-- Posted 5 June, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss | On Week |
Gold | $961.30 | -$18.70 | -1.67% |
Silver | $15.39 | -$0.43 | -1.35% |
XAU | 150.66 | -4.29% | -5.93% |
HUI | 367.82 | -4.96% | -7.60% |
GDM | 1134.64 | -4.87% | -6.82% |
JSE Gold | 2550.74 | -116.95 | -14.20% |
USD | 80.73 | +1.30 | +1.75% |
Euro | 139.68 | -2.29 | -1.33% |
Yen | 101.20 | -2.35 | -3.39% |
Oil | $68.44 | -$0.37 | +3.21% |
10-Year | 3.862% | +0.146 | +11.46% |
Bond | 114.671875 | -1.21875 | -3.71% |
Dow | 8763.13 | +0.15% | +3.09% |
Nasdaq | 1849.42 | -0.03% | +4.23% |
S&P | 940.09 | -0.25% | +2.28% |
The Metals:
Gold remained near unchanged in Asia and London and then dropped in early New York trade to see a loss of $24.40 at $955.80 at about 9:30AM EST before it rallied back higher into the close, but it still ended with a loss of 1.91%. Silver fell as much as $0.67 to $15.15 before it also rallied back higher slightly, but it still ended with a loss of 2.72%.
Euro gold fell to about €688, platinum gained $3 to $1275, and copper fell a couple of cents to about $2.28.
Gold and silver equities fell about 5% at the open and remained near that level for most of the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | May | -345K | -520K | -504K |
Unemployment Rate | May | 9.4% | 9.2% | 8.9% |
Hourly Earnings | May | 0.1% | 0.1% | 0.1% |
Average Workweek | May | 33.1 | 33.2 | 33.2 |
Consumer Credit | April | -$15.7B | -$6.0B | -$16.5B |
The BLS Net Birth/Death adjustment added 220,000 payrolls to May’s data and the Unemployment Rate rose to a new 26-year high.
Bank Profits From Accounting Rules Masking Looming Loan Losses Bloomberg
Temp work helps mask joblessness among Americans Yahoo
All of this week’s other economic reports:
Next week’s economic highlights include Wholesale Inventories on Tuesday, the Trade Balance, Treasury Budget, and fed’s beige Book on Wednesday, Retail Sales, Business Inventories, and Initial Jobless Claims on Thursday, and Import and Export Prices and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil initially jumped to a new high for 2009 above $70 in reaction to the better than expected jobs report, but it then fell back off slightly by the close as traders turned their attention to the dollar’s positive response to the data.
The U.S. dollar index rose, treasuries fell, and the Dow, Nasdaq, and S&P traded mixed in mostly positive reaction to the jobs report which some argue signifies that the recession may be ending.
Among the big names making news in the market Friday were GM. AIG, Rio Tinto and Chinalco, Fiat and Opel, and Hummer.
The Commentary:
“Dear CIGAs,
The investment world has always been made up of three categories:
1. Builders of enterprises.
2. Destroyers of enterprises and all they touch.
3. Shufflers of paper.
From 1945 to 1985 there were more builders than destroyers with the same number of paper shufflers
Today the population is primarily if not almost totally made up of:
1. Destroyers.
2. Paper shufflers who are also destroyers (OTC derivative manufacturers and distributors).
Who out there is really dedicated to building an enterprise? The answer is very few, and when they are they have to beat their way past the Destroyers and Paper Shufflers.
For gold shares the paper shufflers and destroyers work via a mechanism called a PIPE. When a recourse company hears the word PIPE they should not walk away, they should run away as fast as they can.
An important characteristic about a PIPE is that it provides money in tranches only. Generally the tranches are the total required divided by the time to complete the project being financed.
Pipes work this way. The Hedge fund agrees with the company to provide lets say $25,000,000 over one or two years. Please note that the financing entity has the right to walk away at any time. The financing entity insists on getting shares that are immediately saleable.
Upon agreement the financing entity initiates a short position because the price of the shares delivered will be the price of the shares as it is trading on the day of the company’s request for money, less 15%. They generally are short more than the monthly delivery tranche. This device specializes in raping small caps.
A PIPE arrangement via its mechanism and the financier’s short position guarantees the short (financing entity) a profit of 15% or more if you can batter the price down, which of course the financing entity does.
To accept a PIPE financing is to offer up your shareholders as sacrificial lambs which many companies find irresistible in hard times. It puts the company into the hands of Jabba the Hut, PIPE financiers who will pull the money plug at some critical moment leaving the dumb company to fold.
In knowledge that they have tanked the company, the Jabba the Hut PIPE financiers of course pummels the share values into oblivion without risk.
This is how a company goes down a PIPE into a Rat Hole.
A PIPE financing is the ultimate set up that hunts, as a top predictor, for the weak and stupid small cap anything. Investors and companies BEWARE!
You should warn your investment management not to participate in this type of financing, or at least understand what has happened so you can get out of Dodge before the PIPE financing entity kills the company.”- Jim Sinclair, JSMineset.com
“August Gold closed down 19.7 at 962.6. This was 7.4 up from the low and 22.4 off the high.
July Silver finished down 0.507 at 15.388, 0.492 off the high and 0.228 up from the low.
After an early rally into the US Non farm payroll data, the August gold contract fell back sharply. With the US numbers potentially seen as supportive to recovery and or inflationary views, it was somewhat surprising to see gold prices fall back so sharply. However, in addition to a partly overbought short term technical condition in the gold market, it is possible that gold was undermined by the sudden and rather distinct rally in the US Dollar. Just to disappoint the bulls even more, gold prices even failed to benefit from a temporary rise above the psychological $70.00 level in crude oil.
Like the gold market, the silver market showed some positive early action but in the wake of the data flow, silver prices fell down sharply. From the early morning high, July silver prices forged a high to low range of roughly 73 cents. With the Dollar managing an impressive recovery in the wake of the US data flow, some silver players might have been fearing a pattern of gains in the Dollar ahead. As suggested in the mid day coverage silver and a host of physical commodity markets simply seemed to be worn out from the positive posture seen early in the week.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Kremlin aide sees gold gaining importance in reserves
Feds arrest Liberty Dollar founder and three associates
The Statistics:
As of close of business: 6/05/2009
Gold Warehouse Stocks: | 8,721,752 | - |
Silver Warehouse Stocks: | 118,494,869 | +619,565 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1,132.50 | 36,411,083 | US$ 35,333m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 136.24 | 4,380,164 | US$ 4,224m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 13.72 | 440,470 | US$ 425m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 33.85 | 1,088,150 | US$ 1m |
NASDAQ Dubai | Dubai Gold Securities | 0.16 | 5,000 | US$ 5m |
Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.49 tonnes.
COMEX Gold Trust (IAU)
Profile as of 6/4/2009 | |
Total Net Assets | $2,203,506,532 | Ounces of Gold
in Trust | 2,245,823.814 |
Shares Outstanding | 22,850,000 | Tonnes of Gold
in Trust | 69.85 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 6/4/2009 | |
Total Net Assets | $4,234,211,524 | Ounces of Silver
in Trust | 276,670,924.100 |
Shares Outstanding | 280,950,000 | Tonnes of Silver
in Trust | 8,605.43 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Goldcorp’s (GG) completed note sale, Timberline’s (TLR) permitting update, Royal Gold’s (RGLD) dividend, Sabina’s (SBB.V) approved acquisition, and MAG’s (MVG) exploration update were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Ivanhoe | IVN +4.74% $5.74 |
2. Mines MGMT | MGN +2.70% $1.90 |
3. Anglo American | AAUK +2.15% $14.75 |
LOSERS
1. Richmont | RIC -8.35% $3.62 |
2. US Gold | UXG -7.92% $2.44 |
3. Silver Standard | SSRI -6.72% $22.36 |
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:
Minera Andes announces completion of NI 43-101 Technical Report on the June 2008 San Jose mine mineral resources and reserve - More
- June 05, 2009 | Item | E-mail
Caldera to Raise up to $250,000 through Non-Brokered Private Placement to Fund Working Capital and Potential Acquisition - More
- June 05, 2009 | Item | E-mail
Millrock Closes Financing With Kinross Gold - More
- June 05, 2009 | Item | E-mail
Bayswater Encounters Anomalous Metal Values in Drill Hole at Brudell Lake, Athabasca Basin - More
- June 05, 2009 | Item | E-mail
Tri-Valley Unit More Than Doubles Gold Claim Position at Livengood, Alaska - More
- June 05, 2009 | Item | E-mail
Vault Minerals raises $420,000 - More
- June 05, 2009 | Item | E-mail
First Metals Reschedules Annual Meeting - More
- June 05, 2009 | Item | E-mail
Vena and Glencore Agree to Extend Option on Azulcocha West Joint Venture - More
- June 05, 2009 | Item | E-mail
Chalice Diamond Corp. Increases Land Position & Provides Bird Drilling Update - More
- June 05, 2009 | Item | E-mail
Merrex Grants Stock Options, Bonus Shares - More
- June 05, 2009 | Item | E-mail
Cameco Investor Audiocast Advisory - More
- June 05, 2009 | Item | E-mail
USPR Announces Plan of Exploitation - More
- June 05, 2009 | Item | E-mail
Kinbauri Gold Corp.: Update on Glen Eagle Transaction and Legal Action - More
- June 05, 2009 | Item | E-mail
Goldcorp Completes Sale of $862.5 Million of 2.00% Convertible Senior Notes Due 2014 - "Goldcorp Inc. (Toronto:G.TO - News)(NYSE:GG - News) announced today the closing of its private offering of $862.5 million aggregate principal amount of 2.00% Convertible Senior Notes due 2014, including the initial purchasers' over-allotment option which was exercised in full. Upon conversion of the Notes, Goldcorp may, in lieu of delivery of its common shares, elect to pay or deliver, as the case may be, cash or a combination of cash and common shares, in respect of the converted notes. Net proceeds from the offering are approximately $839.9 million. Goldcorp intends to use approximately $330.0 million of the net proceeds to repay indebtedness under its revolving term credit facility, with the balance of the net proceeds to be used for general corporate purposes, including capital expenditures." More
- June 05, 2009 | Item | E-mail
Carlisle Goldfields Limited closes private placement financing - More
- June 05, 2009 | Item | E-mail
Special Annual Meeting of Arianne's Shareholders to Be Held June 11, 2009 - More
- June 05, 2009 | Item | E-mail
Field Program Commences on the Kellyn High-Grade Gold Prospect, Terrace Bay, N. Ontario - More
- June 05, 2009 | Item | E-mail
Logan Resources announces new director - More
- June 05, 2009 | Item | E-mail
Pelangio Exploration Receives Extension on the Kyereboso Concessions, Ghana - More
- June 05, 2009 | Item | E-mail
Webcast Alert: Nevada Gold Holdings Inc. Presentation at Informed Investor Forum on Monday June 8, 2009, 10:30 am ET - More
- June 05, 2009 | Item | E-mail
Advanced Explorations Inc. Expects to Release Preliminary Economic Assessment for Canadian Magnetite Project - More
- June 05, 2009 | Item | E-mail
Avion Resources Commences Trading as Avion Gold Corporation - More
- June 05, 2009 | Item | E-mail
CanAlaska Uranium Ltd. - Drilling resumes at Black Lake uranium project - More
- June 05, 2009 | Item | E-mail
Sabina Silver's Back River Acquisition Approved at AGM - "I am happy to report that our shareholders voted overwhelmingly in favour of the Back River acquisition from Dundee Precious Metals," said Tony Walsh, President & CEO. "Also, we are very encouraged by the same shareholder support for the Director nominees." More
- June 05, 2009 | Item | E-mail
MAG Silver Provides Exploration Update for Salemex and Four Other Mexican Properties - "MAG Silver Corp. (Toronto:MAG.TO - News)(AMEX:MVG - News) ("MAG") announces assay and geological results from initial and ongoing drill programs on five of its 100% owned properties in Mexico. Salemex, Lagartos SE and Lorena are epithermal vein systems, while Sierra Ramirez and Nuevo Mundo are Carbonate Replacement Deposits. Significant results are presented in the tables below. Both Salemex and Lagartos SE will require further drilling to follow up on encouraging gold and silver results." More
- June 05, 2009 | Item | E-mail
Timberline Provides Butte Highlands Gold Project Permitting Update - "As recently announced, Timberline filed its Underground Exploration Plan with Montana's Department of Environmental Quality (DEQ) and has received review comments from the MT DEQ on the plan. In general, the review letter indicates that "the proposal and appendices are generally adequate and give detailed information on the many aspects of the project" and outlines the items for further comment by Timberline." More
- June 05, 2009 | Item | E-mail
Royal Gold sets 8-cent quarterly dividend - "Precious metals royalty company Royal Gold Inc. has declared a third-quarter dividend of 8 cents per common share. The dividend is payable on July 17 to shareholders of record at July 2." More
- June 05, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 5 June, 2009 | |
