Gold & Silver Daily
"It certainly appears that the precious metals are about to break out to the upside...and the current environment is ripe for exactly that to happen."
 

¤ Yesterday In Gold & Silver

As has been the case lately, the gold price didn't do much of anything in early Far East trading, but did begin to develop a positive bias starting around 1:30 p.m. Hong Kong time.  The rally, such as it was, ended at the 8:20 a.m. Comex open in New York.

That time was also it's high of the day...$1,630.70 spot.

The New York low [$1,614.40 spot] followed shortly after 11:00 a.m...although the low tick of the day was actually a few dollars less than that in early morning trading in Hong Kong.

From there it traded flat, but popped ten bucks right around the Comex close.  The gold price got sold off from there, but continued rising almost into the close of electronic trading at 5:15 p.m. in New York.  This was a rather unusual trading pattern for late Friday afternoon.  Normally it's ruler flat.

Gold closed at $1,623.60 spot...up $7.50 from Thursday's close.  As I mentioned in this space yesterday, we are down to the last days of the roll-over out of the August delivery month for gold...and I was expecting big trading volume in the futures market on Friday.  Well, I wasn't disappointed, as gross volume was an immense 335,739 contracts...but once all the spreads and roll-over were subtracted, the net volume was around 61,000 contracts.

Just like on Thursday, the silver price path was almost a carbon copy of gold's price path...and it's price was, as usual, more 'volatile'.  Besides that, the only difference of note was silver's New York low...$27.29 spot...which came around 9:45 a.m. vs. 11:10 a.m. for gold.  Other than that, the other inflection points were identical.  The spike high of the day [$28.01 spot] came shortly before 8:30 a.m. in New York...less than ten minutes after the Comex open.  There was also very interesting trading activity that started about ten minutes before the Comex close...and continued into the 5:15 p.m. electronic close.

Silver had an intraday price move in New York of 2.64%.  Silver closed at $27.79 spot...up 25 cents on the day...and well off its low.  Surprisingly, most of the day's gains came in the thinly-traded electronic market after 1:30 p.m.  I don't know what to make of that, except to say that it was far from ordinary trading action...especially for a Friday.  Net volume was around the 32,000 contract mark.

The dollar index slid a hair heading into the London open...and then in less than two hours rallied almost 30 basis points to its high of the day shortly before 10:00 a.m. BST.  From there, the index declined in fits and starts by a bit over 60 basis points...hitting its low of the day about 1:25 p.m. Eastern time...which was when the interesting happenings began in the Comex futures market in both gold and silver.

From that low, the dollar index popped over 40 basis points in less than an hour before declining slowly into the close.   The index finished down about 16 basis points from Thursday's close.

The gold stocks traded either side of unchanged right up until the 1:25 p.m. New York dollar index low.  Then the dollar index,  gold, silver and the Dow all popped at precisely the same moment.  This helped the HUI end in the plus column for the day...up 0.83%.

The silver stocks finished mixed...and Nick Laird's Silver Sentiment Index closed in the black for the third day in a row...up 1.04%.

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The CME's Daily Delivery Report showed that 30 gold and 76 silver contracts were posted for delivery on Tuesday from the Comex-approved depositories.  [Yesterday I had stated that there were only "7 or so" silver contracts left to delivery in July...and that was obviously not correct.]  In silver the largest short/issuer was Jefferies once again with 65 contracts...and the two biggest long/stoppers were the Bank of Nova Scotia with 52...and ABN Amro with 21 contracts stopped.  This completes the deliveries for July in both silver and gold.  The link to yesterday's Issuers and Stoppers Report is here.

There was another withdrawal from GLD again yesterday.  This time it was 126,105 troy ounces.  Since July 1st, a hair less than 1 million ounces of gold has been withdrawn from GLD.  There were no reported changes in SLV.

The U.S. Mint had another sales report.  They sold 2,000 ounces of gold eagles...1,500 one-ounce 24K gold buffaloes...and 180,000 silver eagles.  Month-to-date, the mint has sold 24,500 ounces of gold eagles...4,000 one-ounce 24K gold buffaloes...and 1,948,000 silver eagles.  The gold/silver ratio based on these sales numbers is a bit over 68 to 1...and I sure hope you're getting your share at these ridiculously low and probably never-to-be-seen-again, prices.

Business really picked up at my bullion dealer's store this past week...and if the price of silver and gold continue to rise, it won't be long before the buying public is back with a vengeance...and you can already see it in this week's sales of silver eagles from the U.S. Mint.

Over at the Comex-approved depositories on Thursday, they reported receiving 1,233,907 troy ounces of silver...and shipped 388,282 ounces of the stuff out the door.  The link to that action is here.

Well, the Commitment of Traders Report yesterday...for positions held at the close of Comex trading on Tuesday, July 24th...contained a big surprise.  First off, there was almost no change in the Commercial net short position in silver.  It actually increased by about 400 contracts.  I was hoping for a decline.  Ted Butler said that when you looked 'under the hood' in the Disaggregated Report, it wasn't quite as bad as it appeared.

But the big surprise was gold...and I'm still in shock.  I was hoping for a small improvement in the Commercial net short position.  Well, it was a monstrous improvement, as it declined by 22,574 contracts.  Based on the reporting week's price action, both Ted and I were gobsmacked.  I'll be interested in his explanation in his weekly review which comes out early this afternoon Eastern time.

The Commercial net short position in gold is down to 13.62 million ounces...which is a multi-year low.  The four largest traders are currently short 9.71 million ounces...and the '5 though 8' largest traders are short an additional 4.75 million ounces.  So the 'big 8' short holder in gold are short 14.46 million ounces of gold...or 106.2% of the Commercial net short position in gold.

In silver, the 'big 8' short holders are short 252.8% of the Commercial net short position...and [on a net basis] are short 38.5% of the entire Comex silver futures market all by themselves...and that's a minimum number.  How's that for concentration?

Here's Nick Laird's "Transparent PM Holdings" updated with this week's data.

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Since I always stretch the boundaries a bit in my Saturday missive...here's the first stretch of the day.

Lynx Edicions, publisher of the Handbook of the Birds of the World and the Internet Bird Collection, has announced the winners of the First Edition of the HBW World Bird Photo Contest. This contest was created with the aspiration of becoming the most important bird photography competition at world level. The contest aimed to encourage and disseminate knowledge about birds, while at the same time inspiring creativity in the art of photography. To these ends, it focused on photography that was ethical, grounded in the utmost respect for the conservation of birds and their habitats, and without unnecessary digital manipulation.

The Contest was a huge success, with 10,754 photos received from 128 countries. 3,127 bird species were photographed in 154 countries all over the world.

Here are the four top photos...and the link to all the winners is here...and I thank reader U.D. for sharing them with us.  Be sure to use the 'click to enlarge' feature for all these four shots, because they are stunning photographs up close.

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I have the usual number of stories for a Saturday...and I hope you can find the time over the weekend to run through them all...some of which I've been saving just for today.

 

¤ Critical Reads

Durable goods orders ex-transportation fall in June

New orders for a range of long-lasting manufactured goods fell in June and a gauge of planned business spending plans dropped, pointing to a slowdown in factory activity.

The Commerce Department said on Thursday durable goods orders excluding transportation dropped 1.1 percent, the biggest decline since January, after rising 0.8 percent in May. Economists had forecast this category being flat last month.

"The manufacturing sector is going through a weak patch with orders excluding transportation falling over the last three months. This is also the message of the sub-50 readings on the ISM manufacturing composite and new orders indexes for June," said John Ryding, chief economist at RDQ Economics in New York.

I found this Reuters story in yesterday's edition of the King Report...and the link is here.

Read more...

Expert: US ‘Is Barely Growing’ as GDP Slows to 1.5% on Weak Consumer Spending

The U.S. economy grew at an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending. The slowdown in growth adds to worries that the economy could be stalling three years after the recession ended.

The Commerce Department also said Friday that the economy grew a little better than previously thought in the January-March quarter. It raised its estimate to a 2 percent rate, up from 1.9 percent.

Growth at or below 2 percent isn't enough to lower the unemployment rate, which was 8.2 percent last month. And most economists don't expect growth to pick up much in the second half of the year. Europe's financial crisis and a looming budget crisis in the U.S. are expected to slow business investment further.

This story came from the moneynew.com website yesterday...and I thank Elliot Simon for sending it along.  The link is here.

Read more...

46.5 Million Americans, Record 22.3 Million US Households, On Foodstamps; 8,753,935 On Disability

America's transition into a welfare state continues, as May saw a new all time high number of American households, 22.3 million to be exact, enter technical poverty and collect food stamps. At the individual level, 46.5 million Americans lived off food stamps, a 222,157 increase in the month, or nearly three times the number of people who found jobs in June according to the BLS.

This very short piece, with three excellent charts, was posted on the zerohedge.com Internet site yesterday...and I thank Elliot Simon for bringing it to our attention.  The link is here.

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REVEALED: Corzine’s MF Global Was Client of Eric Holder’s Law Firm

Those wondering why the Department of Justice has refused to go after Jon Corzine for the vaporization of $1.6 billion in MF Global client funds need look no further than the documents uncovered by the Government Accountability Institute that reveal that the now-defunct MF Global was a client of Attorney General Eric Holder and Assistant Attorney General Lanny Breuer’s former law firm, Covington & Burling.

There’s more.

Records also reveal that MF Global’s trustee for the Chapter 11 bankruptcy retained as its general bankruptcy counsel Morrison & Foerester--the very law firm from which Associate Attorney General Tony West came to DOJ.

And more.

As Government Accountability Institute President Peter Schweizer explains in the Washington Times Thursday, the trustee overseeing MF Global’s bankruptcy is former FBI Director Louis Freeh. At Holder’s Senate confirmation hearing Freeh served as a character witness for Holder and revealed that Holder had previously worked for Freeh. “As general counsel,” Freeh said, “I could have engaged any lawyer in America to represent our bank. I chose Eric.”

This story was posted over at the breitbart.com Internet site on Thursday...and the link is here.  There was also a parallel story to that on the same issue posted over at Zero Hedge...and the link to that is here.  Both stories are courtesy of yesterday's King Report.

Read more...

Treasury Official: US Probably Won’t Have to Raise Debt Ceiling This Year

The country nearly went into default in 2011 when the country reached its borrowing limit, though Congress agreed to lift it at the very last moment.

The government will approach the ceiling again later this year, though the Treasury can take steps such as shuffling funds and postponing certain payments to delay the threat of default until 2013, after the election.

“As you know we have some extraordinary measures we can deploy to earn some more time before we need to raise the debt ceiling,” said Treasury Under Secretary for Domestic Finance Mary Miller, according to The Wall Street Journal.

“I expect at this time that we probably will move into 2013 so that does not become an issue we have to resolve in 2012.”

This story was posted on the moneynews.com website yesterday...and I thank West Virginia reader Elliot Simon for his third and final offering in today's column.  The link is here.

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Douglas Keenan: My thwarted attempt to tell of LIBOR shenanigans

In 1991, I began trading for Morgan Stanley, the investment bank, in London. I was trading bonds, derivatives, and related securities. One of those securities was based on the three-month Libor rate: the interest rate at which banks can borrow money for three months from each other. Morgan Stanley does not trade on the interbank market so I could not directly borrow or loan money at Libor rates. What I could do, however, was trade a futures contract on the three-month Libor rate.

In 1991 I had live trading screens that showed the Libor rates. In September of that year, on the third Wednesday, at 11 o'clock, I watched those screens to see where the futures contract should settle. Shortly afterwards, Liffe announced the contract settlement rate. Its rate was different from what had been shown on my screens, by a few hundredths of a per cent.

As a result, I lost money. The amount was insignificant for me, but I believed that I had been defrauded and I complained to Liffe. Liffe explained that the settlement rate was not determined by what rates were actually in the market. Instead, the British Bankers Association polled banks, asking them what the rates were. The highest and lowest quoted rates were discarded and the rest were averaged, giving the settlement rate. Liffe explained that, in doing this, they were adhering to the terms of the contract.

I talked with some of my more experienced colleagues about this. They told me banks misreported the Libor rates in a way that would generally bring them profits. I had been unaware of that, as I was relatively new to financial trading. My naivety seemed to be humorous to my colleagues.

The writer is an independent mathematical scientist and a former Morgan Stanley trader.

This rather short story appeared in the Financial Times on Thursday.  It's posted in the clear in this GATA release...and I consider it a must read.  The link is here.

Read more...

Six jailed over insider trading in JP Morgan and UBS print room case

Six members of an insider trading ring have been jailed for their roles in a sophisticated scam which sparked the City watchdog’s longest and most complex prosecution to date.

The gang used sensitive information leaked from the print rooms of two of London’s biggest investment banks to place trades before takeover bids became public, netting them hundreds of thousands of pounds as share prices moved.

After a £5m prosecution by the Financial Services Authority (FSA), the six men involved in the ring were yesterday sentenced at London’s Southwark Crown Court to prison terms ranging from 18 months up to three and a half years.

This story was posted on The Telegraph's website on Friday afternoon...and it's Roy Stephens first item in today's column.  The link is here.

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Spanish jobless rate 24.6pc, youth unemployment at 53pc

The increase in the overall jobless numbers was smaller than in the first quarter, with the number of eligible people out of work rising to nearly 5.7 million people.

Between April and June, 53,500 people lost their jobs, compared with 365,900 in the first quarter, the national statistics office said.

The unemployment rate rose from 24.4pc recorded in the first quarter - already the highest in the industrial world - as Spain entered its third straight quarter of economic contraction.

Among those aged 16 to 24, the rate rose to 53.27pc from 52.01pc the previous quarter, reflecting the ongoing impact of Spain's double-dip recession following the collapse of a construction boom in 2008.

The number of households in which all eligible members are unemployed rose by 9,300, reaching more than 1.73 million overall.

This another story that was posted on The Telegraph's website early yesterday afternoon BST...and is Roy's second offering of the day.  The link is here.

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Geithner to Meet Schaeuble, Draghi in Germany Next Week

U.S. Treasury Secretary Timothy F. Geithner will meet with German Finance Minister Wolfgang Schaeuble and European Central Bank President Mario Draghi in separate sessions on July 30.

The meeting with Schaeuble will take place on the German island of Sylt in the afternoon of July 30, and the session with Draghi will be held that evening in Frankfurt, the Treasury Department said in a statement today.

The Treasury said the meetings will be closed to the press, with a photo opportunity before the Schaeuble meeting. A Treasury official with knowledge of the matter said that Geithner and Schaeuble won’t hold a news conference after the meeting.

I'd love to be a fly on the wall at those meetings.  I wonder if gold will be part of their discussion?  I thank reader 'David in California' for sending me this.  This very short story was posted over at the businessweek.com website yesterday...and you've already read the important bits, but the link to the hard copy is here.

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Cuba to end Soviet-style economy and will implement market friendly policies

Cuba adopted a new tax code this week and said it would loosen regulations on some state companies while turning others into cooperatives, as one of the world's last Soviet-style economies moves in a more market-friendly direction.

The plans were announced at a session of the National Assembly, which passed the country's first comprehensive tax code since the 1959 revolution on the communist-ruled island.

President Raúl Castro, 81, has liberalized regulations for small businesses and farming, and begun leasing small state retail outlets to employees since taking over for his ailing older brother Fidel in 2008.

Marino Murillo, head of the Communist Party commission responsible for implementing reforms approved at a party Congress last year, characterized the tax law as providing the basis for “bringing up to date the economic model,“ while releasing few details of the code.

This story was posted on the mercopress.com Internet site early yesterday morning...and I thank Casey Research's own Louis James for bringing it to my attention...and now to yours.  The link is here.

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Doug Casey on Crisis Investing, Political Risk, and a Benign Anarchy!

Doug was a guest on Lauren Lyster's "Capital Account" on Russia Today yesterday.  The program runs for a bit over 28 minutes...and the interview with Doug starts around the 1:35 minute mark and runs for about twenty minutes.  It's definitely worth watching...and I thank reader Dennis Meredith for finding this for us.  The link is here.

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Doug Noland: Monetary Madness

This week demonstrated an even more powerful “risk on, risk off” dynamic.  For lack of attractive alternatives, ongoing global monetary injections ensure only more “money” flows to the global leveraged speculating community.  From there, the bets on red or black - either on or against policymakers’ capacity to sustain global risk market Bubbles - become bigger by the week.  Draghi and European policymakers this week hit the panic button – and those with bearish hedges and bets were again forced to run for cover.  Risk on wins again.

And as policymaking turns increasingly desperate, it is almost guaranteed that “risk on, risk off” turns only more unwieldy.  Indeed, it is clear at this point that the more global policymakers turn to monetary inflation to thwart the downside of the Credit cycle the greater the amount of fuel injected into a dangerous global speculative Bubble.  In anticipation of next week’s scheduled Federal Reserve and ECB meetings, CNBC’s Steve Liesman today referred to “Monetary Madness.” I’ll use the term to describe the past couple decades.

Well, it's another great commentary from Doug Noland this week in his Credit Bubble Bulletin column over at the prudentbear.com website.  It falls into the absolute must read category...and the link is here.

Read more...

Paul Craig Roberts: War on all Fronts

The Russian government has finally caught on that its political opposition is being financed by the US taxpayer-funded National Endowment for Democracy and other CIA/State Department fronts in an attempt to subvert the Russian government and install an American puppet state in the geographically largest country on earth, the one country with a nuclear arsenal sufficient to deter Washington’s aggression.

Just as earlier this year Egypt expelled hundreds of people associated with foreign-funded “non-governmental organizations” (NGOs) for “instilling dissent and meddling in domestic policies,” the Russian Duma (parliament) has just passed a law that Putin is expected to sign that requires political organizations that receive foreign funding to register as foreign agents. The law is based on the US law requiring the registration of foreign agents.

Much of the Russian political opposition consists of foreign-paid agents, and once the law passes leading elements of the Russian political opposition will have to sign in with the Russian Ministry of Justice as foreign agents of Washington. The Itar-Tass News Agency reported on July 3 that there are about 1,000 organizations in Russia that are funded from abroad and engaged in political activity. Try to imagine the outcry if the Russians were funding 1,000 organizations in the US engaged in an effort to turn America into a Russian puppet state. (In the US the Russians would find a lot of competition from Israel.)

This excellent commentary from Paul is a must read for all students of the "New Great Game".  I thank U.K. reader Tariq Khan for sending it to me earlier this week.  It's posted on the paulcraigroberts.org Internet site...and the link is here.

Read more...

Washington's Newest Tool for Global Domination

Unknown to most Americans, Washington's garrisoning of the planet is on the rise, thanks to a new generation of bases the military calls "lily pads."

Since the “Black Hawk Down” deaths in Somalia almost 20 years ago, we’ve heard little, if anything, about American military casualties in Africa (other than a strange report last week about three special operations commandos killed, along with three women identified by U.S. military sources as “Moroccan prostitutes,” in a mysterious car accident in Mali). The growing number of patients arriving at Ramstein from Africa pulls back a curtain on a significant transformation in twenty-first-century U.S. military strategy.

These casualties are likely to be the vanguard of growing numbers of wounded troops coming from places far removed from Afghanistan or Iraq. They reflect the increased use of relatively small bases like Camp Lemonnier, which military planners see as a model for future U.S. bases “scattered,” as one academic explains, “across regions in which the United States has previously not maintained a military presence.”

Disappearing are the days when Ramstein was the signature U.S. base, an American-town-sized behemoth filled with thousands or tens of thousands of Americans, PXs, Pizza Huts, and other amenities of home. But don’t for a second think that the Pentagon is packing up, downsizing its global mission, and heading home. In fact, based on developments in recent years, the opposite may be true. While the collection of Cold War-era giant bases around the world is shrinking, the global infrastructure of bases overseas has exploded in size and scope.

This long essay was posted over at the alternet.org Internet site on Monday...and I thank Roy Stephens for bringing it to my attention.  For anyone interested in what the American Empire is up to these days, it's well worth reading....and the link is here.

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Russia Looking to Add Naval Base in Cuba

Russia is talking to Cuba about housing Russian navy ships, the nation's navy chief said Friday, in a move seen as an attempt to challenge Washington.

Russia is also talking to Vietnam and the Indian Ocean island country of Seychelles as possible naval hubs.

Relations with Washington have deteriorated since President Vladimir Putin was re-elected to a third term in March largely in part to the violence in Syria.

Vice Admiral Viktor Chirkov told the state RIA Novosti news agency that Russia is in talks about setting up maintenance and supply facilities for Russian ships in those countries but wouldn't give any further details.

The announcement comes on the heels of the U.S. government's attempt to reaffirm its willingness to "forge a new relationship" with Cuba on Thursday - as long as the country promises to end its' oppressive regime.

This AP story was filed from Moscow yesterday...and was posted on the latino.foxnews.com website...and I thank reader Marshall Angeles for sending it.  The link is here.

Read more...

Thirsty South Asia's river rifts threaten "water wars"

India-Pakistan Line of Control, July 23  - As the silver waters of the Kishanganga rush through this north Kashmir valley, Indian laborers are hard at work on a hydropower project that will dam the river just before it flows across one of the world's most heavily militarized borders into Pakistan.

The hum of excavators echoes through the pine-covered valley, clearing masses of soil and boulders, while army trucks crawl through the steep Himalayan mountain passes.

The 330-MW dam is a symbol of India's growing focus on hydropower but also highlights how water is a growing source of tension with downstream Pakistan, which depends on the snow-fed Himalayan rivers for everything from drinking water to agriculture.

Islamabad has complained to an international court that the dam in the Gurez valley, one of dozens planned by India, will affect river flows and is illegal. The court has halted any permanent work on the river for the moment, although India can still continue tunneling and other associated projects.

This Reuters story from Monday was sent to me by reader Andrew Holland...and the link is here.

Read more...

Revolutionizing Archaeology: Flying Lasers Reveal Buried Historical Structures

Archaeology is being revolutionized by remote-scanning techniques that use lasers to detect otherwise invisible ground features. The technology digitally extracts vegetation for a clean image of the earth's surface. Archaeologists in Germany have already discovered thousands of new sites.

For those of you with an Indiana Jones complex...this might be of interest.  The article showed up on the German website spiegel.de yesterday...and I thank Roy Stephens for bringing it to my attention.  The link is here.

Read more...

Daring roadside rescue of three bear cubs trapped in a dumpster

Three curious bear cubs got more than they bargained for when they clambered into a roadside dumpster.

The young creatures - the offspring of a notorious black bear in Ruidoso, New Mexico - got trapped after learning how to open the bin's latch.

But help was on the way when a couple performed a daring road rescue by carefully lowering a ladder into the dumpster, enabling the trapped animals to escape.

The link to this must watch youtube.com video is here...and it's Roy Stephens final offering in today's column.

Read more...

Three King World News Blogs/Interviews

The first blog is with Art Cashin.  It's headlined "Current Liquidity In System Risks Hyperinflation".  The second is with Egon von Greyerz...and it's entitled "Expect Frightening Wealth Destruction As Gold Soars".  And lastly is this audio interview with Gerald Celente.

Read more...

Bud Conrad from Casey Research on Natural Gas

Bud just reviewed his analysis of how the new abundance of natural gas is a game changer for the US. He lays out how the new technology has provided the US with a huge new source of energy that is growing in production and use. You can get an overview of his findings in an interview with Jim Pupluva at the financialsense.com Internet site. Bud also comments on the heat affect on the grain market.  The link to that is here.

Better still, you can get the whole story with the details in charts and graphs showing a new method for predicting the price of natural gas, and get Bud's investment prediction by signing up for a no-risk trial here.

Read more...

EU may criminalize commodities price distortion

Manipulating international commodity benchmarks such as Brent crude oil would be a criminal offence, punishable by jail, under a set of reforms the EU Commission has proposed in response to the rigging of a major interest reference rate.

The commission, the EU's executive arm, announced on Wednesday plans to tighten supervision of financial benchmarks after a scandal involving interbank lending rate Libor, used to set prices for trillions of dollars of financial products.

The benchmarks the commission wants to make more "reliable, transparent, and credible" also include commodities such as gold, cocoa, and Brent crude.

It would become an offence to transmit false or misleading information, provide "false or misleading inputs, or any action which manipulated the calculation of a benchmark," if the European Parliament and 27 EU member states endorse the proposals.

One can only hope that they include silver on that list.  This Reuters story was filed from Brussels on Thursday...and I borrowed it from a GATA release yesterday.  The link is here.

Read more...

 

¤ The Funnies

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Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold’s Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold Mineralization

Columbus Gold Corporation (CGT: TSX-V) (“Columbus Gold”) is pleased to announce results of the initial five (5) core drill holes at its Paul Isnard gold project in French Guiana. The holes confirm depth extension of gold mineralization below shallow holes drilled on the 43-101 compliant 1.9 million ounce Montagne d’Or inferred gold deposit at Paul Isnard in the 1990’s and support the current program of resource expansion through offsetting open-ended gold mineralization indicated by the earlier holes.

Robert Giustra, CEO of Columbus Gold, commented: “These drill results validate Columbus Gold’s approach to adding ounces with a lower-risk drilling program designed to infill and to extend the mineralized zones to 200 m vertical depth from surface; a depth amenable to open pit mining.” 

Fourteen (14) holes have been completed (assays pending) by Columbus Gold in the current program and drilling is progressing at the rate of about 3,000 meters per month with one drill-rig on a 24 hour basis. Columbus Gold plans to accelerate the current program by engaging a second drill-rig as soon as one can be obtained. 

Please visit our website for more information about the project.


 

¤ The Wrap

Today's 'blast from the past' was written by Russian composer Sergei Rachmaninoff in 1901...and is, without doubt, this composer's most famous work...and one of the most well know and beloved piano concertos of all time.  I never get tired of listening to it.  Here is Russian pianist Boris Berezovsky doing the honours.  Unfortunately, the youtube.com video doesn't name the orchestra with which his is playing.  Nonetheless, it's a virtuoso performance of the first order...and Berezovsky literally 'tosses it off' with what appears to be no effort at all.  I dedicate this to classical pianist [and daily reader] George Miladin, who is in the process of committing this composition to memory, as he is in the process of recording it himself.  The link is here.

I'm not going to spend any more time analyzing yesterday's price action.  I'm more interested in what lies ahead in the coming week.  There are some fairly important meetings about to occur both in Europe and in the United States...see Doug Noland above...and one of the more mysterious ones is posted further up in this column.  As I said, I'd love to be a fly on the wall at those.

I just get the impression that things are coming to a head in this world of ours.  I've had this feeling before, or course, but the signs are even more noticeable now.  I've always been wrong in the past...and I may be wrong again now.  But one thing is for sure, the current economic, financial and monetary system as we know it, can't last much longer.

It certainly appears that the precious metals are about to break out to the upside...and the current environment is ripe for exactly that to happen.  But, as is always the case, how high we go...and how fast we get there...is entirely dependent on the short sellers of last resort...JPMorgan et al.  One of these days they won't be there to sell short and long positions into a rally...and after twelve years of pounding at the gates, that day can't come soon enough for me.

How will you know when that day arrives, you ask?  Well, all you will have to do [as Ted Butler has told me so many times over the years] is look at the price action...and that will tell you all you need to know, as you won't have to ask "Is this it?"...because it will be self-evident. 

Before signing off for the day...and the week, I'd like to point out the upcoming "Casey's Fall Summit - Navigating the Politicized Economy". It's being held over three days...September 7-9th at the Park Hyatt Aviara Resort in Carlsbad, California.  It's being co-sponsored by my good friend Eric Sprott...and it will be well worth attending...and like every other Casey Research summit, it will sell out quickly.  You can find out more by clicking here.

Enjoy what's left of your weekend...and I'll see you on Tuesday...Wednesday west of the International Date Line.