-- Posted 3 April, 2009 | | Discuss This Article - Comments:
Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $896.15 | -$11.05 | -2.85% |
Silver | $12.75 | -$0.26 | -3.99% |
XAU | 127.56 | -5.10% | -6.30% |
HUI | 307.44 | -6.36% | -5.52% |
GDM | 954.16 | -6.42% | -6.34% |
JSE Gold | 2445.13 | -218.07 | -15.13% |
USD | 84.17 | -0.30 | -1.10% |
Euro | 134.89 | +0.22 | +1.50% |
Yen | 99.75 | -0.78 | -2.44% |
Oil | $52.51 | -$0.13 | +0.25% |
10-Year | 2.907% | +0.155 | +5.29% |
Bond | 126.984375 | -2.171875 | -1.22% |
Dow | 8017.59 | +0.50% | +3.10% |
Nasdaq | 1621.87 | +1.20% | +4.96% |
S&P | 842.50 | +0.97% | +3.26% |
The Metals:
After seeing recommendations on Wednesday by Jim Sinclair and Jim Willie to check out "The Great Credit Contraction" eBook, I went and bought a copy myself. Author Trace Mayer also stopped by our office yesterday and gave us signed hard copies. I highly recommend you Buy "The Great Credit Contraction" eBook.
Gold dropped $12.05 to $895.15 heading into this morning jobs report before it quickly rebounded to see a $2.10 gain at as high as $909.30 by about 9:30AM EST, but it then fell back off for the rest of the day and ended near its new session low of $894.65 with a loss of 1.22%. Silver fell to as low as $12.659 as the jobs report was released before it rebounded back near unchanged in the next couple of hours of trade, but it also fell back off into the close and ended with a loss of 2%.
Euro gold fell to about €667, platinum gained $0.50 to $1152.5, and copper gained over 11 cents more to about $2.
Gold and silver equities fell throughout most of trade and ended with over 5% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Mar | -663K | -660K | -651K |
Unemployment Rate | Mar | 8.5% | 8.5% | 8.1% |
Average Workweek | Mar | 33.3 | 33.3 | 33.3 |
Hourly Earnings | Mar | 0.2% | 0.2% | 0.2% |
ISM Services | Mar | 40.8 | 42.0 | 41.6 |
The BLS Net Birth/Death adjustment added 114,000 payrolls to March’s data and the Unemployment Rate rose to a new 25-year high.
Fed 'extremely uncomfortable' about bailouts Yahoo
Unemployment Hits 25-Year High, Services Contract Bloomberg
Failure Rate Rises on Mortgages Revised in Late 2008, U.S. Says Bloomberg
All of this week’s other economic reports:
Next week’s economic highlights include Consumer Credit on Tuesday, Wholesale Inventories on Wednesday, and Export and Import Prices, Initial Jobless Claims, and the Trade Balance on Thursday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on continued worries over demand.
The U.S. dollar index fell slightly and treasuries plummeted on worries over the upcoming massive supply of debt needed to fund bailouts and other measures recently announced.
The Dow, Nasdaq, and S&P traded mixed and ended slightly higher as traders digested the jobs data and this week’s earlier gains.
Among the big names making news in the market Friday were Fannie, Freddie, RIM, GM, Chrysler, Texas Instruments, Blockbuster, Dell, and Ingersoll-Rand.
The Commentary:
“Indian Gold Market
In India, the import of gold comes after internal supplies have been used up. Since October 2008, Indian imports have been declining and for the last two months no gold imports took place at all. Hence the scrap sales of gold have supplied the demand that there was. As Indian gauge the gold price in the Rupee, it is important to understand that the Rupee over the last year has fallen 20% taking local Rupee gold price up by that amount. It was only a year ago when the Rupee price of gold was under Rs.10,000 and now it stands at Rs.14,579 [having dropped below Rs.15,000 recently]. With Indians being particularly sensitized to potentially unsustainable prices, they usually stand back at these high points until the price has demonstrated that it can hold onto these levels. When Indian buyers feel confident in the gold price they re-enter the market again. They can take up to 850 tonnes a year when they are gold-hungry.
This means that the Indian gold market [driven primarily by the tradition of brides supplying "working capital" to the marriage] has been living off scrap sales since October last year effectively 'taking out' the Indian buying from the gold market since then, their high point of their gold year. This leaves scrap sales having been run down for the last 6 months. This has to come to an end either by potential sellers being exhausted or a belief that gold prices will hold new levels and more rises in the pipeline. This will bring back an under-supplied Indian market soon?
Current Investment demand
In the international market, where long-term institutional demand from the States has been driving the gold price in the last 6 months, the question is, "will the world believe that the G-20 has saved the world's financial bacon and there is no need to run to the safe-haven of gold?" Does the market tell us that long-term investors are not convinced that the world has been saved? We wait, while the G-20 initiatives are digested, to see the way forward.
Mining stocks have been reading the average gold price as well as having suffered a diversion of investment funds to the gold Exchange Traded Funds. They will always follow the gold price I believe, from now on. As they are more volatile than the gold price, I believe investors are taking a cautious approach in the light of the G-20 conclusions and are waiting-to-see too.
I.M.F. gold sales
For the I.M.F. gold sales to take place [and they have been expected for well over a year now] Congress must first agree to them. Second, the purpose of the sales were originally to shore up the I.M.F. Balance Sheet. The $750 billion injection from the G-20 removes that need now. Aid to the poorest nations replaces that. Gold sales at current prices would achieve proceeds of $116.5 billion. The sales, if approved, could take place over a few years if dropped into the 'open' gold market. This is less that the Central Bank Gold Agreement 'ceiling' at the moment. If sold by auction China and or Russia would be happy to snap up this amount. As Russia is already buying around 5 tonnes a month at the moment, they would love to get 400 tonnes even in one shot as they have pledged to increase their gold reserves to 10% from the current 3% of their reserves.
So in conclusion, I.M.F. gold sales will either have no impact on the gold price [even when they eventually take place] or if another central bank buys will act as a positive factor in the gold market.”- Julian D.W. Phillips, www.goldforecaster.com
“June Gold closed down 11.6 at 897.3. This was 1.7 up from the low and 14.5 off the high.
May Silver finished down 0.29 at 12.735, 0.165 off the high and 0.085 up from the low.
While gold tried to mount a recovery attempt in the lead up to the US payroll report that low to high bounce of $14 an ounce failed to hold for long. In fact, after the morning attempt to rally the gold market seemed to show increased vulnerability into the afternoon action. In the end, the market saw evidence of further serious slowing in the US economy but that didn't seem to revive flight to quality buying interest. Some traders suggested that the threat of a global meltdown was declining and in turn increasing the prospect of deflation. In other words, the residual drag from rising unemployment had many traders concerned about sideways movement in a host of physical commodity markets.
Like the gold market, the silver market was able to mount a pre-report bounce and eventually managed to forge a run of 25 cents before the bulls lost control over prices. Clearly the US numbers were indicative of further slowing but the sentiment in the metals markets seemed to be that the crisis was potentially coming under control. In short, flight to quality or safe haven players in silver were disappointed with the developments on Friday.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
G20 didn't increase IMF gold sales
Jim Sinclair profiled by weekly Connecticut paper
Thom Calandra: Material world standards in peril
A reporter actually gets it: IMF gold will never hit market
The Statistics:
As of close of business: 4/03/2009
Gold Warehouse Stocks: | 8,521,639 | +42,659 |
Silver Warehouse Stocks: | 119,449,723 | -2,015,645 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1,127.44 | 36,248,334 | US$ 32,530m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 135.86 | 4,368,014 | US$ 3,915m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 12.49 | 400,328 | US$ 360m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 29.22 | 939,573 | US$ 843m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 4m |
Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.06 tonnes.
COMEX Gold Trust (IAU)
Profile as of 4/2/2009 | |
Total Net Assets | $1,976,677,129 | Ounces of Gold
in Trust | 2,178,445.298 |
Shares Outstanding | 22,150,000 | Tonnes of Gold
in Trust | 67.76 |
Note: Change in Total Tonnes from yesterday’s data: 0.02 tonnes were removed from the trust.
Silver Trust (SLV)
Profile as of 4/2/2009 | |
Total Net Assets | $3,434,241,182 | Ounces of Silver
in Trust | 266,641,030.900 |
Shares Outstanding | 270,550,000 | Tonnes of Silver
in Trust | 8,293.46 |
Note: Change in Total Tonnes from yesterday’s data: 3.47 tonnes were removed from the trust.
The Miners:
Fronteer’s (FRG) drill results, Freeport’s (FCX) production, and SNS Silver’s (SNS.V) engagement to update the 43-101 Technical Report for the Sunshine Silver Mine were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Anglo American | AAUK +5.97% $10.30 |
2. Taseko | TGB +4.29% $1.46 |
3. Aurizon | AZK +3.31% $4.68 |
LOSERS
1. Golden Star | GSS -11.32% $1.41 |
2. Lihir | LIHR -11.24% $21.01 |
3. Harmony | HMY -10.69% $9.77 |
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:
Orebodies Arranges Debt Settlement - More
- April 03, 2009 | Item | E-mail
Capella Announces Non-Brokered Private Placement for Gross Proceeds of up to $5 Million and Stock Option Grant - More
- April 03, 2009 | Item | E-mail
Boxxer Closes Third Tranche of Private Placement - More
- April 03, 2009 | Item | E-mail
SearchGold Reprices and Extends Warrants - More
- April 03, 2009 | Item | E-mail
Callinan Mines Manitoba Exploration Update - More
- April 03, 2009 | Item | E-mail
Ivernia Comments on Withdrawn Unsolicited Take-Over Proposal - More
- April 03, 2009 | Item | E-mail
Griffin withdraws proposed takeover for Ivernia Inc - More
- April 03, 2009 | Item | E-mail
Matamec is Presently Negotiating the Reimbursement of Two Unsecured Debentures - More
- April 03, 2009 | Item | E-mail
Lounor Exploration Inc. - Private Placement - More
- April 03, 2009 | Item | E-mail
Conference Call on Monday, April 6th to Discuss Jinshan's 2008 Year-End Financial Results - More
- April 03, 2009 | Item | E-mail
Acadian Mining closes first tranche of private placement - More
- April 03, 2009 | Item | E-mail
Canadian Mining - Corporate Update - More
- April 03, 2009 | Item | E-mail
Century Mining Closes Remainder of Flow-Through Share Financing - More
- April 03, 2009 | Item | E-mail
Golden Band Resources - La Ronge Gold Project EIS update - More
- April 03, 2009 | Item | E-mail
Trilliant Exploration Corp. Acquires Muluncaygold Corp. S.A. - More
- April 03, 2009 | Item | E-mail
Shoreham Receives Exchange Approval to Issue Shares for Debt - More
- April 03, 2009 | Item | E-mail
Alexis Produces Over 6600 Ounces of Gold in First Two Months of 2009 - More
- April 03, 2009 | Item | E-mail
Centamin Egypt: Award of Underground Mining Contract and Mobilisation - More
- April 03, 2009 | Item | E-mail
Caledonia Mining Announces the Imminent Resumption of Gold Mining at the Blanket Gold Mine in Zimbabwe - More
- April 03, 2009 | Item | E-mail
Geovic Reports Progress on Improvement Programs for the Nkamouna Cobalt Project - More
- April 03, 2009 | Item | E-mail
GobiMin announces resignation of CFO - More
- April 03, 2009 | Item | E-mail
SNS Silver Engages Behre Dolbear to Update 43-101 on Sunshine Mine - "SNS Silver Corp. (CDNX:SNS.V - News) has engaged Behre Dolbear & Company Ltd. ("Behre Dolbear") to update the National Instrument 43-101 Technical Report for the Sunshine Silver Mine in Big Creek, Idaho." More
- April 03, 2009 | Item | E-mail
Fronteer Development Group Inc.: Drilling Intersects 14.30 Grams Per Tonne Gold Over 12.77 Metres at Sandman Project, Nevada - "Fronteer Development Group Inc. (Toronto:FRG.TO - News)(AMEX:FRG - News)(NYSE Amex: FRG.A) is pleased to announce the results of the first 12 holes completed by Newmont USA Limited ("Newmont"), a subsidiary of Newmont Mining Corporation, as part of the ongoing 2009 US$5M work-program at the Sandman gold project in Nevada." More
- April 03, 2009 | Item | E-mail
Freeport Says Mines Unlikely to Ramp Up Investment After Rally - "Freeport-McMoRan Copper & Gold Inc., which lowered production targets last year as the price of copper tumbled, said a rally fueled by Chinese purchases is unlikely to elicit a surge in investment.
Demand is “very weak” in the U.S., Europe and Japan and global financial markets aren’t “fully opened,” said Richard Adkerson, chief executive officer at the world’s largest publicly traded copper mining company." More
- April 03, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 3 April, 2009 | | Discuss This Article - Comments:
