-- Posted Friday, 24 October 2008 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss | On Week |
Gold | $729.65 | +$15.60 | -7.16% |
Silver | $9.275 | -$0.215 | -0.75% |
XAU | 70.86 | +4.31% | -17.46% |
HUI | 168.65 | +5.45% | -17.02% |
GDM | 499.60 | +4.95% | -17.09% |
JSE Gold | 1420.74 | -200.53 | -18.28% |
USD | 86.42 | +1.20 | +4.88% |
Euro | 125.82 | -3.31 | -6.27% |
Yen | 105.64 | +2.91 | +7.22% |
Oil | $64.15 | -$3.69 | -10.72% |
10-Year | 3.697% | +0.163 | -6.12% |
Bond | 116.953125 | -1.00 | +3.57% |
Dow | 8378.95 | -3.59% | -5.35% |
Nasdaq | 1552.03 | -3.23% | -9.31% |
S&P | 876.77 | -3.45% | -6.78% |
The Metals:
Gold fell $32.90 or 4.6% to a new 13 month low at $681.15 by midday in London, but it then fiercely rallied back higher in New York and rose to as high as $749 before closing with a gain of 2.2%. Silver dropped 86 cents or 9.1% to $8.63 and rose to see an over 1% gain at $9.587 by early afternoon in New York before it fell back off a bit in the last hour of trade and ended with a loss of 2.3%.
Euro gold rose to about €576, platinum gained $4.50 to $793.50, and copper fell another 12 cents to about $1.68.
Gold and silver equities rose over 5% by late morning and remained nicely higher in afternoon trade despite substantial losses in the major indices.
The Economy:
Report | For | Reading | Expected | Previous |
Existing Home Sales | Sep | 5.18M | 4.95M | 4.91M |
All of this week’s economic reports:
Next week’s economic highlights include New Home Sales on Monday, Consumer Confidence on Tuesday, Durable Goods Orders and the fed’s policy statement on Wednesday, GDP and Initial Jobless Claims on Thursday, and the Employment Cost Index, Personal Income and Spending, Chicago PMI, and Michigan Sentiment on Friday.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil pretty much ignored OPEC’s 1.5 million barrel production cut and instead followed world equities lower on global recession fears to close at its lowest since May 2007.
The U.S. dollar index continued to receive safe haven inflows along with the yen. The dollar saw most of its gains versus the British Pound and Euro as a negative Q3 GDP reading for the UK reinforced the view that Europe and surrounding nations are even worse off than the US heading forward. The European Central Bank and Bank of England also have much more room to cut interest rates than the fed before they get to 0% as the fed is already at just 1.5% while the ECB is at 3.75% and the BoE is at 4.5%, but one wonders what will happen down the road if more stimulus is needed when the central banks are already at 0%. What, if anything, can be done then? When thinking of it that way it seems as if the US and its currency is in a much tougher spot than other nations. Having more room to cut may have a short term negative impact on the respective currencies as differentials between different bank rates narrow should more cuts come from the ECB and BoE than the Fed, but unintended and long term consequences certainly need to be considered as has been shown by unforeseen developments following the introduction of so many exotic and previously unheard of programs rolled out over the last few months in attempts to solve the credit crisis.
Treasuries fell despite their typical role as a safe haven asset as worries persist over inflation down the road and also the need to issue more and more debt to fund programs aimed at solving the credit crisis while buyers of US bonds seem to becoming more and more sparse.
The Dow, Nasdaq, and S&P again saw massive losses along with most of the rest of the world on concerns over a global recession or worse. Futures were halted before the US market open as they were all limit down, but stocks did open relatively orderly and the major indices hit new 5 and ½ year lows before they closed over 3% lower on the day when all was said and done.
Among the big names making news in the market Friday were Chrysler, AIG, PNC and National City, Ingersoll Rand, Sony, T. Rowe Price, and GE.
The Commentary:
“The most difficult concept for the professional public to understand is that hyperinflation can exist along with a totally disastrous economic environment. Hyperinflation falls flat because it fails to take into account the infinite velocity of money that a Weimar creates during a depression economy as a product of throwing monetary discipline at the wall.
When you pay people three times a day to keep up with prices, consider the mammoth daily increases in all private and business transactions in terms of the total number of currency units. What happens to the velocity of money? The turnover increases with the rate of inflation until both are hyper creating an unstoppable spiral.
Few understand that monetary inflation proceeds and sustains price inflation. For this reason world business in a rat hole with credit still jammed up will lead to hyperinflation in 2009-2010.
If world business is perceived to have bottomed and credit flows are re-established, this will bring hyperinflation in 24 hours.
We have heard both Russia and China chime in today on their clear perception of the pre-election falsely valued US dollar and government interference in not only gold but energy and food.
The PPT is working overtime on those index spreads but they only have a short time (13 to 88 days) before they have to throw it into what is most likely inexperienced hands.
Yes, a planetary Weimar is on the menu. Russia, the Middle East and China may just be the top survivors. Africa might just come into its own in such a scenario due to the amount of raw material and gold resources they have.
Respectfully,”- Jim Sinclair, JSMineset.com
“December Gold closed up 15.6 at 730.3. This was 28.8 up from the low and 16.7 off the high.
December Silver finished down 0.205 at 9.295, 0.185 off the high and 0.435 up from the low.
After a rather significant initial washout in gold prices early Friday morning the market was able to forge a pretty impressive recovery bounce. While some players suggested that the recovery in the stock market provided profit taking incentive to gold, other traders suggested that some longs were looking to establish long plays for the weekend. In fact, with the gold at times managing a rise of roughly $70 an ounce in the face of a mid afternoon equity market slide, one got the sense that weekend flight to quality buyers were doing some bargain hunting buying late on Friday. Clearly the gold market was at least partially supported by the better than expected US scheduled data flow on Friday morning, but perhaps the gold market was also attempting to factor in a possible upcoming US interest rate cut.
The silver market clearly didn't get the same kind of lift as the gold market did in the early afternoon trade. In fact, the silver market seemed to favor a tight positive correlation with the equity market regardless of the action in the Gold market. Certainly strength in the Dollar and weakness in a host of physical commodities left the silver trade fearful of more deflationary selling, but some in the bull camp had to be discouraged by the lack of a meaningful short covering effort in the face of this week's declines. Some might suggest that the silver washout of roughly $1.53 per ounce was tame compared to the slide in gold and copper prices.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
John Lee: Deflationary depression? Where to go from here
Rob Kirby: Disinformation specialists ply their trade
Did Professor Mundell really say that about China and gold?
The Statistics:
As of close of business: 10/24/2008
Gold Warehouse Stocks: | 8,559,416 | -107 |
Silver Warehouse Stocks: | 131,530,256 | -602,065 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 747.06 | 24,018,829 | US$ 17,288m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 122.64 | 3,943,150 | US$ 2,880m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.89 | 382,084 | US$ 279m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.21 | 842,817 | US$ 606m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 8.58 tonnes and the LSE subtracted 1.03 tonnes.
COMEX Gold Trust (IAU)
Profile as of 10/23/2008 | |
Total Net Assets | $1,479,219,019 | Ounces of Gold
in Trust | 2,074,377.938 |
Shares Outstanding | 21,050,000 | Tonnes of Gold
in Trust | 64.52 |
Note: Change in Total Tonnes from yesterday’s data: 0.77 tonnes were removed from the trust.
Silver Trust (SLV)
Profile as of 10/23/2008 | |
Total Net Assets | $2,069,895,150 | Ounces of Silver
in Trust | 221,698,064.200 |
Shares Outstanding | 224,400,000 | Tonnes of Silver
in Trust | 6,895.58 |
Note: No change in Total Tonnes from yesterday’s data.
The Stocks:
Freeport’s (FCX) upcoming worker strike and recent history, Golden Star’s (GSS) mill repairs, Aurizon’s (AZK) drill results, Apollo’s (AGT) partly repaid loan, Randgold’s (GOLD) underground development benefits, Harmony’s (HMY) uranium assets, IAMGOLD’s (IAG) bid for Euro Resources, and Arian’s (AGQ.V) private placement were among the big stories in the gold and silver mining industry making headlines Friday.
WINNERS
1. Aurizon | AZK+18.42% $1.35 |
2. Jaguar | JAG +18.12% $3.39 |
3. Kinross | KGC+10.82% $8.81 |
LOSERS
1. DRDGOLD | DROOY -10.84% $3.70 |
2. International Royalty | ROY -7.64% $1.33 |
3. Richmont | RIC -6.06% $1.55 |
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:
Freeport-McMoRan: Big deal, hurt by low prices now - "Back in May, the future looked rosy for Freeport-McMoRan Copper & Gold (FCX.N: Quote, Profile, Research, Stock Buzz) with copper selling at over $4 a pound and gold nudging $1,000 an ounce.
The company had integrated the mines of Phelps-Dodge -- a bigger rival it acquired in an audacious $25.9 billion deal -- and was looking to start up one of the world's richest copper/cobalt projects in Democratic Congo next year." More
- October 24, 2008 | Item | E-mail
Explor Increases Carnegie Land Position - More
- October 24, 2008 | Item | E-mail
Richmond Minerals Inc. - Changes to the Board of Directors and appointment of a new Chief Financial Officer - More
- October 24, 2008 | Item | E-mail
Simberi Grants Options to Officers & Directors - More
- October 24, 2008 | Item | E-mail
Acadian Mining provides corporate update - More
- October 24, 2008 | Item | E-mail
Melkior Has the Options to Earn 50% of Some Troilus Properties From Beaufield - More
- October 24, 2008 | Item | E-mail
Beaufield Options Some Troilus Properties to Melkior Resources - More
- October 24, 2008 | Item | E-mail
Sulliden update on Shahuindo litigation - More
- October 24, 2008 | Item | E-mail
Reunion Gold Corporation Provides an Exploration Update - More
- October 24, 2008 | Item | E-mail
IAMGOLD's Cash Bid for Euro Ressources to Close November 21, 2008 - "Corporation ("IAMGOLD") (Toronto:IMG.TO - News)(NYSE:IAG - News)(BOTSWANA: IAMGOLD) announced today that the French Autorite des marches financiers ("AMF"), disclosed the final calendar of the tender offer ("Offer") to acquire all the outstanding shares of Euro Ressources S.A. ("Euro") in an all cash Offer representing EUR 1.20 per share. The public Offer opened on October 6, 2008 and will close on November 21, 2008." More
- October 24, 2008 | Item | E-mail
Millrock Announces Appointment of New Director - More
- October 24, 2008 | Item | E-mail
First Metals Operations Update - More
- October 24, 2008 | Item | E-mail
Tao Minerals Announces Receipt of $100,000 Tranche, Completing Funding From $500,000 Financing Agreement - More
- October 24, 2008 | Item | E-mail
Katanga Mining to Review Capital Expenditure - More
- October 24, 2008 | Item | E-mail
TerraX Receives Drill Results from the Needle Gold Property, Nunavut - More
- October 24, 2008 | Item | E-mail
General Metals Raises Over $140,000 via Private Placement - More
- October 24, 2008 | Item | E-mail
Etruscan outlines widespread rare earth occurrences in Namibia - More
- October 24, 2008 | Item | E-mail
AuEx Ventures, Inc.: Drilling Commences at North Klondike - More
- October 24, 2008 | Item | E-mail
Russia's SMR to delay Hong Kong IPO - source - More
- October 24, 2008 | Item | E-mail
Vena Resources Updates Exploration and Development Strategy - More
- October 24, 2008 | Item | E-mail
Arian Silver Completes Private Placement - "The placement has raised Cdn$1,750,000 for the issue of 17,500,000 common shares at Cdn$0.10 per common share (the "Offering")." More
- October 24, 2008 | Item | E-mail
Golden Star Announces Wassa Mill 2 Repairs Complete - "Golden Star Resources Ltd. (AMEX: GSS - News)(TSX: GSC - News)(GSE: GSR) is pleased to announce that the pinion gear assembly on Wassa’s Mill 2 ball mill that experienced mechanical failure in late August has been repaired and the Mill has been recommissioned. Testing of Mill 2 commenced ahead of schedule on October 20, 2008 and ore feed began on October 21, 2008. The Mill is now operating at 100% capacity." More
- October 24, 2008 | Item | E-mail
New gold zone discovered 7.5 kilometres east of Casa Berardi Mine - "Aurizon Mines Ltd. ("Aurizon") has been advised by Lake Shore Gold Corp ("Lake Shore") of encouraging results from its Phase 1 drill program on a portion of Aurizon's 100% owned Casa Berardi property, in north-western Quebec." More
- October 24, 2008 | Item | E-mail
Apollo Gold Repays US$1.9 Million of RMB Resource Loan Early - "Apollo Gold Corporation (“Apollo”)(TSX: APG - News)(AMEX: AGT - News) announces that it has prepaid US$1,952,000 of the US$4,789,000 balance outstanding under the facilities agreement with RMB Australia Holding Limited (“RMB”) from proceeds of unwinding part of its hedge position as more fully described below." More
- October 24, 2008 | Item | E-mail
Randgold - Yalea underground development benefits - "The Yalea underground development at Randgold Resources' Loulo gold mining complex represents a further introduction of first-world technology to Mali, chief executive Mark Bristow said today. Yalea is the first major underground mine to be developed in West Africa for many years." More
- October 24, 2008 | Item | E-mail
Harmony revises downwards value of uranium assets - "Africa's third largest gold producer Harmony Gold said on Friday it had revised the value of a new firm into which it is selling its uranium and some gold assets to $348 million, down from $420 million agreed in a deal struck last December." More
- October 24, 2008 | Item | E-mail
Harmony revises downwards value of uranium assets - More
- October 24, 2008 | Item | E-mail
ABML Announces Strategic Update - More
- October 24, 2008 | Item | E-mail
Lake Shore Gold Discovers New Gold Zone at Casa Berardi - More
- October 24, 2008 | Item | E-mail
Union says to strike at Freeport's Peru copper pit - "Workers at Freeport-McMoRan's (FCX.N: Quote, Profile, Research, Stock Buzz) Cerro Verde copper pit in Peru will go on strike Nov. 3 to demand better benefits, a union official said on Friday." More
- October 24, 2008 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Friday, 24 October 2008 | Digg This Article | Source: GoldSeek.com
Gold Seeker Weekly Wrap-Up: Gold and Silver Fall About 7% and 1% on the Week
