-- Posted 17 June, 2009 | | Source: SilverSeek.com

The Metals:

Gold and silver rose roughly 1% in Asia before they fell back off in London to see slight losses at $927.80 and $13.92 by about 8AM EST, but they then rallied back higher in New York and gold ended with a gain of 0.42% while silver characteristically outpaced the yellow metal and added 1.06%.

Euro gold rose to about €674, platinum lost $15 to $1200.50, and copper rose slightly to about $2.26.

Gold and silver equities fell over 3% by about an hour of trade before they rebounded back higher for most of the rest of trade, but they still ended with slight losses on the day.

The Economy:

Rise in rates hammers mortgage applications  Reuters

Obama to Limit Fed Lending Power, Grant Systemic Role  Bloomberg

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 6/13 expected at 602,000 and at 10AM are Leading Economic Indicators for May expected at 1.0% and the Philadelphia fed survey for June expected at -17.0.

The Markets:

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

Oil traded mixed as crude inventories dropped a larger than expected 3.9 million barrels, but gasoline inventories grew a hefty 3.4 million barrels and eased some supply worries at this start of the typically busy summer driving season.  Oil ultimately ended almost 1% higher after having traded lower for most of the day.  Retail gas prices have risen for the last 50 straight days and that is the longest streak since records starting being kept in 1996.

The U.S. dollar index fell and treasuries rose on the smaller than expected increase in CPI.  “The cost of living in the U.S. fell over the last 12 months by the most in six decades, easing concern that government efforts to revive the economy will lead to an immediate outbreak of inflation.”

The Dow, Nasdaq, and S&P traded mostly slightly lower in morning trade before they headed back higher by early afternoon, but they fell back off to end mixed and near unchanged in lackluster trade as market participants debated the health of the economy and the banking system.

Among the big names making news in the market today were FedEx, S&P, Goldman Sachs, E-Trade, and Watson and Arrow Group.

The Commentary:

“Dear CIGAs,

You will note this morning that the party line being blasted over the airwaves is that the position of the BRICs concerning divestiture of dollars is nothing but talk. As proof of this position, a measure of the action of the dollar in this bear market rally is being interpolated in dollar treasury instruments. Airwave media is calling US dollar bonds showing a gain of 11% with interest added, utilizing the ten year as a measure. This position has been repeated at least 15 times since the Asian session opened last US evening.

There is no question that the "line drawn in the sand" by the Chairman of the US Federal Reserve has been drawn directly across the long term up trend line of 28 years on the 30 year long US Treasury bond.

Flash Report:

It is my strong opinion that Bernanke is committed to not letting this up trend line break down, using all the power of the Fed in Quantitative Easing. That means the Fed will buy practically unlimited offerings at auction and in the market should it be necessary.

The problem is market, money and speculators can overwhelm all central banks combined should confidence be lost. Confidence has been maintained by an almost unlimited creation of new money.

Be assured consequences cannot be avoided. The long term uptrend line of the 28 year long bond market is the confidence line and therefore becomes the most important line ever drawn in an attempt to determine the future of an empire.

Nobody in their right mind wants what is coming, but airwaves and hot air is no mendicant. Failure to allow economics to take its natural course in bankruptcy of the deficient, central bank support for the OTC derivative vehicle by the previous Chairman and bubble making all brought this plague upon us.”- Jim Sinclair, JSMineset.com

“August Gold closed up 3.8 at 936. This was 7.4 up from the low and 2.7 off the high.

July Silver finished up 0.15 at 14.28, 0.065 off the high and 0.305 up from the low.

The gold market gyrated in both directions throughout the trading session Wednesday, but in general the bull camp seemed to hold sway. With the Dollar eventually giving up the bull track and the equity markets managing an early afternoon bounce, the fear of more slowing and a return of deflation from the early morning trade seemed to be downplayed. With silver, copper, crude oil and natural gas all managing afternoon recovery attempts, it is possible that gold did see some spillover buying interest.

The silver market was at least partially cheered by the reversal in the Dollar and perhaps given some indirect lift from the equity markets repeated recovery attempts. With the energy and copper market tracking back into positive ground it is possible that some silver shorts decided to bank profits from the recent slide in prices. Given the action in the US equity market it’s also likely that macro economic sentiment improved as the session progressed and that provided the silver bulls with some incentive.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Feds seek IDs of those who commented on coin use trial

Mike Zielinski: U.S. Mint ends gold, silver coin rationing

Michael Hudson: Washington can't call the shots anymore

The Statistics:

As of close of business: 6/17/2009

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

 Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.62 tonnes.

COMEX Gold Trust (IAU)

 Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

 Note: Change in Total Tonnes from yesterday’s data: 119.43 tonnes were added to the trust to make for a new record high holding.

iShares silver ETF holdings hit record on June 16 - Reuters

The Miners:

Ivanhoe’s (IVN) and Rio Tinto’s (RTP) potential mine proposal change in Mongolia, Great Basin’s (GBG) increased mineral resources, Centerra’s (CG.TO) ended mine strike, Allied Nevada’s (ANV) exploration program, Yamana’s (AUY) development advancements, Banro’s (BAA) financing terms, Klondike’s (KS.V) exploration results, SNS Silver’s (SNS.V) mine nearing production, Alexco’s (AXU) permitting process, and Silver Quest’s (SQI.V) exploration update were among the big stories in the gold and silver mining industry making headlines today.

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:

Premier intersects high-grade gold at EP and SP Zone targets - More
- June 17, 2009 | Item | E-mail

MacDonald Mines Initiates 2009 Summer Exploration Program on Nickel, PGM & Base Metal Property in the LaRonge District of Saskatchewan - More
- June 17, 2009 | Item | E-mail

Reunion Gold Corporation Announces its Financial Results for the Year Ended March 31, 2009 and Write-Down of Exploration Expenses - More
- June 17, 2009 | Item | E-mail

Klondike Silver Corp. Samples 351 g/t Silver, 10.29% Lead, and 8.1% Zinc in Jackson Basin - "Klondike Silver Corp. (CDNX:KS.V - News) (the 'Company') is pleased to announce that recent exploration programs have discovered new silver-rich prospects while also confirming the potential of targets similar to past-producing mines within the Slocan Silver Camp of south-central British Columbia." More
- June 17, 2009 | Item | E-mail

Red Pine Exploration VTEM Survey Identifies Numerous Anomalies on Abitibi-West Property; Provides Costello Property Update - More
- June 17, 2009 | Item | E-mail

Millrock Closes Financing With Altius - More
- June 17, 2009 | Item | E-mail

General Moly expects molybdenum market rebound-CEO - More
- June 17, 2009 | Item | E-mail

Klondex Appoints Special Committee to Review Silvercorp Takeover Offer and other Strategic Alternatives for its "Fire Creek" 1.6 Moz Indicated Gold Resource - "Klondex Mines Ltd. (TSX: KDX - News) announced today that it has formed a special committee of the Board of Directors to review the unsolicited takeover bid for Klondex by Silvercorp Metals Inc. (TSX: SVM; NYSE Amex: SVM). The Special Committee is chaired by Robert Sibthorpe and includes John Pollock, P. Eng. and Ronald Shorr, CFA; brief bios of the committee are provided below. Klondex also reported that a number of holders of its share purchase warrants have exercised their warrants, generating additional cash to fund the Company’s operations." More
- June 17, 2009 | Item | E-mail

Cameco Resumes UF6 Production at Port Hope Conversion Facility - More
- June 17, 2009 | Item | E-mail

VMS Ventures Begins Tower Zone Ground Geophysical Survey and Commences Summer Mapping Program Near Snow Lake, Manitoba - More
- June 17, 2009 | Item | E-mail

SNS Silver Corporation: Crescent Mine Nears Production - "SNS Silver Corporation ("SNS" or the "Company") (CDNX:SNS.V - News) continues to advance their holdings in the Silver Valley, Idaho. Based on a recently completed 43-101 resource calculation at the Crescent Mine, preliminary discoveries have been conducted for a scoping study and mine development planning. SNS' engineering team is considering several different scenarios in their effort to determine the most effective means of resource development. Additionally, talks have been initiated regarding a number of mills that would provide a mutually beneficial means of accommodating Crescent Mine ore." More
- June 17, 2009 | Item | E-mail

Silver stocks take a trashing - "London-listed Mexican miner Fresnillo's market value advanced from USD 1.1bn during the darkest hours of November 2008 to a peak of USD 8.7bn in the very early days of June 2009. Since then, there has been some kind of a trashing." More
- June 17, 2009 | Item | E-mail

Pro-Or Signs Two Agreements in Regards to its Technologies - More
- June 17, 2009 | Item | E-mail

Red Pine Exploration VTEM Survey Identifies Numerous Anomalies on Abitibi-West Property; Provides Costello Property Update - More
- June 17, 2009 | Item | E-mail

DIOS Hotish Project: Amphibolite Rocks Assay Up to 0.17% U3O8, 182 g/T Ag & 1.9% Cu - More
- June 17, 2009 | Item | E-mail

Alexco Passes Key Milestone in Permitting of the Bellekeno Mine - "Alexco Resource Corp. (Toronto:AXR.TO - News)(AMEX:AXU - News) ("Alexco" or the "Company") is pleased to report that it has passed a key milestone in the permitting process for the planned resumption of production at the historic Bellekeno Mine, one of Alexco's wholly owned properties in the Keno Hill silver district of Canada's Yukon Territory." More
- June 17, 2009 | Item | E-mail

Cardero Announces 2009 Project Development Strategy - More
- June 17, 2009 | Item | E-mail

Royal Roads announces start date of Buchans drill program - More
- June 17, 2009 | Item | E-mail

Mongolia President-Elect Wants Mine Proposal Changes - "Mongolian President-elect Tsakhiagiin Elbegdorj wants to change a proposed gold and copper mining deal with Rio Tinto Group and Ivanhoe Mines Ltd. that would allow the government to buy an equity stake in the project.

“I am not in favor of that,” Elbegdorj said in an interview with Bloomberg News in the capital Ulan Bator, suggesting instead that the government take 50 percent of the profit. Elbegdorj defeated incumbent Nambaryn Enkhbayar in the May 24 presidential election, and will be sworn in tomorrow." More
- June 17, 2009 | Item | E-mail

Adventure Gold Announces a 1,400-Metre Drill Program on the Meunier-144 Property in the West Timmins Area - More
- June 17, 2009 | Item | E-mail

Unico, Inc. Announces Shipment of Additional Concentrate Sample From the Deer Trail Mine to Royal Mines and Minerals Corp. and Preview of Results - More
- June 17, 2009 | Item | E-mail

Landore Resources Limited - Drilling update - Junior Lake-Nickel Project - B4-7 Deposit - More
- June 17, 2009 | Item | E-mail

Kinbauri Gold Provides Update on Court Application and Retains Financial Advisor - More
- June 17, 2009 | Item | E-mail

International Wayside Gold Mines Ltd.: Completion Schedule on Proposed QR Mine & Mill Acquisition - More
- June 17, 2009 | Item | E-mail

Black Tusk Minerals Announces Appointment of Geological Consultant - More
- June 17, 2009 | Item | E-mail

Quest Announces New $1.5 Million Private Placement - More
- June 17, 2009 | Item | E-mail

Stroud Provides Update on Private Placement - More
- June 17, 2009 | Item | E-mail

Iberian Minerals Completes Swiss Continuation - More
- June 17, 2009 | Item | E-mail

First Uranium reports results for year ended March 31, 2009 - More
- June 17, 2009 | Item | E-mail

Sage Gold Inc.: 22.77 g Au/T Channel Result New Gold Veins-Paint Lake - More
- June 17, 2009 | Item | E-mail

Minatura Gold (MGOL) Announces Execution of Definitive Agreement for Gold Mining Acquisition (99,000 Acres) - More
- June 17, 2009 | Item | E-mail

GWR To Acquire Operating Oil and Gas Assets - More
- June 17, 2009 | Item | E-mail

Anglo Swiss Resources Completes Metallurgical Study for 93% Gold Recovery at the Kenville Gold Mine - More
- June 17, 2009 | Item | E-mail

Uranium Energy Corp To Be Added to Russell 2000 Index and Russell 3000 Index - More
- June 17, 2009 | Item | E-mail

Northern Superior Resources Inc. Initiates Wachigabau Exploration Program - More
- June 17, 2009 | Item | E-mail

Aurelio Completes Acquisition of 10 Nevada Gold Projects - More
- June 17, 2009 | Item | E-mail

Great Basin Gold Revises Hollister Mineral Resources Based On Trial Mining & Drilling Results: Gold Equivalent Ounces Increase By 27% - "Great Basin Gold Ltd. ("Great Basin Gold" or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announced today that a revised mineral resource estimate had been completed for the Company's Hollister Project on the Carlin Trend in Nevada, USA. The overall contained gold equivalent ounces at Hollister have increased by 27% from 2.3 million in June 2008 to 2.9 million(1). At a cut-off grade of 0.25 oz/ton (8.57 g/t Au), the combined measured and indicated mineral resources contain 1.45 million gold equivalent ounces grading 1.167 oz/ton (40.00 g/t) for gold and 8.59 oz/ton (295 g/t) for silver." More
- June 17, 2009 | Item | E-mail

Centerra Gold Boroo Mine Strike Ends - "Centerra Gold Inc. (TSX:CG - News) announced today that the labour dispute with the Boroo Trade Union was settled on June 16, 2009. The key terms of the settlement provide enhanced future redundancy benefits to permanent employees. The Company believes the settlement will not have a material impact on future cash costs. On June 16, 2009 the Parties officially signed a Settlement Agreement as well as the amendments to the Collective Agreement." More
- June 17, 2009 | Item | E-mail

Silver Quest Resources Ltd.: Exploration Update and Sampling Results on the Keno Hill Property, Yukon - "Silver Quest Resources Ltd. (the "Company") (TSX VENTURE:SQI - News) owns a 100% interest in 19 quartz mining leases comprising approximately 700 acres within the Keno Hill Silver District in the Mayo Mining Division, Yukon (See www.silverquest.ca for property maps) and is pleased to announce results from the fall 2008 sampling program on the properties." More
- June 17, 2009 | Item | E-mail

Allied Nevada Initiates 2009 Exploration Program at Hycroft - "Allied Nevada Gold Corp. ("Allied Nevada" or the "Company") (Toronto:ANV.TO - News)(AMEX:ANV - News) announces that the 2009 exploration program is underway at its wholly owned Hycroft gold mine, located near Winnemucca, Nevada. Drill results from the 2007/08 drill seasons, together with geophysical and geochemical surveys were incorporated into the 3D model in early 2009. This model has provided the geological team with a number of targets which will be the basis for drilling this year." More
- June 17, 2009 | Item | E-mail

Yamana Gold provides development and near development stage projects update - "YAMANA GOLD INC. (TSX: YRI - News; NYSE: AUY - News; LSE: YAU - News) today announced further advancements in its development and near development stage projects, supporting the Company's continued focus on advancing its higher-return, highly prospective development stage projects." More
- June 17, 2009 | Item | E-mail

Banro Announces Terms of Cdn.$ 100,001,700 Financing - "Banro Corporation ("Banro" or the "Company") (Toronto:BAA.TO - News)(AMEX:BAA - News) is pleased to announce the terms of its previously announced overnight marketed offering of common shares (the "Common Shares") to be effected by way of a prospectus supplement (the "Offering"). A total of 43,479,000 Common Shares will be distributed in connection with the Offering at a price of Cdn.$2.30 per Common Share for aggregate gross proceeds to the Company of Cdn.$100,001,700. The Offering will be conducted through a syndicate of underwriters co-led by GMP Securities L.P. and CIBC World Markets Inc." More
- June 17, 2009 | Item | E-mail

- Chris Mullen, Gold Seeker Report

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