-- Posted 20 October, 2009 | | Source: SilverSeek.com
| Close | Gain/Loss |
Gold | $1057.40 | +$0.40 |
Silver | $17.55 | -$0.03 |
XAU | 174.23 | -2.15% |
HUI | 438.02 | -2.38% |
GDM | 1306.84 | -2.33% |
JSE Gold | 2581.56 | -12.34 |
USD | 75.56 | +0.19 |
Euro | 149.34 | -0.24 |
Yen | 110.22 | -0.18 |
Oil | $79.09 | -$0.52 |
10-Year | 3.337% | -0.048 |
T-Bond | 120.65625 | +0.75 |
Dow | 10041.48 | -0.50% |
Nasdaq | 2163.47 | -0.59% |
S&P | 1091.06 | -0.62% |
The Metals:
Gold rose over $10 to as high as $1067.65 in Asia, but it then fell back off for most of the rest of trade and ended about $5 off its early afternoon low of $1052.10 with a gain of just 0.04%. Silver dropped to as low as $17.39 by late morning in New York before it bounced back higher in the last couple of hours of trade, but it still ended with a loss of 0.17%.
Euro gold rose to about €709, platinum lost $11 to $1343, and copper fell a few cents to about $2.92.
Gold and silver equities fell over 3% by late morning before they rebounded a bit in afternoon trade, but they still ended with over 2% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Building Permits | Sep | 573K | 595K | 580K |
Housing Starts | Sep | 590K | 610K | 587K |
PPI | Sep | -0.6% | 0.0% | 1.7% |
Core PPI | Sep | -0.1% | 0.1% | 0.2% |
Tomorrow at 2PM EST brings the fed’s Beige Book.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell while the U.S. dollar index and treasuries rose as poor economic data and mixed earnings reports sent the Dow, Nasdaq, and S&P modestly lower on the day.
Among the big names making news in the market today were Coca-Cola, UAL, DuPont, Apple, Pfizer, Caterpillar, Invesco, Marshall & Ilsley, and Lockheed.
The Commentary:
“Dear Friends,
There are various categories of gold shares.
1. The most popular are the majors.
The least understood part about them is their serious short of gold derivative problem, and the balance sheet and price of cover implications thereof. No one will deny that they get the most attention because they have the capitalization required and the brand name that invites institutional buying.
Not much attention is being paid to the fact that they have sold their gold years into the future at prices well under $400. Their calculations on their sales price of the short of gold adds in the interest paid to short of physical bullion over the period of the short position into present time calculations as per their risk disclosure filings. Yes, if you sell physical you get paid interest, and if you buy physical on the cuff you pay interest in all the major cash markets. OTC derivative short of gold factors interest, yet to be earned, into the reported sales price going out in time. When they close the transaction before maturity, as is happening now, the debit does not include unearned interest and therefore charges at the real lower sales price. That is why the majors are borrowing their billions. This will limit their gain versus the gold price as it rises.
2. Junior producers are entities that have opened production facilities which are modest or not yet at full capacity. In the main they have the same problem but it is less visible. Recently the trend has been to bury the OTC short of gold derivatives in the loan documentation, but it is still there with somewhat the same effect. What matters is when the loan was made. The more recent it is the higher the short strike price in the OTC derivative and therefore the less the loss the company faces.
3. Exploration and development issues have been the favorite of the mix of all gold share categories for short operations. The gold explorer business is capital intensive, so if the price can be depressed, the short starves the company of its ability to finance. Before you can have production you must pay all the costs of exploration which usually comes from seed capital. In the last five years there has been practically NO seed capital anywhere for gold.
There are other categories and as a company transmutes between categories. In this unprecedented gold bull market price adjustments should occur with category transmutation of gold entities as they climb the ladder of success.
There is a separate group known as Senior and Junior Gold Royalty companies that will generally outperform as hyperinflation that impacts mining costs occurs. This outperformance should be a product of the cost of production falling upon the royalty partner, not the royalty holder whose participation is an amount of the gross production.
There is the exploration company that begins production and therefore moves up the scale toward the category of junior producer. Usually this is accompanied by improvement in price as many investment entities will not buy non-producing exploration companies.
There is the exploration company that has success and will be evaluated by the quality of its success and deal making. Historically success and deal making for such a company increases interest in the company.
It has been almost 30 years since any meaningful segment of the general marketplace has taken an interest in gold shares. Most mineral underwriters have moved away from all but the Major Producer category. When was the last time you saw any known, respected mineral underwriter working for companies in the bottom half of the Junior Producer or any Gold Exploration entities?
The only money available to the exploration Gold Exploration entities has been PIPEs which when participated in were the start of the company’s death spiral.
At the beginning of a gold bull market it is gold itself, then Major Producers that perform.
As gold makes its way past $1000 to $1650 and beyond, the order up to now has been Major Producers and the top half of Junior Producers benefitting with while the short attacked the bottom half of Junior Producers and all of Gold Exploration entities. Watch closely now as a shift takes place.
No short of any viable gold share can be happy this evening even though across the board they are still short and in some cases still sitting on the price.
You might have noticed recently in the heavily shorted gold situations in the bottom half of the Junior Producers and many of the viable Gold Exploration entities that there was an at the close and after close attempt to destroy prices when in some instances million of shares were sold and bought. This occurred in some cases on volumes 18 times larger (volume on the day) than the previous norm. Exchange short figures indicate that these were long buys and only minimal short covering.
The leverage is always on the bottom side of the category scale, so I anticipate that the bottom half of Junior Producers and the viable companies in Gold Exploration entities to outperform the top half of Junior Producers and Major Producers as the price of gold continues higher in late 2009 and 2010.
History tells us this is how it has always happened, and I believe it will again.
That is called leverage coming out higher gold prices, high in ground values, higher profits in the start up mining and in many cases much less shares outstanding than in the Major Producers and the top half of Junior Producers.
Gold shares presently in the more leveraged categories have practically no participation compared to other hard asset equities such as energy thanks to the action of the shorts.
In general it is more than likely the wrong time for a long suffering long to throw in the towel, but many are and will.
That is also the way it happens and explains the deluge of questions coming in today about the more leveraged gold shares.
Respectfully,”- Jim Sinclair, JSMineset.com
GATA Posts:
'Hold that gold,' Eric Hommelberg says, citing GATA's work
The Statistics:
Activity from: 10/16/2009
Gold Warehouse Stocks: | 9,403,016 | +8,498 |
Silver Warehouse Stocks: | 115,868,383 | -275,906 |
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 Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1109.314 | 35,665,560 | US$37,859m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 132.49 | 4,257,893 | US$4,498m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.37 | 460,415 | US$488m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 52.70 | 1,694,294 | US$1,780m |
NASDAQ Dubai | Dubai Gold Securities | 0.155 | 4,987 | US$5m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU)
Profile as of 10/19/2009 | |
Total Net Assets | $2,557,638,835 | Ounces of Gold
in Trust | 2,419,519.809 |
Shares Outstanding | 24,650,000 | Tonnes of Gold
in Trust | 75.26 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 10/19/2009 | |
Total Net Assets | $4,850,059,628 | Ounces of Silver
in Trust | 276,900,396.800 |
Shares Outstanding | 281,650,000 | Tonnes of Silver
in Trust | 8,612.57 |
Note: No change in Total Tonnes from yesterday’s data.
The Miners:
Nevsun’s (NSU) financing, Exeter’s (XRA) drilling, Great Basin’s (GBG) mill expansion, Eldorado’s (EGO) NYSE listing, Jaguar’s (JAG) note purchase offer, and Silver Quest’s (SQI.V) assay results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Solitario | XPL +0.95% $2.12 |
2. Buenaventura | BVN+0.33% $36.81 |
LOSERS
1. US Gold | UXG -8.31% $3.09 |
2. ITH | THM -7.14% $5.33 |
3. MAG | MVG-6.80% $6.03 |
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:
Amerigo Announces Q3 2009 Production Results and Dates for Release of Q3 2009 Results and Investor Conference Call - More
- October 20, 2009 | Item | E-mail
Core Drilling Begins on Miranda Gold's Red Canyon Project - More
- October 20, 2009 | Item | E-mail
Blue Note Mining Maintains Its Option On The Williams Brook Gold Property; Issues Stock Options and Shares To Insiders - More
- October 20, 2009 | Item | E-mail
BacTech's Partner Caldera Receives Permission to Access the Lichkvaz-Tey Gold Project - More
- October 20, 2009 | Item | E-mail
Bayswater Files Pre-Feasibility Report for Reno Creek Project, Wyoming and Information Circular for the Transaction - More
- October 20, 2009 | Item | E-mail
Hana Completes Initial 70% Share Purchase as Part of Agreed 100% Acquisition of Stellent - More
- October 20, 2009 | Item | E-mail
Imperial Metals Corporation: Initial Results From 2009 Exploration at Red Chris - More
- October 20, 2009 | Item | E-mail
Klondike Silver Corp. Commences Underground Drilling in 4625 East Decline - More
- October 20, 2009 | Item | E-mail
Vault Minerals Inc. Announces $2,050,000 Offering - More
- October 20, 2009 | Item | E-mail
Caldera receives further government permission to review the Lichkvaz gold project in Armenia - More
- October 20, 2009 | Item | E-mail
Merrex Gold Inc. Shareholder Update - More
- October 20, 2009 | Item | E-mail
CanAlaska Uranium Details Extensive Rare Earth Mineralization at NE Wollaston Project - with retraction of REE Dollar Values - More
- October 20, 2009 | Item | E-mail
Continental Completes $25 Million Financing - More
- October 20, 2009 | Item | E-mail
Quest Uranium Corporation Announces Expected Closing Date for $7 Million Private Placement - More
- October 20, 2009 | Item | E-mail
Ur-Energy Realizes US$1,000,000 Value From Sale of Historic Database - More
- October 20, 2009 | Item | E-mail
Pebble Creek announces engagement of investor relations consultants - More
- October 20, 2009 | Item | E-mail
Inca Pacific Provides Update on Government of Peru Negotiations - More
- October 20, 2009 | Item | E-mail
Adventure Gold Completes First Phase Exploration Work on Meunier-144, West Timmins Area - More
- October 20, 2009 | Item | E-mail
Velocity Minerals Ltd. Measures 10.5 Meters of .648% Moly on Surface - More
- October 20, 2009 | Item | E-mail
Atacama Granted Drill Permits for Salvador Potash Project in Brazil - More
- October 20, 2009 | Item | E-mail
Puma Intersects 1% Cu Over 97 Metres on Its Turgeon, New Brunswick Deposit - More
- October 20, 2009 | Item | E-mail
New Dimension Receives Title Confirmation for Cenepa Project Concessions, Northern Peru - More
- October 20, 2009 | Item | E-mail
Pro Minerals Inc.: Lac Laura Gold Project Acquisition - More
- October 20, 2009 | Item | E-mail
Rocmec Announces Revenues Totalling 1 Million for Fiscal 2009 - More
- October 20, 2009 | Item | E-mail
Mirasol upgrades Libanesa silver-gold project with significant new drill targets - More
- October 20, 2009 | Item | E-mail
Itronics Announces Claim Staking for a Polymetallic Gold Project - More
- October 20, 2009 | Item | E-mail
TNR Gold/International Lithium Commences Sampling Program on Mariana Lithium Brine Project in Argentina - More
- October 20, 2009 | Item | E-mail
Roxmark to extend 2009 Northern Empire drilling, completes Leitch-Sand River aeromagnetic survey - More
- October 20, 2009 | Item | E-mail
American Consolidated Commences Drilling Program at Toiyabe Project - More
- October 20, 2009 | Item | E-mail
Wage Agreement Reached at Bokoni Platinum Mines - More
- October 20, 2009 | Item | E-mail
Messina Minerals Inc. Grab Sample Results from Daniels Harbour NL - More
- October 20, 2009 | Item | E-mail
Eagle Hill Announces Additions to Board of Directors and Exploration Advisory Teams - More
- October 20, 2009 | Item | E-mail
Ucore Provides Update on Bokan Drill Program - More
- October 20, 2009 | Item | E-mail
ROYAL STANDARD MINERALS INC. (RYSMF) Plans for Underground Program at Goldwedge Project, Nye County, Nevada - More
- October 20, 2009 | Item | E-mail
Diamond Drilling Underway at Raney Gold Project, Timmins, NE Ontario - More
- October 20, 2009 | Item | E-mail
Rare Element Begins a Scoping Study on Rare-Earth-Element Potential at Bear Lodge and Updates the Exploration Status - More
- October 20, 2009 | Item | E-mail
CBR Gold Corp. Initiates Drilling of New Targets at Jaurdi Hills Gold Project - More
- October 20, 2009 | Item | E-mail
Northrock Diamond Drilling Program Returns 13.21 grams/tonne Gold Over 13.0 Metres on Main Gold Zone at Turner Lake Project, Nunavut - More
- October 20, 2009 | Item | E-mail
American Sierra Gold Corp. Signs Final Agreement to Acquire High-Grade Discovery Day Gold Project - More
- October 20, 2009 | Item | E-mail
ATW Settles Red Kite Burnakura Gold Loan - More
- October 20, 2009 | Item | E-mail
Iberian Minerals Completes Bridge Financing - More
- October 20, 2009 | Item | E-mail
Geodex Minerals Director Clem Pelletier Resigns - More
- October 20, 2009 | Item | E-mail
Metanor Drills 13.31 g/t Au Over 5.2m at Barry: Pit is Still Growing at Depth - More
- October 20, 2009 | Item | E-mail
Yukon-Nevada Gold Corp. resumes gold production at Jerritt Canyon, Nevada - More
- October 20, 2009 | Item | E-mail
Armistice Resources Corp. launches drilling program - More
- October 20, 2009 | Item | E-mail
EurOmax Bulgarian Project update - More
- October 20, 2009 | Item | E-mail
Guyana Goldfields Announces Property Acquisitions and Drilling of New Target Areas at Aranka - More
- October 20, 2009 | Item | E-mail
Rockcliff Commences Drill Program at Snow Lake Project - More
- October 20, 2009 | Item | E-mail
MetalCORP Identifies New Drill Targets for Its Big Lake Copper-Zinc Deposit, Marathon, Ontario - More
- October 20, 2009 | Item | E-mail
CanAlaska Uranium Announces Extensive RARE EARTH Mineralization at NE Wollaston Project - More
- October 20, 2009 | Item | E-mail
Osisko Intersects New Gold Mineralization on the Malartic CHL Property - More
- October 20, 2009 | Item | E-mail
DIOS/Uranium Discovery Confirmed on Hotish Godzila: 6 Samples Out of 8 Over 0.33 % Uranium Oxide, Up to 2.56 % - More
- October 20, 2009 | Item | E-mail
Redstar Adds Another New Gold Project in Nevada - More
- October 20, 2009 | Item | E-mail
Blackstone Ventures Updates Q3 Exploration Activities in Scandinavia - More
- October 20, 2009 | Item | E-mail
Probe Mines Completes Phase II Drilling on its Black Creek Chromite Discovery; Expands Zone to 200 Metre Strike Length and up to 63.6 Metres Wide - More
- October 20, 2009 | Item | E-mail
Rice Lake Mine Deep Drilling Discovers New High Grade West Zone - More
- October 20, 2009 | Item | E-mail
White Mountain Progress Report on Metallurgical Test Work Programs - More
- October 20, 2009 | Item | E-mail
Donner Metals Announces $3,100,000 Financing - More
- October 20, 2009 | Item | E-mail
Dia Bras Announces Results From its Bolivar and Cusi Pilot-Mining Programs for the Third Quarter 2009 - More
- October 20, 2009 | Item | E-mail
Goldeye Announces Grant of Stock Options - More
- October 20, 2009 | Item | E-mail
Azteca Gold Announces Two Mile Geophysics Update and Financings - More
- October 20, 2009 | Item | E-mail
SNS Silver Grants Options - More
- October 20, 2009 | Item | E-mail
Oromin Continues Strategic Planning for Development at Sabodala - More
- October 20, 2009 | Item | E-mail
Tribute Settles Debt with 6 Creditors - More
- October 20, 2009 | Item | E-mail
White Mountain Completes Private Placement Financing - More
- October 20, 2009 | Item | E-mail
Commerce Resources Corp. Appoints Ian Graham to Board of Directors - More
- October 20, 2009 | Item | E-mail
Andean Resources Announces Drilling and Project Update - More
- October 20, 2009 | Item | E-mail
Acero-Martin Exploration Inc.: Amendment and Exercise of Option Agreement on the Red Mountain Gold Property, Yukon Territory, Canada - More
- October 20, 2009 | Item | E-mail
Midex Gold Provides Geological Details Outlining the Potential of The New Golden Hills Property - More
- October 20, 2009 | Item | E-mail
Nevsun Announces CDN $32.8 Million Financing - "Nevsun Resources Ltd. ("Nevsun") (TSX:NSU - News)(AMEX:NSU - News) wishes to announce that it has entered into a non-brokered private placement financing of 11,500,000 common shares at $2.85 per share. The net proceeds from the offering will be used for general working capital purposes, including exploration and development of the Bisha Project." More
- October 20, 2009 | Item | E-mail
Exeter resumes drilling and continues infrastructure studies at Caspiche Project, Chile - "Exeter Resource Corporation (NYSE-AMEX:XRA, TSX-V:XRC, Frankfurt:EXB - "Exeter" or the "Company") reports that a new 20,000 metre (65,600 feet) drilling program on the Company's Caspiche gold-copper Project has commenced. The purpose of the program is to define further value in the National Instrument 43-101 ("NI 43-101") compliant inferred mineral resource of 19.6 million ounces gold and 4.8 billion pounds copper announced September 14, 2009." More
- October 20, 2009 | Item | E-mail
Silver Quest Resources Ltd.: Capoose-Silver Trend, BC-Assay Results From Drill Hole D-09-100 - "Silver Quest Resources Ltd. (TSX VENTURE:SQI - News) is pleased to report assay results for diamond drill hole D-09-100, the first of thirteen holes completed during the 2009 fall drill program on the Capoose-Silver Trend ("Capoose") Project (see Press Release October 14, 2009 for drill program details). Diamond drilling was carried out by Driftwood Drilling of Smithers, BC. For further details and property maps, including a drill hole location map please visit the Company's website www.silverquest.ca." More
- October 20, 2009 | Item | E-mail
Great Basin Gold Provides Update on the Esmeralda Mill, Hollister Project - "Great Basin Gold Ltd, ("Great Basin Gold" or the "Company"), (TSX: GBG; NYSE Amex: GBG; JSE: GBG) announces that the Nevada Division of Environmental Protection (NDEP) has granted approval of the Esmeralda Water Pollution Control Permit, allowing the Company to continue with the next phase of the Esmeralda Mill expansion. The Esmeralda Mill is part of the Company's Hollister Project in northeastern Nevada." More
- October 20, 2009 | Item | E-mail
Eldorado Gold Lists on the New York Stock Exchange - "Eldorado Gold Corporation ("Eldorado" the "Company" or "we") (TSX:ELD - News)(AMEX:EGO - News) is pleased to announce that it will transfer its NYSE Amex listing to the New York Stock Exchange (NYSE). Trading under the Company's symbol "EGO" is expected to begin at the opening of the NYSE on October 22, 2009. The Company's primary exchange will remain the Toronto Stock Exchange." More
- October 20, 2009 | Item | E-mail
Jaguar Commences Offer to Purchase and Consent Solicitation for its 10.5% Secured Notes Due 2012 - "Jaguar Mining Inc. ("Jaguar" or the "Company") (JAG: TSX/NYSE, JAG.NT: TSX) announced today that it has commenced an offer to purchase (the "Offer") and consent solicitation with respect to its outstanding 10.5% Secured Notes due March 23, 2012 (the "Notes"). Jaguar is offering to purchase all Cdn$86.25 million aggregate principal amount of the outstanding Notes at a purchase price of 105% of the principal amount thereof plus accrued and unpaid interest to, but excluding, the date of payment on the terms and subject to the conditions set forth in its Offer to Purchase and Consent Solicitation Statement dated October 20, 2009." More
- October 20, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted 20 October, 2009 | |
