July 23: Gold and Silver End Modestly Lower

Chris Mullen
Monday, July 23rd


















JSE Gold































The Metals:


Gold fell to as low as $1563.41 by about 8:45AM EST, but it then rallied back higher throughout the rest of the morning in New York and ended near its noontime high of $1580.30 with a loss of just 0.42%. Silver slumped to as low as $26.671 before it also rallied back higher and ended with a loss of just 1.14%.


Euro gold fell to about €1300, platinum lost $13 to $1397.50, and copper fell 6 cents to about $3.38.


Gold and silver equities fell about 3% at the open before they bounced back higher midmorning, but they still ended with about 2.5% losses.

The Economy:


There were no major economic reports today. Tomorrow at 10AM EST brings the FHFA Housing Price Index for May.


The Markets:


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


Oil fell as the U.S. dollar index and treasuries rose on heightened worries about Europe that sent the Dow, Nasdaq, and S&P lower.


“Wall Street tracked a sharp selloff in global equity markets on Monday as Spain appeared closer to needing a bailout and fears grew that Greece may be approaching an exit from the euro zone.”


Among the big names making news in the market today were Halliburton, Cnooc and Nexen, McDonald’s, NRG and GenOn, and BlackRock.

The Commentary:


U.S. Market – While I’m certainly not bullish I would caution anyone who is thinking about shorting the market on the assumption something more than a 5% -10% fall is in the cards. The economy sucks and the geopolitical problems around the world are very serious.


However (Dislike using this hedging word found in so many market forecasters vocabulary which include if, but, maybe….), a lot of bad stuff has been thrown at this market and it bends but doesn’t break. I suspect the FED is getting close to pushing on the string yet again and there’s going to come a time when the “Don’t Worry, Be Happy” crowd on Wall Street (who always says it’s a good time to invest) shall decide it’s time to shift some of the enormous capital in bonds into stocks. Here again, I don’t anticipate a surge upwards but shorting here is the one move I think is among the worse among the choices.


Gold – It may be hard to see with the naked eye, but gold has been building a base that I believe can lead to it taking out $1,650, which in my mind should signal the resumption of the climb in the “mother” of all gold bull markets. A seasonally favorable period for gold is just a few weeks away and if the perma-bears and gold haters (that’s basically 98% of the world) can’t get gold below $1,500 by then – it’s curtains for them (and I won’t be shedding a tear for them).


U.S. Dollar – It’s getting to the point where I would like to take a flyer on shorting Uncle Sam. I shall let you know if and when I do.


Bonds – I’m looking for the 10-yr. T-Bond to get down to a 1.25% yield. At that point I feel getting seriously short is all but certain.


Oil and Natural Gas – No change here.


Mining and Exploration Shares – The juniors are especially suggesting their wash-up is near complete. We actually started to see some bids come into the market late last week In case you forgot, a bid is where someone is actually willing to buy shares-lol).”- Peter Grandich, Grandich Letter


GATA Posts:



Ted Butler: U.S. government is part of the war on silver

CFTC's Chilton expects silver investigation to finish by October

Paul Craig Roberts: World financial system now can be sustained only by fraud

Gold futures still have bullish tilt, Arensberg's GGR says

Gold may be last hope for Sudan to avert economic collapse

House to vote Tuesday on Paul's Fed audit bill

Gold market cited in speculation on where next financial scandal will come from


The Statistics:

As of close of business: 7/20/2012

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: Change in Total Tonnes from yesterday’s data: SPDR subtracted 2.414 tonnes.


COMEX Gold Trust (IAU) Total Tonnes in Trust: 181.96: +0.06 change from yesterday’s data.

Silver Trust (SLV) Total Tonnes in Trust: 9,696.71: No change from yesterday’s data.


The Miners:


Gold Resource’s (GORO) independent resource estimate, AngloGold’s (AU) credit facility and second quarter gold production, African Barrick’s first half profit and production, Excellon’s (EXN.TO) appointed vice president, SilverCrest’s (SVL.V) second quarter production, and Huldra Silver’s (HDA.V) progress update were among the big stories in the gold and silver mining industry making headlines today.




DRD +1.55% $5.90

2. AngloGold

AU +0.44% $31.91

3. Comstock

LODE+0.32% $3.09


1. Golden Star

GSS -7.63% $1.09

2. Golden Minerals

AUMN -6.28% $3.88

3. New Gold

NGD -6.24% $9.46

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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