Thursday, January 19, 2006


Gold Futures Advance $15

A look at todays' metals action. "Gold futures climbed almost $15 an ounce Thursday, erasing the prior session's losses. Gold for February delivery closed up $14.50 at $559 an ounce after touching an intraday high of $559.70. The benchmark contract lost nearly $10 Wednesday."

"'We saw little evidence yesterday that the Godzilla-size footprints of funds bailing out of gold was present,' said Jon Nadler, an investment products analyst at bullion dealers 'We did see evidence overnight that millions of tiny [individual-investor] footprints make for an equal-size impact on gold, in the opposite direction."

"For now, the 'path of least resistance continues to point uphill,' he added, noting that the immediate range to consider is $545 to $565 an ounce. 'Taking out $568 will signal another stage altogether.'"

"March silver closed up 23.5 cents at $9.108 an ounce and April platinum finished up $18.80 at $1,048.70 an ounce. March palladium rose $3.75 to close at $277.65 an ounce."

And Reuters reports on the coming Canadian gold mining giant. "Barrick Gold Corp. (ABX.TO) got ready on Thursday to bring Placer Dome Inc. (PDG.TO) employees and assets under its wing as the midnight deadline for its $10.4 billion takeover offer neared. he two Canadian gold mining giants shook hands on a friendly deal just before Christmas after duking it out for a couple of months."

"Barrick has already won antitrust approval in Canada, the United States, Australia, Germany, Switzerland and South Africa. The deal has also garnered support from the analyst community, who say the sweetened offer will likely succeed."

"If the deal succeeds, Barrick will sell Placer's Canadian assets to another Canadian producer, Goldcorp Inc. (G.TO), for $1.485 billion. The remaining Placer assets will make Toronto-based Barrick the world's largest gold producer, ahead of U.S.-based Newmont Mining Corp. (NEM.N) and South Africa's AngloGold Ashanti Ltd. (ANGJ.J), with 2005 pro forma production of 8.3 million to 8.4 million ounces."

If anyone wants to put a metals mining company in the spotlight, suggest it here and I'll dig out the financials.
What are all the debt-free, unhedged gold mining companies (if any)? (I only have the GLD ETF.)

This is my silver position:
SLW "Silver Wheaton is the only mining company with 100% of its revenue from silver production. Silver Wheaton is debt-free, unhedged and well positioned for further growth."
If anyone wants to put a metals mining company in the spotlight, suggest it here and I'll dig out the financials.

How about GG or RGLD?
My favorite little play right now is a small outfit in Argentina with some very big names behind it. Robert McEwen of Goldcorp fame ('nuff said) is a partner in Minera Andes (MNEAF). The amount of experience on that team is amazing, and today the initial exploration yielded extremely promising results.

I've also been thinking seriously about MAG silver in Mexico. If anyone has a scoop on them I'd love to hear it.
Gold going to Iran?

Iran Moving Currency As Pre-Emptive Move

Jan 20 1:12 PM US/Eastern
Associated Press Writer


Iran is moving its foreign currency reserves out of European banks as a pre-emptive measure against any possible U.N. sanctions over its nuclear program, the Central Bank Governor said Friday.
Ebrahim Sheibani told reporters that Iran has started transferring the foreign currency reserves from European banks to an undisclosed location, the semiofficial Iranian Students News Agency reported.
I think Yamani is very promising company. With production and nice size of reserves and still exploring.
Off topic...

In particular the positions of 4 firm's and their recent gold position changes:

1. Sumitomo Corporation went from short zero contracts of gold on Jan 2. to NET short 65284 contracts on Jan. 12.

2. Mitsubishi Corporation Futures Ltd. went from 14 contracts short of gold on Jan 2. to NET short 8069 contracts on Jan 12.

3. Mitsubishi Corporation went from zero contracts short gold on Jan 2. to NET short 23255 contracts on Jan 12.

4. Goldman Sachs went from zero contracts short of gold on Jan 2. to NET short 22487 contracts on Jan 12.

5. Mitsui & Co Ltd. went from 3109 contracts short gold on Jan 2. to NET short 57511 contracts on Jan 12.

What I find most interesting is that I count 73 members on TOCOM. The total open interest was 324,377 contracts on Jan 12. The net contract positions for all the dealers on TOCOM was 185,029 contracts. THE TOTAL NET SHORT POSITION OF THESE FOUR FIRMS WAS 176,606 contracts. Am I reading this right? I verified on the web to confirm that Mitsubishi Corporation does in fact own Mitsubishi Corporation Futures Ltd. and that is why I counted these two firms as one. It TOCOM website also says that each gold contract is 1kg of gold. If 1 kg = 35.27396195 oz then these 4 firms went net short 6,229,593 ounces of gold and almost all of it was put on since Jan 2.
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