• Gold: 1,585.78 6.93
  • Silver: 16.64 0.01
  • Euro: 1.102 -0.001
  • USDX: 98.127 -0.259
  • Oil: 45.29 -1

August 8: Gold and Silver End Near Unchanged

Chris Mullen
Wednesday, August 8th


















JSE Gold
































The Metals:


Gold fell $8.20 to $1603.40 by a little after 8AM EST before it rallied to as high as $1616.49 in the next hour and a half of trade, but it then drifted back lower midday and ended with a gain of just 0.07%. Silver slipped to $27.699 before it rose to $28.246 by late morning in New York, but it then fell back off in afternoon trade and ended with loss of 0.32%.


Euro gold rose to about €1305, platinum gained $1 to $1407.50, and copper fell a couple of cents to about $3.42.


Gold and silver equities rose about 1.5% by late morning, but they then fell back off in afternoon trade and ended with modest losses.


The Economy:












Unit Labor Costs






Bernanke’s Nightmare Audit Pushed for Romney’s Platform Bloomberg

Fisher Says More Stimulus May Overburden Central Banks Bloomberg

Markit Plans Index Linked to New Commercial-Mortgage Securities Bloomberg

Mortgage applications rose last week: MBA Reuters

Home prices won't really recover until spring Yahoo


Tomorrow at 8:30AM EST brings Initial Jobless Claims for 8/04 expected at 375,000 and the Trade Balance for June expected at -$47.5 billion. At 10AM is the Wholesale Inventories report for June expected at 0.3%.


The Markets:


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


Oil ended slightly lower in mixed trade after the Energy Information Administration reported that crude inventories fell 3.7 million barrels, gasoline inventories fell 1.8 million barrels, and distillates fell 700,000 barrels.


The U.S. dollar index traded mostly slightly higher on uncertainty about Europe.


Treasuries turned lower after today’s $24 billion 10-year note auction sold at a high yield of 1.68% with a bid to cover of 2.49.


The Dow, Nasdaq, and S&P ended mixed as worries about Europe were offset by decent earnings reports.


Among the big names making news in the market today were McDonald’s, Priceline, Orbitz, New York Times, Hewlett-Packard, Standard Chartered, Macy’s, and Dean Foods.


The Commentary:


U.S. Stock Market - While no roaring bull on general equities, I’ve continue to suggest that betting against a market rise would be a poor choice. Despite all the predictions of meltdowns and such, the market continues to discount very legitimate poor fundamentals and technicals. I continue to suggest it would come as no surprise that it makes a minor new, all-time high this year. The only potential “game-changer” to that is my long-standing belief that a major military conflict in the Middle East is a question of when, not if.


U.S. Bonds - I had felt an opening short position to the 10-year T-Bond when the yield hit 1.44% was a way to play the upcoming worse investment for the next ten years and to become aggressively short if the yield fell to 1.25% or below. Those thoughts remain.


U.S Dollar – The suggestion that the 83-84 area on the U.S. Dollar Index could prove to be the top in what was little more than a dead-cat-bounce in the U.S. Dollar, appears to have been good eyesight as of now. I continue to believe what we have witnessed in Europe is a mere opening act to what shall unfold in the U.S. (starting by this time next year).


Gold – Despite the bear boat being loaded to the gills and the bull camp nearly deserted, yours truly has stood tall in his belief the “mother” of all gold bull markets remains intact. I was comforted last week when I read the world’s worse gold forecaster and the #1 buffoon in the gold perma-bear camp, poorly attempt (as he does daily in his dribble commentaries) to mock my “mother” view and twist other people’s comments to suit his daily bashing of gold (the latest being Lawrence Roulston’s gold and junior resource shares comments). There are numerous fundamental and technical reasons to be bullish on gold but none more important than the most wrong gold forecaster in the last decade continues to publish daily reasons why gold’s 500% rise is in his eyes just a mirage (just like the mirage that anyone who has listened to him isn’t broke by now). Remember, there will be another fundraising effort for the Tokyo Rose of gold bears when gold breaks above $2,000.


Oil and Natural Gas - Nothing has changed; like oil and avoid natural gas.”- Peter Grandich, Grandich Letter


GATA Posts:



Indians may not be as ignorant as their government pretends they are

Russia Today's 'Capital Account' interviews GATA secretary


The Statistics:

As of close of business: 8/07/2012

Gold Warehouse Stocks:



Silver Warehouse Stocks:




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




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

Gold Bullion Securities




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

ETFS Physical Gold




Australian Stock Exchange (ASX)

Gold Bullion Securities




Johannesburg Securities Exchange (JSE)

New Gold Debentures




Note: No change in Total Tonnes from yesterday’s data.


COMEX Gold Trust (IAU) Total Tonnes in Trust: 182.86: No change from yesterday’s data.


Silver Trust (SLV) Total Tonnes in Trust: 9,742.43: No change from yesterday’s data.


The Miners:


McEwen’s (MUX) exploration results, Nevsun’s (NSU) second quarter results, Gold Resource’s (GORO) conference call, Silver Wheaton’s (SLW) acquired metals streams, Endeavour’s (EXK) optioned properties, and Excellon’s (EXN.TO) force majeure were among the big stories in the gold and silver mining industry making headlines today.



1. Loncor

LON +7.00% $1.07

2. Avino

ASM +5.13% $1.23

3. Silver Wheaton

SLW +4.36% $29.93



1. Alexco

AXU-15.9% $3.65

2. Midway


3. AuRico

AUQ-5.25% $6.68

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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