-- Posted Monday, 5 January 2009 | Digg This Article
| | Source: GoldSeek.com
| Close | Gain/Loss |
Gold | $856.35 | -$21.15 |
Silver | $11.245 | -$0.24 |
XAU | 118.78 | -3.77% |
HUI | 287.35 | -3.96% |
GDM | 875.40 | -4.64% |
JSE Gold | 2159.54 | -118.55 |
USD | 82.75 | +0.89 |
Euro | 136.06 | -3.15 |
Yen | 107.11 | -1.74 |
Oil | $48.81 | +$2.47 |
10-Year | 2.488% | +0.072 |
T-Bond | 133.015625 | -2.453125 |
Dow | 8952.89 | -0.91% |
Nasdaq | 1628.03 | -0.26% |
S&P | 927.45 | -0.47% |
The Metals:
Gold rose $7.67 to $885.17 and silver climbed $0.255 to $11.74 in early Asian trade before both metals plummeted to as low as $844.10 and $10.543 by about 9AM EST to see losses of 3.8% and 8.2%, but they then rallied back higher into the close and ended with losses of just 2.4% and 2.1%.
Euro gold closed at about €631, platinum closed at $946, and copper closed at about $1.44.
Gold and silver equities fell over 5% at the open before they rallied back higher to see only about 2% losses by mid-afternoon, but they then fell back off into the close and ended with about 4% losses.
The Economy:
Report | For | Reading | Expected | Previous |
Construction Spending | Nov | -0.6% | -1.4% | -0.4% |
President-elect Obama today announced that his “economic stimulus package will include hundreds of billions of dollars worth of tax breaks for individuals and businesses, according to a transition official and Democratic aides.
Obama is asking that tax cuts make up 40 percent of a stimulus package, the people say. The measure may be worth as much as $775 billion, a Democratic aide says, meaning tax cuts may constitute more than $300 billion of the legislation.”
Tomorrow at 10AM EST brings Factory Orders for November expected at -2.6% and ISM Services for December expected at 37.0.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil rose on geopolitical tensions in the Mideast and Russia as battles still rage in Gaza while Ukraine and Russia continue their dispute over gas imports.
The U.S. dollar index rose markedly and treasuries fell substantially in reaction to the details of Obama’s stimulus plan and hopes that it will help rejuvenate the economy.
The Dow, Nasdaq, and S&P traded mostly lower and ended with nearly 1% losses on concern that any economic recovery will be short-lived.
Among the big names making news in the market today were GM, Ford, Honda, Waterford Wedgwood, Borders, and Apple.
The Commentary:
“Dear CIGAs,
More tax cuts and more voodoo economics, a replay of the Mugabe/Zimbabwe approach to manufacturing paper and the dropping of tax revenue produce at best a double dip depression and more fiscal spending. It is simply more of the same. Doing the same produces the same, nothing else. Any other opinion is madness while grabbing at political solutions to real problems.
The fix was engineered by the Comex guys as they handed you your daily screwing yet again today at 7:02am in the NYC morning. Apparently the Comex guys got up a tad late today - perhaps still suffering from weekend hangovers.
Minus $23 in gold and a three cent change in the euro are simply more signs of the madness that is virulent in the mind of markets. As the fat shark eats the fat shark we end up with very few fat hedge fund sharks running markets. Nobody can do business when major trading currencies change 2.7% in five minutes. No major business on earth is smart enough to be able to maintain profit margins as the payment currencies change with such levels of violence.
Ignore the madness. Ignore the manipulators. Focus on the real. More of the same by a different personality will not produce different results. The dollar is dead. That is reality.
Let the paper tigers of the Comex pound the paper while you take delivery out of the warehouse and the big physical buyers just keep cleaning up and weak hand selling. I went to the Krugerrand and RSA gold factory between Johannesburg and Pretoria. All I heard was this great sucking noise as demand across the globe continued to take whatever the mints were able or willing to produce.
It is a total joke to assume that printing more paper money and spending what you do not have will strengthen that currency and set all that is askew right.
It simply will not, cannot, never has done and never will do anything but deepen the problem.
Let the nit-wits play in their in their boxes made on sand foundations. Let the media howl as they add only to their Tower of Babble.
Join me in this grand battle to end white collar crime and the white collar criminals. Take delivery of Comex gold, move it out of the Comex warehouse, sell it in the open market with a profit or even break even and do it all again and again and again. 1000 of us doing that by buying breaks like today will slice the Comex warehouse inventory in half in six months, maybe a lot sooner. War requires warriors.
Please join myself, Harry, Bill M, Jim P, Semper Fi # 321 and all the good guys, regardless of disagreements that come from time to time, in this great battle to protect our people.
Stop the rape! Stop the manipulations. Stop the takers, the users and the destroyers in gold. Stop paper money by getting the paper guys off gold. Stop those who believe they have dominion over you. I have had it, haven’t you? Where is your rage? You can borrow some of mine as I have plenty to spare. Let today be the day they screwed with the wrong people.
Your weapon is simple: 100 ounces out of the Comex warehouse bought when the paper guys beat it all to crap. Hold it and sell into the next rally in the cash market away from the Comex. Do it over and over again.
Take a stand please. It can get lonely out here from time to time…”- Jim Sinclair, More at JSMineset.com
“Dear CIGAs,
The start of a full week of trading in the New Year brought back the full complement of traders and with them the usual selling pressure emerged precisely at 2:00 AM, CST as London opened for business. The Euro was immediately violated and with its assault, the Dollar went the other way, namely straight up. Of course the usual gold selling gang wasted no time in attacking the yellow metal as it was pummeled $15. From that point it was nowhere but down as trading moved into New York where it received another mugging as all of the gains produced in the thinly-traded holiday markets of last year were wiped out. As I mentioned last week, low volume price action must always be suspect – it is simply too easy for a few, well-timed big orders to push a holiday market in any direction one wants it to go.
Today’s downdraft has taken gold back under the 10 day moving average which has now turned lower. Gold is still trading above the 20 day moving average and the longer term moving averages are still trending upwards so technically the market is bullish although the recent price action has left a somewhat negative short term chart formation that gold will have to deal with. It should be noted that once again the buy recommendation of a well known newsletter writer has proved to be the kiss of death for any gold rally. It is amazing to me how uncannily accurate in an inverse manner this writer has been when it comes to gold. Buy recommendations mean gold sells off and sell recommendations means that gold is getting ready to rally. Fading his actions has proven to be quite profitable for astute gold traders.
Support near the $850 level gave way early in today’s session before buying showed up in sufficient size to push the market away from that zone. This initial support did hold but barely. The next level of support should $850 give way, and one that gold must hold in order to keep the technicals friendly, is the $830 level. Two consecutive closes below that level and a short term top will be in (at least for gold priced in Dollar terms). Resistance still lies at the very stubborn $880 level. It is obvious that a seller/sellers of size are making a stand there – we all know who that is by now.
Again – at the risk of beating a dead horse- the only way to beat that crowd is to remove the metal from the Comex warehouses. Players of size must understand that they cannot win the paper game at the Comex unless they deprive the paper shorts of sufficient metal backing to make them vulnerable to delivery pressures. Along that line only 3 deliveries were assigned in the January this morning bringing this month’s total to 1,156 contracts or 115,600 ounces. January is a very thinly traded contract month so the bulk of any strategy to take gold in size will probably have to be relegated to the February as this month winds down. Those who intend to do so should use any selling pressure provided by the bullion banks, such as what we have seen today, as an opportunity to put on fresh longs with the intent to acquire the physical metal at a discount.” - Dan Norcini, More at JSMineset.com
“February Gold closed down 21.7 at 857.8. This was 11.8 up from the low and 1.7 off the high.
March Silver finished down 0.22 at 11.27, 0.02 off the high and 0.55 up from the low.
In its recent pattern February gold forged an aggressive early washout and then fought its way out from under the selling tide. While prices generally remained ultra weak throughout the trading session, at times February gold had managed to bounce by as much as $18 an ounce off the early lows. Clearly the ultra strong US Dollar was a major negative for gold during the Monday trade but one also got the feeling that gold was also seeing flight to quality long liquidation. Since the stock market wasn't definitively higher throughout the trading session Monday, it seems a little suspect to suggest that improved macro economic psychology was present in the marketplace.
Like the gold market, the silver market made its low early in the trading session and at times the March silver contract had managed to rally off the low by as much as 72 cents an ounce. With copper prices at times during the trading session Monday climbing into positive ground and crude oil prices also posting some impressive gains it is possible that silver was given part of its lift off the lows because of strength in certain outside markets. While the copper market wasn't able to finishing definitively strong platinum and crude oil were and that seemed to go along with an upbeat base metals view from Asia overnight.”- The Hightower Report, Futures Analysis and Forecasting
GATA Posts:
Peter Brimelow: Gold glitters but some radical bugs are cautious
Bart Chilton: Time to restore mission of regulators
Barrick's Munk urges Financial Times to check out gold
Fed's conversion to political patronage is getting noticed
Mimic below-zero rates, Chicago Fed president urges
Gold pays no interest, and soon the pound won't either
James Turk: Gold climbs again -- eight years in a row
The Statistics:
As of close of business: 1/05/2009
Gold Warehouse Stocks: | 8,534,570 | - |
Silver Warehouse Stocks: | 126,783,209 | -59,520 |
Global Gold ETF Holdings
[WGC Sponsored ETF’s]
| Product name | Total Tonnes | Total Ounces | Total Value |
New York Stock Exchange Arca (NYSE Arca) AND Singapore Exchange (SGX) AND Tokyo Stock Exchage (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 780.23 | 25,085,095 | US$ 21,929m |
London Stock Exchange (LSE) AND Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse ) | Gold Bullion Securities | 116.08 | 3,732,189 | US$ 3,202m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.51 | 375,606 | US$ 317m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 26.93 | 865,762 | US$ 757m |
Note: Change in Total Tonnes from December 24th’s data: SPDR added 4.9 tonnes to a new record high holding and the LSE added 0.38 tonnes.
COMEX Gold Trust (IAU)
Profile as of 1/2/2009 | |
Total Net Assets | $1,885,958,889 | Ounces of Gold
in Trust | 2,146,778.536 |
Shares Outstanding | 21,800,000 | Tonnes of Gold
in Trust | 66.77 |
Note: No change in Total Tonnes from December 24th’s data.
Silver Trust (SLV)
Profile as of 1/2/2009 | |
Total Net Assets | $2,418,868,893 | Ounces of Silver
in Trust | 218,399,705.800 |
Shares Outstanding | 221,250,000 | Tonnes of Silver
in Trust | 6,792.99 |
Note: Change in Total Tonnes from December 24th’s data: 30.69 tonnes were added to the trust.
The Stocks:
Rusoro’s (RML.V) bid for Gold Reserve (GRZ) was the only big story in the gold and silver mining industry making headlines today.
WINNERS
1. International Royalty | ROY +16.67% $1.75 |
2. NovaGold | NG +13.92% $1.80 |
3. ITH | THM +13.64% $1.50 |
LOSERS
1. Allied Nevada | ANV -10.51% $4.77 |
2. Lihir Gold | LIHR -10.17% $19.69 |
3. Aurizon | AZK -7.81% $2.95 |
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:
Merger of Linear Gold Corp. With Central Sun Mining Inc.-Conference Call/Webcast With Slideshow on Tuesday, January 6 at 2 P.M. Eastern - More
- January 05, 2009 | Item | E-mail
Strathmore Updates Gas Hills, Wyoming, Uranium Development Project - More
- January 05, 2009 | Item | E-mail
Black Pearl Closes Private Placement - More
- January 05, 2009 | Item | E-mail
Typhoon Closes Private Placement of CDN $103,000 - More
- January 05, 2009 | Item | E-mail
Sacre-Coeur Completes Prioritization and Restructuring of Its Guyana Property Portfolio; 1,013 sq km in Five Regional Blocks Retained - More
- January 05, 2009 | Item | E-mail
Executive Director of NKWE Platinum Speaks to Market Headquarters Analyst - More
- January 05, 2009 | Item | E-mail
Duran Ventures Aguila Hole 14 Intersects 455.25 Metres of 0.879% Copper Equivalent Including 259.58 Metres of 1.066% Copper Equivalent - More
- January 05, 2009 | Item | E-mail
Resource at La Mancha's Ity Mine Jumps 50% on Excellent Drill Results - More
- January 05, 2009 | Item | E-mail
Goldcorp Declares First Monthly Dividend Payment for 2009 - "GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) is pleased to declare its first monthly dividend payment for 2009 of $0.015 per share. Shareholders of record at the close of business on Thursday, January 15, 2009 will be entitled to receive payment of this dividend on Friday, January 23, 2009." More
- January 05, 2009 | Item | E-mail
Premier launches major 2009 exploration plans - More
- January 05, 2009 | Item | E-mail
Mercator Minerals Ships First Copper Concentrates at Its Mineral Park Mine - More
- January 05, 2009 | Item | E-mail
Victory Completes Acquisition of Independent - More
- January 05, 2009 | Item | E-mail
NQ Exploration Inc.: Departure of Vice President Exploration - More
- January 05, 2009 | Item | E-mail
Delta Uranium Finds Twelve Uranium Anomalies in Kenora, Sampling Over 2000 ppm U3O8 - More
- January 05, 2009 | Item | E-mail
EurOmax closes 485,000 financing - 2009 program at Kazandol commences - More
- January 05, 2009 | Item | E-mail
Silverado Announces Results of Preliminary Feasibility Study on Workman's Bench Gold and Antimony Deposit at Nolan Creek - More
- January 05, 2009 | Item | E-mail
Continental Nickel Intersects 15.96% Nickel and 1.33% Copper Over 2.45 Metres and 5.71% Nickel and 0.92% Copper Over 7.2 Metres at the Nachingwea Project - More
- January 05, 2009 | Item | E-mail
UEX Reports N.I. 43-101 Compliant Mineral Resource Estimate for the Raven Deposit of 9.15 million pounds of U(3)O(8) in the Indicated category - More
- January 05, 2009 | Item | E-mail
Rusoro Responds to Gold Reserve's Directors' Circular and Ongoing Defensive Tactics - "Rusoro Mining Ltd. (CDNX:RML.V - News) ("Rusoro" or the "Company") is pleased to confirm that, in spite of continued defensive tactics by Gold Reserve Inc. ("Gold Reserve"), Rusoro is committed to providing Gold Reserve shareholders the opportunity to consider Rusoro's bid for 100% of the shares of Gold Reserve (the "Bid") on its merits. The Bid was launched on December 15, 2008, it remains open, and Gold Reserve shareholders are free to tender their shares to the bid at any time prior to the Bid expiry time of midnight at the end of January 21, 2009." More
- January 05, 2009 | Item | E-mail
- Chris Mullen, Gold Seeker Report
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-- Posted Monday, 5 January 2009 | Digg This Article | Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall a Little Over 2%
