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The Coming Big Money Bang

The Markets:

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

Oil rose over 2% on worries over rising Middle East tensions and continued refinery problems.

The U.S. dollar index rose and treasuries fell as PPI came in higher than expected and pushed interest rates higher, though moves were somewhat limited ahead of tomorrow’s CPI report.

The Dow, Nasdaq, and S&P rose as most seemed to ignore higher than expected PPI and instead concentrated on tame Core PPI that came in as expected.

Among the big names making news in the market today were Chicago Mercantile and CBOT, Freddie Mac, Goldman Sachs, and Bear Sterns.

The Commentary:

“August Gold finished up 3.2 at 655.9, 2.1 off the high and 5.7 up from the low.

July Silver closed up 0.105 at 13.165. This was 0.195 up from the low and 0.055 off the high.

After some choppy two sided trade in the morning the gold market righted the ship and seemed to link back up with the equity, energy and grain markets. While the external support from energy and grain prices is a tenuous proposition it is possible that equity hedge funds might be moving to allocate money capital to markets that tend to protect against inflation. In other words, seeing food and energy prices break out to even higher levels could have a devastating impact on the equity market (especially in its recent inflation sensitive status) and therefore one might expect to see ongoing fund buying interest. Apparently some gold traders suggested that the Dollar's inability to extend its early gains throughout most of the session and seeing the September Dollar somewhat stymied by the 83.00 even level on the charts, served to tamp down the fears of a soaring Dollar. In retrospect, the IAEA/Iran dialogue on Thursday wasn't that significant but it is possible that the combination of the Iranian situation and the heightening tensions in Gaza encouraged some buying.

While the silver market closely mirrored the gold market throughout most of the session, it seemed like the silver market underperformed gold. In fact, with the stock market showing spurts of strength, copper prices sharply higher and gold at times up by more than $5.00 an ounce, one might have expected silver to have forged a bigger bounce. However, despite the moderately impressive upward extension in copper prices, one gets the sense that the physical demand outlook in the industrial metals sector is holding back silver. Some players even suggested that in a classic food price inflation scenario, it is possible that the silver market will see less flight to quality buying than the gold market.” - The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Swiss sales dash hopes of gold recovery

GATA's press release posted at Yahoo and GoldSeek

Switzerland keeps bailing out its banks short gold

GATA will demand truth about U.S. gold reserves

Coming soon to the corner of Broad and Wall?

The Statistics:

As of close of business: 6/13/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

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

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:

Crystallex’s (KRY) Cristinas permit, New Gold’s (NGD) debt financing pricing, Exeter’s (XRA) drilling, Seabridge’s (SA) exercised warrants by Xstrata, Hecla’s (HL) presentations, MAG Silver’s (MAG.V) interest in the Juanicipio property, and Metalline’s (MMG) sample 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:

ABV Gold Inc. Forms New IR and PR Team - More
- June 14, 2007 | Item | E-mail

Solitaire Minerals Corp. Preparing to Drill High Grade Rubidium Zone at the Lateral Lake Claims - More
- June 14, 2007 | Item | E-mail

Crystallex takes 'final step' for Cristinas permit - "Canadian gold miner Crystallex International Corp. (KRY.TO: Quote, Profile , Research) said on Thursday that it has completed "the very final step" to gain a permit allowing construction of its Las Cristinas mine in Venezuela.

The environmental impact study for the project, one of the world's largest undeveloped gold deposits, has been approved by Venezuela's Ministry of the Environment and Natural Resources." More
- June 14, 2007 | Item | E-mail

Sutcliffe Resources Default Status Report - More
- June 14, 2007 | Item | E-mail

Thompson Creek sees sizable internal growth - More
- June 14, 2007 | Item | E-mail

Azimut's update on 7 gold exploration properties in Quebec - More
- June 14, 2007 | Item | E-mail

Hecla to Present at Investment Conferences in Vancouver and San Francisco - "Hecla Mining Company (NYSE:HL - News) will be present at two West Coast investment conferences next week in Vancouver, British Columbia, and San Francisco, California. Hecla Vice President - Investor and Public Relations, Vicki Veltkamp will speak at the World Gold, PGM and Diamond Investment Conference in Vancouver, British Columbia, at noon on Sunday, June 17." More
- June 14, 2007 | Item | E-mail

New Gold Announces Pricing of C$275 Million Debt Financing - "Further to its previously announced (May 29, 2007 and May 30, 2007) offering (the "Offering") of Units, Debentures, Flow-Through Shares and Shares, New Gold Inc. ("New Gold") is pleased to announce the pricing of the 5% Subordinated Convertible Debentures (the "Debentures") and the Units to be sold pursuant to the Offering." More
- June 14, 2007 | Item | E-mail

Keegan Renegotiates and Completes Early Acquistion of Full Private Interest in Esaase Gold Property - More
- June 14, 2007