Gold Seeker Closing Report: Gold and Silver Fall About 2% and 3% More But Miners Gain Over 2%

	Close	Gain/Loss
Gold	$1120.40	-$21.75
Silver	$17.21	-$0.55
XAU	176.65	+2.64%
HUI	453.80	+2.80%
GDM	1346.47	+2.57%
JSE Gold	2500.94	-16.12
USD	75.98	-0.23
Euro	147.34	+0.30
Yen	113.81	+0.76
Oil	$70.67	-$1.95
10-Year	3.423%	+0.031
T-Bond	120.21875	-0.28125
Dow	10337.05	+0.50%
Nasdaq	2181.73	+0.49%
S&P	1095.89	+0.36%

Gold extended yesterday’s after hours losses in Asia and fell to as low as $1125.70 by a little after 2AM EST before it rallied back higher in London and New York and rose to see a slight gain at as high as $1146.50 by about 11AM EST, but it then fell back off into the close and ended near its new session low of $1117.70 with a loss of 1.9%. Silver dropped to $17.45 in Asia before it rose to see a decent gain at $17.875 in London, but it also fell back off in late New York trade and ended with a loss of 3.2%. Both metals have rebounded in after hours access trade however.

Euro gold fell to about €762, platinum lost $27 to $1400.50, and copper fell another 4 cents to about $3.10.

Gold and silver equities rose over 3% by midmorning before they fell back off midday and saw only slight gains at around 2PM EST, but they then rallied back higher in the last couple of hours of trade and ended with over 2.5% gains.

Report	For	Reading	Expected	Previous
Wholesale Inventories	Oct	0.3%	-0.5%	-0.8%

Tomorrow at 8:30AM EST brings Initial Jobless Claims for 12/05 expected at 465,000 and the Trade Balance for October expected at -$37.0 billion. At 2PM is the Treasury Budget for November expected at -$134.1 billion.

Oil eventually fell on today’s bigger than expected gas and distillate inventory builds after the Energy Information Administration reported that crude inventories fell 3.8 million barrels, gasoline inventories rose 2.2 million barrels, and distillates rose 1.6 million barrels.

Treasuries fell after today’s 10-year note auction drew poor demand. Today’s bid to cover of 2.62 was worse than the recent 2.92 average and the yield of 3.448% was higher than expected.

The Dow, Nasdaq, and S&P traded slightly lower for most of the day on continued worries over worldwide debt and another credit crisis, but stocks then rallied back higher in later trade and ended with decent gains on a renewed mood of risk taking.

Among the big names making news in the market today were Volkswagen and Suzuki, Wells Fargo, and Morgan Stanley.

“Well, the bullion banks appear serious this time... but the only question is... how serious? As you are more than aware, dear reader, they were sitting on this mega-short position that had to be dealt with one way or another. As Ted Butler and I have said countless times, this short position was going to be resolved one of two ways... they were either going to get over run and the price would explode; or they would engineer a sell-off to cover as many short positions as they could. Now that we have the answer, the next two questions are; where's the bottom and how soon are we going to get there? I'll deal with that in my closing comments.

Well, the open interest numbers that were missing in Friday's CME report, turned up on Monday. Gold open interest showed a decline of 21,043 contracts. Volume was pretty heavy at 296,524 contracts... and total open interest declined to 508,730 contracts. Silver open interest was only down 497 contracts on decent volume of 47,302 contracts. Total open interest declined to 128,735 contracts. Ted Butler was underwhelmed, as based on the price action on Friday, he was expecting much larger declines in open interest than that... and on sober second thought, I have to agree with him.

Tuesday was another huge down day for both metals, and undoubtedly open interest in both metals took another big drop... but I would guess that a lot of this drop [just like Friday] won't be reported in the open interest numbers later this morning... and thus won't make Friday's Commitment of Traders report, as the cut-off for the report was at the close of trading yesterday. So this report, when it comes out, won't be telling the whole truth either. I strongly suspect that JPMorgan et al are withholding data.

As far as December deliveries go, the open interest for December delivery in both gold and silver declined once again. Gold o.i. fell 423 contracts to 4,833 contracts... and silver o.i. was down a smallish 81 contracts to 809 contracts. Not much chance of a delivery default here.

Since we're on the topic of December deliveries, the CME's Daily Delivery Notice yesterday showed that 227 gold and 23 silver contracts were scheduled for delivery tomorrow. So far in December 6,643 gold and 2,178 silver contracts have already been delivered... and what remains to be delivered is shrinking with each passing day. Of course, all that can change pretty quickly... so we'll just have to wait and see.

Over at the GLD ETF, a rather large amount of gold was withdrawn yesterday... 441,083 troy ounces. There were no changes reported in SLV yesterday. I'm sure that JPMorgan, the ringleader of this price decline, will get the price down to the point where the shares in SLV that the SLV managers have shorted because they don't have the silver, will get covered. So JPMorgan's rigged price decline in silver will serve two purposes... reduce their own short position on the Comex and the short position in the SLV... which they are the custodians. This is how things are done in the land of Mordor.

The U.S. Mint reported a minor addition to their silver eagle sales yesterday... adding another 40,000... bringing the monthly total up to 1,052,500. And the Comex-approved warehouses reported a decline of 327,940 ounces in their combined silver stocks.”– From Ed Steer’s Gold & Silver Daily, read the full report here.

In my opinion there are two reasons why gold will, without any reservation, trade at $1650 after which it will seek both Alf and Martin's price objectives.

For those with ears to hear it was outlined this morning in an interview with the top man of Starwood Real Estate on, of all places, F-TV.

The first reason is that we do in fact we have a 90s type Resolution Trust, but it carries another name. This time the Resolution Trust is the Federal Deposit Insurance Corporation. When you examine the mode of operation and consider what they will be required to do over the next two years and on into the future at an increasing rate, there is no question this is correct.

The second fact is that the ENTIRE plan for financial recovery is to "PRETEND and EXTEND."

Federal and State bank examiners are being extremely lenient in allowing real estate loans of all categories, from commercial to residential, to be carried on the books of the institutions at full value even if they are behind on payments and indebtedness to the institution is greater in size than the asset's worth is in liquidation.

This is crystal clear when you examine the numbers that are public as the FDIC takes over the bankrupt institutions.

The word "EXTEND" refers to all the rescue programs that wholly depend on stimulus to work. The financial industry is worse than the walking wounded. It is the walking dead. Therefore applying the name "Zombies" to major corporations and financial institutions is appropriate.

We also know that the economy of the USA is bouncing along a bottom, but far from what would have been anticipated in light of the degree of stimulation initiated. There are definitive reasons for the lack of expected results but they are not germane to this review.

In conclusion you must know that whatever the cost in terms of continued and increased stimulation, all that is required to infinity will be provided. There will be no serious attempts to drain any liquidity. Interest rates will be held at practically zero for as long as it takes or even if the economic recovery fails.

That strength in the US dollar is at best transitory as it is totally contra-indicated for business recovery in the US.

Fundamentally, PRETEND and EXTEND will create an ever increasing supply of dollars and demand for borrowing, both of which stand as the last pillar in the erection of gold as a permanent building.

So to those that understand what gold is (insurance) these wild gyrations mean nothing whatsoever to the upward trend of the entity.

The outrageous moves about to occur are simply what gold is multiplied in orders of magnitude by the total madness of the hedge funds and their automated trading systems pushing hundreds of billions of dollars into and out of markets, churning them incessantly without any regard in the case of gold. Gold cannot handle funds that size.

If you cannot stand gold's heat then you must leave the arena now. If you choose to leave the arena please do not come back because it is only going to get harder.

In a sense hold my hand as we go through these outrageous machinations, as the price that gold is going to is much higher than I have anticipated.”- Jim Sinclair, JSMineset.com

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 13.719 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.

Fronteer’s (FRG) drill results and project sales, Keegan’s (KGN) closed offering, Timberline’s (TLR) financial results, New Gold’s (NGD) status update, Minco Silver’s (MSV.TO) offer for Sterling Mining, and Arian’s (AGQ.V) share relationship reconstruction 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.

Vantex Resources Ltd.-Galloway : 244.5 Meters at 0.405 g/t Au - More
- December 09, 2009 | Item | E-mail

Prophecy agrees to Private Placement for $1,800,000 - More
- December 09, 2009 | Item | E-mail

Dynamic Alert Announces Appointment of CFO & Resignation of Director - More
- December 09, 2009 | Item | E-mail

Atna Announces Closing of Gold Participating Bond Offering - More
- December 09, 2009 | Item | E-mail

Fancamp Exploration Ltd.: Option to Acquire Stoke Mountain Property - More
- December 09, 2009 | Item | E-mail

Aldrin Announces $6 Million Brokered Private Placement - More
- December 09, 2009 | Item | E-mail

Callinan Begins Drilling of Snow Lake Properties - More
- December 09, 2009 | Item | E-mail

Augyva Reports Metallurgical Tests for Duncan Lake Iron Project - More
- December 09, 2009 | Item | E-mail

Marathon Announces Non-Brokered Private Placement Flow-Through Financing - More
- December 09, 2009 | Item | E-mail

Minco Silver Makes a Firm Offer to Acquire Sterling Mining Company - "Minco Silver Corporation (the "Company" or "Minco Silver") (TSX:MSV - News) is pleased to announce that the Company has made a firm offer of USD$12,500,000 to acquire a 100% interest in Sterling Mining Company ("Sterling")." More
- December 09, 2009 | Item | E-mail

Capella Enters Into Royalty Reduction Option Agreement for Nevada Gold Project in Chile - More
- December 09, 2009 | Item | E-mail

Q2 Gold Resources Inc.: Extension of Maturity Date for Convertible Loan - More
- December 09, 2009 | Item | E-mail

Crazy Horse Resources Inc. Announces Completion of Exploration Program - More
- December 09, 2009 | Item | E-mail

Wallbridge Mining Intersects Porphyry Copper-Gold Mineralization at Rogers Creek - More
- December 09, 2009 | Item | E-mail

Mantis Mineral Corp. intends to drill 4,000-meters at its Orphan Gold Mine and Foisey Gold Structure in 2010 - More
- December 09, 2009 | Item | E-mail

Serengeti Initiates Kwanika South Zone Resource Study & Reports Results from Choo and Mil - More
- December 09, 2009 | Item | E-mail

Komis Gold Deposit updated resource estimate increases grade - More
- December 09, 2009 | Item | E-mail

Golden Band Resources Announces Changes in Executive Team - More
- December 09, 2009 | Item | E-mail

Stans Energy Corp. Announces New CFO - More
- December 09, 2009 | Item | E-mail

Gold Results Reported From Globex Royalty Property by Rocmec at Russian Kid (Rocmec 1) Mine, Quebec - More
- December 09, 2009 | Item | E-mail

Ur-Energy Receives Draft Supplemental Environmental Impact Statement (SEIS) for the Lost Creek Project - More
- December 09, 2009 | Item | E-mail

Vena Resources and Gold Fields Enter Into Joint Venture to Develop Esquilache Region in Puno, Peru - More
- December 09, 2009 | Item | E-mail

6.91 g/t gold over 18.7 metres - Roxmark reports expansion of high-grade open pit potential at Hardrock Project - More
- December 09, 2009 | Item | E-mail

Strathmore and Bayswater Agree to Revise Pine-Tree Reno Creek Agreement - More
- December 09, 2009 | Item | E-mail

Fronteer Development Group Inc.: Drilling Highlights Large High-Grade Zone at Northumberland Gold Deposit - "Fronteer Development Group Inc. (TSX:FRG - News)(AMEX:FRG - News) announces today that a recently completed drill program designed to test a new target concept at Northumberland in Nevada has highlighted a large high-grade gold zone within 150 metres of surface." More
- December 09, 2009 | Item | E-mail

Pershimco Ressources Announces Its Intention to Conclude a Private Placement - More
- December 09, 2009 | Item | E-mail

Geovic Cameroon Appoints Lycopodium to Update Nkamouna Feasibility Study - More
- December 09, 2009 | Item | E-mail

Rocmec Reports Preliminary Diamond Drill Results From Its Rocmec 1 Gold Property - More
- December 09, 2009 | Item | E-mail

Brett Announces $3.5 Million Flow-Through Private Placement Financing - More
- December 09, 2009 | Item | E-mail

Jourdan appoints Yves Grou to the Board of Directors - More
- December 09, 2009 | Item | E-mail

Soltoro Resource Drilling Returns 124.5 Metres of 60 gpt Silver Including 34.5 Metres of 125 gpt Silver at the El Rayo Project - More
- December 09, 2009 | Item | E-mail

Uragold Bay Closes the Acquisition of Ice Age Gold's Properties Based on the NI 43-101 Technical Report - More
- December 09, 2009 | Item | E-mail

Laurentian Goldfields Ltd. and AngloGold Ashanti Ltd. Advance Superior Alliance - More
- December 09, 2009 | Item | E-mail

Levon Receives Proceeds From the Exercise of 1.6 Million Warrants - More
- December 09, 2009 | Item | E-mail

Uravan Takes Land Position in the Athabasca Basin - More
- December 09, 2009 | Item | E-mail

Gold-Ore Reports Fourth Quarter and 2009 Year End Production Results - More
- December 09, 2009 | Item | E-mail

Bison Gold Receives Approval for TSX Venture Exchange Listing - More
- December 09, 2009 | Item | E-mail

Premier drilling continues to expand high-grade open pit potential at Hardrock including 6.91 g/t gold over 18.7 metres - More
- December 09, 2009 | Item | E-mail

Uranerz Receives Draft EIS for Nichols Ranch ISR Uranium Project - More
- December 09, 2009 | Item | E-mail

Adex Mining Reports Indium, Zinc and Tin Production Options for Mount Pleasant North Zone - More
- December 09, 2009 | Item | E-mail

Skyline Gold Announces Further Testing Confirms High Grade Gold and Silver Intervals at Bronson Slope - More
- December 09, 2009 | Item | E-mail

Alamos Gold Inc. Signs Agreement for the Purchase of Agi Dagi and Kirazli Gold Projects in Northwestern Turkey - More
- December 09, 2009 | Item | E-mail

Uranerz Common Share Purchase Warrants to Be Listed for Trading on the Toronto Stock Exchange - More
- December 09, 2009 | Item | E-mail

East Asia Minerals Receives Indonesia Government IUP "Mining Licence"; Confirms Tenure of Miwah Under New Mining Law - More
- December 09, 2009 | Item | E-mail

Klondike Gold Corp. Intersects 38.1 g/t Gold, 62.5 g/t Silver and 0.99% Copper Over 0.95 Meters in First Hole on Clubine Property - More
- December 09, 2009 | Item | E-mail

Northern Gold Hits 56.1 Metres of 2.14 g/t Gold Including 3.4 Metres of 16.9 g/t and 1.2 Metres of 36.6 g/t on the Garrison Property East of Timmins - More
- December 09, 2009 | Item | E-mail

Aquila and HudBay Drilling Intersects Exceptional Gold and Silver Grades - More
- December 09, 2009 | Item | E-mail

Malbex Provides Year-End Update - More
- December 09, 2009 | Item | E-mail

Mountain Lake's Provides Results from the Recently Completed Drill Program on the Little River Gold Property in Newfoundland - More
- December 09, 2009 | Item | E-mail

Farallon's President receives award for Canada-Mexico relations - More
- December 09, 2009 | Item | E-mail

New Drill Targets Identified at St. Stephen Nickel-Copper Project - More
- December 09, 2009 | Item | E-mail

Formation Metals Inc. Receives Approval From Forest Service to Begin Construction on Idaho Cobalt Mine - More
- December 09, 2009 | Item | E-mail

Azimut Announces Issuance of Shares for Debt - More
- December 09, 2009 | Item | E-mail

Continental Nickel Identifies New Drill Targets at the St. Stephen Nickel-Copper Project - More
- December 09, 2009 | Item | E-mail

Geo Minerals Announces Drilling Underway at Copper Springs Prospect in Arizona - More
- December 09, 2009 | Item | E-mail

Bayswater Amends Terms of Agreement to Acquire Reno Creek Project, Wyoming & Provides Update on Transaction - More
- December 09, 2009 | Item | E-mail

MetalCORP Commences Second Drill Program at its Big Lake Cu-Zn-Ag-Au Property - More
- December 09, 2009 | Item | E-mail

Arcus Development Group Inc.: Multiple Anomalies Identified on Dawson Gold Properties - More
- December 09, 2009 | Item | E-mail

Keegan Resources Closes Offering - "Keegan Resources Inc. (TSX:KGN - News)(AMEX:KGN - News) ("Keegan") - Keegan is pleased to announce the closing of the previously announced underwritten bought deal share offering of 6,100,000 common shares at an issue price of $5.90 per share. The underwriters have exercised the over-allotment option of an additional 915,000 common shares, bringing the total aggregate gross proceeds raised under the offering to $41,388,500." More
- December 09, 2009 | Item | E-mail

Fronteer Development Group Inc.: Agreement Signed for the Sale of the Agi Dagi and Kirazli Gold Projects to Alamos - "Fronteer Development Group Inc. (TSX:FRG - News)(AMEX:FRG - News) announces that Fronteer, Teck Resources Limited (TSX:TCK.B - News)(NYSE:TCK - News) and Alamos Gold Inc. (TSX:AGI - News) have signed a definitive share purchase agreement providing for Alamos to acquire 100% of the Agi Dagi and Kirazli gold projects through the purchase of certain Turkish subsidiaries held by Teck and Fronteer, respectively. This agreement replaces the memorandum of understanding signed by the parties on September 22, 2009." More
- December 09, 2009 | Item | E-mail

Timberline Announces 2009 Financial Results and Looks Ahead to 2010 - "For the fourth fiscal quarter, Timberline reported total consolidated revenues of $5.03 million and a consolidated after-tax net loss of $1.60 million. Timberline's contract drilling subsidiaries, Timberline Drilling Incorporated ("Timberline Drilling") and World Wide Exploration, S.A. de C.V. ("World Wide") reported combined revenues of $5.03 million and a combined after-tax net income of $0.32 million for the fourth quarter. This marks the second consecutive quarter of positive combined net income for Timberline's contract drilling subsidiaries." More
- December 09, 2009 | Item | E-mail

New Gold Provides a Status Update on its Request for an Injunction - "New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) today provides an update on the status of its injunction request filed as part of the company's December 3, 2009 appeal to the District Court in San Luis Potosi, Mexico. The objective of the appeal is to overturn the order that required suspension of mining operations at Cerro San Pedro as a result of the cancellation of the project's Environmental Impact Statement." More
- December 09, 2009 | Item | E-mail

Arian Announces a Reconstruction of Its Share Relationship with Grafton - "Arian Silver Corporation ("Arian" or the "Company") (TSX VENTURE:AGQ - News; AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A - News) announces that it has reached agreement with Grafton Resource Investments Ltd ("Grafton") to effectively reverse the share exchange transactions completed earlier this year by way of share redemptions (the "Share Redemptions") and for an issue of shares in settlement of part of the outstanding loans totaling US$1.05 million (the "Grafton Loans") made by Grafton to Arian to fund its working capital (the "Shares for Debt")." More
- December 09, 2009 | Item | E-mail

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