-- Posted 27 February, 2009 | | Source: SilverSeek.com

The Metals:

Gold and silver traded slightly lower in Asia and then climbed back higher in London to as high as $960.70 and $13.37 by about 9AM EST in New York to see gains of $18.60 and $0.40 before they fell back off to as low as $926.70 and $12.835 to see losses of $15.40 and $0.135 by about noon EST, but they then rallied back higher into the close and gold ended with a loss of just 0.05% while silver ended with a gain of 1.08%.

Euro gold rose to about €741, platinum gained $31 to $1075, and copper fell nearly four cents to about $1.53.

Gold and silver equities climbed over 2% higher at the open before they fell to see roughly 2% losses by about noon EST, but they then rallied back higher in afternoon trade and ended near unchanged despite the mixed performance in gold and silver and the weakness in the general market.

The Economy:

All of this week’s other economic reports:

Next week’s economic highlights include Personal Income and Spending, Core PCE, Construction Spending, and the ISM Index on Monday, Pending Home Sales on Tuesday, ADP Employment, ISM Services, and the fed’s Beige Book on Wednesday, Productivity, Unit Labor Costs, Initial Jobless Claims, and Factory Orders on Thursday, and February’s jobs data and Consumer Credit on Friday.

The Markets:

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

Oil fell about 1% on renewed worries over demand as GDP came in even worse than horrible expectations.

The U.S. dollar index rose as traders now see it as the only fiat currency with safe haven status because they believe the rest of the world is even worse off than the US heading forward.

Treasuries eventually fell again on continued worries over the market’s ability to absorb the massive supply of bonds due to be sold to the market in order to fund Trillion dollar deficits.

The S&P broke through its November 2008 intraday low and joined the Dow at new 12 year lows in early trade in reaction to the horrible GDP data and the new Citigroup deal.  Stocks rallied back to about unchanged heading into the afternoon, but all three indices fell back off to close noticeably lower as economic and banking worries continue to plague the market.

Among the big names making news in the market Friday were GE, Ford, Citigroup, Lloyds, General Motors, Wells Fargo, and Blackstone.

The Commentary:

“This is not a bubble [in gold]. The only bubble that is ongoing is the fantasy land that all is okay. Gold is undergoing a healthy pullback, backfilling after rising from $750 to $1,000 over the past couple months. The $900 area exhibits excellent support and a continued influx of investment capital will continue to support the market. $1,000 was a strong technical barrier and it was played by many trader-technicians.  I believe that we will be building a firm support in the $900 area from where gold can then make another assault on the $1,000 area. It is my belief that gold is heading for $1,200 and higher in the coming months.

Record investment inflows will overwhelm this market and send it significantly high as the economic, financial and soon to be monetary crisis unfolds further.”- Peter Spina, www.goldforecaster.com

“Dear CIGAs,

News that the Feds were converting their preferred shares of Citi into common shares was enough to knock the snot out of that stock and that served to drag the financials down lower. Citi was whacked for 28% as I pen this. If you want to see a genuine horror story, pull up a 3 year price chart of Citi… the stock has gone from trading over $50 to less than $2.00. BOA was taken down 8%. There are increasing fears of bank nationalization by the feds and the continuous dribble and drabble of conflicting news coming out of this administration’s point men on this issue has unnerved would-be buyers of the banks.

Also, the GDP news was the worst since 1982! The economy shrank at an annualized rate of 6.2% in the 4th quarter of 2008. And remember folks, we are using government figures here – just use their figure as the high side and go down from there and you will get an accurate reading.

All that served to push equities lower which then pushed gold higher in the same pattern that we have been seeing for some time now. If you stick a 5 minute bar chart of gold alongside that of a 5 minute bar chart of the emini S&P, you will see the linkage between the two. I want to emphasize here particular to those who keep writing me telling me I am wrong about this, that I am not saying there is a tic by tick relationship between the two. I am saying that gold is generally moving inversely to the S&P. When it moves off its lows, selling is coming into gold. When it sinks down towards it lows, buying comes back into gold. Once again, RISK is what is being measured here or I should rather say, the willingness or unwillingness of investors to take it on.

Earlier in the session, the S&P broke down below its major support level at the November 2008 low but then popped briefly back above that level. It still managed to trade down to levels last seen in April 2007! It sure seems to me that the equity bulls are putting up one helluva valiant effort to defend that technical level. They know full well that if they fail to hold here, the stock market is going to move sharply lower as that is a sort of last-line-in-the-sand defense point from a technical perspective. Equity bulls are buying for two reasons – they are trying to force a TECHNICAL BOTTOM in the market and they are claiming that all of the bad news is already in the market. If only gold bulls had the same strength of conviction that the equity bulls display. Instead our side seems intent on delivering over their headquarters to the enemy wrapped with red bows and ribbons and “WELCOME” signs written all over it. Face it, these are the last guys you would want in a foxhole beside you in the event of a major battle. They would run up the white flag before you ever got your magazine loaded…I am not speaking of the smaller public – I am referring to the fund managers who still have it within their power to break the rein of the bullion banks over the Comex gold market but are too dense to do so. They insist on playing the paper game with these sharks.”- Dan Norcini, More at JSMineset.com

“April Gold closed down 0.1 at 942.5. This was 8.4 up from the low and 19 off the high.

March Silver finished up 0.135 at 13.085, equal to the high and equal to the low.

Gold saw dramatic price swings this session as the metal seemed to trade in opposite lock-step to the volatile action in the equity markets. The gold market started the session on firm footing as the safe haven bid reappeared in the overnight trade in reaction to very weak economic readings in Japan and fresh banking sector jitters from the UK. The gold market then added to gains as investor risk aversion escalated on the news the US government would be taking a bigger share in Citigroup which sank equity markets on concerns that other US banks may be destined for the same fate raising fears over the dilution of shareholder equity. Ongoing jitters over the effects of the Obama budget plan will have on earnings in the healthcare, insurance and oil & gas sectors due to proposed tax and fee increases continued to rattle equity markets which provided an additional buying incentive for gold. However, anxiety levels seemed to climax on the release of the US 4th quarter GDP which showed a sharper than expected 6.3% decline, which sent gold to session highs as equities sank to session lows. But gold fell back and was pushed to a new session low in tandem with a bounce in the equity markets, with end of the month fund and speculative liquidation adding to the selling pressure. Gold trading then turned choppy with the market staying close to unchanged levels.

Silver continued to follow gold's lead during the session with a very similar trading pattern and for the same reasons. However, silver seemed to hold on to its safe haven bid a bit better than gold in the afternoon trade. As was the case in gold, rising investor risk anxiety over the economy and banking system supported early gains in the metal. Silver also peaked after the release of the GDP number in tandem with a recovery in equities. While the market was trading off of macroeconomic conditions a report that the Peru mining union would not strike in March may have also undermined sentiment in silver, as the country is the major silver producer.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Public evidence persuaded ex-treasury official of gold suppression

The Statistics:

As of close of business: 2/27/2009

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 0.31 tonnes to a new record high holding.

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:

Kinross Gold’s (KGC) new shareholder rights plan, Keegan’s (KGN) updated resource estimation, Coeur’s (CDE) 2008 results and 2009 outlook, Endeavour’s (EXK) closed private placement, Bear creek’s (BCM.V) payment extension on the Corani silver deposit, and Silver Standard’s (SSRI) closed public offering were among the big stories in the gold and silver mining industry making headlines Friday.

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:

Hawthorne Gold Closes $6.2 Million Brokered and Non-Brokered Private Placement - More
- February 27, 2009 | Item | E-mail

Option players bet on gains in Gold Fields, Ivanhoe - "Investors may be betting that the pullback in gold futures will be short-lived as they scoop up bullish options in South African gold producer Gold Fields Ltd (GFIJ.J) (GFI.N) and Canada's Ivanhoe Mines (IVN.TO).

Investors have been taking profits in gold futures ahead of the weekend following a breach of more than $1,000 an ounce last week." More
- February 27, 2009 | Item | E-mail

Kodiak Exploration Ltd.: Metallurgical Testing of Golden Mile Gold Mineralization Shows Greater Than 99% Gold Recovery - More
- February 27, 2009 | Item | E-mail

Polar Star Mining Corporation-Drilling Begins at Montezuma - More
- February 27, 2009 | Item | E-mail

Horsehead Announces Record Date and Annual Shareholder Meeting Date - More
- February 27, 2009 | Item | E-mail

Houston Lake Reports Third Quarter Results - More
- February 27, 2009 | Item | E-mail

Bird River Resource Expansion Continues - More
- February 27, 2009 | Item | E-mail

Golden Chalice Announces New Nickel Discovery on Langmuir - More
- February 27, 2009 | Item | E-mail

Mirasol Announces New High Grade Silver and Gold Showings at the Libanesa Project - More
- February 27, 2009 | Item | E-mail

Amador Drills Gold and Nickel-Copper Targets at Loveland Project - More
- February 27, 2009 | Item | E-mail

Inspiration Intersects 0.313% Ni Over 48.88m or 160.37ft Containing 1.000% Ni Over 1.23m or 4.04ft (True Width) - More
- February 27, 2009 | Item | E-mail

Forsys Metals Corp Reports Results of the Special Meeting of Shareholders, Optionholders and Warrantholders - More
- February 27, 2009 | Item | E-mail

Arehada Receives Bank Loan Extension and Prepares to Resume Operation - More
- February 27, 2009 | Item | E-mail

Knick Exploration Prepares Spring Drilling on its East-West Gold Property - More
- February 27, 2009 | Item | E-mail

Coeur d'Alene increasing gold, silver production - "Coeur D'Alene Mines Corp (CDE.N) said on Friday that fourth-quarter profit fell as precious metal prices were lower, but it said it would produce more gold and silver in 2009 at expected higher prices.

The earnings were better than Wall Street estimates and, combined with the increased production estimates, Coeur's stock rose 11.4 percent to 78 cents per share on the New York Stock Exchange in morning trading." More
- February 27, 2009 | Item | E-mail

International Royalty declares dividend - "International Royalty Corporation (NYSE-A: ROY, TSX: IRC) is pleased to report that its Board of Directors declared a dividend on February 26, 2009 of US$0.02 per share. The dividend is payable to shareholders of record on March 13, 2009 and will be paid on or about March 31, 2009." More
- February 27, 2009 | Item | E-mail

Endeavour Silver Closes CA$14 Million Private Placement of Subordinated Unsecured Convertible Redeemable Debentures - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(AMEX:EXK - News)(DBFrankfurt: EJD) announces that it has closed CA$14 million in private placement financing of five year 10% subordinated unsecured convertible redeemable debentures." More
- February 27, 2009 | Item | E-mail

First Nickel Announces the Results of the NI 43-101 Reserve Estimate and Mine Plan Feasibility Study Completed on Lockerby Depth Zone - More
- February 27, 2009 | Item | E-mail

SLAM diamond drill hole strikes sulphides at TSN - More
- February 27, 2009 | Item | E-mail

Royal Roads announces preliminary plans for 2009 - More
- February 27, 2009 | Item | E-mail

HudBay: lenders refuse to renew C$80 mln loan facility - More
- February 27, 2009 | Item | E-mail

Unico, Inc. Chairman Files Form 4 Reporting Recent Acquisition of Over 1.9 Million Shares of Common Stock - More
- February 27, 2009 | Item | E-mail

Western Exploration and Development Ltd.: 2008 Drill Results - More
- February 27, 2009 | Item | E-mail

Wescan Goldfields Inc. appoints interim president - More
- February 27, 2009 | Item | E-mail

Bear Creek announces payment extension on Corani silver deposit 100% acquisition; renegotiation of payment schedule strengthens Bear Creek's financial position - "Bear Creek Mining (TSX Venture: BCM - News; "Bear Creek" or the "Company") is very pleased to announce that it has entered into an amendment agreement (the "Amendment Agreement") with Rio Tinto Mining and Exploration Ltd. ("Rio Tinto") in respect of its purchase of Rio Tinto's remaining 30% interest in the Corani silver and base-metals deposit as disclosed in its news releases dated March 7, June 11, and July 17, 2008." More
- February 27, 2009 | Item | E-mail

Temex reports high grade gold results - Hallnor Property, Timmins Gold Camp - More
- February 27, 2009 | Item | E-mail

Armistice Resources Corp. completes financing - More
- February 27, 2009 | Item | E-mail

JNR Provides Remaining 2008 Drilling Results from Way Lake - More
- February 27, 2009 | Item | E-mail

Argentex intersects high-grade silver-zinc-lead 400 meters deep at Pinguino's Marta Centro zone - More
- February 27, 2009 | Item | E-mail

Atna Confirms New Gold Zone at Briggs Mine - More
- February 27, 2009 | Item | E-mail

Lions Gate Metals Inc. and Copper Fox Metals Inc. Announce Business Combination - More
- February 27, 2009 | Item | E-mail

Yukon-Nevada Gold Corp. closes two private placements - More
- February 27, 2009 | Item | E-mail

Jinshan Announces Update on Crusher Construction and Gold Production at the CSH Gold Mine - More
- February 27, 2009 | Item | E-mail

Iberian Minerals Update-Condestable and Aguas Tenidas Mines - More
- February 27, 2009 | Item | E-mail

MBMI Finalizes Four Nickel Material Sales Agreements - More
- February 27, 2009 | Item | E-mail

Trade Winds Completes Initial NI 43-101 Mineral Resource Estimate for Detour Lake Gowest Property - More
- February 27, 2009 | Item | E-mail

Mega Uranium to Sell 35% of Lake Maitland Resource for US$49 Million to Japan Australia Uranium Resources Development Co. Ltd. and ITOCHU Corporation - More
- February 27, 2009 | Item | E-mail

HudBay Minerals Urges Shareholders to Vote Against SRM Nominee Slate - More
- February 27, 2009 | Item | E-mail

HudBay Lenders Refuse to Renew $80 Million Credit Facility Due to SRM's Actions - More
- February 27, 2009 | Item | E-mail

Boxxer locates stratiform copper mineralization on Boss project - More
- February 27, 2009 | Item | E-mail

Knick Exploration prepares spring drilling on its East-West Gold Property - More
- February 27, 2009 | Item | E-mail

Frontera Copper Corporation Appoints New Directors and Senior Officers - More
- February 27, 2009 | Item | E-mail

Kinross Adopts New Shareholder Rights Plan - "Kinross Gold Corporation (Toronto:K.TO - News)(NYSE:KGC - News) announced today that it has entered into a new shareholder rights plan dated as of February 26, 2009 (the "New Plan"). The New Plan will ensure that Kinross and its shareholders continue to receive the benefits associated with Kinross' current shareholder rights plan (the "Current Plan") which expires on March 29, 2009." More
- February 27, 2009 | Item | E-mail

Silver Standard Announces Closing of Public Offering of Common Shares - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(NasdaqGM:SSRI - News) reports the closing of its previously announced public offering of common shares (the "Offering"). Pursuant to the Offering, the company today issued 5.45 million common shares at a price of US$17.00 per share, for aggregate net proceeds of approximately US$88 million after underwriting commissions." More
- February 27, 2009 | Item | E-mail

Coeur Reports 2008 Results and 2009 Outlook: Record Year-End Reserves; Notable Increase Expected in 2009 Production and Cash Flow from Two New Silver Mines - "During the fourth quarter of 2008, Coeur produced 4.0 million ounces of silver. This represents an increase of 28% over the fourth quarter of 2007 and a 30% increase over the third quarter and reflects the contribution of silver production from the Company’s new San Bartolomé mine. Average cash operating costs during the fourth quarter were $5.60 per silver ounce...Fourth quarter net income was $4.3 million, or $0.01 per share, while operating cash flow was ($6.5) million." More
- February 27, 2009 | Item | E-mail

World Class Gold Deposit Confirmed at Keegan's Esaase Gold Project - "Keegan Resources Inc. ("Keegan") (Toronto:KGN.TO - News)(AMEX:KGN - News) is pleased to announce that the company has received an updated resource estimation at the Esaase gold property in southwest Ghana. The resource includes 2.025 million ounces in an indicated category with an average grade of 1.5 g/t Au at a 0.6 g/t Au cutoff and 1.451 million ounces in an inferred category at an average grade of 1.6 g/t Au applying a 0.6 g/t Au cut-off for a total inferred and indicated resource of 3.476 Moz." More
- February 27, 2009 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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