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The Coming Big Money Bang

The Markets:

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

Oil fell back under $80 as tame geopolitical issues and calm weather in the Atlantic and Gulf of Mexico encouraged traders to take profits and liquidate long positions ahead of tomorrow’s inventory reports.

The U.S. dollar index fell and treasuries rose on poor economic data.  The dollar closed just 0.13 points away from a new all time low.

The Dow, Nasdaq, and S&P remained mixed and near unchanged as worries over poor economic data and weak retail sales forecasts were offset by markedly lower oil and hopes for lower interest rates.

Among the big names making news in the market today were Microsoft and Facebook, Clear Channel, OMV and MOL, Lennar, UAW and GM, Merrill, and Discover.

The Commentary:

“It has always been my view that cyclical analysis taken as a set in cement predictor is useless. However judging what the market actually does versus what the cycle says it should does gives a clear and accurate view of the internal strength or weakness of an entity.

Gold has demonstrated outstanding strength and the dollar has demonstrated outstanding weakness. The hard fundamental factors have been quite positive to gold and horrible to the dollar. The judgment then is gold is stronger and the dollar is weaker than what one would anticipate. That means buying TA disciplined dips, even intra day for those wild ones, should be successful. I do not anticipate any hard correction here as if it was to occur, it would have already.”- Jim Sinclair, JSMineset.com

“December Gold finished down 0.5 at 738.8, 2.2 off the high and 8 up from the low.

December Silver closed down 0.02 at 13.62. This was 0.14 up from the low and 0.01 off the high.

The gold market seemed to be poised for a significant corrective slide but apparently the market was able to reject the early wave of selling. Apparently talk in the trade suggested that options expiration fostered the recovery action in gold and that could make the direction of trade on Wednesday even more critical. With the US Dollar managing to "eventually" fall to another new low for the move on Tuesday it is possible that the mid morning gold market recovery was indeed inspired by the action in the currency markets.

It is possible that both silver and gold markets were adversely impacted by the initial slide in equity prices and perhaps by the release of several soft scheduled US economic readings. In fact, seeing energy prices slide aggressively and seeing renewed concerns of US slowing probably temporarily deflated inflationary expectations, which might have prompted some silver longs to liquidate positions. With the US stock market specifically citing sagging growth concerns, it is possible that some of the recent industrial demand fears being tossed around in the silver market were rekindled.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ted Butler: Still extreme

Gold price suppression briefly breaks into Kudlow show on CNBC

Bailed out by taxpayers, bank raises dividend, continues CEO's huge salary

John F. Wasik: Consumer price index is just a lot of spin

The Statistics:

As of close of business: 9/24/2007

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: The NYSE added 0.93 tonnes and the LSE added 0.66 tonnes.

COMEX Gold Trust (IAU)

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

Silver Trust (SLV)

Note: Change in Total Tonnes from yesterday’s data:  30.89 tonnes were added to the trust.

The Stocks:

Eldorado’s (EGO) Kisladag mine, IAMGOLD’s (IAG) project update and integration of Cambior, Endeavour’s (EXK) exploration and acquisition update, Scorpio’s (SPM.TO) drill results, and Alexco’s (AXU) negotiation agreement 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:

Forsys Metals Corp.: Preliminary Joly Results - More
- September 25, 2007 | Item | E-mail

Hard Creek Drills 120 Metres of 0.33% Nickel - More
- September 25, 2007 | Item | E-mail

Nirek Resources Inc. Detailed Phase 1 Exploration Program, Commissioned at Gosselin Vein Property - More
- September 25, 2007 | Item | E-mail

Eldorado sees Kisladag reopening, acquisitions - "Eldorado Gold (ELD.TO: Quote, Profile, Research) expects the court-ordered shutdown of its Kisladag mine in Turkey to be reversed by early November, the Canadian miner's chief executive said on Tuesday." More
- September 25, 2007 | Item | E-mail

Yukon-Nevada Gold Corp. reports an exciting new target at Ketza River - More
- September 25, 2007 | Item | E-mail

Sherwood Receives Encouraging Results From 2007 Gradient IP Geophysical Survey - More
- September 25, 2007 | Item | E-mail

Abcourt Mines Inc.: 2,500-Meter Drilling Program Started at Jonpol Property - More
- September 25, 2007 | Item | E-mail

Laurion to Acquire 100% Interest in Mining Claims Located in Cote Township (Enid-Massey Project), Timmins, Ontario - More
- September 25, 2007 | Item | E-mail

Romarco's Shareholders Exercise Warrants, Corporate Update - More
- September 25, 2007 | Item | E-mail

Endeavour Silver Corp.: Update of Exploration and Acquisition Programs in Mexico - "Endeavour Silver Corp. (Toronto:EDR.TO - News)(AMEX:EXK - News)(DBFrankfurt:EJD) provides the following update on its exploration and acquisition programs in Mexico for 2007. A total of 35,000 m of diamond drilling was scheduled on the Company's four silver projects in Mexico in 2007 at an estimated cost of US$6 million. Approximately 1700 m have been completed to date and an additional 18,000 meters are expected to be complete by year end." More
- September 25, 2007 | Item | E-mail