All the excitement in the precious metals came during early London trading yesterday… which I wrote about in my closing commentary on Tuesday… and not much happened after gold peaked around $1,255 spot shortly before 11:00 a.m. in London yesterday morning, as it was basically all down hill from there, right into the close of electronic trading at 5:15 p.m. Eastern time in New York. There was about a ten dollar rise the moment that the London p.m. gold fix was in at 10:00 a.m. New York time… but that was all the New York excitement there was. Gold closed at $1,234.80 spot… down a bit over $20 from the London high. The absolute low of the day was in late trading in New York… $1,232.70 spot.
Silver’s path was very similar to gold’s… the main differences being that silver finished up 14 cents on the day… and silver’s high was in New York rather than London… and that was shortly before 1:30 p.m. Eastern time at $18.51 spot. Silver’s low price [around $18.07 spot] was in Far East trading shortly before London opened for the day.
The dollar, once again, played no part in the goings-on in the precious metals market.
Surprisingly enough, the shares did rather well during the first half of the New York trading session, but pared their losses late in the day… but still managed to finish in the plus column… despite the fact that gold closed down on the day. The HUI up about 1.80%.
The CME’s Daily Delivery report was a non-event yesterday… as only six gold and zero silver contracts were posted for delivery on Thursday. The big gold news on Tuesday was the addition of another huge amount of gold into GLD. This time they added 391,312 troy ounces… which was a hair over 12 tonnes. Of course nothing was added to SLV. The U.S. Mint had a report… but it wasn’t much… as they sold another 5,000 one-ounce gold eagles… and nothing else. It was a quiet day on Monday over at the Comex-approved warehouses as well. They showed that they received a smallish 82,660 ounces of silver into their stocks.
Nick Laird over at sharelynx.com in the land ‘down under’ was kind enough to provide this up-to-date graph of the GLD share price vs. total tonnes held. As of yesterday’s big addition… GLD is sitting on a whisker under 1,300 tonnes of the stuff. If they really have it all, that is.
Toronto-based Inter-Citic Minerals Inc. (TSX: ICI) is a gold exploration and development company, developing what could be one of China’s largest open-pit gold deposits. Inter-Citic’s 279 sq km Dachang Gold Project in Qinghai Province, China, with 50,000 meters of drilling underway in 2008.
The total NI 43-101 compliant Inferred Mineral Resource Estimate at Dachang now stands at 2.9 million oz Au contained (approximately 25 million tonnes with an average grade of 3.6 gpt Au), with more drilling underway on the DMZ to further define the existing 43-101 inferred mineral resource estimate in preparation for a scoping study, as well as additional drilling in highly prospective new areas focused on resource expansion. Gold mineralization in the Dachang Main Zone begins at surface and has not been significantly drilled below 150 meters, and numerous known areas of surface gold mineralization on adjacent and other parts of the property have the potential for further discoveries. The Dachang Main Zone itself remains open at depth and along strike.
Under a 30-year joint venture agreement with the Qinghai Geological Survey Institute (QGSI – the provincial geological survey body), Inter-Citic has a fully-vested 83% interest in the property, with 17% belonging to QGSI. Inter-Citic has a further option to increase its total interest to 90% at pre-feasibility. The Dachang property consists of several exploration license areas. They have all been renewed by the Company as they have come due in regular course. The business license for the Dachang Gold Project is currently valid to December 26, 2033.
I’m back in Edmonton now… and trying to wade through an in-box full of e-mails that would choke a horse. The first thing that I have today is this graph that was sent to me last Friday. It shows changes to Non-farm Payrolls in May 2010. This picture, too, is worth a thousand words.
This next story was sent to me by Australian reader Wesley Legrand last Friday… but I just didn’t have time for it. This is a very interesting piece, which sheds some light on the business mind set of Arab cultures. But, from hard experience in other parts of the world, this would describe the business mind set of a lot of other cultures on a lot of other continents as well. As one paragraph states… ‘The Arab outlook on the world is fundamentally different from that of other cultures. Although many Middle Eastern managers have been educated in the West and have worked for multinational companies, they do not necessarily optimise economic returns, because they are embedded in a social matrix of expectations and obligations.’ It’s posted at the arabianbusiness.com website… and it’s not an overly long read… and I feel it’s worth your while. The headline reads ‘Ten tips for doing Mideast business‘… and the link is here.
The next story is posted over at The Telegraph in London… and is courtesy of reader Roy Stephens. I’ll know you’ll find this hard to believe, dear reader, but Goldman Sachs has been accused of “deliberately and disruptively” refusing to work with the Financial Crisis Inquiry Commission (FCIC) after employing delaying tactics and attempting to inundate the panel with millions of pages of documents. It’s a short read… and it shows just how contemptuous Lloyd Blankfein is of not only the commission itself… but the average U.S. citizen as well. The headline reads ‘Goldman Sachs accused of disrupting FCIC’s probe into financial crisis‘… and the link is here.
The next item is from Bloomberg. The headline is amazing… and self-explanatory. It reads ‘Pimco’s Crescenzi Sees ‘Keynesian Endpoint’ in Devaluations‘. “Time, devaluations, and debt restructurings might be the only way out for many nations,” Crescenzi wrote in an e-mailed note titled “Keynesian Endpoint” that referenced the Great Depression era economist John Maynard Keynes. Debt-fueled spending programs aimed at combating the global financial crisis of 2008 are among policy tools now “being seen as a magic elixir that has morphed into poison.” It’s not an overly long story… and it’s definitely worth the read… and the link is here.
Here’s another graph… this one courtesy of reader U.D. You can see that U.S. home sales have collapsed all the way back to what they were in mid 1997… thirteen long years ago. That’s stunning! You can see the surge into the April 30, 2010 first-time homebuyer tax credit deadline… and then sales plunge from there.
The next story is a GATA release about this past weekend’s gold conference in Vancouver. The grand debate between Kitco’s Jon Nadler… the Tokyo Rose of the gold world… and U.S. Global Investors CEO Frank Holmes, was a bust! Rather than try to describe it myself, I’ll let GATA’s secretary treasurer, Chris Powell do the honours in this GATA release headlined ‘Gold ‘debate’ at Vancouver conference fizzles‘… and the link is here.
While on the subject of the Vancouver gold show… here’s a photo of your humble scribe speaking to the audience on Monday afternoon. Photo credit to Stephanie Powell.
Lastly today, is a contribution from reader Ken Metcalfe. It’s a video interview of F. William Engdahl that’s posted over at therealnews.com. The headline reads What happened to the ‘Death of the dollar’? I’ve posted several times by Engdahl… and they were all must reads/listens/watches… and this one’s no exception. The video runs a hair under ten minutes… and the link is here.
All the perplexities, confusion and distress in America arise not from the defects in their constitution or confederation, not from want of honor or virtue, so much as from downright ignorance of the nature of coin, credit and circulation. – John Quincy Adams
Well, neither gold nor silver took off yesterday like Ted Butler had hoped… but nothing has really changed despite that fact. The tech funds certainly weren’t buying… and there was little, if any, deterioration in the bullion banks’ short positions in either metal… so the game may still be on. It’s just a matter of the time line. So… we just have to wait it out and see what happens.
Volume in Far East and early London trading [as of 5:26 a.m. Eastern time] is only moderate at best… and prices in both gold and silver are almost unchanged from their close in New York yesterday afternoon. As you know, dear reader, the real volume and price action occurs in New York… so we’ll have to wait patiently and see what Comex trading brings.
One last thing before I close today’s commentary. Casey Research still has a few copies left of Casey Research Crisis & Opportunity Summit 2010 that was held about five weeks ago in Las Vegas. The conference was a sold-out, smash-hit success. The content of the Summit is of such critical importance that we’re making all of it available to Casey readers: 15 hours of audio packed with the wisdom and advice of some of the greatest minds of the financial world. This set of CDs is certainly worth the investment… and you can check it out here… and I urge you to do so.
I hope your Wednesday goes well… and I’ll see you here tomorrow.