-- Posted 5 May, 2011 | |

The Metals:

Gold climbed $7.40 to $1521.80 in Asia before it fell back to $1496.55 in London and then rebounded to back above $1510 by midmorning in New York, but it then fell to a new session low of $1477.33 in the last hour of trade and ended with a loss of 2.18%.  Silver rose slightly to $39.57 in Asia, but it then fell back off for most of the rest of the day and ended near its late morning low of $35.708 with a loss of 8.13%.

Euro gold fell to about €1016, platinum lost $56 to $1767.50, and copper fell another 13 cents to about $3.99.

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

The Economy:

Benchmark 30-year mortgage rate matches 2011 low  MarketWatch

Number of millionaires is projected to rise rapidly  Yahoo

Late Easter boosts retailer April sales  Reuters

Consumer Comfort in U.S. Falls on Surging Gas Prices  Bloomberg

Tomorrow at 8:30AM EST brings April’s jobs data.  Nonfarm Payrolls are expected at 185,000, the Unemployment Rate is expected at 8.8%, Hourly Earnings are expected at 0.2%, and the Average Workweek is expected at 34.3.  At 3PM is Consumer Credit for March expected at $4.9 billion.

The Markets:

Charts Courtesy of http://finance.yahoo.com/

Oil fell markedly to under $100 a barrel as the U.S. dollar index jumped higher after European Central Bank President Trichet did not signal another rate increase at the ECB’s next meeting in June.

Treasuries rose as the Dow, Nasdaq, and S&P fell on disappointing jobs data.

Among the big names making news in the market today were GM, Gap, Macy’s, Cisco, and Time Warner.

The Commentary:

“The complete and utter rout of the spec side silver longs - thanks to the antics of the exchange who decided to bail out their member firms who had played cute and shorted silver all the way up and bled out a large portion of their trading accounts, is now contributing to further pressure across the entirety of the commodity complex, regardless of fundamentals in several of the markets.

Even the grains, are getting smashed as hedge funds and other large specs incur huge losses in silver and are now dumping everything as a result. Panic selling tied to paper losses takes on a life of its own so until the Comex exchange is finished wiping out the trading accounts of the longs for the benefit of their pals, the market will keep falling. When the selling does run its course, and it will at some point, several of these commodity markets are going to stage very sharp reversals to the upside since the algorithm-related selling is overdoing it to the downside in those particular markets with very strong fundamentals.

Remember, hedge funds are technical animals whose algorithms do not care one whit about fundamental factors. It is all about money flows and those are tied to the last price tick.

I have noticed this morning that silver's demise was finally too much for crude oil to bear and spec longs in there had no choice but to now cough up their longs in that market as well. At least that is welcome news to drivers who can get their gasoline a bit cheaper than last week.

The CCI continues to plummet and as long as silver keeps moving down, so too will it. I do think however that some of the bigger commercials, particularly in the grain complex, are going to use the hedge fund selling to secure any long side coverage that they might need for their risk management programs.

Silver now looks like it is headed down to $35 at a minimum.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

“After literally getting out within minutes of the top in silver and gold and then watching a decline I anticipated could take weeks or months happen in a matter of days, I believe it’s time to go back in and buy back those positions.

I may be 10% too early but we have plenty of room given what we sidestepped.

So I’m now back in fully in gold and silver”- Peter Grandich, Grandich Letter

GATA Posts:

Grandich goes back to fully invested in precious metals

Hinde Capital's 'Silver Criticality' study

Panic setting in with another Comex silver margin increase?

What's gold really worth? Central banks sure don't want you to find out

Is Mexico starting to buy silver too?

Mexico went from 7 to 100 tonnes in a flash; Russia, Thailand bought too

The Statistics:

Activity from: 5/04/2011

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 4.548 tonnes.

COMEX Gold Trust (IAU) Total Tonnes in Trust: 136.61 -0.02 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 10,387.26 -521.8 change from yesterday’s data.

The Miners:

Gammon Gold’s (GRS) drill results, Harmony Gold’s (HMY) production, Claude’s (CGR) drill results, Royal Gold’s (RGLD) updated estimates for ore reserves and mineralized material and third quarter results, Randgold’s (GOLD) first quarter results, MAG Silver’s (MVG) arbitration decision, Endeavour’s (EXK) first quarter results, and Silvercorp’s (SVM) drill results were among the big stories in the gold and silver mining industry making headlines today.

WINNERS

LOSERS

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:

Amseco Starts Exploration on Its Tisdale Property in Timmins, ON, New Board Member and Appoints New Chairman of the Board - More
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Correction on Eastern Guatemala Update - More
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Chesapeake Files Year End Audited Financial Statements, Together With Re-Statement for 2009 - More
- May 05, 2011 | Item | ShareThis

Mesa Exploration Reviewed by Fundamental Research Corp. - More
- May 05, 2011 | Item | ShareThis

Harvest Gold Announces Plans for Its Cud Claim Property Located Adjacent to San Gold's #2-3 Zone in Rice Lake Goldbelt, Manitoba - More
- May 05, 2011 | Item | ShareThis

Oromin Explorations Ltd.: Positive Outcome of Heap Leach Preliminary Economic Assessment - More
- May 05, 2011 | Item | ShareThis

NioGold and Geomega Amend Option Agreement for the Montviel and Pump Lake Properties - More
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Macusani Announces Proposed Nomination of Additional Directors at AGM - More
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Avalon Files Final Base Shelf Prospectus and US Registration Statement - More
- May 05, 2011 | Item | ShareThis

Legend Gold Commences Drilling at the Lakanfla Gold Project, Western Mali - More
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AXMIN's Joint Venture Partner Teranga Gold Announces High Grade Gora Deposit on AXMIN's Sounkounkou Permit, Senegal - More
- May 05, 2011 | Item | ShareThis

Loncor Receives Award of Excellence From Regional Government, Orientale Province, D.R. Congo - More
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Yale Starts Geophysics Program at Los Amoles - More
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Guyana Frontier Provides Update on Sardine Hill Project - More
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Radius Provides Update on Eastern Guatemala Gold/Silver District - More
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Wallbridge Mining to be Featured on BTV - Business Television - More
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Lithium Corporation Announces It Has Earned Interest under Fish Lake Option - More
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North Bay Resources Inc. (NBRI) Issues Progress Report - More
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Sirios Resources Inc.: Private Placement Totals $829,260 - More
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Duluth Metals Announces $8 Million Drilling and Work Program for Exploration Properties - More
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Pacific Wildcat Resources Corp.: Further High Grade Niobium and Rare Earth Results Show Depth Potential of Mrima Hill - More
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Diamonds North Acquires Gold Properties with Historic Gold Values up to 709.7 g/T - More
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Iberian Minerals Awarded Sotiel Copper Zinc Mine, Exploration Rights & Concessions - More
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Frontline Gold Engages Auburn Partners as Investor Relations Consultants - More
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Crown Gold Receives Conceptual Underground Mine Design for Monte Cristo: Production Possible Within Six Months of Start-Up - More
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Seymour Ventures Subsidiary Rare Earth Industries Acquires Past-Producing Tantalum-Beryllium Mine - More
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Batero Gold Provides Corporate Update - More
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Argentex: High-Grade Silver Continues to Expand Pinguino's Potential; Drilling Discovers 8.0 Meters Grading 470.0 g/t Ag and 1.64 g/t Au within Marta Centro - More
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Amerigo Announces Record Q1 2011 Production Results - More
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New Hana Appoints New Chief Financial Officer - More
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Huldra Silver Inc. Announces Closing of Acquisition of Craigmont Holdings Ltd. - More
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Corvus Gold Continues to Expand Discovery in Savage Valley Target at North Bullfrog Project, Nevada - More
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Wolverine Announces Private Placements to Fund Yukon Exploration - More
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Queenston-Globex Report New Drilling Results at Wood-Pandora JV Property, Quebec - More
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Magma Metals Limited: Thunder Bay North-Exploration Update - More
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Benton Provides Update on Spin-Out Proposal - More
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Hana Mining Appoints New Chief Financial Officer - More
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MAG Reports on Favourable ICC Arbitration Decision - "MAG Silver Corp. (TSX:MAG - News)(AMEX:MVG - News) ("MAG" or the "Company") was informed late yesterday that a three member arbitral panel of the International Court of Arbitration of the International Chamber of Commerce ("ICC"), has unanimously ruled that Fresnillo plc ("Fresnillo") has committed numerous breaches and violations of the shareholders agreement governing the Juanicipio Joint Venture ("Shareholders Agreement"), including the breach of a standstill provision which prohibits any attempt by Fresnillo to, directly or indirectly, take control of MAG without MAG's consent. Among other things, the ICC awarded approximately US$1.86 million in damages to MAG, which represents MAG's costs of defending Fresnillo's improper "take-under" bid in late 2008 and 2009." More
- May 05, 2011 | Item | ShareThis

Harmony Arranges $1,000,000 Financing - More
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Cartier Cuts 618.5 g/t (18.0 oz/t) Silver in Drilling - More
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Vaaldiam Investment Flemish Gold Corp. Raises $10 Million for Gold Exploration in Africa - More
- May 05, 2011 | Item | ShareThis

Riverside Resources Reports High Grade Silver and Gold Trench Results at the Penoles Project in Durango, Mexico - More
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Condor Resources Inc.: Phase I Drill Program Completed at Pucamayo West - More
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Duluth Metals Announces $8 Million Drilling and Work Program for Exploration Properties - More
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Nemaska Blasts a 50 Tonnes Bulk Sample at Whabouchi Lithium Project for Pilot Plant Testing - More
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Luna Gold Increases Operational and Exploration Strength of Management - More
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Prophecy Resource Corp. Appoints New Chief Financial Officer - More
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NGEx Reports Further Excellent Drill Results From Los Helados, Chile - More
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Midlands Minerals Retains Investor Relations Firm - More
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Rodinia Lithium Continues to Intersect High Grade Lithium and Potash at Shallow Depths - More
- May 05, 2011 | Item | ShareThis

Cadillac Intersects 582 Feet of 0.39% Cu at Shallow K1-1 Deposit - More
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Exploration Continues at San Marcos La Buena Project, Zacatecas, Mexico - More
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PolyMet to File Financial Statements on or Before May 9, 2011 - More
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Platinum Group Metals' Partner Completes Transaction with Chinese Consortium - More
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Pelangio Exploration Intersects 1.53 g/t Gold Over 42 Metres at Pokukrom East on the Manfo Property - More
- May 05, 2011 | Item | ShareThis

Oro Mining Drills 167 Metres of 2.0 g/t Gold at Taunus Project, Mexico - More
- May 05, 2011 | Item | ShareThis

Peter Barnes Appointed Chairman of CB Gold - More
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Rockland Launches Detailed Heli-Mag Airborne Survey at Schefferville Gold, Quebec - More
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Dunav Resources Ltd. Announces Grant of Options - More
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Romios Announces Aggressive $6.0+ Million Exploration Program for 2011 in the Galore Creek Area, Northwestern British Columbia and Acceleration of 2010 Warrants - More
- May 05, 2011 | Item | ShareThis

Star Gold Provides Update on Its Longstreet Project - More
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Sonora Resources Commences Geophysics Program at Los Amoles Silver Prospect - More
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Centamin Egypt Limited-Quarterly Report for the Three Months Ended 31 March 2011 - More
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Canaco Drills 17.5 Metres at 7.29 Grams Per Tonne Gold 80 Metres West of Known Mineralization at Magambazi, Including 4.5 Metres at 17.42 Grams Per Tonne Gold - More
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Pitchblack Grants Options - More
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Alamos Gold Reports First Quarter 2011 Results and Revises 2011 Outlook - More
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Mustang Drills 9.1 Meters of 3.9 g/t Platinum-Palladium Strike Length of New PGM Zone Now 100 Meters - More
- May 05, 2011 | Item | ShareThis

Lake Shore Gold to Acquire Fenn-Gib Project from Barrick Gold in Exchange for Common Shares - More
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GGG Receives Conditional Approval for Admission to the Official List of ASX - More
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Gammon Gold Announces Significant Drill Results at Ocampo - "Gammon Gold Inc. ("Gammon") (TSX:GAM.to - News): Gammon is pleased to provide an update of drill results from the Ocampo exploration program for the first four months of 2011. As of April 30, 2011, the Company has completed a total of 56,704 metres of drilling at Ocampo, utilizing twelve drill rigs working on surface and underground." More
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Harmony Gold’s Nine-Month Production Declines 10% on Technical Breakdowns - "Earnings excluding one-time items expanded 32 percent to 91 cents a share in the third quarter, from 69 cents in the prior three months, after booking a tax credit, Harmony said. The result missed the median estimate of 1.01 rand among four analysts surveyed by Bloomberg. Analysts tracking Harmony use quarter-on-quarter profit excluding one-time items." More
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Claude Resources Expands Mineralization at Amisk - "Claude Resources Inc. (TSX:CRJ.to - News) (NYSE Amex: CGR) ("Claude") is pleased to announce step-out and infill drill intercepts from its 2011 winter exploration program at the 15,400 hectare Amisk Gold Project in northeastern Saskatchewan, Canada. The Amisk Gold Project is located 20 kilometres southwest of Flin Flon, Manitoba and is a 65:35 Joint Venture between Claude and St. Eugene Mining Corporation; Claude is the operator of the Joint Venture." More
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Royal Gold Announces Reserve Increases and Production Forecasts Associated with its Royalty Interests - "Royal Gold, Inc. (NASDAQ:RGLD - News)(TSX:RGL.to - News) today announced updated estimates for ore reserves and mineralized material2 as of December 31, 2010, and calendar 2011 production for its royalty portfolio. These are the most recent figures provided to the Company by the operators of its royalty properties or have been obtained by Royal Gold through publicly available information." More
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Royal Gold Reports Strong Financial Results for Third Quarter Fiscal 2011 - "Royal Gold, Inc. (NASDAQ:RGLD - News) (TSX:RGL.to - News) today announced net income attributable to Royal Gold stockholders of $19.6 million, or $0.36 per basic share, on royalty revenue of $55.5 million for the third quarter of fiscal 2011. This compares to a net loss attributable to Royal Gold stockholders for the third quarter of fiscal 2010 of $5.8 million, or a negative $0.13 per basic share, on royalty revenue of $35.0 million. Excluding the after tax effect of two non-recurring items related to the Company’s acquisition of International Royalty Corporation for the 2010 third fiscal quarter, net income would have been $8.9 million or $0.20 per basic share." More
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Endeavour Silver Reports $14.5 Million Adjusted Earnings in Q1, 2011, Thanks to Record Silver-Gold Production and Precious Metal Prices - "The Company reported record adjusted earnings (a non-IFRS measure) of $14.5 million ($0.18 per share) in the First Quarter, 2011. Net earnings (an IFRS measure) were $0.5 million and operating cash-flow was $14.6 million from revenues totaling $35.4 million. Silver sales averaged $33.18 per oz and the cash cost of production was $4.94 net of gold credits in Q1, 2011." More
- May 05, 2011 | Item | ShareThis

Silvercorp Metals Reports: Diamond Drilling Intercepts 69.5 Metres Grading 5 g/t Gold at the BYP Gold-Lead-Zinc Project, Hunan Province, China - "Silvercorp Metals Inc. (TSX:SVM - News)(NYSE:SVM - News) ("Silvercorp" or the "Company") is pleased to report the gold assay results from the first eight underground drill holes at its newly acquired, 70% owned BYP Gold-Lead-Zinc Project in Hunan Prince, Central China. These are initial results from the Company's planned 50,000 metre (m) surface and underground drill program which is intended to upgrade the current historical resources and expand the mineralization bodies along strike and down-dip." More
- May 05, 2011 | Item | ShareThis

Randgold Resources - 1st Quarter Results - "Despite the political crisis in Coted'Ivoire andthe underground re-engineering of its flagship Loulo complex, RandgoldResources (Randgold) again posted substantial profit and productiongains for the first quarter of 2011." More
- May 05, 2011 | Item | ShareThis

- Chris Mullen, Gold Seeker Report

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