-- Posted Monday, 12 November 2012 | | Disqus
| Close | Gain/Loss |
Gold | $1727.90 | -$3.10 |
Silver | $32.38 | -$0.16 |
XAU | 178.70 | -1.33% |
HUI | 475.12 | -1.26% |
GDM | 1380.99 | -1.26% |
JSE Gold | 2454.46 | -11.81 |
USD | 81.04 | -0.02 |
Euro | 127.11 | UNCH |
Yen | 125.84 | +0.05 |
Oil | $85.57 | -$0.50 |
10-Year | 1.611% | -0.002 |
T-Bond | 151.65625 | +0.03125 |
Dow | 12815.16 | -0.00% |
Nasdaq | 2904.25 | -0.02% |
S&P | 1380.00 | +0.01% |
The Metals:
Gold edged up to $1737.87 by a little after 8AM EST, but it then fell back off in New York trade and ended with a loss of 0.18%. Silver slipped to as low as $32.186 and ended with a loss of 0.49%.
Euro gold fell to under €1360, platinum gained $10.80 to $1562.00, and copper climbed a couple of cents to about $3.47.
Gold and silver equities fell a little over 1% by late morning and remained near that level for the rest of the day.
The Economy:
Pimco-to-DWS See Economy Escaping Cliff as Stocks Fall Bloomberg
Tomorrow at 2PM EST brings the Treasury Budget for October expected at -$113 billion.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil fell on persistent worries about the U.S. fiscal cliff and European debt problems.
The U.S. dollar index waffled near unchanged as traders awaited developments about Greece’s next aid tranche.
The U.S. bond market was closed in observance of Veterans Day.
The Dow, Nasdaq, and S&P closed mixed and near unchanged in quiet trade.
Among the big names making news in the market today were Microsoft, Best Buy, Jefferies, Sherwin-Williams, and RIM.
The Commentary:
“As you all know by now, the Federal Reserve boldly announced plans "to boldly go where no man has gone before" and purchase each and every month, the tidy sum of $40 BILLION in US Mortgage Backed Securities (MBS ) to "aid the recovery". This was supposed to begin in September of this year and continue on out as far as the eye can see, into infinity, as my friend Jim Sinclair has stated, or until economic conditions warrant a cessation of the program.
Here is the problem however. I have been closely monitoring the balance sheet of the Fed each and every week and I simply do not see it! Take a look at the following chart I have constructed of the overall balance sheet but detailing also the sum of mortgage backed securities contained therein.
Can you see how both lines have basically flat lined since the cessation of QE2 last year? Does anyone out there see a climbing MBS line on this chart especially to the tune of $40 billion higher each month? I sure don't!
Here's a closer look at just the Mortgage Backed Securities listed on their Balance Sheet. Does anyone looking at this see any sort of SUSTAINED move upward on this graph as of yet?
By now we should have seen at the very least a jump of $40 billion for the month of October. We did get some buying seeing a jump from 835,000 to 868,069 (a rise of $33.1 billion - less than $40 billion) but then we fell right back again. Obviously the Fed is selling some of these assets as they have been doing for some time now but in my mind, this defeats the entire reason behind an additional stimulus effort involving $40 billion in new purchases each and every month. It may be that if this is the trend (purchase new MBS's and add to the balance sheet while selling some existing MBS's and remove those from the balance sheet) that the actual QE3 effort is going to fall short of an increase of $40 billion each and every month.
Here are the big questions which I hope someone out there who is more versed in these things than I am can answer - Where's the QE3 going? What is the Fed buying or are they even buying anything? If they are not buying, why not? If they are buying, why is the size of their balance sheet not increasing by at least the tune of $40 billion each month? How many existing MBS's already on their balance sheet prior to the onset of QE3 are they planning on selling?”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
MorganChase better get Indians to start reading Jon Nadler
Eric Sprott's presentation on market manipulation at Manhattan Investors conference
Zero Hedge: Fed, Bank of England deceived Bundesbank on coin-melt bars in 1968
The Statistics:
As of close of business: 11/09/2012
Gold Warehouse Stocks: | 11,274,366.884 | +43,513.996 |
Silver Warehouse Stocks: | 142,738,998.294 | -267,992.823 |
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 Exchange (TSE) AND Hong Kong Stock Exchange (HKEx) | SPDR® Gold Shares | 1338.712 | 43,040,927 | US$74,782m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 140.32 | 4,511,322 | US$7,824m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 156.33 | 5,026,180 | US$8,196m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$622m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 42.45 | 1,364,715 | US$2,214m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 0.904 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 210.62: +1.12 change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,075.52: +45.17 change from yesterday’s data.
The Miners:
McEwen’s (MUX) settled lawsuit, Timberline’s (TLR) completed drill program, Gold Resource’s (GORO) new Vice President of Exploration, Eldorado’s (EGO) senior notes offering, Endeavour Silver’s (EXK) new Vice President of Exploration, Huldra Silver’s (HDA.V) update on the commissioning of its mill, and Paramount’s (PZG) drill results were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Pretivm | PVG +1.81% $13.47 |
2. Sandstorm | SAND+1.54%$14.48 |
3. ITH | THM +1.27% $2.39 |
LOSERS
1. Comstock | LODE -11.38% $2.18 |
2. Gold Resource | GORO-8.98% $15.00 |
3. Midway | MDW -7.10% $1.57 |
Winners & Losers tracks NYSE and AMEX listed gold and silver mining stocks that trade over $1.
Please see Yahoo’s Mining/Metals News Wire for all of today’s mining news.
- Chris Mullen, Gold Seeker Report
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© Gold Seeker 2012
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-- Posted Monday, 12 November 2012 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver End Slightly Lower
