Gold Seeker Closing Report: Gold and Silver Fall Over 4% and 5% With Stocks and Oil

-- Posted Wednesday, 22 October 2008 | Digg This Article Digg It!

| | Source: GoldSeek.com

	Close	Gain/Loss
Gold	$734.75	-$31.55
Silver	$9.50	-$0.57
XAU	71.69	-16.30%
HUI	168.34	-16.33%
GDM	504.29	-15.92%
JSE Gold	1717.48	-106.10
USD	8562	+1.25
Euro	128.43	-2.34
Yen	102.31	+2.63
Oil	$66.75	-$5.43
10-Year	3.618%	-0.085
T-Bond	115.859375	+0.6875
Dow	8519.21	-5.69%
Nasdaq	1615.75	-4.77%
S&P	896.79	-6.10%

Gold and silver saw minor gains in early Asian trade, but they then steadily fell back off for the rest of the day and ended near their lows of $732.20 and $9.37 with losses of 4.12% and 5.66%. Both metals have continued to fall in after hours access trade as well.

Euro gold fell to about €571, platinum lost $35 to $842, and copper fell another 15 cents to about $1.85.

Gold and silver equities dropped throughout the session and ended with about 16% losses.

There were no major economic reports today, but the “Mortgage Bankers Association's seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, slid 16.6 percent to 408.1 last week, the lowest reading since December 2000.” Tomorrow at 8:30AM EST brings Initial Jobless Claims for 10/18 expected at 465,000.

Oil fell yet again to a new 16 month low on expectations of still lower demand heading forward.

The U.S. dollar index rose to its highest since November 2006 as the Euro and Pound plunged again on expectations for even worse economic growth in Europe than in the US that will likely push the ECB and BoE towards cutting interest rates. Many also expect the fed to cut interest rates at their meeting next Wednesday, but that doesn’t seem to be having much of an impact on the currency market aside from some yen strength versus nearly every other world currency as most seem to believe that the US will be able to endure a recession better than most of the rest of the world.

Treasuries rose further as the Dow, Nasdaq, and S&P fell about 5% on mostly poor earnings reports and outlooks that pretty much confirm a recessionary environment for at least the near future.

Among the big names making news in the market today were Merck, ConocoPhillips, Wachovia, Boeing, AT&T, SanDisk and Samsung, and McDonald’s.

Gold is a currency that you will see perform as the currency of choice. There is no doubt we are headed into a planetary Weimar experience to some degree.

Dollars are being created faster now than in any other period in history. The Fed and treasury are guaranteeing everything from money market funds to large corporate entities in one way or another.

The first valuation of worthless OTC derivatives via a public sale of these at .0875 to .02 cents shocked anyone with a brain. Now the downturn in business is hitting financial entities and shortly litigation will smoke whatever is left.

The FDIC is already yelling for additional and significant funding from congress as their capital contracts on every Friday’s bailout.

The Fed has only started creating money for bailouts. You saw what happened when they stepped away from Lehman. If you say you didn't look out the window.

All these bailouts and Federal guarantees on credit items constitute a white wash on a falling economic structure going out of control and soon.

The out of control point of major planetary dislocation is between 14 and 89 days from now…”- Jim Sinclair, JSMineset.com

“December Gold closed down 32.8 at 735.2. This was 2.2 up from the low and 23 off the high.

December Silver finished down 0.615 at 9.46, 0.46 off the high and equal to the low.

The gold market started out under moderate pressure and seemed to gather downside momentum throughout the trading session. Clearly a somewhat historical rise in the Dollar accentuated the washout in gold but with sharply lower energy prices also being seen the bearish arguments were quite convincing. In fact, with a host of physical commodity markets under severe pressure on Wednesday and the stock market pricing in what seems to be a severe and sustained US recession apparently some gold bulls were probably unwilling to stand in position against multiple bearish angles.

The silver market was down sharply in the wake of the latest slide in gold prices. However, the December silver contract seemed to initially reject a test of a prior daily low of $9.525 but eventually the market failed at the level. Clearly the silver market was encountering broad based deflationary selling, fears of extended slowing and some currency related pressure. In the end, both gold and silver prices gave off the impression on Wednesday that a protracted slowdown in the economy was being seen as a definitive negative for all the metals markets.”- The Hightower Report, Futures Analysis and Forecasting

Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.61 tonnes and the LSE added 0.15 tonnes.

Mines being put on hold or abandoned, Newmont’s (NEM) dividend and director appointment, Almaden’s (AAU) diamond property, Randgold’s (GOLD) Morila gold mine in Mali, IAMGOLD’s (IAG) comments on Ecuador’s referendum, Sterling’s (SRLM.OB) CFO appointment, Minefinders’ (MFN) leaching, Orko’s (OK.V) drill results, and Silver Standard’s (SSRI) drill results were among the big stories in the gold and silver mining industry making headlines today.

Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.

Conway Resources Makes an Offer to Purchase the Belleterre Mine Property - More
- October 22, 2008 | Item | E-mail

MacMillan Gold and Duran Ventures Report Aguila Hole 11 604.3 Metres Averaging 0.718% Copper Equivalence - More
- October 22, 2008 | Item | E-mail

Sterling Mining Company Announces Appointment of New Chief Financial Officer - "Sterling Mining Company's (OTC BB:SRLM.OB - News)(Frankfurt:SMX.F - News) ("Sterling") has appointed Kenneth Rux as its new Chief Financial Officer. Mr. Rux replaces James N. Meek, who has resigned as Vice President and Chief Financial Officer and will be leaving the Company to pursue other opportunities." More
- October 22, 2008 | Item | E-mail

Newmont Announces Simon Thompson Elected to Newmont's Board of Directors - "Simon Thompson's career includes having served as Executive Director of Anglo American, as well as Chairman of the company's Base Metals and Exploration Divisions and the Tarmac Group. He also served as President of Minorco Brazil. Mr. Thompson has significant mining and finance experience in over 30 countries, and his background also includes executive positions with investment banks S.G. Warburg & Co. and N M Rothschild & Sons." More
- October 22, 2008 | Item | E-mail

Newmont Declares Regular Quarterly Dividend - "The Board of Directors of Newmont Mining Corporation (NYSE: NEM - News) today declared a regular quarterly dividend of $0.10 per share of common stock, payable December 29, 2008 to holders of record at the close of business on December 5, 2008." More
- October 22, 2008 | Item | E-mail

Almaden Minerals Ltd.: Encouraging Results Received from the ATW Diamond Property - "Almaden Minerals Ltd. ("Almaden") (Toronto:AMM.TO - News)(NYSE-A: AAU) has received results from a Mineral Composition and Surface Texture Study conducted by Mineral Services Canada Inc. (MSC) on mineral grains recovered in 2003 and 2008 from Almaden's 57.7% owned ATW diamond property located at Mackay Lake, NWT. The ATW project is located proximal to a number of active diamond projects: The Diavik Mine lies about 29 kilometres north, the Snap Lake Project is about 68 kilometres southwest, and Mountain Province's property is about 72 kilometres southeast." More
- October 22, 2008 | Item | E-mail

TTM to make a Normal Course Issuer Bid to purchase up to 2,500,000 shares of the company's outstanding shares - More
- October 22, 2008 | Item | E-mail

Mantis extends warrants - More
- October 22, 2008 | Item | E-mail

NQ Exploration Inc.: Options Granted to Chief Financial Officier - More
- October 22, 2008 | Item | E-mail

Liberty Star and NPX Metals Enter Revised Agreement on Gold-Silver Nevada Property - More
- October 22, 2008 | Item | E-mail

Brazauro Announces Final Results of 2008 Drilling Campaign at Tocantinzinho - More
- October 22, 2008 | Item | E-mail

Nuinsco Provides Update on Huston Lake/Marijane Lake Joint Venture Agreement - More
- October 22, 2008 | Item | E-mail

Kinbauri Gold Corp.: Funds Released From Escrow - More
- October 22, 2008 | Item | E-mail

Temex provides exploration update - More
- October 22, 2008 | Item | E-mail

Polar Star-3 Meters of 31.67 g/t Gold Plus 0.78% Copper at Chepica Mine - More
- October 22, 2008 | Item | E-mail

Adanac Updates Ruby Creek Bankable Feasibility Study Costs - More
- October 22, 2008 | Item | E-mail

BacTech Seeks Government Funding for Bioleach Plant to Neutralize Toxic Arsenic Tailings in Cobalt, Ontario - More
- October 22, 2008 | Item | E-mail

Crowflight Expands Resources at Satellite Deposits Near Bucko Lake Nickel Mine - More
- October 22, 2008 | Item | E-mail

MDN Inc.: Tulawaka Mine Produces 53,694 Ounces of Gold During the Third Quarter of 2008 - More
- October 22, 2008 | Item | E-mail

Buffalo Signs M.O.U. for Initial CDN$13M Investment Deal - More
- October 22, 2008 | Item | E-mail

American Bonanza Gold Corp.: Southwest Gold Zone Expands at Copperstone - More
- October 22, 2008 | Item | E-mail

Mountain Lake Closes First Tranche of Financing - More
- October 22, 2008 | Item | E-mail

Premier to aquire Barrick's interest in Geraldton district - More
- October 22, 2008 | Item | E-mail

Lions Gate Metals Inc.: Poplar Property Land Staking Completed - More
- October 22, 2008 | Item | E-mail

Unico, Inc. Announces the Receipt of an Additional $100,000 in Funding From Moore Investment Holdings, LLC - More
- October 22, 2008 | Item | E-mail

Pacific Gold Corp. Enters into Standstill Agreement on Convertible Notes - More
- October 22, 2008 | Item | E-mail

SearchGold Options Arae-Gassel Property in Burkina Faso, Previous Drill Intercepts up to 1.49 g/t Au Over 130 M on Strike With Wega Mining's 1.4 Million Oz Au - More
- October 22, 2008 | Item | E-mail

Mawson receives 1 million shares in Hodges Resources Ltd - More
- October 22, 2008 | Item | E-mail

Hinge Zone Drilling Encounters More Bonanza Grade Gold - More
- October 22, 2008 | Item | E-mail

Romios Intersects 2.06% Copper, 1.05 GPT Gold and 26.01 GPT Silver Over 32.0 Metres (105 ft.) in Discovery Hole at its Trek Property - More
- October 22, 2008 | Item | E-mail

Adex Provides Update on Its 2008 Mount Pleasant Development Program - More
- October 22, 2008 | Item | E-mail

Continental Nickel Expands High Grade Nickel-Copper Zones at the Nachingwea Project, Tanzania - More
- October 22, 2008 | Item | E-mail

Uranium One to Place Dominion Operations on Care and Maintenance - More
- October 22, 2008 | Item | E-mail

FACTBOX-Mines and plants hurt by low prices, high costs - "The global financial crisis and sharp falls in metals prices have forced several companies to abandon or put on hold their plans to bring new mines on-stream.

Some existing producers have also shut down or curtailed their output at mines and plants as high costs and low prices bite. Below are details of the major projects and facilities which have been affected in recent months, as well as other related news." More
- October 22, 2008 | Item | E-mail

Provisional Attachment Relating to Boliden Apirsa - More
- October 22, 2008 | Item | E-mail

Update on the Rovina Valley Project, Romania; Drilling intersects 516 m at 1.11 g/t Au eq., Including, 177 m at 1.48 g/t Au eq. at Ciresata Porphyry - More
- October 22, 2008 | Item | E-mail

Managing Morila's transition for benefit of all - "The Morila gold mine in Mali will start its transition to a stockpile retreatment operation towards the middle of next year and its stakeholders must work together to ensure that the maximum value is extracted from the remaining asset while it is brought to a close in an orderly and responsible manner, says Randgold Resources chief executive Mark Bristow. Randgold Resources manages and has a 40% stake in the mine, which it discovered and developed." More
- October 22, 2008 | Item | E-mail

IAMGOLD: Ecuador Votes in Favour of New Constitution, a Positive Step Towards a New Mining Law - "'We are very encouraged by the results of the referendum and are optimistic that Ecuador will proceed quickly towards a new mining law that will allow responsible mining to the benefit of all stakeholders,' commented Joseph Conway, President & CEO." More
- October 22, 2008 | Item | E-mail

Minefinders Commences Leaching at the Dolores Mine and Provides Other Updates - "Leaching of the first ore panel has commenced and we anticipate first gold and silver production in the next few weeks" said Mark Bailey, Minefinders' President and CEO. "This is a significant milestone in the commissioning of the Dolores Mine and an exciting time for our shareholders and those who have been instrumental in the effort to bring this deposit from a grassroots discovery to production." More
- October 22, 2008 | Item | E-mail

Gold Resource Corporation Updates Mineralized Material Estimate for El Aguila Project - More
- October 22, 2008 | Item | E-mail

Kalimantan Gold Appoints Experienced Coal Manager - More
- October 22, 2008 | Item | E-mail

Orko Silver Extends Martha Vein by 400 Metres - "Of particular note is a thick, high-grade intercept for the Martha Vein in hole BP08-270. This hole is located 400 metres further southeast than any previously reported holes. Hole BP08-270 yielded a true thickness of 11.03 metres grading 0.716 g/t gold and 302.0 g/t silver for a silver-equivalent of 345.0 g/t, plus lead 1.80 % and zinc 0.68 %." More
- October 22, 2008 | Item | E-mail

Silver Standard Resources Inc.: Drilling Defines New Gold-Copper Zone at Snowfield - "Silver Standard Resources Inc. (Toronto:SSO.TO - News)(SSRI - News) is pleased to report that diamond drilling in 2008 at its wholly-owned Snowfield project has outlined a new gold-copper zone. The Snowfield property is located 40 kilometers north of the town of Stewart in northern British Columbia and 15 kilometers southeast of Barrick's high-grade gold-silver mine at Eskay Creek." More
- October 22, 2008 | Item | E-mail

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