Gold Seeker Closing Report: Gold and Silver Lose Nearly 2% and 3%

	Close	Gain/Loss
Gold	$1142.15	-$20.90
Silver	$17.76	-$0.51
XAU	172.11	-3.83%
HUI	441.44	-4.28%
GDM	1312.78	-4.01%
JSE Gold	2517.06	-16.56
USD	76.21	+0.41
Euro	147.02	-1.25
Yen	113.21	+1.33
Oil	$72.62	-$1.31
10-Year	3.392%	-0.056
T-Bond	120.50	+0.53125
Dow	10285.97	-1.00%
Nasdaq	2172.98	-0.76%
S&P	1091.94	-1.03%

Gold and silver saw slight gains in early Asian trade, but they then fell back off for most of the rest of trade and gold ended with a loss of 1.8% while silver ended with a loss of 2.8%. Both metals have continued to drop in after hours access trade.

Euro gold fell to about €777, platinum lost $10.50 to $1427.50, and copper fell roughly 5 cents more to about $3.14.

Gold and silver equities fell throughout most of trade and ended with about 4% losses.

There were no major economic reports today. Tomorrow at 10AM EST brings Wholesale Inventories for October expected at -0.5%.

Oil fell while the U.S. dollar index rose as the euro dropped after Fitch cut Greece’s credit rating on banking worries.

Treasuries rose as the Dow, Nasdaq, and S&P fell about 1% on worldwide credit worries.

Among the big names making news in the market today were McDonald’s, United Airlines, Wells Fargo, Citigroup, 3M, Kroger, and Exxon.

“Well, to add to Friday's price action, are the changes in open interest for that day. With gold down approximately $50... gold o.i. was down the magnificent sum of 594 contracts! Neither Ted nor I can make hide nor hair of this. It's one of two things... either the numbers are flat out wrong [not all reported... or worse], or there was massive shorting going on at the same time as longs were being pitched. True, no major moving averages were violated to the down-side on Friday, but o.i. down only 594 contracts on such a big price drop? It strains credulity. Let's see what's reported for Monday's open interest later this morning. As I mentioned on Saturday, volume on Friday was gargantuan... just a hair under 400,000 contracts. Of course, total open interest was basically unchanged.

Silver's open interest was far more believable. O.i. was down 1,616 contracts on volume of 51,961 contracts. Total open interest is now down to 129,232 contracts.

There were other big changes in the CME's report yesterday... and that was the open interest for December delivery. The CME's preliminary numbers that I reported in my Saturday column were not even close to being correct when the final numbers were put up. In gold, instead of open interest being down 1,619 contract... December o.i. fell 3,727 contracts to just 5,256 contracts left open for delivery. In silver, instead of the 492 contracts I reported, December open interest fell 669 contracts... leaving only 890 silver contracts left open for delivery this month. Based on this new data, the likelihood of a December delivery squeeze in either metal is looking more doubtful than ever.

The CME Delivery Report went up on their website around midnight last night... and it showed that another 944 gold and 74 silver contracts are slated for delivery tomorrow. For the first time in a while, there was nothing to report from either the GLD or SLV ETFs. Over at the Zürcher Kantonalbank in Switzerland, their gold ETF showed its second weekly decline in a row... this time down 37,677 ounces. But [and also for the second week in a row] their silver ETF showed another hefty increase... as another 683,566 ounces was added. And, as usual, I thank Carl Loeb for those numbers.

As the headline on my commentary states, the U.S. Mint is no longer taking orders for just about every gold bullion coin that they produce. However, despite that, they did have an update yesterday... but it was all in silver eagles. As I stated before, when they report silver eagles sales in December, they do it by the million ounce chunk. Yesterday they reported that 1,012,500 silver eagles had been sold in December so far. Unless they run out of blanks, or silver to produce those blanks, their December sales should be well north of 3 million pieces... and their biggest month of the year by far.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

1. The economy is not improving, but is in reality bouncing along the lows. The only improvement is in Management of Perspective Economics.

2. That bottom bouncing is disappointing when you consider the degree of monetary and now fiscal stimulation that has been entered in to.

4.Commercial loans and residual OTC derivatives threaten up to 1000 banks according to certain establishment analysts.

5. When interest rates do rise (which they will) it will be a currency event impacting the long end then pulling at the near.

6. From 1968-1980 overnight money rose from 3% to 21%. The yield on 10 year money went to 14 7/8%. In the same period with rising interest rates gold rose to $835.

7. The GLIB assumption that rising interest rates means lower gold is world class because it fails to consider many items before coming to that conclusion. Short rates must rise at a percentage greater than expected inflation in the same period. Jump to any conclusion before we see where the economy is, and what the position of the US dollar is results in amateurish nonsense.

8. My suggestion that at a point one removes their capital from any investment, even gold, brought in howling bulls berating me. Doing capital recall is axiomatic for professionals and the reason why we last decades.

9. The gold price is the dollar value in the inverse. Right now that is enough to know.

10. Hyperinflation is a currency event based on a loss of confidence in the currency in question. Those that scream deflation never read economic history and have no knowledge of economics. Basically they are foolish shallow people making fools of themselves in public.

11. Dubai must threaten default, or you will never reach an agreement with creditors.

Hold on to this knowledge. Think about it. Don’t pick up the phone because I am on your speed dial or ram out an email because you disagree with me.

Everything you need and every question asked is here on JSMineset, usually multiple times from many different angles.

JSMineset is probably the largest book ever written on economics, currencies and markets in general. Please use it.

If you read this site only occasionally then you are missing the entire point. It is like attending class occasionally then calling the professor because you do not understand the lesson given last week when you were not there.

Please don’t send me articles that were on JSMineset in the last two days asking questions about it.”- Jim Sinclair, JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: The LSE subtracted 1.17 tonnes, the ASX added 0.27 tonnes, and the JSE subtracted 0.01 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 82.99 - No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,514.35 - No change from yesterday’s data.

Rubicon’s (RBY) appointments, Eldorado’s (EGO) appointments, Revett’s (RVM.TO) project update, Silver Quest’s (SQI.V) assay results, and Pan American’s (PAAS) 84.5% ownership of Aquiline 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.

Fortune Minerals applauds Saskatchewan Government announcement - More
- December 08, 2009 | Item | E-mail

Strateco Closes C$2.5 Million Financing - More
- December 08, 2009 | Item | E-mail

BacTech's Partner Caldera Completes Gold Sampling Program in Armenia - More
- December 08, 2009 | Item | E-mail

Successful completion of sampling program at Lichkvaz-Tey gold project in Armenia - More
- December 08, 2009 | Item | E-mail

Lovitt Board Appoints New Director - More
- December 08, 2009 | Item | E-mail

Globex's Nordeau Royalty Property Significant Gold Intersections - More
- December 08, 2009 | Item | E-mail

Revett Provides Update on Rock Creek Silver/Copper Project - "Revett Minerals Inc., Spokane Valley, Washington ("TSX-RVM") ("Revett" or the "Company") is pleased to provide an update on its Rock Creek silver/ copper development project. The Rock Creek asset, located in northwestern Montana within the same geological trend as the Company's currently producing Troy Mine, contains an estimated 229 million ounces of silver and 2 billion pounds of copper." More
- December 08, 2009 | Item | E-mail

Dia Bras Discovers Further Silver Vein Extensions at Depth and Initiates Expanded Development at its Cusi Silver Project - More
- December 08, 2009 | Item | E-mail

Gowest Provides Update on Offering - More
- December 08, 2009 | Item | E-mail

Extract Resources - Rossing South Exceptional Drilling Results - More
- December 08, 2009 | Item | E-mail

Abcourt Mines Inc. Welcomes Two New Directors and Grants Stock Options in Their Favor - More
- December 08, 2009 | Item | E-mail

Molycorp Minerals Expands Senior Management Team - More
- December 08, 2009 | Item | E-mail

Ventana Provides La Mascota Metallurgy Update - More
- December 08, 2009 | Item | E-mail

Kent Receives Gnaweeda Drill Permit Approval - More
- December 08, 2009 | Item | E-mail

Highbank to Acquire a Major Land Position in the Highland Valley Copper District - More
- December 08, 2009 | Item | E-mail

Brett's In-Fill Drill Results Intersect Significant Widths and Grades - More
- December 08, 2009 | Item | E-mail

Brazauro Announces New 43-101 Compliant Tocantinzinho Resource Estimate - More
- December 08, 2009 | Item | E-mail

Nuinsco Resources Names Bob Wardell as Chairman of the Board - More
- December 08, 2009 | Item | E-mail

Victory Nickel Announces New Board Chair, Adds Roland Horst as Director - More
- December 08, 2009 | Item | E-mail

Chariot Resources Optimized Mine Plan Increases Production by Over 427 Million Pounds of Recovered Copper; Details Placed in Data Room - More
- December 08, 2009 | Item | E-mail

Sulliden Gold Corporation: Shahuindo Gold Project Delivers Positive Economics - More
- December 08, 2009 | Item | E-mail

Strategic Resources - Announces a Non-Brokered Private Placement - More
- December 08, 2009 | Item | E-mail

Typhoon Exploration Plans a Drilling Campaign - More
- December 08, 2009 | Item | E-mail

VHGI Gold Files 8K Regarding $50,000,000.00 Treasure Gulch Gold Reserves; Stock Analyst Report To Be Released This Week - More
- December 08, 2009 | Item | E-mail

Otish Energy Announces Amendment to Private Placement - More
- December 08, 2009 | Item | E-mail

Kiska Intersects 471.6 Metres of 0.93 g/t Gold-Equivalent at Raintree Target, Whistler Project, Alaska - More
- December 08, 2009 | Item | E-mail

Gold Wheaton Completes Gold Purchase Agreement With First Uranium's Ezulwini Gold and Uranium Mine - More
- December 08, 2009 | Item | E-mail

Eaglecrest Signs Letter of Intent to Acquire the Fredonia Area, Antioquia, Colombia - More
- December 08, 2009 | Item | E-mail

Moneta moves to 100% ownership of Golden Highway Project - More
- December 08, 2009 | Item | E-mail

Yorbeau Closes First Tranche of Private Placement - More
- December 08, 2009 | Item | E-mail

Orezone Improves on Final Bombore Metallurgical Results - More
- December 08, 2009 | Item | E-mail

Galore Expands Dos Santos Claims - More
- December 08, 2009 | Item | E-mail

TNR Gold Announces Fully Subscribed $3 Million Private Placement - More
- December 08, 2009 | Item | E-mail

First Uranium closes previously announced Gold Stream transaction - More
- December 08, 2009 | Item | E-mail

Column Leach Testing Shows Significantly Improved Gold Recoveries from Crushed Sulphide Ore at Jinshan's CSH Mine - More
- December 08, 2009 | Item | E-mail

Argentex targets expansion of high-grade silver-gold and silver-zinc-indium zones at Pinguino - More
- December 08, 2009 | Item | E-mail

Ivernia Appoints Rob Scargill as Executive Vice President, Operations - More
- December 08, 2009 | Item | E-mail

Sultan Minerals Receives Approval to Acquire Historic Silver Mine - More
- December 08, 2009 | Item | E-mail

Skygold Arranges Private Placement - More
- December 08, 2009 | Item | E-mail

Azimut identifies uranium and high-grade REE on the Kativik property in Nunavik, Quebec - More
- December 08, 2009 | Item | E-mail

Hana Mining RC Drilling Intersects 1.84% Cu and 23.6 g/t Ag Over 7 Metres in South Limb of Banana Zone and Doubles Mineralized Strike in New Area of Banana Zone - More
- December 08, 2009 | Item | E-mail

Full Metal and Kinross Intercept 8.6 g/t Au, 185.6 g/t Ag and 6.03% Cy Over 1.0 Meters at Russian Mountain Project - More
- December 08, 2009 | Item | E-mail

TerraX samples up to 16.2 g/t gold at Sunbeam-Pettigrew Property, Atikokan Area, Northwest Ontario - More
- December 08, 2009 | Item | E-mail

NWM settles outstanding Tara Gold Resources interest in Lluvia de Oro Project - More
- December 08, 2009 | Item | E-mail

Amseco Exploration Appoints Jean Desmarais as President - More
- December 08, 2009 | Item | E-mail

Noront's offer is the only one that will allow you to retain upside in the Ring of Fire - Tender your shares - More
- December 08, 2009 | Item | E-mail

Anooraq announces award of options - More
- December 08, 2009 | Item | E-mail

Macarthur Minerals Limited: New Haematite Iron Mineralisation Identified at Lake Giles Project - More
- December 08, 2009 | Item | E-mail

Mustang Increases Private Placement Financing and Closes First Tranches - More
- December 08, 2009 | Item | E-mail

Midlands Raises Over $4 Million With Closing of Second Tranche - More
- December 08, 2009 | Item | E-mail

Amex Announces Beginning of a New Phase of Drilling at Normetal - More
- December 08, 2009 | Item | E-mail

Nevada Copper Commences Pre-Feasibility and 25,000 Meter Drilling Program - More
- December 08, 2009 | Item | E-mail

San Marco Resources Acquires 100% Interest in El Tecomate Gold Project in Mexico - More
- December 08, 2009 | Item | E-mail

Mazorro Resources Announces Acquisition of Exploration Permits in the Eastern Democratic Republic of Congo - More
- December 08, 2009 | Item | E-mail

Alexis Starts Milling Bulk Sample From Lac Pelletier Gold Mine Project - More
- December 08, 2009 | Item | E-mail

Amarc Makes Important New Gold Discovery in South-Central British Columbia - More
- December 08, 2009 | Item | E-mail

Paladin Energy Ltd: Kayelekera Mine Unaffected by Malawi Earthquakes - More
- December 08, 2009 | Item | E-mail

Vantex Acquires 100% of the Renault Bay Property - More
- December 08, 2009 | Item | E-mail

Eagle Hill Announces Frankfurt Stock Exchange Listing - More
- December 08, 2009 | Item | E-mail

VG Gold Expansion Drilling at Paymaster West Returns Multiple Holes with High-Grade Gold! - More
- December 08, 2009 | Item | E-mail

Rockcliff Hits More High Grade Copper Mineralization at Snow Lake - More
- December 08, 2009 | Item | E-mail

Big Red Diamond Completes Airborne Survey on Rare Earth Property - More
- December 08, 2009 | Item | E-mail

Mediterranean Resources initiates drilling at the Celtik discovery and advances Yusufeli Property permitting process - More
- December 08, 2009 | Item | E-mail

Ironwood Gold Corp. Appoints Senior Financial Executive Dr. Petra I. Zasterova to Board of Directors - More
- December 08, 2009 | Item | E-mail

Rodinia Minerals Inc. to Commence New Drill Program at Claton Valley and Completes Gravity Survey - More
- December 08, 2009 | Item | E-mail

Pitchstone Announces Flow-Through Financing - More
- December 08, 2009 | Item | E-mail

Black Hawk Exploration 4th Quarter and 2009 Annual Update - More
- December 08, 2009 | Item | E-mail

Freewest Board Recommends Rejection of Noront's "Final" Offer - More
- December 08, 2009 | Item | E-mail

Greystar Resources Accelerates Expiry of Warrants - More
- December 08, 2009 | Item | E-mail

Rubicon Minerals Appoints Vice President General Counsel and Corporate Secretary - "Rubicon Minerals Corporation (RMX.TSX: RBY.NYSE Amex) is pleased to announce the appointment of Glenn Kumoi B.A., LL.B., to the newly-created position of Vice President General Counsel and Corporate Secretary. Mr. Kumoi has 20 years of experience in the practice of law, with 12 years of Canadian and international experience leading the legal function at public companies. Mr. Kumoi has been called to the bars of Ontario and British Columbia and is licensed to practice in both jurisdictions. Most recently he was Chief Legal Officer, Corporate Secretary and VP Human Resources, at Ballard Power Systems leading the legal and human resources teams on a number of transformative transactions." More
- December 08, 2009 | Item | E-mail

Silver Quest Intersects Silver at Capoose Project, BC - "Silver Quest Resources Ltd. (TSX VENTURE:SQI - News; the "Company") is pleased to report assay results for diamond drill holes D-09-111 and D-09-112, which were completed during the fall 2009 drill program on the Capoose-Silver Trend ("Capoose") Project. The property is located 185 km southwest of Prince George, British Columbia. For further details and property maps, including a drill hole location map, please visit the Company's website www.silverquest.ca." More
- December 08, 2009 | Item | E-mail

Eldorado Gold Corporate Announcements and Appointments - "Paul N. Wright President and Chief Executive Officer of Eldorado Gold ("Eldorado" the "Company") (TSX:ELD - News)(NYSE:EGO - News)(ASX:EAU - News) today announces that Earl Price will retire as the Company's Chief Financial Officer effective December 31, 2009. The Company has appointed Ed Miu as Eldorado's Chief Financial Officer effective December 31, 2009." More
- December 08, 2009 | Item | E-mail

Pan American Silver Corp. Now Owns 84.5% of Aquiline Resources Inc.'s Common Shares - "Pan American Silver Corp. ("Pan American") (TSX:PAA - News)(NASDAQ:PAAS - News) is pleased to announce that it has been advised by Kingsdale Shareholder Services Inc. (the "Depositary") that 67,216,956 common shares (the "Aquiline Shares") of Aquiline Resources Inc. ("Aquiline") (TSX:AQI - News) have been deposited to Pan American's offer to acquire all of the issued and outstanding Aquiline Shares (the "Share Offer"), representing approximately 81.8% of the Aquiline Shares issued and outstanding as of December 7, 2009 calculated on a Diluted Basis (as defined below)." More
- December 08, 2009 | Item | E-mail

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