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-- Posted Tuesday, 23 September 2008 | Digg This Article | Source: GoldSeek.com

The Metals:

Gold and silver chopped around at modestly lower levels in Asia and London before they briefly rose to see slight gains at $903.60 and $13.53 in early New York trade, but they then fell back off into the close and made new session lows of $879.60 and $12.947 ahead of a late rally back higher that left them nearly 1% from those lows with losses of 1.78% and 2.32%.  At the time of writing both metals have nearly erased those losses in after hours access trade.

Euro gold fell to about €606, platinum lost $30 to $1204, and copper fell nearly 10 cents to about $3.17.

Gold and silver equities fell over 4% by early afternoon before they rebounded back to see only about 1% losses, but they then fell back off in late trade and ended with about 3% losses.

The Economy:

There were no major economic reports today, but the Federal Housing Finance Agency reported that home prices fell a record 5.3% in July.

Dominating today’s headlines was the testimony before the Senate Banking Committee by Treasury Secretary Paulson, fed Chairman Bernanke, Federal Housing Finance Agency director James Lockhart, and SEC Chairman Cox.  All four faced some tough questions as they tried to sell the committee on their $700 billion bailout plan, but few expect very many members of congress to actually vote against the plan.  The group testifies before the House Financial Services committee tomorrow and a congressional vote on the plan is hoped for by Friday.

Tomorrow at 10AM EST brings the Existing Home Sales report for August expected at 4.93 million.

The Markets:

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

Oil fell on worries that the ongoing financial crises will result in a drop in world energy demand.

The U.S. dollar index rose slightly and treasuries fell as worry over the bailout plan eased a bit, but many more questions still remain and few see an end to this financial crisis anytime soon no matter what the proposed solution.

The Dow, Nasdaq, and S&P traded mostly slightly higher in morning action, but they then fell back off in afternoon trade on worries over the global economy while members of the Senate Banking Committee struggled to get straight answers and details about the bailout plan from Paulson, Bernanke, and others.

Among the big names making news in the market today were Nomura and Lehman, DuPont, Air Products, AIG, and Circuit City.

The Commentary:

“Dear Extended Family,

Today's events have put two very important criterion in place for the markets that you must be aware of going into January 14, 2011.

1. The dollar has a solid roof above it that now cannot be penetrated.

2. Gold has a solid floor underneath it that now cannot be penetrated.

Selling the dollar on strength and buying gold on weakness with attention to what I have taught you has lost 90% of its risk factor.

With a solid floor under gold, the gold mining business becomes a more sound investment than it ever has been. That is simple logic and is now fact.

With diminishing reserves and very few potential mines coming online, the juniors with the real thing will transition to valuation based on the value of their underlying assets and the quality of deals they make with partners. This will effectively end the rein of the short seller, both illegal and legal.

This understanding will be of great value to you as we move towards 2011.

The more dynamic the event, the less words are required for you to grasp the CONSEQUENCES.

Respectfully yours,”- Jim Sinclair, JSMineset.com

“December Gold closed down 17.8 at 891.2. This was 2.2 up from the low and 17.6 off the high.

December Silver finished down 0.28 at 13.17, 0.36 off the high and 0.11 up from the low.

The Gold market gave back part of Monday's surge with apparent pressure from lower crude prices, and a rebound in the Dollar. Investor uncertainty about whether the anticipated Congressional bailout plan for ailing US banks will be effective or if the plan will ultimately be inflationary or deflationary seems to have temporarily chilled safe haven flows to Gold and may have sparked some profit taking in the precious metals. Gold bounced from early lows possibly due to uncertainty about the bailout package, but resumed to its slide as crude prices traded to the days low.

Silver and Gold appear joined at the hip with Silver trading lower and tracking weaker Gold prices. A slight dip in risk aversion in the early trade may have sparked light selling of Silver as equity markets and the Dollar seemed to stabilize. Silver surged in Monday's trade apparently supported by investor safe haven flows possibly sparked by fears that the anticipated 700 billion bailout plan may be inflationary. But inflation concerns were eased as crude oil turned weak and the Dollar firmed which seemed to spark modest liquidation selling of the precious metals this session. Some investors may be pondering the possible deflationary impact on prices should the bailout plan fail to avert a deeper global slowdown. Silver rebounded from the day's lows mid-session with possible support coming from ongoing uncertainty about the details and speed of enactment of the bailout plan by Congress.”- The Hightower Report, Futures Analysis and Forecasting

GATA Posts:

Ted Butler: Time out or about time?

Bailout will discredit all currencies, help gold, Tocqueville's Hathaway says

'Hitler gets a margin call,' but what a difference a week makes

Wall Street Journal thinks central banks might start liking gold again

The Statistics:

As of close of business: 9/22/2008

Global Gold ETF Holdings

[WGC Sponsored ETF’s]

Note: Change in Total Tonnes from yesterday’s data: SPDR added 30.02 tonnes to a new record high holding the LSE subtracted 0.53 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:

Almaden’s (AAU) assay results, NovaGold’s (NG) expiring warrants, Banro’s (BAA) exercised over-allotment option, Northgate’s (NXG) drilling, Anatolia’s (ANO.TO) mine construction, Coeur’s (CDE) court appeal, Hecla’s (HL) exercised over-allotment option, Fortuna’s (FVI.V) exploration results, Endeavour’s (EXK) exploration update, and Fresnillo’s (FRES.L) acquired shares in MAG Silver (MVG) 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:

Coeur Continues Appeal in Supreme Court for the Original Kensington Tailings Plan Permitting; is Terminating Permitting Process for Alternative Tailings Plan - "Coeur d’Alene Mines Corporation (NYSE:CDE - News) (TSX:CDM - News) (ASX:CXC - News) today announced that, due to further substantial delay in the Environmental Assessment process triggered by a federal agency’s recent actions, the Company has requested the Forest Service to terminate the permitting process for a potential alternative Kensington paste tailings plan. The Company continues to pursue its original tailings plan for Kensington, which is pending in the U.S. Supreme Court. A decision on the appeal is expected in the first or second quarter of 2009." More
- September 23, 2008 | Item | E-mail

Pershimco Announces Results of its Annual Meeting of Shareholders - More
- September 23, 2008 | Item | E-mail

MAX begins drilling at Indata Gold/Copper project in B.C. - More
- September 23, 2008 | Item | E-mail

Moss Lake announces shares for debt transaction - More
- September 23, 2008 | Item | E-mail

Victoria and Gateway to Complete Definitive Agreement for Victoria's Acquisition of Gateway by September 30, 2008 - More
- September 23, 2008 | Item | E-mail

Baffinland Expands Board With the Addition of Russ Cranswick - More
- September 23, 2008 | Item | E-mail

Hecla Announces Exercise of Over-Allotment Option for 3.35 Million Shares - "Hecla Mining Company (NYSE:HL) (“Hecla”) announced that the underwriters have exercised their over-allotment option resulting in the issuance of an additional 3.35 million shares in connection with the company’s recent offering of common stock. The issuance of the additional common shares closed today." More
- September 23, 2008 | Item | E-mail

Coro Mining Appoints Geoff Chater Vice President Business Development - More
- September 23, 2008 | Item | E-mail

Cadiscor reports gold reserves at Sleeping Giant Mine - More
- September 23, 2008 | Item | E-mail

Andover and SNS complete loan agreement - More
- September 23, 2008 | Item | E-mail

Almaden Minerals Ltd.: 54.86 Metres Grading 1.31 g/t Gold Intersected at Caballo Blanco, Mexico - "Almaden Minerals Ltd. ("Almaden", "the Company") (Toronto:AMM.TO - News)(AAU - News) is pleased to report that it has received additional assay results from the Cerro la Paila gold target and the Pedrero and Porvenir porphyry gold-copper targets of its Caballo Blanco project in Veracruz, Mexico from operating partner Canadian Gold Hunter Corp. Core hole 08CBN-018 intersected 13.72 meters grading 3.21 g/t (grams per metric tonne) Au (gold) within a broader 54.9 metre interval grading 1.31 g/t Au in iron-oxide-cemented, vuggy silica breccias on the Cerro la Paila gold target in the Northern Zone." More
- September 23, 2008 | Item | E-mail