-- Posted 2 September, 2011 | |
Please Note: US markets will be closed on Monday in observance of Labor Day and Canadian markets will be closed for Labour Day.
| Close | Gain/Loss | On Week |
Gold | $1874.20 | +$46.80 | +4.45% |
Silver | $43.00 | +$1.43 | +4.93% |
XAU | 222.79 | +1.60% | +3.17% |
HUI | 618.03 | +2.39% | +3.53% |
GDM | 1799.23 | +2.44% | +3.74% |
JSE Gold | 2720.84 | +56.70 | +3.48% |
USD | 74.73 | +0.25 | +1.33% |
Euro | 141.94 | -0.67 | -2.09% |
Yen | 130.18 | +0.18 | -0.21% |
Oil | $86.45 | -$2.48 | +1.27% |
10-Year | 1.996% | -0.150 | -8.78% |
Bond | 141.5625 | +2.875 | +2.47% |
Dow | 11240.26 | -2.20% | -0.39% |
Nasdaq | 2480.33 | -2.58% | +0.02% |
S&P | 1173.96 | -2.53% | -0.24% |
The Metals:
Gold jumped to as high as $1880.40 by a little before 9AM EST and ended just $14.70 away from August 22nd’s all-time high with a gain of 2.56%. Silver soared to as high as $43.134 and ended with a gain of 3.44%.
Euro gold climbed to a new record high above €1320, platinum gained $24.75 to $1871.75, and copper dropped a few cents to about $4.11.
Gold and silver equities rose about 2% at the open and remained near that level for the rest of the day. The HUI and GDM made new all-time closing highs while the XAU closed about 3% from its April 8th record high.
Gold sales would not solve Europe's debt troubles Reuters
TOCOM Average Daily Volume Up 53.9 % in August from the Previous Month Yahoo
Fund view: Rich trim gold holdings, buy art Reuters
The Economy:
Report | For | Reading | Expected | Previous |
Nonfarm Payrolls | Aug | 0K | 70K | 85K |
Unemployment Rate | Aug | 9.1% | 9.1% | 9.1% |
Hourly Earnings | Aug | -0.1% | 0.2% | 0.5% |
Average Workweek | Aug | 34.2 | 34.3 | 34.3 |
The BLS net birth/death adjustment added 87,000 payrolls to August’s data. Private Payrolls rose 17,000.
U.S. Said to Be Ready to Sue Banks Over Mortgages NYTimes
Pimco’s Gross: Focus on Growth, Not Debt Bloomberg
Experts downbeat on global economy Yahoo
All of this week’s other economic reports:
Next week’s economic highlights include ISM Services on Tuesday, the fed’s Beige Book on Wednesday, Initial Jobless Claims, the Trade Balance, and Consumer Credit on Thursday, and Wholesale Inventories on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Two-Year Note Yield Drops Below 2% Bloomberg
Treasuries rose markedly, on the long end at least, as the Dow, Nasdaq, and S&P fell over 2% along with oil on this morning’s dismal jobs report that increased worries about the economy.
The U.S. dollar index ultimately rose as the threat of QE3 was offset by cash raising and risk aversion.
Among the big names making news in the market Friday were Starbucks, Liz Claiborne, AstraZeneca, Netflix, AIG, Campbell, News Corp., Bank on America, and AT&T.
The Commentary:
“By now you have all learned about the abysmal payrolls number. What more can be said at this point except for the fact that the current Administration seems intent on gutting the American economy.
Remember at the last FOMC statement when the Fed announced that short term interest rates were going nowhere for the next two years? They then went on to say that there is only so much a Central Bank can do and if the economy is going to grow, it is going to require policy changes that reduce structural impediments to growth. That was a not so subtle dig at the current clueless occupants of the Executive Branch to get off their Marxist redistribution wagon and start putting forth some business friendly policies (not to mention spending us all into the toilet). Well guess what? After today's jobs number, the markets have given up waiting for anything coming from that quarter and are now practically begging the Fed to save them.
This is being evidenced by the fact that the long bond is rallying as traders now are fully expecting the Fed to roll the proceeds from maturing short term Treasuries into longer term Treasuries. In other words, exchanging short term debt holdings for long term ones with the idea that the Fed will now engage completely in focusing on keeping those long term rates low for an extended period of time as well. My thinking is that were it not for this thinking, the equity market would have utterly imploded today.
What has been occurring is that the more bad news we get, the more stocks refuse to break down, in some instances actually rallying in the hope, wish, prayer, etc, that the Fed will be FORCED to act. Personally I find this sort of activity repugnant. The greatest nation on the face of the Earth, its entire economic hopes are now hanging on whether or not a group of monetary authorities are going to buy US government debt. Am I the only one out there who shakes my head in dismay and disgust at what we have all been reduced to? Instead of being able to witness the unleashing of American ingenuity, drive, ambition, know how and hard work, we sit around and buy stocks because we think the dispensers of slips of paper known as Federal Reserve officials will inject us easy money addicts with more of the same worthlessly ineffective stimulus? This is America early in the 21th century! Sigh....
Anyway, gold is reacting to this nonsense as it rightfully could be expected to do - it is moving sharply higher because it instinctively realizes that the only "solutions" going to be offered for the current economic disease is going to be additional currency debasement. Whether it is Europe, the US, Japan or even Switzerland, all are going down the debasement path. That is why gold is either making new all time highs in terms of these various major currencies, or just shy of those record high levels.
Silver too is now catching a safe haven bid as many investors are viewing it as undervalued in relation to gold and as offering the potential for better gains on a percentage basis than Ol' Yeller.
I will kick some of this around on today's Weekly Metals Wrap with Eric King over at King World News but wanted to note that those who keep insisting that gold is in some sort of bubble are utterly clueless as to what is driving this market higher. It is going up because a steadily growing number of investors are wising up to the game that is being played by the monetary authorities at the expense of the wealth that they have spent a lifetime accruing by the sweat of their brow and the labor of their hands. As more and more of these investors and average folks learn the role of gold in protecting that wealth from the depredations of Central Banks and spendthrift politicians, gold demand (and silver demand) is going to grow.
It basically comes down to this - whom or what do you trust more - monetary authorities and Central Bankers who have a distinct bias towards problem solving in the most painless manner possible or gold, which cannot be conjured into existence and which has stood the test of time and history. The market always votes with its feet and the voting is obvious.
The only additional comment I might want to make in regards to the ignorance of those who insist that gold is in a bubble, is that they obviously have incredible confidence in Central Bankers and politicians to fix all that ails us - also noting that it is this very same group of people who are the most responsible for creating the current miserable economic climate in the first place.
Note that the HUI has smashed, and I do mean "smashed" through overhead resistance near 610 and is charging higher. I mentioned not that long ago that the hedge funds who were employing this damned ratio trade had overstayed their welcome and that the first one to cover those mining share shorts and get out would be the only one which would make money on that crowded trade. That is now the case as the shorts are now in serious, serious trouble with all of them looking to buy and very few looking to sell.
We'll see how these indices close the session out today but I do find it very telling that the mining sector shattered upside chart resistance on a day in which the broader stock markets are cratering.
One more thing in reference to the mining shares - how many times in the last two months have we urged the hedge fund managers to get out of that overcrowded and worn out long gold/short mining share ratio trade and to instead institute a ratio trade employing a long mining shares/short broader equities trade mainly because of the severe undervaluation of the mining shares? Just look at the following ratio chart to see how successful this recommended trade would have been instead of trying to squeeze the very last nickel out of their former strategic trade.
Note that a rising line indicates the mining shares in general are OUTPERFORMING the broader US equity markets and have been doing so since June of this year.”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Gold sales would not solve Europe's debt troubles
Jewelers may drop gold before World Gold Council dumps jewelry
The Statistics:
Activity from: 8/31/2011
Gold Warehouse Stocks: | 11,576,414 | +96 |
Silver Warehouse Stocks: | 104,338,041 | -1,137,587 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1232.314 | 39,620,114 | US$74,270m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 115.35 | 3,708,632 | US$6,953m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 126.23 | 4,058,350 | US$7,608m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 14.21 | 473,681 | US$859m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 45.28 | 1,455,907 | US$2,730m |
NASDAQ Dubai | Dubai Gold Securities | 0.154 | 4,950 | US$9m |
Note: No change in Total Tonnes from yesterday’s data.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 166.97 – 0.26 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 9,746.80 - No change from yesterday’s data.
The Miners:
US Gold’s (UXG) and Minera Andes’ merger update and Silvercorp’s (SVM) short position were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Golden Star | GSS +10.42% $2.65 |
2. Mines MGMT | MGN +7.51% $1.86 |
3. Jaguar | JAG +7.50% $6.59 |
LOSERS
1. Taseko | TGB -4.30% $3.78 |
2. Freeport | FCX-3.27% $44.94 |
3. Ivanhoe | IVN -2.77% $21.39 |
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:
Atna Completes Acquisition of Pinson Gold Mine - More
- September 02, 2011 | Item | ShareThis
Osisko Mining Corporation Terminates Mountjoy Exploration Agreement - More
- September 02, 2011 | Item | ShareThis
Bear Creek grants incentive stock options - "Bear Creek Mining (TSX Venture:BCM.v - News) ("Bear Creek" or the "Company") announces that the board of directors has authorized the grant of 340,000 incentive stock options under its incentive stock option plan to senior Peruvian management and an officer of Bear Creek, at an exercise price of $4.01 per share. These options are exercisable for a five-year period and the grant is subject to vesting provisions in accordance with the Company's Stock Option Plan." More
- September 02, 2011 | Item | ShareThis
Active Growth Capital Commences Work Program on Bohan and Grants Options - More
- September 02, 2011 | Item | ShareThis
Atlantic Industrial Minerals $125,000 Private Placement - More
- September 02, 2011 | Item | ShareThis
Grizzly Engages Mr. Stephen Smart as Investor Relations Consultant - More
- September 02, 2011 | Item | ShareThis
American Vanadium Closes Non-Brokered Private Placement - More
- September 02, 2011 | Item | ShareThis
St. Augustine Gold & Copper Limited Announces Full and Final Settlement With Benguet Corporation - More
- September 02, 2011 | Item | ShareThis
Anconia Announces Land Claim Option Agreement - More
- September 02, 2011 | Item | ShareThis
Megastar Announces Changes to Management - More
- September 02, 2011 | Item | ShareThis
Iberian Minerals Announces Suspension of Strike - More
- September 02, 2011 | Item | ShareThis
Rio Cristal Updates Status of Its Projects - More
- September 02, 2011 | Item | ShareThis
Marifil Terminates Renholn Lithium Agreement - More
- September 02, 2011 | Item | ShareThis
Redzone Resources Ltd.: Appointment of Director - More
- September 02, 2011 | Item | ShareThis
Sandstorm Gold Announces US$6 Million Payment to Metanor Resources and Provides Update on the Bachelor Lake Project - More
- September 02, 2011 | Item | ShareThis
Metanor Receives US$6M from Sandstorm - More
- September 02, 2011 | Item | ShareThis
Silvercorp Notes Large Short Position in Stock and Receipt of an Anonymous Letter Attempting to Discredit the Company and Manipulate the Share Price - "Silvercorp Metals Inc. ("Silvercorp" or the "Company") (TSX: SVM.TO - News)(NYSE: SVM.TO - News) announces that there has been a dramatic increase in the short position of its shares over the past two months which is now approximately 23 million shares (Source: (http://www.dataexplorers.com/products/data), or 13% of the total outstanding shares." More
- September 02, 2011 | Item | ShareThis
Update on Proposed Merger of US Gold and Minera Andes - "US Gold Corporation (NYSE: UXG - News)(TSX: UXG - News) and Minera Andes Inc. (TSX: MAI.TO - News)(OTC.BB: MNEAF.OB - News) are pleased to provide an update on the proposed merger of US Gold and Minera Andes. Following the June 14, 2011 announcement of Rob McEwen's proposal to merge US Gold and Minera Andes, each of the companies' boards of directors established an independent special committee to consider the proposed merger and each of the companies has been conducting due diligence on the other. Each of the special committee of Minera Andes and US Gold has retained independent financial advisors and legal counsel and has been considering the transaction, with input from those advisors." More
- September 02, 2011 | Item | ShareThis
Dunav Resources and Dundee Precious Metals Complete Transaction - More
- September 02, 2011 | Item | ShareThis
Concordia Receives Authorization to Proceed With Drilling Operations at Its Providencia Property in Argentina - More
- September 02, 2011 | Item | ShareThis
Talison Lithium to Report Fiscal Fourth Quarter and Full Year 2011 Financial Results on September 12 - More
- September 02, 2011 | Item | ShareThis
High River Provides an Update on the Bankruptcy Procedures of Prognoz Silver LLC - More
- September 02, 2011 | Item | ShareThis
Champion Minerals Appoints Richard Quesnel as Senior Technical Advisor and Head of Advisory Board - More
- September 02, 2011 | Item | ShareThis
Astur Gold Adds Mr. Michael Surratt to Advisory Board - More
- September 02, 2011 | Item | ShareThis
Minera IRL Files NI43-101 Technical Report on Ollachea Pre-Feasibility Study - More
- September 02, 2011 | Item | ShareThis
Lundin Mining Reports 2011 Reserve & Resource Estimate - More
- September 02, 2011 | Item | ShareThis
Lithium One Announces Change of Auditors - More
- September 02, 2011 | Item | ShareThis
- Chris Mullen, Gold Seeker Report
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-- Posted 2 September, 2011 | |
