Gold Seeker Closing Report: Gold Falls Over 1% While Silver Drops Nearly 5%

	Close	Gain/Loss
Gold	$934.75	-$12.00
Silver	$13.96	-$0.71
XAU	139.13	-4.63%
HUI	338.70	-5.25%
GDM	1027.96	-4.71%
JSE Gold	2339.15	-81.32
USD	79.30	+0.49
Euro	140.81	-1.23
Yen	105.86	+0.51
Oil	$66.75	-$0.76
10-Year	3.491%	-0.067
T-Bond	119.671875	+0.890625
Dow	9135.34	-2.00%
Nasdaq	1930.84	-2.75%
S&P	979.73	-2.43%

Gold saw slight losses in Asia, fell over 1% in London, and dropped to as low as $930.05 near the open of trade in New York before it bounced back higher into the close, but it still ended with a loss of 1.27%. Silver fell to as low as $13.81 by late morning in New York before it rebounded in the last couple of hours of trade, but it still ended with a loss of 4.84%.

Euro gold fell to about €664, platinum lost $37.50 to $1215.50, and copper fell over 6 cents to about $2.77.

Gold and silver equities fell over 5% at the open and remained near their lows for the rest of the day.

Report	For	Reading	Expected	Previous
Empire Manufacturing	Aug	12.08	3.00	-0.55
Net Long-Term TIC Flows	June	$90.7B	$17.5B	-$19.4B

Tomorrow at 8:30AM EST brings Building Permits for July expected at 576,000, Housing Starts expected at 598,000, PPI for July expected at -0.2%, and Core PPI expected at 0.1%.

Oil fell while the U.S. dollar index and treasuries rose on renewed worries over the global economy that sent the Dow, Nasdaq, and S&P over 2% lower on the day on another round of risk aversion. Although Japan posted a 3.7% expansion in economic growth in the second quarter, worries over future sustained consumption kept investors on edge and wary of a double dip recession, or worse.

Among the big names making news in the market today were CIT, BB&T, Rosetta Stone, and Lowe’s.

ETFs in general deal in paper gold and not in the hard stuff. That is clear as their rise and fall in position simply cannot be either in the cash market or listed futures market. The volume screams that conclusion.

The only inviting conclusion is that producers and gold banks have made huge forward sales in the form of off exchange OTC short of gold derivatives to the ETFs they manage.

COT, in its capping activities, will be defeated the same way they were defeated in the 1970s. That is when the COT takes on governments while not knowing it, like now.

The ETF problem will come as a result of any paper exchange in gold failing or finding it publicly difficult to deliver on their paper contracts in physical gold. Yes, in gold the listed exchanges will bring down the OTC short of gold to the ETFs.

Should this occur, and it will in time on the COMEX, concern over the paper gold at the ETFs will cause significant shifting into the physical metal. Because of the small size of the physical precious metals market versus the money coming out of precious metals ETFs, big money will seek promising precious metals shares, especially those on the cutting edge with leverage against the underlying assets.

Because many ETFs in precious metals function as bullion alternatives for buyers that cannot buy the bullion itself, this huge money will seek the precious metals shares on the cutting edge of doing business.

As in the 70s, the juniors underperformed until the later years then went ballistic as a group. I firmly believe specialized unique companies will do so again.”- Jim Sinclair, JSMineset.com

“December Gold closed down 12.9 at 935.8. This was 4.5 up from the low and 0.7 off the high.

September Silver finished down 0.747 at 13.975, 0.155 off the high and 0.155 up from the low.

Gold saw an early range down washout in the wake of a surge in the Dollar and what seemed to be a moderate downshift in macro economic sentiment. With a host of physical commodity markets under pressure it wasn't surprising to see October gold fall to the lowest level since July 30th. While a better than expected regional Fed manufacturing reading could have provided some improvement in the macro economic outlook, the markets weren't seemingly interested in positive arguments.

The silver market also saw a noted downside washout on Monday morning, but at times the market seemed to be capable of throwing off the intense selling pressure. However, with the equity market remaining under pressure throughout the trading session, it seemed as if the negative macro economic outlook was expected to remain in place. Like gold, the silver market was clearly behaving like a physical commodity facing renewed slowing concerns, but with the US Dollar showing such significant strength, silver and other physical commodity markets could have been just as concerned about negative currency market influences.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: The JSE added 0.49 tonnes.

Gold Fields’ (GFI) purchase agreement with GoldQuest Mining Corp., Freeport’s (FCX) settlement with Congolese authorities, Fresnillo’s (FRES.L) first-half profit, Coeur’s (CDE) reactivated permit, and Silver Standard’s (SSRI) closed public offering 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.

Coronation Minerals announces name change - More
- August 17, 2009 | Item | E-mail

Mega Silver Shareholders Approve Change of Name to Mega Precious Metals Inc. - More
- August 17, 2009 | Item | E-mail

Xemplar Intersects U3O8 Mineralization Over 26 Metres at Big Yellow - More
- August 17, 2009 | Item | E-mail

UC Announces a Financing With the MineralFields Group - More
- August 17, 2009 | Item | E-mail

Gold Fields to Acquire Interest in GoldQuest Mining Corp. - "Gold Fields Limited (Gold Fields) (NYSE:GFI - News)(JSE: GFI)(NASDAQ Dubai: GFI) today announced that on August 5, 2009 its wholly-owned subsidiary Gold Fields Dominican Republic BVI Limited ("GF Dominican Republic") entered into a purchase agreement (the "Purchase Agreement") with GoldQuest Mining Corp. ("GoldQuest") pursuant to which GF Dominican Republic has agreed to transfer its 60% joint interest in a joint venture between GoldQuest and GF Dominican Republic (the "Joint Venture") to GoldQuest." More
- August 17, 2009 | Item | E-mail

Artha Options Properties Adjoining Silver Standards Pirquitas Mine - More
- August 17, 2009 | Item | E-mail

Gold Canyon Closes Strategic Investment With Jipangu Inc. of Japan - More
- August 17, 2009 | Item | E-mail

Laurentian Goldfields Ltd. Acquires New Gold Project Near Dryden, Ontario - More
- August 17, 2009 | Item | E-mail

Far City Announces Appointment of Chief Executive Officer - More
- August 17, 2009 | Item | E-mail

Avalon Announces Updated Resource Estimate, Lake Zone REE Deposit, Thor Lake, NWT and Provides Community Relations Update - More
- August 17, 2009 | Item | E-mail

Avion Gold Channel Samples: 108.68 g/t Au Over 2.0 Metres and 25.15 g/t Au Over 2.3 Metres at the Tabakoto Mine, Mali - More
- August 17, 2009 | Item | E-mail

Mirasol's partner Coeur upbeat about Joaquin silver project drill results - More
- August 17, 2009 | Item | E-mail

Assay Results From June Field Work on Highland's Rickaby Property Include 17.1 g/t Gold Over 1.20m in Channel Sampling - More
- August 17, 2009 | Item | E-mail

Goldcliff Resource Corporation: Discovery of New Geophysical Targets Expands Potential at Panorama Ridge - More
- August 17, 2009 | Item | E-mail

Trilliant Exploration Files Form 10Q - More
- August 17, 2009 | Item | E-mail

Constantine Intersects 21.3 Meters-2.8% Copper, 9.1 Meters-1.9% Copper, 5.2% Zinc in First Two Step-Out Holes - More
- August 17, 2009 | Item | E-mail

Kria Resources Revises Purchase Agreement With Xstrata - More
- August 17, 2009 | Item | E-mail

Advanced Explorations Inc. Announces Increase in Private Placement Financings - More
- August 17, 2009 | Item | E-mail

Intrepid Mines Limited: Drilling Intercepts 533 g/t Silver-Equivalent Over 12.1 Metres at Taviche J-V, Mexico - More
- August 17, 2009 | Item | E-mail

First Gold Exploration Inc.: Early Warning Report - More
- August 17, 2009 | Item | E-mail

CBR Gold Corp.: Niblack Joint Venture Commences 2009 Exploration Program - More
- August 17, 2009 | Item | E-mail

Eloro Resources and Megastar Development Announce Closing of $4 Million Joint Venture Agreement on Megastar's Simkar Gold Project Near Val d'or, Quebec - More
- August 17, 2009 | Item | E-mail

Northair Reports Strong Exploration Results at La Cigarra Silver Project, Mexico - More
- August 17, 2009 | Item | E-mail

Positive Pre-Feasibility Study Received and 136% Increase to Measured & Indicated Copper Resource at International Enexco's Contact Copper Project, Nevada - More
- August 17, 2009 | Item | E-mail

WestStar Acquires Lithium Projects - More
- August 17, 2009 | Item | E-mail

Stingray Awards Engineering Contract to Aker Chemetics for Co-Generating Plant at El Pilar - More
- August 17, 2009 | Item | E-mail

Gladstone Pacific Nickel Limited (ACN 104 261 887)- Resignation of Managing Director - More
- August 17, 2009 | Item | E-mail

Stratabound Raises $1.06 Million in Non-Brokered Private Placement - More
- August 17, 2009 | Item | E-mail

Denarii Resources Announces Negotiations for Gold Property in California - More
- August 17, 2009 | Item | E-mail

American Creek reports on Treaty Creek exploration program - More
- August 17, 2009 | Item | E-mail

Mercator Reports Second Quarter Results and Provides Operations Update - More
- August 17, 2009 | Item | E-mail

Crosshair Appoints New Chief Financial Officer - More
- August 17, 2009 | Item | E-mail

Uranerz Signs Long-term Contract For Sale of Uranium - More
- August 17, 2009 | Item | E-mail

Midlands Minerals Appoints New Board Member - More
- August 17, 2009 | Item | E-mail

WTM Announces Approval of Shareholder Rights and Stock Option Plans - More
- August 17, 2009 | Item | E-mail

General Metals Reports Final Re-Assays From High Grade Independence Gold Skarn Are 4-6% Higher Than Original Noranda Assays - More
- August 17, 2009 | Item | E-mail

Paladin Energy Ltd: Kayelekera Uranium Project, Malawi US$167M Project Finance Completed-First Drawdown - More
- August 17, 2009 | Item | E-mail

Northern Abitibi Continues to Drill High Grade Gold at Viking Including 136 Grams Per Tonne Over 0.5 Metres and 7.9 Grams Per Tonne Over 27 Metres - More
- August 17, 2009 | Item | E-mail

Fresnillo H1 profit falls, miner upbeat on H2 - "London-listed Mexican miner Fresnillo Plc (FRES.L), the world's largest primary silver producer, posted a 14 percent decline in first-half profit due to lower silver prices but remained positive for the full year.

Fresnillo, a unit of Mexico's Penoles (PENOLES.MX), said on Monday that first-half attributable net profit fell to $121 million from $141 million, but was upbeat about the remainder of the year." More
- August 17, 2009 | Item | E-mail

Canadian Zinc Reports Second Quarter 2009 Results - More
- August 17, 2009 | Item | E-mail

Robex Resources announces cancellation of the brokered private placement contracted with Northern Securities - More
- August 17, 2009 | Item | E-mail

Genco Reports Results for Second Quarter - More
- August 17, 2009 | Item | E-mail

Freeport to pay $16 mln in DRC visa settlement - "U.S. miner Freeport McMoRan Copper & Gold Inc. has agreed with Congolese authorities to pay $16 million in fees and penalties in a settlement related to procedures for getting visas and work permits for staff, the company said on Monday." More
- August 17, 2009 | Item | E-mail

International Royalty Corporation declares dividend - "International Royalty Corporation (NYSE-A: ROY, TSX: IRC) is pleased to report that its Board of Directors declared a dividend on August 13, 2009 of US$0.02 per share. Based on IRC's 94,695,356 current shares outstanding, the total annual dividend will approximate US$3.8 million. The dividend is payable to shareholders of record on September 11, 2009 and will be paid on or about September 28, 2009." More
- August 17, 2009 | Item | E-mail

Army Corps of Engineers Reactivates Permit at Coeur's Kensington Gold Mine, Clearing Way for Expected 2010 Production Start - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today announced that the U.S. Army Corps of Engineers has reactivated the 404 permit for Coeur’s Kensington Gold Mine located 40 miles northwest of Juneau, Alaska. With approximately 90% of the mine already complete, the Company will immediately begin to finalize construction of the remaining areas of the operation." More
- August 17, 2009 | Item | E-mail

Silver Standard Announces Closing of Public Offering of Common Shares - "Silver Standard Resources Inc. (TSX:SSO - News)(NASDAQ:SSRI - News) reports the closing of its previously announced public offering of common shares and exercise of the overallotment option (the "Offering"). Pursuant to the Offering, the company today issued 2,997,816 common shares at a price of US$17.00 per share, for aggregate net proceeds of approximately US$48.3 million after underwriting commissions." More
- August 17, 2009 | Item | E-mail

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