Gold Seeker Closing Report: Gold and Silver Fall Slightly

	Close	Gain/Loss
Gold	$1495.80	-$4.90
Silver	$33.52	-$1.21
XAU	192.17	+0.15%
HUI	500.77	-0.04%
GDM	1455.85	-0.07%
JSE Gold	2305.71	+6.97
USD	75.34	-0.31
Euro	142.81	+0.93
Yen	123.66	-0.70
Oil	$90.61	-$0.55
10-Year	2.927%	+0.056
T-Bond	125.50	-1.09375
Dow	12043.56	+0.91%
Nasdaq	2688.28	+1.33%
S&P	1280.10	+0.92%

Gold waffled between modest gains and losses in Asia and London before it ultimately fell to as low as $1491.11 in New York and ended with a loss of 0.33%. Silver fell to as low as $33.368 and ended with a loss of 3.48%.

Euro gold fell to under €1049, platinum lost $8.50 to $1668.00, and copper dropped 5 cents to about $4.05.

Report	For	Reading	Expected	Previous
Personal Income	May	0.3%	0.4%	0.3%
Personal Spending	May	0.0%	0.1%	0.3%
PCE Prices - Core	May	0.3%	0.2%	0.2%

Tomorrow at 9AM EST brings the Case-Shiller 20-city Index for April expected at -3.9% and at 10AM is Consumer Confidence for June expected at 60.7.

The U.S. dollar index and treasuries fell as the Dow and S&P rose about 1% on easing worries over Greece after “French banks agreed to accept slower repayment of Greece's debt.”

Among the big names making news in the market today were Facebook, Smithfield, and LDK Solar.

“In some private emails I have received some of the writers have expressed fears of a 2008 type meltdown in the precious metals whenever they see me use the word, "deflation". Let me try to address this somewhat here on the website so as to avoid having to make an individual response repeatedly.

First of all, when I use the word, "deflation", I am talking more about the symptoms rather than the causes. My understanding of the actual word is a reduction in the money supply evidenced by falling prices. It is the latter part of that sentence I am particularly interested in. For comparison's sake, when I use the word, "inflation", I am also more interested in the symptoms, i.e. rising prices, rather than the causes behind it which is an increase in the money supply not matched by an increase in productivity.

Regardless, the point I am making when talking about the forces of deflation battling it out against the forces of inflation, is one which means a period of falling prices versus a period of rising prices.

As you aware of by now, the Fed has been at war with the forces of deflation ever since the credit crisis erupted with the failure of Lehman Brothers back in the summer of 2008. Lehman was not the cause; it was merely the first victim. The result was a massive unwinding of highly leveraged speculative positions which drove asset prices lower across the board. Whether it was equities or commodities, it did not matter. They were all taken down hard as the Yen carry trade was unwound and money flowed back into the carry currency (the Yen) and into the Dollar as those short positions were lifted.

Enter the Fed into the fray. They began round one of QE which consisted of buying up the Mortgage Backed Securities and other alphabet-named securities which were plummeting in value and threatening to wipe out the balance sheets of the big banks who were greedy enough to buy and sell those things. That combined with the TARP program provided an enormous surge of liquidity into the markets which lifted both equities and commodities across the board. You had a classic example of the Fed ramping up the money supply in order to stave off deflationary forces. The policy was deliberately inflationary and had its intended affect. It also drove the Dollar sharply lower.

When QE1 began winding down, both the commodity markets and the equity markets began fading off their peak levels. With the economy showing that it lacked sufficient traction on its own to be able to grow at a sufficient pace to generate new hiring or one that made policy makers feel comfortable, QE2 was announced and then implemented. That had the immediate effect of unleashing inflationary forces into the economy in the sense that the liquidity it produced through the increase in the money supply shoved equity and commodity prices higher once again. Once again the forces of deflation (falling asset prices) were beaten back and once again the Dollar moved lower.

Now that QE2 is ending and the economy still shows no signs that it is growing at a pace strong enough to turn the labor markets around, prices of assets are dropping once again. Both commodity and equity markets are moving lower. In other words, this is a deflationary environment although it must be pointed out that the move lower in prices is starting from a very high level in the commodity sector as a whole. Gold is near $1500, crude oil is closer to $90, and corn is close to $7.00. None of these price levels can be considered cheap. So please keep this in mind when I use the word, "deflation", that I am not saying corn is headed back to $3.50, crude oil to $35-$40 or gold to $680 - $700. I am merely saying without the Fed created liquidity to goose up the money supply, prices are responding to the decreasing liquidity and are moving lower, albeit from a higher level. Eventually this will show up at the retail or consumer level but there will be at least a 3-4 month lag, if not a bit more. Prices will come down but will still remain high by historical standards.

This is one the reasons that I believe we will see another round of QE if Bernanke and the Fed feel it is warranted, even though they will face criticism should they do so. You will recall that throughout the rise in commodity prices, the Chairman repeatedly stressed in his testimonies before Congress and in his speeches that the rise in commodity prices was moderate and was temporary. I disagreed then and still do now that the rise was moderate (a move from below 400 in the CCI to near 680 in the CCI is not "moderate") but we all must admit that the index has come down lately and so have the prices of most commodities at the various commodity futures markets.

Having set a benchmark with these extremely high prices, any move lower in commodity prices will be measured against that new benchmark. Should the stock market take out a major downside support level and the economic data turn from bad to worse, Bernanke could rightfully argue that he has "upside room" for another round of QE in terms of commodity prices seeing that they are off recent highs. In other words, the public has now been conditioned with a spike to high prices and any move down from those levels will be seen as relief even if the price stabilizes at a new, permanently higher price level. When corn moves from $3.50 to nearly $8.00, a drop down towards $6.50 will be seen as a bargain even though the price is now $3.00/bushel higher than it was a mere 3 years ago. Same goes for crude oil. A drop from $120 towards $90, or even $80 or $70 will make the stuff look dirt cheap even though it will be trading at twice the price it was back in 2008. The list could go on and on.

What we are seeing then is a sort of three steps forward, two steps back in the commodity markets in terms of prices. The public, whether it realizes it or not, has now been conditioned to accepting the new and permanently higher price levels some of which are tied directly to the loss of purchasing power of the US Dollar. The new NORMAL is higher prices. When another round of QE comes our way, the drive to the former peak will be seen as inflationary but the impact will not be as psychologically devastating as was the first surge to these record highs. The next time it will be met with more of a yawn unless prices surge past these old peaks. Then the cries of inflation will arise once again, the Fed will face another round of criticism and the cycle will be repeated as they back off from stimulus yet again.

In such a fashion will the battle between the forces of deflation and inflation play out with the loser being the middle class and those who do not realize what is happening to their way of life.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

COMEX Gold Trust (IAU) Total Tonnes in Trust: 142.79: No change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,621.54: +33.35 change from yesterday’s data.

Banro’s (BAA) drill results, New Gold’s (NGD) drill results, Midway’s (MDW) addition to the Russell 3000 Index, Aurizon’s (AZK) CEO appointment, Rubicon’s (RBY) agreement with West Kirkland, and Excellon’s (EXN.TO) assay 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.

Dynacor Gold Mines Announces Best Month of Production in the Company's History - More
- June 23, 2011 | Item | ShareThis

Breakwater Announces Commencement of Nyrstar Offer and Declares Special Dividend in Connection With Nyrstar Offer - More
- June 23, 2011 | Item | ShareThis

Rencore Resources Announces Appointment of Vice President-Aboriginal Affairs, Grant of Stock Options and First Quarter Filings under IFRS - More
- June 23, 2011 | Item | ShareThis

Update: Aurora Gold Corp Sells Its Interest in AGC Resources LLC to Devtec Management Limited - More
- June 23, 2011 | Item | ShareThis

Archean Star Resources Increases Size of Gnaweeda Claims - More
- June 23, 2011 | Item | ShareThis

SIRIOS Resources Inc.: Private Placement Totals $1,833,600 - More
- June 23, 2011 | Item | ShareThis

Strateco Closes a CA$3.5 Million Financing - More
- June 23, 2011 | Item | ShareThis

Lincoln Mining-Corporate Update Conference Call June 28th - More
- June 23, 2011 | Item | ShareThis

Augen Hires Pinnacle Capital Markets - More
- June 23, 2011 | Item | ShareThis

Laurion Increases Size of Private Placement to a Maximum of $1,250,000 - More
- June 23, 2011 | Item | ShareThis

CORONADO RESOURCES LTD. - Progress update at the Madison Mine in Montana, USA - More
- June 23, 2011 | Item | ShareThis

RX Exploration Announces Glass Lewis Recommendation That Shareholders Vote for the RXE Nominees on the BLUE Proxy - More
- June 23, 2011 | Item | ShareThis

Lago Dourado Engages Dr. David Groves as a Technical Advisor to the Company - More
- June 23, 2011 | Item | ShareThis

Dia Bras Announces Appointment of Guillermo Kaelin to the Board of Directors - More
- June 23, 2011 | Item | ShareThis

Castle Resources Appoints Mike Sylvestre as Chief Executive Officer - More
- June 23, 2011 | Item | ShareThis

Romios Gold Announces Completion of Airborne Geophysical Survey Over the Dirk and Andrei Properties and Provides an Update on Drilling on Its Trek Property - More
- June 23, 2011 | Item | ShareThis

Malaga Appoints Three New Board Members - More
- June 23, 2011 | Item | ShareThis

TNR Gold Notes Minera Andes Inc.-US Gold Corp. Merger Litigation Update - More
- June 23, 2011 | Item | ShareThis

Large Multi-Element Geochemical Anomaly Encourages Nitinat to Advance Work Program at Jasper - More
- June 23, 2011 | Item | ShareThis

Constantine-Carlin JV Commences Work Program on Sixteen Yukon Gold Properties - More
- June 23, 2011 | Item | ShareThis

Explor Intersects 4.07 g/tonne Au Over 20.0 Meters on Timmins Porcupine West - More
- June 23, 2011 | Item | ShareThis

Uranium North Reports Drill Mobilization Underway on the Mallery Gold-Silver Project - More
- June 23, 2011 | Item | ShareThis

Western Troy Drills 3.3 Metres of 2.4% Copper at Lake Chibougamau - More
- June 23, 2011 | Item | ShareThis

Glass Lewis Recommends Klondex Shareholders Vote for Klondex Director Slate - More
- June 23, 2011 | Item | ShareThis

Goldex Resources Appoints New Director - More
- June 23, 2011 | Item | ShareThis

SearchGold Provides Update on Swala and Burkina Faso - More
- June 23, 2011 | Item | ShareThis

Cadillac Obtains 0.611% Cu and 0.373% Ni Over 52 Feet at K1-1 - More
- June 23, 2011 | Item | ShareThis

Two Additional Hanging Wall Intercepts at Nivloc Project - More
- June 23, 2011 | Item | ShareThis

Edgewater Recieves Additional $2,200,000 From Warrant Exercise Kinross Gold Exercises All Warrants - More
- June 23, 2011 | Item | ShareThis

Gabriel Resources Ltd.: Annual & Special Meeting Voting Results and Update on Cash Resources - More
- June 23, 2011 | Item | ShareThis

Viking Minerals Cancels 240 Million Common Shares and Significantly Enhances Shareholder Value - More
- June 23, 2011 | Item | ShareThis

West Kirkland Drilling Update: Continued Gold Intercepts in Kirkland Lake - More
- June 23, 2011 | Item | ShareThis

THEMAC Resources Group Limited Begins Follow Up Drilling at Copper Flat - More
- June 23, 2011 | Item | ShareThis

Argentex Continues To Expand Tranquilo Zone at Pinguino Project - More
- June 23, 2011 | Item | ShareThis

Silver Spruce Reports Discovery of New Mineralized Alteration Zone 3.5 km to South of Big Easy Gold/Silver Zone, Eastern Newfoundland - More
- June 23, 2011 | Item | ShareThis

Netco Announces Acquisition of Option to Acquire Toruel Property, Closing of Private Placement and Name Change - More
- June 23, 2011 | Item | ShareThis

Sanatana Announces Passing of Director Harley Hotchkiss - More
- June 23, 2011 | Item | ShareThis

New Discovery Returns 1.8 Metres Averaging 1400g/t Ag, 19.7% Pb and 14.5% Zn at Southern Silver's Cerro Las Minitas Project - More
- June 23, 2011 | Item | ShareThis

Marifil Partner Receives Approval to Move Forward at Toruel - More
- June 23, 2011 | Item | ShareThis

Midlands Alerts Shareholders to Dissidents' Circular: Zero-Premium Take Over is Opportunistic, Self-Serving and Not in Shareholders Best Interest - More
- June 23, 2011 | Item | ShareThis

BCGold Corp. Commences Work Program at Engineer Gold Mine - More
- June 23, 2011 | Item | ShareThis

Northgate Minerals Initiates Drill Program at Nevada Exploration Inc.'s Awakening Gold Project - More
- June 23, 2011 | Item | ShareThis

Mazorro Announces Option Agreement With Adventure Gold for a 100% Interest in the Dalquier Property, Abitibi, Qc - More
- June 23, 2011 | Item | ShareThis

Adventure Gold Announces Option Agreement With Mazorro Resources for its Dalquier Property in Abitibi, Qc - More
- June 23, 2011 | Item | ShareThis

Angus Announces Non-Brokered Private Placement of Up to $2 Million - More
- June 23, 2011 | Item | ShareThis

Pan American Lithium Corp. Appoints New York IR Firm - More
- June 23, 2011 | Item | ShareThis

Winter 2011 Uracan Drilling Outlines Significant Uranium Mineralization on Costebelle Claims - More
- June 23, 2011 | Item | ShareThis

Sunridge Gold Starts Drilling at the Besakoa Copper-Zinc-Gold Project, Madagascar - More
- June 23, 2011 | Item | ShareThis

Thundermin Obtains the Right to Earn a 100% Interest in a Large Portion of the Stirling Zinc-Lead-Copper-Silver-Gold Massive Sulphide Belt, Cape Breton Island - More
- June 23, 2011 | Item | ShareThis

Matamec to Present New Kipawa Mineral Resource Estimate at its AGM on June 30th - More
- June 23, 2011 | Item | ShareThis

Drilling Underway on Stroud's Hislop Gold Project - More
- June 23, 2011 | Item | ShareThis

Northern Gold Increases Garrcon Deposit Indicated Resource Five-Fold to 720,000 ozs and Releases Preliminary Economic Assessment - More
- June 23, 2011 | Item | ShareThis

Reservoir Reports Exploration Progress with Freeport-McMoRan Exploration Corporation on the Timok Project in Serbia - More
- June 23, 2011 | Item | ShareThis

KGHM Ajax Participates in Open House for Ajax Project Community Relations Office Opening in Kamloops, B.C. - More
- June 23, 2011 | Item | ShareThis

Alto Ventures Ltd.: Summer Program Started at Miner Lake, Beardmore-Geraldton Gold Belt, Ontario - More
- June 23, 2011 | Item | ShareThis

Forum to Explore Nutaaq Rare Earth Property in Nunavut - More
- June 23, 2011 | Item | ShareThis

Canalaska Uranium Completes First Phase Fond Du Lac Drill Program - More
- June 23, 2011 | Item | ShareThis

Geophysical Survey on Focus Claims in Mexico Further Highlights Possible Copper Gold Porphyry System - More
- June 23, 2011 | Item | ShareThis

Highpointe To Drill Tasco Property - More
- June 23, 2011 | Item | ShareThis

Kalimantan Gold Extends Jelai Gold Mining Exploration Licence - More
- June 23, 2011 | Item | ShareThis

Great Panther Silver Set to Join the Russell Global Index - "Membership in the Russell Global Index, which remains in place for one year, means automatic inclusion in the appropriate large-cap, small-cap, all-cap indexes as well as the applicable style, sector and country indexes. Russell determines membership for its equity indexes primarily by objective, market-capitalization rankings and style attributes." More
- June 23, 2011 | Item | ShareThis

Northgate Minerals Initiates Drill Program at the Awakening Gold Project, Nevada - "The Awakening Gold Project consists of 432 claims (approximately 35.9 square kilometres ("km2") or 13.9 square miles) and is located 50 km northwest of Winnemucca, Nevada, on the northwest flank of the Slumbering Hills. The property covers the northwest portion of the historic Awakening mining district and adjoins the north end of the former producing Sleeper Gold Mine, which has produced 1.7 million ounces of gold and 2.3 million ounces of silver." More
- June 23, 2011 | Item | ShareThis

NovaGold Reports Progress on Galore Creek Prefeasibility Study - "NovaGold Resources Inc. (TSX:NG - News)(AMEX:NG - News) announces significant advancement towards completion of the prefeasibility study on its Galore Creek copper-gold-silver project ("Project") located in northwestern British Columbia. The study is being prepared by Galore Creek Mining Corporation ("GCMC"), owned equally by subsidiaries of NovaGold Resources Inc. ("NovaGold") and Teck Resources Limited ("Teck")." More
- June 23, 2011 | Item | ShareThis

Brigus Gold Initiates Black Fox Mill Expansion - "Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD) (TSX:BRD.to - News) announces that it will proceed with an initial expansion of the Black Fox Mill, which is expected to be completed, and in service, during the first quarter of 2012. This initial expansion will increase processing capacity at the Mill to 2,200 tonnes per day (tpd) through optimization of existing mill equipment and elimination of production losses. The Company has commissioned a Phase 2 mill expansion plan, that if implemented in the future, would increase processing capacity to 3,500 tonnes per day and would include replacement of the existing crushing plant with a semi-autogenous grinding (SAG) mill." More
- June 23, 2011 | Item | ShareThis

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