Gold Seeker Closing Report: Gold and Silver Gain Roughly 3% and 5% to New Highs

	Close	Gain/Loss
Gold	$1084.60	+$30.80
Silver	$17.17	+$0.82
XAU	168.34	+6.38%
HUI	426.28	+8.02%
GDM	1272.03	+7.60%
JSE Gold	2428.18	-3.93
USD	76.33	+0.11
Euro	147.16	-0.51
Yen	110.70	-0.07
Oil	$79.60	+$1.47
10-Year	3.473%	+0.051
T-Bond	119.0625	-0.75
Dow	9771.91	-0.18%
Nasdaq	2057.32	+0.40%
S&P	1045.41	+0.24%

Gold jumped near a new record high last night at as high as $1065.92 in early Asian trade after it was announced that

India

bought “200 metric tons of the metal from the International Monetary Fund.” The yellow metal then pulled back in London to see a gain of just $1.25 at as low as $1055.05 by about 7AM EST, but it then exploded to new highs in late morning New York trade and ended near its new record high of $1085.95 with a gain of 2.92%.

Silver climbed to as high as $16.70 in early Asian trade before it fell to as low as $16.22 by about 9:30AM EST in New York, but it also climbed back higher for most of the rest of trade and ended near its session high of $17.21 with a gain of 5.02%. Silver remains $3.47 from its 28 year closing high of $20.64 set on March 5^th, 2008.

Euro gold rose to about €739, platinum gained $23.50 to $1352.50, and copper remained at about $2.95.

Gold and silver equities rose roughly 7% by early afternoon and remained near their highs into the close.

Report	For	Reading	Expected	Previous
Factory Orders	Sep	0.9%	0.8%	-0.8%

Tomorrow at 8:15 AM EST brings ADP Employment for October expected -190,000, at 10AM is the ISM Services report for October expected at 51.5, and at 2:15 is the FOMC rate decision that is expected to keep the fed funds rate in its range of 0.00% to 0.25%.

Oil rose in late trade as the U.S. dollar index reversed notable early gains and ended only slightly higher after banking worries eased following decent economic data and Warren Buffett's decision to buy Burlington Northern in what he described as a “bet on the country.”

Treasuries found slight gains in early trade as the Dow, Nasdaq, and S&P struggled to find gains despite Buffett’s optimism, but worries over inflation turned bonds lower in late trade while fading risk aversion helped stocks erase early losses and end mixed and near unchanged.

Among the big names making news in the market today were Archer Daniels Midland, Cablevision, Viacom, Marvel, Berkshire and Burlington, and J&J.

2. Do you really believe the shorts can sit on the gold shares as financing windows open up and gold starts its march past my estimates and on to Alf’s numbers?

3. Closing your derivative book now is not good news. It is a public admission that you are an ass.

5. To the hoard of whiners from $248 up, next time I reserve the right to yell at you.”- Jim Sinclair, JSMineset.com

News overnight that India was going to stand for half of the proposed IMF gold sale sent shock waves through the gold bear camp resulting in a near panic among trapped shorts. Their buying sent prices ripping through overhead resistance just above the $1,070 level setting off a cascade of pre-placed buy stops that propelled gold above $1,080, a mere $20 from psychologically significant $1,100.

By the way, let me take a minute here to give a Hat Tip to Jim who has been saying for YEARS (and received a fair amount of trash talk for so doing), that any gold sold under an IMF arrangement would never see the light of day as Central Banks would gobble it all up. That is precisely what India did and I am convinced that China is also looking to do. As a matter of fact, India probably got the jump on China because they knew that they were lurking in the background looking to buy.

How many times over the last few years did we hear talk about IMF gold sales just about the time gold was threatening to put in a technical break out on the price charts. The news would cause a near panic among ignorant analysts and talking heads who would promptly advise their clients to dump their long positions playing right into the hands of those who originally trotted out the story. Let’s hope that after today, gold longs are no longer the least bit troubled by any further chatter concerning IMF gold sales. Do not forget, that the Central Banks of the rising powerhouse economies of the East are looking to diversify their foreign reserves and need large block sales of gold at a preset price in order to facilitate an order of the magnitude that they are placing. Try obtaining 200 tons of gold on the open market! That is why they welcome such large sized gold sales.

What makes the surge higher in gold even more impressive is that it came in the face of a weaker Euro, a stronger Dollar, and most particularly, a dropping equity market. The net result of such occurrences is that gold moves higher in terms of nearly all of the major foreign currencies. Gold priced in terms of Euros is at its best level since March of this year with British Pound priced gold back near the 650 level.

Based on today’s price action, one would have to say that the price of gold has consolidated long enough above $1,000 that the market has now come to terms with a permanently higher gold price of 4 figures. Without wanting to be premature, gold under $1,000 would undoubtedly be viewed now as a bargain. That is why markets that move higher, consolidate, move higher, consolidate, etc, are sustainable bull runs. The run and pause effect gives the industry TIME to become acclimated to the new, higher price level whereas markets that launch into parabolic type blow offs, while spectacular, are generally unsustainable and short lived in the broader scheme of things. They come crashing back to earth as quickly, if not faster, than they went up.

The mining shares, while still lagging far behind the price of bullion, are sharply higher today as the market now has to reprice those shares to allow for the changing dynamics of the gold market. A fair number of our readers keep asking me about the shares and why they are performing so poorly compared to the metal itself. My view is that the Gold ETF’s have sucked a large amount of investment capital that would normally be flowing into the shares into those particular investment vehicles. The big funds can leverage those up and obtain the same effect that they used the mining share purchases for, namely as a way to obtain leveraged exposure to the gold price.

Jim has written a masterpiece about the gold shares that is a must read for anyone who has exposure to this sector that deals specifically with what to expect in these moving forward. I urge the readers to refer to that often. Those miners with exposure to non-recourse loans and the inherent short-of-gold derivative are now seeing what Jim warned them about years ago.

The Dow Jones/Gold ratio is currently trading exactly at “9” as I write this. You might recall that chart I put up not all that long ago where I noted that the ratio near “9” has been a floor of support. If this level gives way, it will indicate that savvy investors who can read the tea leaves of the US economy have seen the handwriting on the wall and understand that the lake of inflation is relentlessly rising behind the dam of illusionary wealth soon to break forth with a fury. As said so many times on this site by Jim, Monty and myself, you cannot print your way to prosperity. If that were the case, it would have been successfully attempted long, long ago by nations throughout the course of history. Sadly, our current monetary officials and political leaders are oblivious to this truth and refuse to back away from their reckless policies and short-sighted courses of action. The Dollar, while moving higher today, is a catastrophe waiting to occur. The collapsing Dow/Gold ratio says it all.

Bonds are moving lower in tandem with stocks today which is unusual. I have not been able to clearly read the bond market (then again I know of no one else who can for that matter these days) but perhaps the surge in the gold price caught bond traders’ attention and they are a bit more worried about inflation than they are the lower equities. Bonds are probably going to have to get below the 117 level and stay there to flip the inflation/deflation battle over to the inflationist camp. All I can say is that you could not pay me to hold a US debt obligation. They are nothing but confetti paper in my opinion as the world is literally awash in them.

Back to gold for a brief moment – volume in the gold pit is very strong today and most impressive. This move is coming with a lot of emotion particularly fear among the gold shorts. The weaker ones were blown out – the only selling left is the bullion banks but it should be noted that they have not been able to cap the price below the early morning price peak. Buying is quite persistent and is eating through the overhead selling allowing the market to move higher and put in a new peak as it moves further into the session. That is not the norm that we have grown accustomed to seeing in this market.”- Dan Norcini, More at JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 0.45 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 79.83 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 8,744.00 - No change from yesterday’s data.

Seabridge’s (SA) drill results, Solitario’s (XPL) cash reception from Metallic Ventures (MVG.TO), Northgate’s (NXG) third quarter results, Kinross gold’s (KGC) third quarter results, Endeavour’s (EXK) drill results, Alexco’s (AXU) drill results, and Hecla’s (HL) third quarter results 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.

Goldcliff Resource Corporation: Panorama Ridge Exploration Update - More
- November 03, 2009 | Item | E-mail

Golden Valley Mines-Exploration Update on its James Bay Lowlands "Ring of Fire" Joint Venture - More
- November 03, 2009 | Item | E-mail

Arapaho Announces New Board and Management Appointments Following Completion of RTO with Malbex - More
- November 03, 2009 | Item | E-mail

Golden Eagle in Ongoing Negotiations and Due Diligence Regarding Letter of Intent Offering $10 Million for the Purchase of Gold Bar Mill and Operating Agreement - More
- November 03, 2009 | Item | E-mail

Anglo Swiss Resources Inc. Options Referendum Gold Property - More
- November 03, 2009 | Item | E-mail

Seabridge Gold Reports Positive Drill Results From Kerr Zone - "Results from this year's core drill program at KSM's Kerr zone should successfully upgrade in-pit inferred resources to measured and indicated and improve the waste to ore ratio by converting material previously defined as waste to mineral resources." More
- November 03, 2009 | Item | E-mail

Molycor Gold Corp.: Good Gold Values at Windpass Property - More
- November 03, 2009 | Item | E-mail

Ur-Energy Announces Third Quarter 2009 Teleconference and Webcast - More
- November 03, 2009 | Item | E-mail

Capstone Mining Makes Strategic Investment in Nevada Copper - More
- November 03, 2009 | Item | E-mail

Colossus Minerals Commences Metallurgical Testing on Gold-Platinum-Palladium Mineralisation from the Central Mineralised Zone, Serra Pelada - More
- November 03, 2009 | Item | E-mail

Bear Lake Gold Provides Update on Larder Lake Property - More
- November 03, 2009 | Item | E-mail

NAP to Host Third Quarter Results Conference Call - More
- November 03, 2009 | Item | E-mail

Nitinat Mineral Corporation Announces Closing of Initial Public Offering - More
- November 03, 2009 | Item | E-mail

TNR Gold/International Lithium Confirms High Grade Lithium From Past Producer-Moose Project, NWT - More
- November 03, 2009 | Item | E-mail

Swift Resources Announces Financing With MineralFields Group - More
- November 03, 2009 | Item | E-mail

Solid closes private placement - More
- November 03, 2009 | Item | E-mail

Platinex and Ontario Mediate Over Big Trout Lake Property - More
- November 03, 2009 | Item | E-mail

Benton & Royal Roads Make a New Discovery of 29.2 Metres Semi-Massive to Massive Sulphides Grading 0.39% Copper and 0.032% Cobalt - More
- November 03, 2009 | Item | E-mail

Metanor Resources Inc.: Bachelor Lake Mine Work Accident, Northern Quebec Region - More
- November 03, 2009 | Item | E-mail

Ventana Announces New Discovery - More
- November 03, 2009 | Item | E-mail

Fortune Minerals announces agreement to purchase lands near Saskatoon, Saskatchewan for NICO refinery - More
- November 03, 2009 | Item | E-mail

MetalCORP Limited Appoints Charles Greig Vice President, Exploration - More
- November 03, 2009 | Item | E-mail

Royal Roads & Benton make new discovery of 29.2 metres semi-massive to massive sulphides grading 0.39% copper and 0.032% cobalt - More
- November 03, 2009 | Item | E-mail

Endeavour Silver Drilling Program Continues to Intersect High Grade Silver-Gold Mineralization on Porvenir Cuatro Property, Guanacevi District, Mexico - "Endeavour Silver Corp. ("Endeavour" or the "Company") (TSX:EDR - News)(TSX:EDR.WT - News)(AMEX:EXK - News)(DBFrankfurt: EJD) announces that exploration drilling program on the recently acquired Porvenir Cuatro property in the Guanacevi District, Durango, Mexico continues to intersect high grade, silver-gold mineralization along the Santa Cruz vein system." More
- November 03, 2009 | Item | E-mail

SLAM Exploration acquires Silverjack deposit - More
- November 03, 2009 | Item | E-mail

ROYAL STANDARD MINERALS, INC.'s (RYSMF) Current Activities at Goldwedge and Manhattan District, Nye County, Nevada - More
- November 03, 2009 | Item | E-mail

Millrock Options "Uncle Sam" Gold Property in Alaska From Kiska - More
- November 03, 2009 | Item | E-mail

Kiska Metals Announces Option of Uncle Sam Project to Millrock Resources - More
- November 03, 2009 | Item | E-mail

Stina Resources Ltd Appoints New CEO and President - More
- November 03, 2009 | Item | E-mail

Franc-Or Resources Corporation and Crocodile Gold Inc. Announce Completion of Business Combination - More
- November 03, 2009 | Item | E-mail

Magellan Extends Meio Zone at Coringa Project, Brazil - More
- November 03, 2009 | Item | E-mail

Valley High Ventures Ltd.: Initial Drilling at Cordero Project, Mexico Returns 152 Metres Grading 80.6 g/t Silver, 0.61 g/t Gold, 1.41% Zinc and 1.22% Lead - More
- November 03, 2009 | Item | E-mail

Excalibur Discovers New Vein System - More
- November 03, 2009 | Item | E-mail

Metals Creek Resources Corp. Announces Commencement of Drilling on its 100% Owned Staghorn Property - More
- November 03, 2009 | Item | E-mail

Norsemont Mining Closes C$20M Bought-Deal Financing - More
- November 03, 2009 | Item | E-mail

American Lithium Minerals Appoints Chris Hobbs, CA, to the Position of CFO and as a Member of the Board of Directors - More
- November 03, 2009 | Item | E-mail

White Pine Resources James Bay Lowlands Exploration Update - More
- November 03, 2009 | Item | E-mail

ATAC Resources Ltd. Intersects 5.11 g/t Gold Over 70.80 Metres on Its Rau Gold Property - More
- November 03, 2009 | Item | E-mail

East Asia Completes Planning for NI43-101 Resource Drilling at Miwah - More
- November 03, 2009 | Item | E-mail

Levon's Drilling at Cordero Project, Mexico Returns 152 Metres Grading 80.6 g/T Silver, 0.61 g/T Gold, 1.41% Zinc and 1.22% Lead - More
- November 03, 2009 | Item | E-mail

Metalex "Ring of Fire" update - More
- November 03, 2009 | Item | E-mail

Silver Quest Samples 55.3 g/t Silver in Soil at Capoose-Silver Trend, BC - More
- November 03, 2009 | Item | E-mail

Favorable Heap Leach Amenability Tests Reconfirmed with 89% to 95% Gold Extraction at Lydian's Amulsar Discovery in Armenia - More
- November 03, 2009 | Item | E-mail

Ireland Inc. Reports Drilling Results That Indicate Additional Gold and Silver Resources - More
- November 03, 2009 | Item | E-mail

Initial Metallurgical Testing at Tournigan's Kuriskova Project Indicates 90% Uranium Recovery - More
- November 03, 2009 | Item | E-mail

MAX returns values to 1.5 grams per tonne (1.5 ppm) Au in soils at East Manhattan Wash, Nevada; gold mineralized area significantly expanded and open - More
- November 03, 2009 | Item | E-mail

Red Back Reports Record Profits In the Third Quarter - More
- November 03, 2009 | Item | E-mail

Uranium Star to Present Green Giant Project at the 25th International Ferro-Alloys Conference - More
- November 03, 2009 | Item | E-mail

General Metals Completes 5 of the Planned 44 Holes in the Drill Program at Independence Hill Zone - More
- November 03, 2009 | Item | E-mail

Golden Minerals Reports Third Quarter 2009 Results - More
- November 03, 2009 | Item | E-mail

Canaco Samples 5 Metres of 4.92 Grams Gold Per Tonne at Magambazi North-Expands the Exploration Progam at Handeni - More
- November 03, 2009 | Item | E-mail

Eagle Hill Grants Stock Options - More
- November 03, 2009 | Item | E-mail

Solitario Exploration & Royalty Receives US$2.2 Million upon Termination of Metallic Ventures Agreement - "Solitario Exploration & Royalty Corp. ((NYSE Amex:XPL) (TSX:SLR - News) "Solitario") announced that it received US$2.2 million in cash from Metallic Ventures Gold Inc. (TSX:MVG; "Metallic Ventures") upon the termination of the definitive arrangement agreement dated August 24, 2009, as amended October 13, 2009 (the “Agreement”) between Solitario and Metallic Ventures." More
- November 03, 2009 | Item | E-mail

Northgate Reports Third Quarter Cash Flow of $50.5 million - "The net loss for the quarter was $8.6 million or $0.03 per share compared with a net loss of $29.4 million or $0.12 per share in the corresponding quarter of 2008. Adjusted net earnings were $7.7 million or $0.03 per share in the third quarter of 2009, which was significantly higher than the adjusted net loss of $28.4 million or $0.11 per share in the same period last year." More
- November 03, 2009 | Item | E-mail

Alexco Announces Additional 2009 Drill Results From Lucky Queen, Keno Hill District: Drilling Intersects 4.23 Meters of 61.8 Ounces Per Ton Silver - "Alexco Resource Corp. (TSX:AXR - News)(AMEX:AXU - News) ("Alexco" or the "Company") is pleased to announce additional results from the 2009 core drilling program at its Lucky Queen property in the Keno Hill silver district, Yukon Territory. Building on Alexco's previous work, exploration drilling has continued to intersect silver-rich, locally native silver-bearing mineralization at Lucky Queen, historically the highest grade silver producer in the Keno Hill district." More
- November 03, 2009 | Item | E-mail

Hecla Reports Quarterly Net Income of $22.5 Million and Record Cash Flow of $32.3 Million - "Hecla Mining Company (NYSE:HL) today reported net income applicable to common shareholders of $22.5 million, or 9 cents per diluted common share, on revenue of $95.2 million in the third quarter of 2009, compared with a loss of $7.2 million on revenue of $68.5 million for the corresponding quarter in 2008. Third quarter silver production was 2.7 million ounces at a cash cost of $0.85 per ounce of silver produced after by-product credits. For the first nine months of 2009, Hecla produced 8.6 million ounces of silver at a cash cost of $3.00 per ounce of silver produced after by-product credits." More
- November 03, 2009 | Item | E-mail

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