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From: PaperPerson5/7/2012 8:25:57 PM
   of 4690
USGS: U.S. Gold Production Declines During February
04 May 2012, 10:01 a.m.
By Kitco News

(Kitco News) - U.S. producers mined 17,000 kilograms of gold during February, a 7% decline compared to revised January output of 18,300, the U.S. Geological Survey said Friday.
Production was also down year-on-year, falling 1% from 17,200 kilograms in February 2011.
Average daily gold production in the U.S. was 587 kilograms in February, down from 589 in January and 635 for full-year 2011, the agency said.
Nevada’s output was 12,700 kilograms in February, down from 13,600 in January and 12,800 in the same month a year ago, the USGS said. Alaska’s output was 1,780 in February, down from 1,890 in January and 1,800 in the same month a year ago.

The total for all other states was 2,580 kilograms in February, a decline from 2,770 in January and 2,680 in February 2011. This included output for Arizona, California, Colorado, Idaho, Montana, New Mexico, South Dakota, Utah and Washington.

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From: PaperPerson5/8/2012 7:58:10 AM
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HSBC: Removal Of Excise Tax First Step Toward Recovery Of Indian Gold Demand

Tuesday May 08, 2012 7:45 AM

Removal of an excise tax on gold by the Indian government is a step toward recovery of Indian gold demand, says HSBC. If the Indian rupee were to strengthen against the U.S. dollar, “gold prices at current levels may be an attractive entry point for price-sensitive buyers,” the bank says. Introduction of the tax in mid-March prompted a majority of Indian jewelers to close for three weeks in protest, hurting demand from one of the world’s largest gold consumers. Analysts say weakness in the rupee made gold more expensive when priced in the country’s currency, and this was also blamed for hurting Indian demand.

By Allen Sykora of Kitco News

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From: PaperPerson5/8/2012 4:07:48 PM
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Mitsubishi: Gold Hit By 'Another One Of Those Tsunamis Of Selling'
Tuesday May 08, 2012 2:45 PM

Gold’s weakness was exacerbated by “another one of those tsunamis of selling,” says John Howlett, division vice president with Mitsubishi International. “Supposedly upwards of 14,000 lots of gold were sold in the 5 minutes from 8:20 to 8:25--the old open-outcry opening time,” he says. “After the 7,500 that went on April 30, it may be safe to say that somebody’s system is telling them to abandon ship. And that somebody has some substantial volume to chuck around.” He cites two technically bearish items for gold: “the market is significantly through and closing belowthe 300-day moving average for the first break since 2008 and the market is also ‘under the cloud’ on the ichi moku chart for the first time since Q1 2009. The caveat on the second item is that it’s best on a weekly chart and it’s only Tuesday.” Meanwhile, a trendline back to November 2008 puts support in the area from $1,595 to $1,605, he adds. As of 2:10 p.m. EDT, Comex June gold was $34.40, or 2.1%, lower at $1,604.70 an ounce.

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From: PaperPerson5/10/2012 7:30:32 AM
   of 4690
Tax Charges Affect Gold Miner Kinross’ 1Q Profit, Falls 57% to $105.7 M

By Esther Tanquintic-Misa

May 9, 2012 11:19 AM EST

One-time tax-related charges instituted in the first three months of the year have affected the profit of Canadian miner Kinross Gold Corp., falling by as much as 57 per cent in the first quarter.

The Toronto-based gold miner on Tuesday reported Tuesday profit generated in the quarter ended March 2012 slid to $105.7 million compared from the $250.1 million a year ago. This represented a ratio of 9 cents a share presently, from 22 cents a share the previous year.

Total sales, however, jumped 11 per cent to $1.04 billion from $937 million over the first quarter of 2011.

In a statement, Kinross Gold Corp., with mines in North and South America, Russia and Africa, said tax liabilities coupled with a $110.3 million non-cash item related to an income tax rate change in Ghana primarily affected its first quarter yields.

Discounting one-time items, Kinross Gold Corp. reported profits jumped to $203.1 million from $175.3 million, or 18 cents a share from 15 cents a share, respectively.

While gold produced during the first three months of the year reached 604,247 ounces, 6 per cent less from the 642,857 produced a year ago, the cost of producing the precious safe haven yellow metal soared 22 per cent for Kinross Gold Corp. due to lower grade ore, higher power, labor and contractor costs.

Total cost of production was $742 per gold equivalent ounce versus $545 a year ago. The company saw an average realized price of $1,644 per ounce of gold, up from $1,327.

Tye Burt, President and CEO of Kinross Gold Corp., said the company anticipates production to increase for the remainder of 2012.

"We expect to be within our previously-stated full-year guidance for production and costs," Burt said in a statement.

"Kinross remains in a strong operating and financial position. We are committed to maintaining our financial strength and liquidity as we advance our growth projects in the framework of our capital and project optimization process."

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From: PaperPerson5/14/2012 7:57:02 AM
   of 4690
Gold Holdings In SPDR GLD Relatively Stable Even As Prices Drop
11 May 2012, 1:16 p.m.
By Debbie Carlson
Of Kitco News

(Kitco News) - Gold prices are down about $200 an ounce since making their 2012 high of $1,795.10 an ounce on Feb. 28, but the outflows from the largest gold exchange-traded fund, the SPDR Gold Trust (NYSE: GLD), have been relatively modest so far.
As of May 10, according to data on the SPDR Gold Trust website, total tonnage in the ETF was about 1,277, when the most-active June futures on the Comex division of the New York Mercantile Exchange settled at $1,595.50. Comparatively, this year’s high for total tonnage was set March 1, at 1,293 tons, two days after June gold hit the 2012 high.
Part of that “stickiness” – or the retention of investors - is the design of exchange-traded funds, said Kevin Quigg, global head of SPDR ETF strategy and consulting, State Street Global Advisors.
“ETF products are designed so that tactical and strategic investors can cohabitate in the same vehicle with no adverse effect,” Quigg said.
Tactical investors usually have short-term horizons while strategic investors generally take a “buy-and-hold” mentality.
While a roughly 16-ton drop in gold holdings this year may seem large, compare that to the sharp drop in speculative positions in the futures market. In the Commodity Futures Trading Commission’s weekly commitment of traders report, bullish positions by managed-money accounts are just off their lowest levels recorded since the agency started tabulating that particular report in September 2009.
Pinpointing how many investors are in the ETF as a short-term trade and how many are using the ETF as a portfolio diversification tool is hard to do, Quigg said.
“We don’t know how much is tactical and how much is strategic. In the secondary market you can see tactical, but they may be cross selling with someone who is a buy-and-hold person. We only have anecdotal evidence and that is the growth of the fund. The price of gold has had dramatic moves, but … there have not been tremendous outflows. From a volume perspective, there’s not been a tremendous decrease in volume,” Quigg said.
Most of the news headlines about the fund are tactical in nature as they usually come when famous investors like John Paulson or George Soros are reported to have bought or sold holdings. That information comes in a Securities and Exchange Commission filing called a 13-F. The agency requires quarterly reporting of stock holdings by institutional investment managers with at least $100 million in equity assets under management via this form.
“When you get into the realm of hedge funds … you don’t know (all of) what they’re doing. Hedge funds do gain access to the spot price via futures or physical, too. How Paulson uses GLD, I don’t know. He doesn’t call and tell me,” Quigg joked.
Although gold investment “fever” has cooled now that gold’s price is off the all-time higher set in September at $1,923.70, interest in the ETF continues, Quigg said. One trend that’s been developing is greater use of the fund by Latin American institutions. In particular, Quigg cited increasing interest by the privatized social security funds in the Andean region of South America. “Colombia privatized their social security fund recently and we’ve just seen they’re holding the SPR GLD,” he said.
Institutions are not the only holders of the fund, just the most visible because of the SEC filings. Large individual and retail investors also buy the fund. It’s the combination of these various investor classes that made the fund the fastest-growing in history when it debuted in November 2004 and it still remains the second-largest ETF based on assets under management at roughly $65 billion behind the SPDR S&P 500 ETF (NYSE:SPX) at $95 billion.
When the fund was launched, it was considered a major innovation, finally allowing gold to trade like a stock. The fund is now nearly eight years old; are there plans for any new products that might spur demand? No, Quigg said.
At most there are some modifications to the fund that are generally operational, he said, such as when the fund went to being 100% physically allocated last year from 99.85% allocated. That small 0.15% non-allocation was used to accrue and pay expense ratios, but that’s now being handled in a different manner, he said, as part of an ongoing evaluation process of the product structure and in an effort to take advantage of any enhancements that will benefit clients.
“Customer demand is quite the opposite (from wanting new innovations). They’re very happy with the product; the draw is the 100% allocated physical bars. You get the benefit of gold ownership,” he said.

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From: canucklehead805/14/2012 8:50:19 PM
   of 4690
Where East Meets West
Greenfields Prospers With Oil and Gas in Azerbaijan
By G Joel Chury

Independent only since 1991, the former Soviet republic of Azerbaijan is a small country with a population of only nine million. It is, however, rich in oil and gas, and development of these resources for export is increasingly central to Azerbaijan’s burgeoning prosperity. Its state-owned oil fund currently brings in US$5 billion per quarter or US$625 per capita every 90 days.

Oil tankers are filled every six to 10 days on the Black Sea, while the country gears up for the completion of natural-gas pipeline routes into neighbouring Georgia and Turkey for European distribution. Britain’s BP and France’s TOTAL SA are among the majors in the region, but a junior headquartered in Houston, Greenfields Petroleum TSXV:GNF, thrives with its production from the Gum Deniz oilfield and the Bahar gas field.

Read more about Greenfield's central Asian oil and natural gas play.

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From: PaperPerson5/15/2012 4:59:37 PM
   of 4690
Claude Resources Posts Loss on Higher Costs

May 14 (Reuters) - Gold miner Claude Resources Inc posted a first-quarter loss as operating costs increased.

The company had a net loss of about C$500,000 in the quarter compared with a net profit of C$1.8 million, or 1 Canadian cent per share, a year earlier.

Claude's gold revenue, from the its Seabee Gold operation in Saskatchewan, rose 21 percent to C$16.1 million, or C$1,681 per ounce.

The strong gold price was offset by increased mine operating costs and resulted in lower operating margins, Claude said in a statement.

Cash cost rose 34 percent to C$1,236 per ounce, lowering the net cash margin per ounce to C$445 per ounce in the quarter from C$484 a year earlier.

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From: PaperPerson5/17/2012 8:45:38 AM
   of 4690
Magellan is worth a look here.

$24 mm market cap and money from SSL.

Two nice sounding good sized gold prospects in brazil. Ssl did our DD for us.


Magellan Closes Financing With Sandstorm Gold

Press Release: Magellan Minerals Ltd. – Tue, May 15, 2012 7:40 PM EDT

VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/15/12)- Magellan Minerals Ltd. (TSX-V: MNM)(MAGNF.PK) ("Magellan") is pleased to announce the closing of the previously announced transaction with Sandstorm Gold Ltd. ("Sandstorm") (see press release dated May 11, 2012), whereby Magellan will grant Sandstorm Gold Ltd. a 2.5% net smelter returns royalty ("NSR") on the Coringa gold project ("Coringa") and a 1.0% NSR on the Cuiu Cuiu gold project ("Cuiu Cuiu"), both of which are located in Para state, Brazil. As consideration, Sandstorm paid Magellan a cash payment of US$7.5 million and subscribed for one million common shares of Magellan at a price of $0.50 per share for total proceeds of $500,000.
Magellan Minerals (TSX-V: MNM)(MAGNF.PK) is a TSX Venture Exchange-listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

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From: PaperPerson5/18/2012 6:23:29 AM
   of 4690
Comex Gold Rallies Sharply on Short Covering, Bargain Hunting, Fresh Safe-Haven Demand
Thursday May 17, 2012 2:15 PM

Comex gold futures ended the U.S. day session sharply higher and near the daily high Thursday, posting the largest daily advance in many weeks. Traders and investors stepped in to "buy the dip" in gold prices by doing some heavy short covering and bargain hunting. For the first time in a while some significant safe-haven investment demand also cropped up in gold. The gold market was also oversold, technically, and due for an upside corrective bounce, which it saw Thursday. June gold last traded up $37.00 at $1,573.60 an ounce. Spot gold was last quoted up $33.60 an ounce at $1,574.50. July Comex silver last traded up $0.814 at $28.01 an ounce.

The market place was seeing just a bit of a pick-up in investor risk appetite early Thursday morning, following Wednesday afternoon’s release of the minutes of the latest meeting of the Federal Open Market Committee, which hinted that further quantitative easing of U.S. monetary policy is not off the table. Then the Philadelphia Federal Reserve business survey was released and it was weaker than expected. That dented gains in the dollar index and U.S. stock market, rallied the U.S. Treasury prices, and was one impetus for traders to do some short covering and fresh buying in the gold market.

It’s important to note that Thursday’s gains in gold came amid somewhat of an overall “risk-off” day in the general market place, following the Philadelphia Fed survey. The big gains in gold do suggest a portion of the yellow metal’s gains were related to safe-haven investment demand.

Wednesday afternoon’s FOMC minutes that hinted further quantitative easing of U.S. monetary policy is possible if the economy were to continue its lethargic ways is an underlying bullish factor for the raw commodity markets, including the precious metals. Thursday’s weak U.S. economic data further stoked notions “QE3” is not at all off the table. Most traders and investors reckon a QE3 situation would be inflationary down the road, which is commodity-market-bullish. However, many reckoned the monetary stimulus seen by the major central banks of the world during the past 3.5 years would have already produced inflationary price pressures.

For the gold market bulls, they needed to see a day of solid, corrective upside price action. Prices were nearing the key technical level of $1,500.00 an ounce. A move below that major psychological support level would begin to inflict longer-term chart damage and would call into question the 11-year-old price uptrend that remains in place on the longer-term charts. Gold prices around this week’s low also mark a 20% decline from the all-time highs scored last year. Many market watchers determine a bear market to be in place when a market price has backed off by 20%.

The European Union debt and financial crisis is still on the front burner of the market place. The Fitch ratings agency Thursday further downgraded Greece’s debt rating, which was not at all surprising. After Tuesday’s failed efforts by Greek politicians to form a coalition government, fresh Greek elections are now scheduled for mid-June. Concerns regarding Greece leaving the Euro zone are high, as the Greeks’ commitment to financial austerity is highly questionable. Spanish and Italian bond yields are above 6%, which is stressing the EU financial system.

The U.S. dollar index traded near steady Thursday after hitting another fresh four-month high overnight. The greenback has benefited recently on fresh safe-haven demand mainly due to the EU situation. The dollar index bulls have good upside near-term technical momentum. Meantime, crude oil futures prices were slightly lower Thursday after prices Wednesday hit a fresh 6.5-month low of $91.81 a barrel. Crude oil remains in a bearish fundamental and technical posture. If crude oil continues to trend lower and the dollar index continues to trend higher, sustainable near-term price uptrends in gold and silver could be difficult to achieve—unless more solid safe-haven demand for gold surfaces.

The London P.M. gold fixing was $1,554.00 versus the previous London P.M. fixing of $1,548.50.

Technically, June gold futures prices closed nearer the session high Thursday. While serious near-term chart damage has been inflicted recently decent follow-through buying and a bullish weekly high close on Friday would begin to suggest a near-term market bottom is in place. Gold bears still have the overall near-term technical advantage. A 2.5-month-old downtrend is still in place on the daily bar chart. The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at this week’s high of $1,585.80. Bears' next near-term downside price objective is closing prices below solid technical support at this week’s low of $1,526.70. First resistance is seen at Thursday’s high of $1,579.80 and then at this week’s high of $1,585.80. First support is seen at $1,564.40 and then at $1,550.00. Wyckoff's Market Rating: 3.5.

July silver futures prices closed nearer the session high Thursday and saw short covering and bargain hunting after prices Wednesday hit a 4.5-month low. Silver prices are still in a 2.5-month-old downtrend on the daily bar chart. The silver bears still have the solid near-term technical advantage. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at this week’s high of $29.00 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the December low of $26.50. First resistance is seen at Thursday’s high of $28.295 and then at $28.50. Next support is seen $27.50 and then at Thursday’s low of $27.175. Wyckoff's Market Rating: 3.0.

July N.Y. copper closed down 40 points 347.40 cents Thursday. Prices closed nearer the session low. Copper bears have the near-term technical advantage. Copper bulls' next upside breakout objective is pushing and closing prices above solid technical resistance at this week’s high of 367.45 cents. The next downside price breakout objective for the bears is closing prices below solid technical support at the January low of 340.60 cents. First resistance is seen at 350.00 cents and then at Thursday’s high of 352.15 cents. First support is seen at this week’s low of 344.90 cents and then at 342.50 cents. Wyckoff's Market Rating: 3.0.

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From: PaperPerson5/18/2012 1:41:37 PM
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Big picture: gold is still under accumulation, at least as measured by Joe Granville's useful technical innovation called On Balance Volume. What Granville figured out was that you could take each day's volume and assign it an uptick or downtick based on wehthr the stock price rose or fell that day. same for a week. take the weekly volume and assign it based on net change for week.

Over time, the OBV trend line shows whether the stock is being accumulated or distributed by smart money.

I am applying OBV to measure accumulation and distribution in GLD, the electroniically traded fund that has become the best most measurable proxy for the metal. While the traders are focused on the daily chart, which is fairly depressing and could make somebody throw in the towel on gold, I am encouraged by the weekly chart.

on balance volume, which is an indicator of accumulation or distribution, has remained quite positive on a week-to-week basis, even while exhibiting weakness on the daily chart.


Looking at this ETF, gold is now closing in on $160) after falling off its higihs in recent months. I see this as retrentching for a new advance, and have not changed my mind even in the last few weeks when the numbers have been pretty grim.

besides being a nice round number, $1,600 happens to be the 50 day moving average right now.

so breaking through 1600 is a strong objective for gold as it works toward reestablishing a bull market.


here is gold on a weekly chart with a 50-week (nearly one year) moving average.

by this weekend the price looks like 1600.

the chart should change TONIGHT to reflect the higher friday close for the week.

picking a moving average period of time is kinda arbitrary. I am using 50 weeks because it is close to a year and it lets me leave the parameters unchanged on stockcharts.

the moving average number to hit on this chart is $1626.

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