• Gold: 1,196.10 -11.15
  • Silver: 14.27 -0.03
  • Euro: 1.174 -0.003
  • USDX: 94.248 0.336
  • Oil: 70.7 0.45

December 10: Gold and Silver Gain With Stocks

Chris Mullen
|
Monday, December 10th
 

Close

Gain/Loss

Gold

$1711.60

+$7.50

Silver

$33.19

+$0.13

XAU

164.15

+1.28%

HUI

438.91

+1.20%

GDM

1280.66

+1.28%

JSE Gold

2254.63

+58.62

USD

80.31

-0.10

Euro

129.42

+0.14

Yen

121.41

+0.19

Oil

$85.56

-$0.37

10-Year

1.616%

-0.011

T-Bond

151.0625

+0.1875

Dow

13169.88

+0.11%

Nasdaq

2986.96

+0.30%

S&P

1418.55

+0.03%

 
 

The Metals:

 

Gold climbed to as high as $1717.20 by about 8:30AM EST before it drifted back lower for most of the rest of trade, but it still ended with a gain of 0.44%. Silver rose to as high as $33.415 ended with a gain of 0.39%.

 

Euro gold rose to about €1323, platinum gained $14.50 to $1621, and copper climbed 3 cents to about $3.69.

 

Gold and silver equities rose over 1% at the open before they fell back off a bit in late morning trade, but they then rallied back higher in afternoon trade and ended near their early session highs.

The Economy:

 

Europe hails "great" Monti as Italy crisis hits markets Reuters

Central Banks Ponder Going Beyond Inflation Mandates Bloomberg

Homebuilders Boom as Lending Masks Uneven U.S. Recovery Bloomberg

Long Bond Rallying Five Times TIPS Gives Fed Room for QE4 Bloomberg

 

Tomorrow at 8:30AM EST brings the Trade Balance for October expected at -$42.8 billion and at 10AM is the Wholesale Inventories report for October expected at 0.4%.

 

The Markets:

 

Charts Courtesy of http://finance.yahoo.com/

 

Oil reversed early gains and ended with a slight loss on warm weather forecasts.

 

The U.S. dollar index fell and treasuries rose on speculation the fed may announce new bond purchases at the conclusion of its meeting this week.

 

The Dow, Nasdaq, and S&P rose on better than expected economic data out of China.

 

Among the big names making news in the market today were McDonald’s, Google, Delta, SAC, Standard Chartered, Honeywell, and AIG.

The Commentary:

 

When I normally lay out a chart detailing the ratio of the mining shares to the price of an ounce of gold, I use the HUI. I will still put up one of those further below but wanted to show you a ratio chart using the XAU to illustrate just how cheap these mining shares have become relative to gold itself.

 

The chart is simply staggering. I have gone back as far as my data will allow me with this and cannot find a reading so low.

I cannot overemphasize how critical it is that the CEO's of these mining companies listen to the message of the market and make the necessary changes to their organizations.

The two biggest things I can read in this message is to:

1.) Get a handle on expenses and cut them
2.) this follows on #1 - return those savings to the shareholders in the form of higher dividends.

Do this, and investors will react positively. Why? Where else can you buy so much gold at such a discounted price to the current market value? Relative to gold, some of these shares are as cheap as they have ever been, period.

Checking in with the HUI, some of the shares that comprise that index are as cheap, relative to gold itself, as they have been in ELEVEN years.- Dan Norcini, More at http://www.traderdannorcini.blogspot.com/

 

GATA Posts:

 

 

Bitcoin sponsor gets recognition as bank and payment system

Latin America catches the gold bug

Alasdair Macleod: Gold, silver futures markets heading for crisis

Alasdair Macleod: Markets, not Paul van Eeden, determine value

IMF study in 1999 found 80 central banks lending 15% of official gold reserves

 

The Statistics:

As of close of business: 12/07/2012

Gold Warehouse Stocks:

11,413,480.905

-4,215.27

Silver Warehouse Stocks:

146,634,328.121

+95,664.09

 

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

1353.346

43,511,415

US$74,002m

London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra)

Gold Bullion Securities

141.22

4,540,217

US$7,787m

London Stock Exchange (LSE) AND NYSE Euronext Paris AND Borsa Italiana AND Frankfurter Wertpapierbörse (Deutsche Börse - Xetra) AND NYSE Euronext Amsterdam

ETFS Physical Gold

159.80

5,137,720

US$8,378m

Australian Stock Exchange (ASX)

Gold Bullion Securities

11.16

358,789

US$615m

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 added 1.808 tonnes.

 

COMEX Gold Trust (IAU) Total Tonnes in Trust: 215.94: No change from yesterday’s data.

 

Silver Trust (SLV) Total Tonnes in Trust: 9,829.15: No change from yesterday’s data.

 

The Miners:

 

Solitario’s (XPL) drill results, AngloGold’s (AU) credit rating, and Timberline’s (TLR) permit were among the big stories in the gold and silver mining industry making headlines today.

 

WINNERS

1. Gold Reserve

GRZ +8.52% $2.93

2. Silver Standard

SSRI +5.24% $14.45

3. Banro

BAA +5.14% $3.27

LOSERS

1. Avino

ASM -1.14% $1.73

2. Mines MGMT

MGN-0.95% $1.04

3. Aurizon

AZK -0.54% $3.71

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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Additional Resources for today’s Gold Seeker Report can be found:

© Gold Seeker 2012

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