-- Posted Tuesday, 10 September 2013 | | Disqus
| Close | Gain/Loss |
Gold | $1364.80 | -$21.70 |
Silver | $22.96 | -$0.71 |
XAU | 98.54 | -3.56% |
HUI | 241.07 | -4.17% |
GDM | 731.71 | -4.09% |
JSE Gold | 1280.28 | -30.00 |
USD | 81.80 | UNCH |
Euro | 132.66 | +0.13 |
Yen | 99.68 | -0.75 |
Oil | $107.39 | -$2.13 |
10-Year | 2.959% | +0.062 |
T-Bond | 130.15625 | -0.875 |
Dow | 15191.06 | +0.85% |
Nasdaq | 3729.02 | +0.62% |
S&P | 1683.99 | +0.73% |
The Metals:
Gold fell $28.90 to $1357.60 at about 10AM EST before it bounced back higher midday, but it still ended with a loss of 1.57%. Silver slipped to as low as $22.80 and ended with a loss of 3.00%.
Euro gold fell to about €1029, platinum lost $14.20 to $1467.80, and copper fell a couple of cents to about $3.26.
Gold and silver equities fell about 4% by midafternoon and remained near that level for the rest of the day.
The Economy:
Report | For | Reading | Expected | Previous |
JOLTS Data | July | 3.689M | - | 3.869M |
Tomorrow at 10AM EST brings the Wholesale Inventories report for July expected at 0.2%.
The Markets:
Charts Courtesy of http://finance.yahoo.com/
Oil continued to fall on easing worries about Syria.
The U.S. dollar index saw slight gains at times as the yen fell on increased risk appetite.
Treasuries remained lower after today’s $31 billion 3-year note auction sold at a yield of 0.913% with a bid to cover of 3.29.
The Dow, Nasdaq, and S&P climbed higher on more strong data out of China.
Among the big names making news in the market today were Dow Jones, JPMorgan, McDonald’s, BofA, Goldman Sachs, Crocs, and Lehman Brothers.
The Commentary:
“While reading through some of the newswires stories this AM, I came across an interesting report about Pan American Silver.
You might recall that I had recently written that I believed we were going to see the increased use of hedging among gold and silver miners in order to get themselves some downside price protection and to actually lock in some profits during a period in time of wildly unpredictable price swings in the precious metals.
The story from Down Jones reports comments from CEO Geoff Burns as stating that PAAS had recently instituted hedges in order to reduce risk originating from the wild price swings. Here is his quote:
"Our action may have inadvertently sent the wrong message to the market and to our shareholders about our hedging philosophy and our view of the long-term prospects for silver and gold".
He also stated that he was "considerably more optimistic" about the short term prospects for both metals.
"More importantly, we need to unequivocally reassure our shareholders that the company's fundamental philosophy is still that of not hedging our precious metal production, thereby providing maximum exposure to the price of silver".
The report went on to say that PAAS had entered into forward contracts ( a means of hedging) 20% of its forecasted silver production and 18% of gold production.
They are now delivering the metal and repurchasing in order to close out all of these forward contracts before the end of the current year.
The thing I came away from reading the report is that the company instituted these hedges as part of "a short-term tactical response" to market conditions.
Apparently PAAS feels that the worst of the price decline in the precious metals is over. Remember, this is the thinking of one mining company but I did find it interesting that they were willing to employ some strategic hedging. They are to be commended for that in my opinion as mining companies should not be in the business of losing profits from mining operations. If they can lock in a decent profit on some of their production and mitigate or eliminate that risk, then they are wise to do so.
I would suggest that mining companies do not have the best track record when it comes to the prediction of gold and silver prices. I am of the opinion that any business, whether it be mining, agriculture, etc., that does not take steps to mitigate price risk is taking reckless chances with its shareholders' wealth. It in essence, has become a speculator in its own right. As a speculator, I do not need any mining company I might have chosen to invest in to be speculating on my behalf. I want them to show CONSISTENT and GROWING profits. If hedging is a means to do that, then so be it. I would much rather have a company that misses some upside rather than one that becomes unprofitable and ends up losing money for me. Heck, I can do that easily enough myself as a commodity trader!”- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/
GATA Posts:
Bill Rice: I'm assuming manipulation is here to stay
The Statistics:
As of close of business: 9/09/2013
Gold Warehouse Stocks: | 7,028,713.229 | -4,945.88 |
Silver Warehouse Stocks: | 161,284,658.299 | -614,517.63 |
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) AND Mexico Stock Exchange (BMV) | SPDR® Gold Shares | 917.126 | 29,486,502 | US$40,029m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) | Gold Bullion Securities | 138.13 | 4,441,056 | US$6,059m |
London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam | ETFS Physical Gold | 152.66 | 4,908,200 | US$8,004m |
Australian Stock Exchange (ASX) | Gold Bullion Securities | 11.16 | 358,789 | US$490m |
Johannesburg Securities Exchange (JSE) | New Gold Debentures | 41.92 | 1,347,690 | US$1,869m |
Note: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.102 tonnes.
COMEX Gold Trust (IAU) Total Tonnes in Trust: 178.17: No change from yesterday’s data.
Silver Trust (SLV) Total Tonnes in Trust: 10,533.72: No change from yesterday’s data.
The Miners:
Timberline’s (TLR) closed public offering, Gold Resource’s (GORO) CEO retirement and successor, Seabridge Gold’s (SA) drill results, Timmins Gold’s (TGD) director resignation, Gold Fields’ (GFI) SEC probe, and Pan American’s (PAAS) hedge contracts were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. Nevsun | NSU +3.15% $3.60 |
2. Freeport | FCX +0.28% $31.93 |
3. Turquoise | TRQ +0.19% $5.22 |
LOSERS
1. Timmins | TGD -8.16% $1.80 |
2. Alexco | AXU -7.69% $1.68 |
3. Rio Alto | RIOM -7.20% $2.32 |
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
- Would you like to receive the Free Daily Gold Seeker Report in your e-mail? Click here
Additional Resources for today’s Gold Seeker Report can be found:
© Gold Seeker 2013
Note: This article may be reproduced provided the article, in full, is used and mention to Gold-Seeker.com is given.
Disclosure: The owner, editor, writer and publisher and their associates are not responsible for errors or omissions. The author of this report is not a registered financial advisor. Readers should not view this material as offering investment related advice. Gold-Seeker.com has taken precautions to ensure accuracy of information provided. Information collected and presented are from what is perceived as reliable sources, but since the information source(s) are beyond Gold-Seeker.com’s control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. Nothing contained herein constitutes a representation by the publisher, nor a solicitation for the purchase or sale of securities & therefore information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. Investors are advised to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.
-- Posted Tuesday, 10 September 2013 | Digg This Article
| Source: GoldSeek.com
Gold Seeker Closing Report: Gold and Silver Fall 1% and 3%
