Gold Seeker Closing Report: Gold and Silver End Mixed While Stocks Fall To New Lows

	Close	Gain/Loss
Gold	$993.10	-$6.10
Silver	$14.485	+$0.02
XAU	128.33	-3.25%
HUI	316.21	-1.63%
GDM	1004.30	-1.41%
JSE Gold	2873.62	-32.31
USD	87.32	+0.83
Euro	127.13	-1.05
Yen	105.80	-1.35
Oil	$38.44	-$1.59
10-Year	2.777%	+0.005
T-Bond	127.890625	+0.265625
Dow	7114.78	-3.41%
Nasdaq	1387.72	-3.71%
S&P	743.33	-3.47%

Gold fell as much as $23.85 to $975.35 by about 9:30AM EST in New York, but it then stormed back up to as high as $998.05 in late trade and closed near that high with a loss of just 0.61%. Silver dropped as much as $0.375 to $14.09 before it rallied to see a gain of $0.165 at $14.63 shortly after noon EST, but it then fell back off from that high in the last hour of trade and ended with a gain of just 0.14%.

Euro gold rose to a new record high above €779, platinum lost $9 to $1072.50, and copper gained a couple of cents to about $1.43.

Gold and silver equities fell over 3% at the open before they rebounded to see slight gains midday, but they then fell back off into the close and ended with roughly 2% losses.

There were no major economic reports today, but many were talking about possible bank nationalization and Obama’s plan to cut the U.S. budget deficit in half in the next four years. Tomorrow at 9AM is the S&P/CaseShiller Home Price Index for December expected at -18.25% and at 10AM is Consumer Confidence for February expected at 36.0 and Bernanke’s Monetary Policy Report before Congress.

Oil fell back below $39 despite reports that OPEC has cut back on production as worries over the economy continue to keep demand low.

The U.S. dollar index and treasuries rose slightly while the Dow and S&P fell over 3% to their lowest levels since 1997 on continued worries over the economy and the banking system. The Nasdaq remained above its November 2008 intraday/closing lows of 1295.48/1316.12, but the S&P joined the Dow at new 12 year closing lows after it closed below its previous low of 752.44. The S&P so far, however, has not yet broken through its November 2008 intraday low of 741.02 as it only sunk as low as 742.37 today.

Among the big names making news in the market today were Citigroup, Janus, Medtronic, UBS, GM, Chrysler, Apple, and US Airways.

Another week – another rotten day in the broad equity markets. Alas – you began so well last evening! What is it that ails thee? Wherefore doth thou persist in sinking lower and lower? Those might be the questions being asked by traders who saw the overnight trade in the equity futures moving sharply higher on the “good” news that the feds would only take over 40% of Citi instead of 51% or more. Sure – that was a great reason to buy. Traders began looking at the rise and saw another opportunity to get short from a better level and down it went.

I have to say that it is evident to me that the market has lost all confidence in the current administration’s point men on the economy and their “plan” to turn things around. You have to begin to fear that we could very well see an even sharper acceleration in the equity selloff based on the way the market is acting. This thing sticks its head up and the axmen come in and quickly lop it off. That kind of price action is terribly bearish. Confidence, that elusive, ethereal substance, once lost, cannot be recaptured until something occurs which gives solid evidence that it is sufficient to avert the crisis and quite frankly, many are looking for it and cannot find it.

Incidentally, the DOW is now back to levels last seen in October 2002. If it moves a bit lower from that level, it will be trading at levels last seen in October 1997! Another way of saying this is that all of the paper gains for the last 11 ½ years in the DOW are now smoke.

I heard what I consider a most intriguing idea put forth by a Republican Congressman out of my state Texas. He suggested that if the government feels compelled to try to do something to stem this crisis, why not simply declare a national tax holiday period of two or three months, perhaps even more, in which all withholding taxes are no longer taken out of American workers’ paychecks. In other words, let them keep the full amount of their wages. Couple that with a reduction in the corporate tax rate that levels the playing field between American business and our overseas competitors. His point made eminent sense to me. If the government is going to go into hawk, why not do so by letting the people keep the money that they have earned. Imagine what folks would think once they actually realized how much the government pilfers from them every week, or other week or month only to then spit it away on more useless pork? The problem with that idea is that it makes it almost impossible for the special interest block voters to be bribed by those who love to be the distributors of others money.

Meanwhile, the Euro, after rising sharply overnight (Yippee –let’s hear it for “risk” trades once again) got a case of heartburn or perhaps more aptly, sickness associated with being in high places, and promptly collapsed lower in the New York trading session as “risk” trades went back out. Seriously folks, it is a gigantic waste of time even attempting to come up with explanations for the price action we are having to witness in so many of these markets. It is called hedge fund madness. Plow back in buying with both fists only to abandon ship diving headlong into the water the next minute. When the dust settles most of the hedge funds will no longer be in existence. Good riddance is my attitude. Maybe some of their managers will find shoveling asphalt or screeding concrete on the new “shovel-ready” projects more fitting to their disposition to shove things around without any particular attention to patterns. Then again if word got out among the construction crew who they were, some of them might end up as road filler so perhaps they might want to avoid calling any attention to themselves.

Gold was taken quite a bit lower last evening as the thirst for risk came back meaning appetite for gold was out. It did manage to recapture most of its losses during the day session as it dawned on many traders that nothing the feds were going to do was going to effect any sort of quick recovery and that the time for risk is not perhaps as near as some might have been thinking.

Technically, the dip buyers are active in the gold pit which is a positive not to mention the price action in the gold shares as indicated by the HUI and XAU which both managed to withstand a great deal of selling pressure coming from the price drop in the broader equity markets.

Short term oriented traders used and are using the $1000 price level to book some profits since that was a target that some were looking for but longer term oriented players are using any weakness to get in or increase positions. This is actually good price action. As I mentioned Friday, this is one of the two possible scenarios I outlined. A panic rush into gold that would see it shoot up $55-$75 or more a day is in no ones interest. Those moves, while extremely sharp and massive, fizzle out in a collapse. We want to see a sustained, measured, steady move higher which consists of periods of consolidation in which the market adjusts to the new price level and has some time to acclimate itself to the new supply/demand equilibrium. A move such as this, has long-lasting staying power.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.26 tonnes.

Note: Change in Total Tonnes from yesterday’s data: 134.96 tonnes were added to the trust to a new record high holding.

Newmont’s (NEM) expanding profit margins, Tanzanian Royalty’s (TRE) private placement, Royal Gold’s (RGLD) reserve additions, Great Basin’s (GBG) proposed public offering and extended mine life projections, Barrick’s (ABX) focus on costs, Freeport’s (FCX) production cuts, IAMGOLD’s (IAG) gold reserves, Apollo Gold’s (AGT) US$70 million project financing agreement, Sterling’s (SRLM.OB) vacated mine lease, Minco’s (MSV.TO) foreclosure on Sterling, Fresnillo’s (FRES.L) fall in profit in 2008, and Minefinders’ (MFN) mine inauguration and update 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.

Queenston's $18 Million Financing Fully Subscribed - More
- February 23, 2009 | Item | E-mail

Tanzanian Royalty Chairman to Provide $1 Million Private Placement and Agrees to Reprice 8th Tranche of $3 Million Private Placement - Yahoo! Finance - "Tanzanian Royalty Exploration Corporation (Toronto:TNX.TO - News) (AMEX:TRE - News) announces that Mr. James E. Sinclair has agreed to provide $1,000,000 by way of a private placement with the proceeds being applied to general working capital. Mr. Sinclair has agreed to purchase 189,036 common shares at a purchase price of $5.29 per share for proceeds totaling $1,000,000." More
- February 23, 2009 | Item | E-mail

Rob McEwen becomes Executive Chairman of Minera Andes - Two new directors appointed - More
- February 23, 2009 | Item | E-mail

Royal Gold Announces Reserve Additions at Penasquito and Cortez Royalty Properties - "ROYAL GOLD, INC. (Nasdaq: RGLD - News; TSX: RGL - News), a leading precious metals royalty company, is pleased to announce that Goldcorp Inc. ("Goldcorp") increased its reserve estimate at the Penasquito project, located in Zacatecas, Mexico, to 17.4 million contained ounces of gold, and 1.0 billion contained ounces of silver. These new reserve estimates reflect a 34% and 21% increase, in gold and silver reserves, respectively. Goldcorp also announced that reserves increased 20% for both lead and zinc. Royal Gold holds a 2.0% net smelter return royalty on all metal production from the Penasquito project." More
- February 23, 2009 | Item | E-mail

Cogitore Intersects High Grades at Scott Lake Within Broad Stringer Mineralization - More
- February 23, 2009 | Item | E-mail

Great Basin Gold Ltd. Announces Public Offering - "Great Basin Gold Ltd. (the "Company") (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announced today that it has filed a preliminary short form prospectus with Canadian securities regulators and a related registration statement with the U.S. Securities and Exchange Commission under the U.S.-Canada multi-jurisdictional disclosure system, relating to a proposed marketed public offering of approximately C$125 million of units. Each unit will be comprised of one common share and one-half of one common share purchase warrant." More
- February 23, 2009 | Item | E-mail

Barrick focuses on costs, equity sale an option-CEO - "Barrick Gold (ABX.TO) is trying to negotiate lower contracted prices on consumables so it can take advantage of the sharp downturn in energy and commodity prices, the company's chief executive said on Monday.

Speaking at an investor conference in Florida, Barrick CEO Aaron Regent said cost control and containment would be a focus for the big gold producer in a year when its production is set to decline even as gold prices push toward record levels." More
- February 23, 2009 | Item | E-mail

Miner Freeport sees more cuts if copper price drops - "Freeport-McMoRan Copper & Gold (FCX.N), which has already cut back production because of the global economic downturn, said on Monday that it might have to make more cuts if the copper prices dropped further.

"We are preparing ourselves for uncertainty," said Chief Executive Richard Adkerson, "We did an analysis based on $1.25 (per pound) copper, and if it remains at the current level, we should be fine." More
- February 23, 2009 | Item | E-mail

Blue Note Hits More Gold - More
- February 23, 2009 | Item | E-mail

First Nickel Provides an Updated Lockerby Mine Mineral Resource Estimate - More
- February 23, 2009 | Item | E-mail

Alamos Gold Inc. Provides Exploration Update; Announces Appointment of Vice President Exploration and Director, Mineral Resources - More
- February 23, 2009 | Item | E-mail

Helio reports initial drill results from the Konokono Target, SMP Gold Project, Tanzania - More
- February 23, 2009 | Item | E-mail

Duran Reports Up to 7.8 g Gold/t, 191.0 g Silver/t, and 9.1% Copper From Prioritizing Precious Mineral Exploration in Peru - More
- February 23, 2009 | Item | E-mail

Sterling Mining Vacates Sunshine Mine Lease - "Sterling Mining Company (OTC Bulletin Board: SRLM - News) announced today its intention to vacate the Sunshine Mine lease due to the Company's inability to fund ongoing care and maintenance costs at the mine site. The Board of Directors of the Company voted unanimously (with one abstention) to vacate the lease at a board meeting held on Thursday, February 19th." More
- February 23, 2009 | Item | E-mail

Energy Fuels Reports on Data Package Acquisition, 2008 Exploration Drilling, and Option Grant - More
- February 23, 2009 | Item | E-mail

Global Minerals Outlines Continued Progress At Strieborna - More
- February 23, 2009 | Item | E-mail

Santa Fe Gold Launches New Corporate Website - More
- February 23, 2009 | Item | E-mail

Minco Silver Forecloses on Sterling Mining Company - "Minco Silver Corporation (the "Company" or "Minco Silver") (Toronto:MSV.TO - News) announces that the Company has filed an action to foreclose on Sterling Mining Company ("Sterling") in the District Court of the First Judicial District of the State of Idaho for the County of Shoshone." More
- February 23, 2009 | Item | E-mail

EuroMax and Silk Road announce friendly business combination - More
- February 23, 2009 | Item | E-mail

La Mancha's 2008 Year End Resources Increase 34% to 1.8 Million Ounces - More
- February 23, 2009 | Item | E-mail

Dorato Confirms Large High-Grade Gold-Silver System at Taricori Zone, Cordillera del Condor Project, NW Peru - More
- February 23, 2009 | Item | E-mail

Baffinland Reports Impressive Assay Results From the 2008 Drill Program at Its Mary River Iron Ore Deposits - More
- February 23, 2009 | Item | E-mail

IMA Announces New Island Copper Drill Results - More
- February 23, 2009 | Item | E-mail

Ventana Commences New Drill Program at La Bodega - More
- February 23, 2009 | Item | E-mail

Farallon Commences Shipping Concentrates to Asian Smelters - More
- February 23, 2009 | Item | E-mail

Southwestern Resources and Geoinformatics Announce Friendly Intention to Combine to Create Precious Metals Exploration & Development Company - More
- February 23, 2009 | Item | E-mail

Pacific North West Capital Corp. appoints John Londry to Board of Directors - More
- February 23, 2009 | Item | E-mail

Nevada Exploration Inc. Uses Water Chemistry at Bull Creek to Discover Another Previously Unknown Hydrothermal System - More
- February 23, 2009 | Item | E-mail

Anooraq Early Adopts International Financial Reporting Standards - More
- February 23, 2009 | Item | E-mail

Lake Shore Gold Provides Corporate Update - More
- February 23, 2009 | Item | E-mail

Rusoro Reports Record Gold Production and Cash Costs for January 2009 - More
- February 23, 2009 | Item | E-mail

Harte Announces Change of Auditor - More
- February 23, 2009 | Item | E-mail

Kria Resources Announces Resource Estimate for Halfmile Lake Property - More
- February 23, 2009 | Item | E-mail

Trelawney Intersects Gold in "B" Zone in Wawa, Ontario - More
- February 23, 2009 | Item | E-mail

AuEx Ventures, Inc.: Argentina Exploration Update - More
- February 23, 2009 | Item | E-mail

Andean Completes More Deep Drilling at Cerro Negro - More
- February 23, 2009 | Item | E-mail

KEPCO Terminates MOU With Yellowcake Mining Inc. - More
- February 23, 2009 | Item | E-mail

Fresnillo 2008 profit down 10.8 pct, shares fall - "London-listed Mexican miner Fresnillo Ltd (FRES.L) posted a worse-than-expected 10.8 percent fall in 2008 attributable profit, hit by foreign exchange losses and higher taxes, and said 2009 output would be mostly flat." More
- February 23, 2009 | Item | E-mail

Invecture Offer for Shares of Frontera Copper Corporation Remains Open - More
- February 23, 2009 | Item | E-mail

African Queen Accelerating Work Program on Key Gold Targets in Mozambique's Fingoe Belt as a Result of Favorable Sampling Results - More
- February 23, 2009 | Item | E-mail

Molybdenum prices seen at $11/lb in '09-Cochilco - More
- February 23, 2009 | Item | E-mail

Minefinders Celebrates the Inauguration of the Dolores Gold and Silver Mine and Provides Dolores Mine Update - "Minefinders Corporation Ltd. (Toronto:MFL.TO - News)(AMEX:MFN - News) announced today that the Company celebrated the official inauguration of its Dolores gold and silver mine in Chihuahua, Mexico on February 17 and 18. The Company also provided an update on production at the Dolores Mine and announced the receipt of a social responsibility award. The Dolores Mine is expected to produce in excess of 1.7 million ounces of gold and 64 million ounces of silver over a more than 15-year mine life." More
- February 23, 2009 | Item | E-mail

IAMGOLD Announces Year End Gold Reserves Increase 20% to 9.6 Million Ounces and Niobium Reserves Increase by 36% - "IAMGOLD's total proven and probable reserves increased by 20% or 1.6 million ounces to 9.6 million ounces as at year end 2008, compared with a year earlier. Including depletion of 1.1 million ounces attributed to 2008 gold production, reserves increased by 2.7 million ounces. The main contributors to the increase are the Rosebel Mine and the Quimsacocha project, although reserve replacement was achieved at all continuing IAMGOLD operations." More
- February 23, 2009 | Item | E-mail

Great Basin Gold Announces Extended Life of Mine Projections for Hollister Gold Project - "Great Basin Gold Ltd. ("Great Basin Gold" or the "Company"), (TSX: GBG; NYSE Alternext: GBG; JSE: GBG) announces an update of the financial forecast for the Hollister Development Block ("HDB"), based on the Company's work programs to December 31 2008. The HDB constitutes approximately 5% of the Company's 100% owned Hollister Property which is located on the Carlin Trend, some 80 km from Elko, Nevada, USA." More
- February 23, 2009 | Item | E-mail

Apollo Gold Closes US$70 Million Project Financing Agreement for the Black Fox Project - "Apollo Gold Corporation (“Apollo” or the “Company”) (TSX: APG - News) (AMEX: AGT - News) is pleased to announce that it has closed a US$70 million project financing agreement (the “Project Facility”) relating to its 100% owned Black Fox project (“Black Fox Project”) located near Timmins, Ontario, Canada. The Project Facility refinances the US$15 million bridge facility (“Bridge Facility”) entered into on December 10, 2008." More
- February 23, 2009 | Item | E-mail

World`s No. 1 silver miner disappoints - "London-listed Mexican miner Fresnillo Ltd (FRES.L: Quote), the world's biggest primary silver producer, posted a worse-than-expected 10.8 percent fall in 2008 attributable profit and said 2009 output would be mostly flat and demand would be lacklustre." More
- February 23, 2009 | Item | E-mail

Gold miner Newmont's CEO sees Q1 margin expansion - "Newmont Mining Corp (NEM.N), the world's No. 2 gold producer, expects to expand its profit margins this year as a result of the high gold price and start-up of its new mine in Australia, Chief Executive Officer Richard O'Brien said on Monday.

"If prices stay where they are, first-quarter margin expansion will be apparent," he told the BMO Metals and Mining conference. He gave no estimate for earnings." More
- February 23, 2009 | Item | E-mail

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