The silver stocks finished up big…some of them ver

first_img The silver stocks finished up big…some of them very big…and Nick Laird’s Intraday Silver Sentiment Index closed up a chunky 4.16%. In a nutshell, the trading action in silver was very similar to gold, except far more ‘volatile’.  Silver’s 9:45 a.m. Eastern time low was $28.45 spot…and it’s 11:00 a.m. Eastern high was $29.25 spot. The silver price managed to close above $29…but just barely…at $29.04 spot.  Volume was around 42,000 contracts. Here are the platinum and palladium charts.  Once again they acted like they were trading on some other planet. (Click on image to enlarge) The CME’s Daily Delivery Report showed that 58 gold and 23 silver contracts were posted for delivery on Friday within the Comex-approved depository.  The major players were Jefferies, JPMorgan Chase and Canada’s Bank of Nova Scotia.  The link to yesterday’s Issuers and Stoppers Report is here. There were no reported changes in either GLD or SLV yesterday…and the U.S. Mint had no sales report either. The good folks over at Switzerland’s Zürcher Kantonalbank updated their gold and silver ETF numbers as of the close of business on Tuesday.  Their gold ETF showed a decline of 35,507 troy ounces, but their silver ETF showed an increase of 994,648 troy ounces.  That’s a lot! The Comex-approved depositories reported receiving 406,382 troy ounces of silver on Tuesday…and they also shipped 498,192 troy ounces out the door.  The link to that activity is here. I was more than impressed with the performance of the shares in light of the price action. The gold price chopped around in about a five dollar price range through all of Far East and most of London trading on Wednesday.  Then around 9:00 a.m. in New York, the price headed for its low of the day…$1,566.40 spot…which came around 9:45 a.m. Eastern time.  The subsequent rally lasted until 11:00 a.m. Eastern, which was the London close. That ended the rally…and the price got sold down until shortly before 1:00 p.m. in New York.  From there, the price rallied throughout the entire electronic trading session, closing very close to its high of the day…which Kitco recorded as $1,586.10 spot. Gold closed at $1,584.50 spot…up $9.10 on the day.  Net volume was pretty decent…around 149,000 contracts. I have a fair number of stories again today…and I hope you can find the time to spend on the ones that interest you. It was an interesting day in both gold and silver during the New York trading session yesterday…and I’m not sure what to read into it, if anything.  However, I was more than impressed with the performance of the shares in light of the price action…and it sure looks like a bottom was set on Tuesday. The news that South Korea added to its gold reserves…and Azerbaijan is going to do the same thing, is certainly continued proof that a lot of the world’s central banks are really getting serious about converting paper assets into the real deal…this despite the ongoing paper price antics on the Comex. Nick Laird pointed out that both gold and silver were in slight backwardation going out about from a few months in gold, to a year in silver.  We saw severe backwardation develop in silver several years ago…and it amounted to nothing, despite what the so-called ‘experts’ were saying at the time…so it remains to be seen whether it will amount to anything this time around.  Ted Butler said back then that the ‘powers that be’ can manufacture backwardation if they wish to do so…and said it meant nothing…and he turned out to be the only one who really knew what he was talking about, much to my dismay. Tomorrow we get the anxiously-awaited [at least by Ted and myself] Commitment of Traders data for the reporting week that ended at the Comex close on Tuesday…and I’ll have a full report on that in this column on Saturday. The price action was pretty dead in the Far East during their Thursday…and the same can be said about the first two hours of trading in London as well.  Volumes are on the lighter side…and the dollar index is down about 22 basis points as I hit the ‘send’ button at 5:10 a.m. Eastern time. It looks like another day where any significant price activity will occur during the New York trading session. See you on Friday…or Saturday if you live just west of the International Date Line.center_img The dollar index opened on Wednesday in the Far East at 82.07.  From there it sank to its low of the day…81.94…at exactly 2:00 p.m. in Hong Kong.  The subsequent rally lasted until minutes before 5:00 p.m. Eastern time, where it printed its high of the day at 82.60. From there it sold off a hair into the close, finishing the Wednesday session at 82.55…up 48 basis points from Tuesday. Obviously there was no correlation between the dollar index and the gold and silver price action on Wednesday. Sponsor Advertisement The gold stocks traded in the red until 10:00 a.m. Eastern time…and then away they went to the upside.  They ran out of gas at the 11:00 a.m. high price tick…and then traded flat until just after the 1:30 p.m. Comex close…and from there the shares crept higher, closing on their high tick of the day.  The HUI finished up 3.95%. 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.last_img

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