Gain/Loss
Gold	$850.80	-$3.55
Silver	$11.28	+$0.125
XAU	117.16	+3.27%
HUI	281.92	+3.43%
GDM	874.69	+2.97%
JSE Gold	2241.87	-2.89
USD	85.42	-0.83
Euro	130.60	+1.81
Yen	111.86	+0.40
Oil	$43.55	+$2.71
10-Year	2.526%	+0.181
T-Bond	131.65625	-3.265625
Dow	8228.10	+3.51%
Nasdaq	1507.07	+4.60%
S&P	840.25	+4.35%

Gold rose $10.15 to $864.50 by early trade in London before it dropped as much as $11.30 to $843.05 by a little before noon EST in New York, but it then rallied back higher in afternoon trade and ended with a loss of just 0.41%. Silver climbed $0.355 to $11.51 and fell $0.10 to $11.055 before it also rallied back higher in the last couple of hours of trade and ended with a gain of 1.12%.

Euro gold remained at about €661, platinum lost $17 to $919, and copper fell over 7 cents to about $1.42.

Gold and silver equities fell nearly 3% by late morning, but they then rallied back higher in afternoon trade and ended with roughly 3% gains.

There were no major economic reports today, but the NAHB reported that “home builder sentiment sank to a new low in January as concerns about the faltering economy and reluctant home buyers hurt confidence in the market for newly built single-family.” Many were also watching U.S. Treasury Secretary-nominee Timothy Geithner testify before congress to try and win their confirmation to the post.

Tomorrow at 8:30AM EST brings Building Permits for December expected at 615,000, Housing Starts expected at 610,000, and Initial Jobless Claims for 1/16 expected at 548,000.

Oil rose nearly 7% “as OPEC supply cuts outweighed additional evidence that a deepening global slowdown is crushing demand for fuel.”

The U.S. dollar index and treasuries fell as the Dow, Nasdaq, and S&P rose on renewed confidence in the banking sector with the likeliness that Geithner will be confirmed as Treasury Secretary.

Among the big names making news in the market today were BHP, Best Buy, Barclays, Apple, Merrill Lynch, Toyota, and United Technologies.

There is no chance whatsoever that we will sidestep on a global basis the sins of our financial fathers. No administration will make it correct or even better. The best case scenario is a double dip depression, but a depression is in gear and there is no clutch action to shift those gears.

Obama’s fiscal stimulation program is becoming modestly readable. He is hoping to put off major funding inflows into cement and rebar as long as possible in the hope that the monetary stimulation will have an effect, but as below you can see that monetary policy has not and will not do anything positive for the economy. The Fat Cats have all that in their pocketbooks, be it corporate or individual. It has paid off legal claims, attorney’s fees and multiple types of funds due to others.

As soon as they go easy but PR hard the fiscal stimulation fails. The knee jerk reaction will open the flood gates. Banks and financial institutions are still on the begging bowl loan and donation line. Business is just awful and unemployment is in depression territory certainly if viewed through the truth window of Shadow Statistics (www.ShadowStats.com).

The cut in the dividend of GE is simply a harbinger of more problems there. Confidence of builders is in the tank. Consumers are spent out and taken out on a stretcher. There is only one way to go when the problem at the basis of all this remains hidden and unattended to.

When Lehman was thrown under the bus, the $60 trillion plus pile of credit default derivatives imploded. That pile can NEVER have a clearinghouse and it is that pile now sitting on any business recovery of merit. Geithner, our possible new Secretary of the Treasury, fluffed off questions about regulating the OTC derivative market.

You can anticipate piles of BS daily with the media continuing to educate you with disinformation. All of this is like intoxicating the terminally ill patient in order to convince that patient that he can anticipate a long and healthy life. It may be kind but will not make the patient live one more day.

“April Gold closed down 5.1 at 851.7. This was 4.5 up from the low and 0.3 off the high.

March Silver finished up 0.15 at 11.325, 0.045 off the high and 0.125 up from the low.

The gold market forged an inside day range on Wednesday but just seeing the gold market attempt to hold within striking distance of the prior close in the face of the residual strength in the Dollar was seen as a positive by the bull camp. In fact, the Dollar did manage another new high for the move on Wednesday and that move also brought the Dollar index to the highest level since December 9th. Apparently seeing the US Treasury Secretary nominee hint at the need for a change in the TARP program was only seen as a minimally supportive development on Wednesday and that could also suggest that the flight to quality theme was at least temporarily overdone. With the only scheduled US data point released Wednesday coming from the NAHB it wasn't surprising to see gold forge a somewhat narrower trading range than was seen in the prior trading session.

The silver market managed a new high for the move and at times during the trade clearly diverged from the action in the gold market. However, it did seem as if overt weakness in the base and industrial metals served as a drag on silver prices today. Unfortunately a mid day bounce in equity prices and an attempt to rally energy prices didn't seem to provide the silver market with an added boost and that would seem to suggest that neither the bull or bear camp had definitive control over prices today.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR added 7.65 tonnes to a new record high holding and the LSE added 0.83 tonnes.

Gold Fields’ (GFI) possible lay offs, Barrick’s (ABX) disputed gold mine, Midway’s (MDW) drill program, Kinross Gold’s (KGC) public equity offering, Gold Reserve’s (GRZ) postponed separation time, Sabina’s (SBB.V) exploration program, and Coeur’s (CDE) royalty transaction were among the big stories in the gold and silver mining industry making headlines today.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Champion Minerals Announces Financing - More
- January 21, 2009 | Item | E-mail

East West Resource Corporation: Drift Lake Resources Commences Drilling on Rossmere Gold Zones - More
- January 21, 2009 | Item | E-mail

BacTech Receives Conditional Approval for Purchase of Yamana Gold Assets - More
- January 21, 2009 | Item | E-mail

Freewest Resources Canada Inc. Grants Stock Options - More
- January 21, 2009 | Item | E-mail

Tri-Valley Confirms Significant Thickness of Gold Mineralization at Its Shorty Creek Alaska Property From Second Drill Suite - More
- January 21, 2009 | Item | E-mail

Chapleau Intersects 25.23 g/t Gold, 32.54 g/t Silver and 2.90 % Lead in Hole 79 on the Coringa Gold Project, Brazil - More
- January 21, 2009 | Item | E-mail

Terra Ventures Completes Airborne Survey at Lac Kachiwiss Uranium Property, Sept-Iles, Quebec - More
- January 21, 2009 | Item | E-mail

Golden Peaks Resources Ltd. - Cerro Delta Project, Argentina - More
- January 21, 2009 | Item | E-mail

Klondex to Review High-Grade Nevada Gold Deposit at Vancouver Resource Conference Jan. 2526 Booth #617 - More
- January 21, 2009 | Item | E-mail

Nevada Copper-Intersects 90 Meters (294 Feet) of 1.03% Copper in the Open Pittable South Deposit - More
- January 21, 2009 | Item | E-mail

Inspiration Intersects 0.465% Ni Over 89.21 M or 292.68 Ft Containing 1.112% Ni Over 7.47 M or 24.51 Ft (True Width) - More
- January 21, 2009 | Item | E-mail

UC Hub Group, Inc. Reports Early Stage Exploration of Wickenburg Property - More
- January 21, 2009 | Item | E-mail

Iron-T 43-101 Report Indicates World Class Potential - More
- January 21, 2009 | Item | E-mail

SAfrica Gold Fields may lay off 1,500 workers-union - "Gold Fields (GFIJ.J), the world's No. 4 gold producer, is considering laying off some 1,500 workers at its South African operations due to downsizing at some of its mines, a union official said on Wednesday." More
- January 21, 2009 | Item | E-mail

Cogitore Intersects More Mineralization on Trend at Scott Lake - 21.6 Metres Grading 1.96% Copper - More
- January 21, 2009 | Item | E-mail

Uranerz Reports 2008 Drilling Summary on Powder River Basin Projects - More
- January 21, 2009 | Item | E-mail

Definitive Agreement Finalized to option 100% Interest in the Everett Iron-Titanium Property - More
- January 21, 2009 | Item | E-mail

Titan Resources Announces Completion of "Norgold" Exploration Program - More
- January 21, 2009 | Item | E-mail

Northern Gold Mining Inc. Signs Letter of Intent With ValGold Resources Ltd. - More
- January 21, 2009 | Item | E-mail

Eastmain Resources Inc. Announces Goldcorp to Participate in Future Exploration At Eleonore South Project as a Joint Venture - More
- January 21, 2009 | Item | E-mail

Azimut provides an update on the Eleonore South property - More
- January 21, 2009 | Item | E-mail

Shoreham Resources Ltd. Receives Approval of a $510,000 Non-Brokered Flow-Through Private Placement Financing - More
- January 21, 2009 | Item | E-mail

Kinross to raise $360.5 mln in stock offering - "Kinross Gold Corp (K.TO) (KGC.N) plans to raise $360.5 million in a share offering to bolster its cash position following recent acquisitions, the company said on Wednesday." More
- January 21, 2009 | Item | E-mail

Inter-Citic Releases New Drill Hole Results From Dachang Gold Project - More
- January 21, 2009 | Item | E-mail

Delta Uranium CEO Increases Holdings and Acquires Over 10% Common Shares - More
- January 21, 2009 | Item | E-mail

Romarco Encounters a 57.4 Meter Aggregate Zone of 2.8 g/t Au at North Haile Area - More
- January 21, 2009 | Item | E-mail

Fortune Minerals increases planned production rate for the NICO Gold-Cobalt-Bismuth-Copper deposit, NWT - More
- January 21, 2009 | Item | E-mail

Anvil Reaches Agreement with Gcamines and the DRC Government for the Kinsevere and the Dikulushi Properties - More
- January 21, 2009 | Item | E-mail

Copper Mountain 2008 exploration drill program final results - More
- January 21, 2009 | Item | E-mail

Uranium Energy Corp Announces Inferred Resource of 1.3 Million Pounds eU3O8 at Nichols Project in South Texas - More
- January 21, 2009 | Item | E-mail

Desert Gold Ventures Inc.: Goldbanks Property, Pershing County, Nevada Initial KW Zone Drilling Results - More
- January 21, 2009 | Item | E-mail

BHP to cut 6,000 jobs, take $1.6 bln charge on mine - "BHP Billiton Ltd/Plc (BLT.L) (BHP.AX) will cut 6,000 jobs and close its giant Ravensthorpe nickel mine in Australia, writing off $1.6 billion, as the global resources giant battles a collapse in commodity prices." More
- January 21, 2009 | Item | E-mail

Canasia Industries Corporation: Reed Lake Work Program Now Underway - More
- January 21, 2009 | Item | E-mail

African Copper Plc: Mowana Mine Update - More
- January 21, 2009 | Item | E-mail

Sabina Silver Announces Exploration Program for 2009 - "Sabina Silver Corporation (CDNX:SBB.V - News) announced today its exploration plans for its 100% owned Hackett River silver-zinc project in Nunavut, Canada as well as an exploration program for its Skinner gold property in the Red Lake District of Ontario." More
- January 21, 2009 | Item | E-mail

Hearing begins in Reno on disputed gold mine - "Western Shoshone tribal members packed a Reno courtroom Tuesday, trying to persuade a federal judge to halt at least part of a huge gold mine they claim would desecrate a sacred landmark. Lawyers for Toronto-based Barrick Gold Corp. and the federal government disagreed with their claims that mining on Mount Tenabo in northeast Nevada would prevent the Shoshone from practicing their religion." More
- January 21, 2009 | Item | E-mail

Bill would expand where Idaho could get mine land - "A bill in the Idaho Legislature would let the state take ownership of former mining properties stretching from Mullan to the Washington border as part of federal Superfund cleanup settlements." More
- January 21, 2009 | Item | E-mail

Gold Reserve Postpones Separation Time Under Shareholder Rights Plan - "Gold Reserve Inc. (NYSE Alternext: GRZ) (TSX: GRZ - News) today announced that its Board of Directors has postponed the separation time under Gold Reserve’s shareholder rights plan to February 17, 2009. The hostile offer by Rusoro Mining Ltd. (TSX-V: RML - News) of December 15, 2008 (the “Offer”) to acquire all of the outstanding shares and equity units of Gold Reserve in consideration for three shares of Rusoro for each Gold Reserve share or equity unit tendered under the Offer is not a “Permitted Bid” within the meaning of the Gold Reserve shareholder rights plan." More
- January 21, 2009 | Item | E-mail

Kinross Completes Initial Drilling at Midway's Thunder Mountain Project, Nevada - "Midway Gold Corp. ("Midway") (CDNX:MDW.V - News)(AMEX:MDW - News) announces that a first pass drill program was completed by Kinross Gold USA ("Kinross") at Midway's Thunder Mountain project. Seven reverse circulation holes (3440 feet) were completed in late December. Assay results are pending. Kinross has also added 103 claims (3.2 square miles) to the project area. Kinross can earn a 75% interest in the project pursuant to an exploration and option to joint venture agreement, by incurring $3 million on the project within five years (Press Release July 16, 2008)." More
- January 21, 2009 | Item | E-mail

Coeur Receives $80 Million from Royalty Transaction with Franco-Nevada Corporation for Future Palmarejo Gold Production - "Coeur d'Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) announced today it has entered into a gold royalty stream transaction with Franco-Nevada Corporation (TSX:FNV - News) under which Franco-Nevada will purchase 50% of the life of mine gold to be produced by Coeur from its Palmarejo silver and gold mine in Mexico." More
- January 21, 2009 | Item | E-mail

Kinross announces public equity offering - 20.9 million shares at US$17.25 per share - Gross proceeds approximately US$360.5 million - "Kinross Gold Corporation (TSX: K - News; NYSE: KGC - News; "Kinross" or the "Company") announced today that it has entered into an agreement with a syndicate of underwriters led by UBS Securities Canada Inc. for a bought deal public offering of 20.9 million common shares of Kinross at a price of US$17.25 per common share. The Company has also granted to the underwriters an over-allotment option, exercisable for a period of 30 days from the date of closing of the offering, to purchase up to an additional 3,135,000 common shares at the offering price." More
- January 21, 2009 | Item | E-mail

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