-- Posted Wednesday, 17 September 2008 | Digg This Article
| Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $846.80 | +$69.00 |
Silver | $11.57 | +$1.095 |
XAU | 132.33 | +8.55% |
HUI | 314.33 | +11.72% |
GDM | 941.35 | +11.38% |
JSE Gold | 1753.19 | +158.39 |
USD | 78.20 | -0.96 |
Euro | 143.50 | +1.96 |
Yen | 95.45 | +0.125 |
Oil | $97.16 | +$6.01 |
10-Year | 3.410% | -0.081 |
T-Bond | 122.890625 | +0.34375 |
Dow | 10609.66 | -4.06% |
Nasdaq | 2098.85 | -4.94% |
S&P | 1156.39 | -4.71% |
The Metals:
Gold and silver traded just slightly higher in Asia and London before they exploded higher in New York trade and ended at about their highs of the session with gains of 8.87% and 10.45%. Gold tallied its biggest one day dollar gain in history and silver notched its biggest percentage gain since 1995. Both metals have continued to gain in after hours access trade at the time of writing.
Euro gold rose to about €594, platinum gained $28.50 to $1087.50, and copper fell another 4 cents to about $3.07.
Gold and silver equities rose throughout most of trade and the XAU ended with an over 8% gain while the HUI and GDM gained more than 11%.
The Economy:
Report | For | Reading | Expected | Previous |
Building Permits | Aug | 854K | 925K | 937K |
Housing Starts | Aug | 895K | 950K | 954K |
Tomorrow at 8:30AM EST brings Initial Jobless Claims for 9/13 expected at 440,000. At 10AM is the Leading Economic Indicators report for August expected at -0.2% and the Philadelphia Fed survey expected at -10.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose as the dollar fell, traders rushed into almost all commodities, and inventory reports showed large draws after Hurricane Ike disrupted production last week. Oil inventories fell 6.3 million barrels, gasoline inventories fell 3.3 million barrels, distillates fell 900,000 barrels, and refinery utilization fell 0.9% to 77.4%.
The U.S. dollar index fell, treasuries rose, and the Dow, Nasdaq, and S&P fell markedly again on more financial worries as the fed was forced to bailout AIG after previously being hesitant to do so. AIG received a $85 billion loan from the fed as it was determined that AIG could not be allowed to fail due to counterparty risk and the implications of the would be forced unraveling of AIG’s derivatives that would spread throughout the financial system and likely bankrupt many others as well. Barclay’s also announced a $1.75 billion deal to buy parts of Lehman Brothers in an effort to resolve that situation, but it is obvious that many more serious problems remain and stocks dropped over 4% on worries over the next shoes to drop. Morgan Stanley and Goldman Sachs are now the only two major financial firms left, and they were both down over 30% at one point today on worries over credit default swaps and the success of their overall business models as well.
The Commentary:
“December Gold closed up 70 at 850.5. This was 66.5 up from the low and 0.5 off the high.
December Silver finished up 1.158 at 11.675, 0.045 off the high and 0.845 up from the low.
Gold traded sharply higher supported by flight to quality demand, higher CRB action and a weaker Dollar. Fear of systemic risk to the U.S banking system sparked significant safe haven flows into the metals. In what appears to be a somewhat counterintuitive reaction, the stronger CRB and weaker Dollar reflect a modest up tick in risk appetite sparked by news of the Fed nationalization of AIG. Bargain hunting and short covering from extreme oversold conditions might also have added to the gold rally.
The silver market managed an initial rally and then managed to extend the gains into mid session in the wake of what seemed to be a coordinated broad based commodity buying wave. It certainly seemed like the sharp compacted slide in the Dollar added to the upside tilt in the silver market, but perhaps the somewhat historically strong gains in the gold market really inspired the silver bulls. In fact, seeing the base metals rally strong probably served to moderate the recent industrial commodity market drag that had been dogging silver prior to the opening today.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Fed chairman sought control of commodity prices
Feds seeking buyer for Washington Mutual
Treasury bails out Fed; now who bails out Treasury?
Venezuela may buy gold for coins, other investment products
Chinese government paper urges new world financial order
From now on every trade by AIG is a trade by the government
Federal bank insurance fund dwindling
Jeff Christian: Nothing to see in the silver market
U.S. Govt. to buy 80% of AIG with $85 billion loan
Lehman bankruptcy breaks the buck at money-market fund
U.S. government considers bailout for AIG
AIG fears halt exchange-traded commodities
Ted Butler: Welcome to the jungle
The Statistics:
As of close of business: 9/16/2008
Gold Warehouse Stocks: | 8,592,388 | -193 |
Silver Warehouse Stocks: | 137,232,857 | -861,691 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 614.35 | 19,752,109 | US$ 15,393m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 115.90 | 3,726,206 | US$ 3,216m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 10.86 | 348,891 | US$ 301m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.23 | 843,160 | US$ 657m |
Note: Change in Total Tonnes from yesterday’s data: The LSE added 0.25 tonnes.
COMEX Gold Trust (IAU)
Profile as of 9/16/2008 | |
Total Net Assets | $1,488,513,660 | Ounces of Gold
in Trust | 1,917,292.993 |
Shares Outstanding | 19,450,000 | Tonnes of Gold
in Trust | 59.63 |
Note: No change in Total Tonnes from yesterday’s data.
Silver Trust (SLV)
Profile as of 9/16/2008 | |
Total Net Assets | $2,284,550,055 | Ounces of Silver
in Trust | 210,028,194.100 |
Shares Outstanding | 212,500,000 | Tonnes of Silver
in Trust | 6,532.61 |
Note: Change in Total Tonnes from yesterday’s data: 99.88 tonnes were added to the trust.
The Stocks:
Barrick’s (ABX) Pascua Lama gold deposit, Golden Star’s (GSS) property update, Timberline’s (TLR) presentation at the Silver Summit, US Gold’s (UXG) gold discovery, Royal gold’s (RGLD) dividend, Banro’s (BAA) financing, Entree’s (EGI) exploration budget, and SNS Silver’s (SNS.V) President/CEO appointment were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Golden Star | GSS +38.98% $1.64 |
2. Great Basin | GBN +36.20% $2.22 |
3. Exeter | XRA +34.13% $2.24 |
LOSERS
1. Ivanhoe | IVN -11.85% $7.66 |
2. Anglo American | AAUK -8.71% $18.76 |
3. ITH | THM -4.58% $1.25 |
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:
Century Mining Announces Up To $3.7 Million Of Financings - More
- September 17, 2008 | Item | E-mail
Laramide Resumes Westmoreland Drilling on Schedule; Highlights Positive Implications From WA Election Outcome - More
- September 17, 2008 | Item | E-mail
Freeport Outlines Progress at the Hutton Garnet Beaches - More
- September 17, 2008 | Item | E-mail
Golden Star Update of the Paul Isnard Exploration Concession and Associated Mineral Concessions in French Guiana - "Golden Star Resources Ltd. (AMEX: GSS - News) (TSX: GSC - News) (GSE: GSR) (“Golden Star”) wishes to clarify a number of points made by the EURO Ressources S.A. (“EURO”) in its press release of September 11, 2008 regarding the Paul Isnard Permis Exclusif de Recherches (“PER”) and the adjacent eight mineral concessions (collectively, the “Paul Isnard Properties”)." More
- September 17, 2008 | Item | E-mail
Chile, Argentina drive for Pascua Lama gold deal - "Chile and Argentina hope a meeting in October could resolve the prickly tax issues stalling development of Pascua Lama, the massive gold deposit in the Andes mountain range bordering the two countries.
A resolution could be in sight this year.
Pascua Lama, one of the world's last known mega-gold finds, is located about 5,500 meters (18,000 feet) above sea level and holds a treasure trove of some 17 million ounces of gold. It is also one of the world's largest silver deposits.
The project, owned by Canada's Barrick Gold Corp (ABX.TO: Quote, Profile, Research, Stock Buzz), overcame years of environmental challenges after Barrick agreed to leave nearby glaciers untouched. Then it ran into a tax dispute between the host countries." More
- September 17, 2008 | Item | E-mail
Timberline Resources Corporation to Present At The Silver Summit - "The management and directors of Timberline Resources Corporation (AMEX:TLR - News) invite the Company's current and future shareholders to join them at The Silver Summit, September 18 and 19, at the Coeur d'Alene Inn and Conference Center of Coeur d'Alene, Idaho. CEO Randal Hardy, Executive Chairman John Swallow, Vice-President of Exploration Paul Dircksen, and other Timberline team members will be in attendance and available to discuss the Company's accomplishments and future plans." More
- September 17, 2008 | Item | E-mail
Global Hunter Reports Increased Molybdenum Grade From Twinned Hole at Rabbit South - More
- September 17, 2008 | Item | E-mail
Constitution Mining Announces Committee Members - More
- September 17, 2008 | Item | E-mail
New Discovery for US Gold in Magistral District - "US GOLD CORPORATION (Toronto:UXG.TO - News)(AMEX:UXG - News)(Frankfurt:US8.F - News) announces it has made a new gold discovery within the Magistral District, located in Sinaloa State, Mexico. Exploration highlights from initial holes: 0.13 ounces per ton (opt) gold over 98.4 feet (ft.), (4.59 gpt (grams per tonne) over 30.0 m) including 0.51 opt gold over 19.7 ft. (17.63 gpt gold over 6.0 m) and 0.11 opt gold over 88.6 ft. (3.85 gpt gold over 27.0 m). These results start near surface." More
- September 17, 200
Gold Seeker Closing Report: Gold and Silver Gain Roughly 10% As Financial Worries Worsen