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The Coming Big Money Bang

The Markets:

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

Oil eventually rose over 2% after news that 172 militants were arrested in Saudi Arabia for plotting to attack oil facilities.  Violence in Nigeria also added to geopolitical concerns.

The U.S. dollar index fell as GDP came in surprisingly weak at the slowest growth in four years, but losses were limited as the Chain Deflator came in higher than expected and raised inflationary concerns.  The dollar fell to a record low versus the euro.

Treasuries ended slightly lower as concerns over slower than expected growth were overcome by worries over higher than expected inflation.

The Dow, Nasdaq, and S&P again rose on decent earnings despite higher oil and economic/inflationary concerns, though gains were limited and the S&P ended slightly lower while the Dow set a new record high close.

Among the big names making news in the market Friday were Microsoft, Mazda, Waste Management, Citigroup and Nikko Cordial, RBS and ABN, GM, Burger King, Chevron, and Goodyear.

The Commentary:

“June Gold finished up 3.8 at 681.8, 0.2 off the high and 4 up from the low.

May Silver closed up 0.118 at 13.443. This was 0.103 up from the low and 0.027 off the high.

The gold market was able to mostly hold in positive territory throughout most of the session Friday but with the US numbers coming in weak and the metals recently under liquidation pressure, the market was certainly in a vulnerable position. However, one would think that evidence of a major terrorism incident in Saudi Arabia did manage to support gold prices during the session Friday. However, some players in the market suggest that the presence of weak US economic readings might require more significant declines in the US Dollar as an offset to the threat of slowing physical demand. With oil prices firming in the wake of the terrorism incident it was clear that flight to quality concerns were indeed present in the marketplace and they were having an impact on gold prices.

Like the gold market, the silver market generally showed positive action through a large portion of the trading session. Surprisingly weaker platinum prices and mostly soft US economic readings could have rekindled the prior session's selling wave but instead the silver market held its ground. While the silver market wouldn't seem to be in line for a direct flight to quality lift off the terrorism incident it was very impressive to see silver trading higher in the wake of the flow of softer US economic information. With the silver market actually firming late in the session it would seem like the market ended the week on an upbeat note.”- The Hightower Report, Futures Analysis and Forecasting

The Statistics:

As of close of business: 4/26/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The ASX added 0.05 tonnes.

COMEX Gold Trust (IAU)

Note: No change in Total Tonnes from yesterday’s data.

Silver Trust (SLV)

Note: No change in Total Tonnes from yesterday’s data.

The Stocks:

A likely miner strike in Peru, Buenaventura’s (BVN) first quarter results, Goldcorp’s (GG) Peak mine sale, SNS Silver’s (SNS.V) new board member, Sterling Mining’s (SRLM.OB) new technical services manager and chief engineer, Palmarejo’s (PJO.V) quarterly activity report, Silver Eagle’s (SEG.TO) drill results, and Apogee’s (APE.V) senior executive changes were among the big stories in the gold and silver mining industry making headlines Friday.

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