Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012

A very noisy gappy day with much larger volume than in recent days (which all dried up in the afternoon session until the close - for the heaviest volume day in a month) in US equities. European comments lifted us early in a correlated-risk-on manner until Bernanke's speech which hit markets like a meteor - stops were run up and down - but by the close equities and the USD ended fractionally lower from pre-Ben (notably up on the day to save the month for the Dow), Gold considerably up from pre-Ben, Treasury yields down notably from pre-Ben. Near six-month highs in Gold and five-month highs in Silver were the real movers today - with their largest gains in two months. VIX ended marginally lower at 17.5% (-0.3vols); credit was very thin today and tracked stocks in general (though less volatile); USD ended the week -0.5% which matches Oil's +0.5% on the week as Copper underperformed. Silver has overtaken Stocks as the Year-to-date winner once again...
Gold vs Stocks vs USD vs Treasury yields... (arrows from pre-Ben to close)...7Y closed under 1%

more:
http://www.zerohedge.com/news/gold-soars-near-six-month-high-silver-overtakes-stocks-2012

CHINESE ANNOUNCES 1.2 TRILLION U$S STIMULUS! SILVERTARDS, WE RIDE!

China has announced a total of 8 trillion yuan (£800bn) of "stimulus projects" to try to boost confidence in an economy that appears to be cooling faster than expected. 

 

One Chinese province after another has stepped forward over the last fortnight to announce their plans, in what appears to be a propaganda effort to reassure the public that the economy is still on track.

Meanwhile, Wen Jiabao, the Chinese premier, promised over the weekend that the Chinese government would intensify its efforts to boost the economy in the second half of the year.

On a visit to Guangdong, the heartland of China's export industry, Mr Wen warned that "there will still be a lot of problems and uncertainties in exports going forward. The third quarter is a crucial period".

Analysts said the government could now steer the value of the yuan lower, after a gain of 4.7pc last year against the dollar. Further export tax rebates could also be used to bail out manufacturers.

China's export sector is suffering from anaemic demand from Europe and the United States. In the first seven months, exports rose 7.8pc, while imports rose 6.4pc, leaving China in danger of missing its 10pc target for trade growth this year. July's exports grew at the lowest pace since 2009 and there are reports of factory workers leaving and returning to their home provinces for the first time since the financial crisis.

 http://www.telegraph.co.uk/finance/china-business/9500548/China-announces-800bn-stimulus-to-boost-confidence.html

The temporary closure of Hecla's Lucky Friday Mine, complicated by ground support rehabilitation work at the company's Greens Creek Mine, negatively impacted U.S. silver production earlier this year

U.S. silver output plunges between January and May-U.S.G.S.

The temporary closure of Hecla's Lucky Friday Mine, complicated by ground support rehabilitation work at the company's Greens Creek Mine, negatively impacted U.S. silver production earlier this year.

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Author: Dorothy Kosich
Posted: Wednesday , 22 Aug 2012
RENO (MINEWEB) - 
UPDATED: The U.S. Geological Survey reported Tuesday that U.S. silver production dropped 14% in May.
U.S. mines produced 84,900 kilograms of silver (2,729,600 troy ounces) in May 2012, a 14% drop from the 99,300 kg (3,192,570 ounces) of silver output reported during May 2011. The average daily production rate in May of this year was 2,740 kg (88,903 oz.).
The average Handy and Harman silver price for May was $29.79 per ounce, a 22% drop from the previous year. The average London spot price for May was $28.67 per ounce.
Coeur d'Alene Mines produced 151 metric tons in the first quarter of 2012, up 19% from the same period a year. Hecla Mining's first quarter silver production of 41 tonnes plunged 46% from the first quarter of last year. U.S. Silver Corp. produced 17 tonnes of silver during the same period, an 11% increase compared with the 15 tonnes of silver mined in the first quarter of 2011.
Domestic silver production for the period from January to May of this year totaled 411,000 kg (13,214,000 oz.).
U.S. Geological Survey figures show the United States imported 2.4 million kg (77,161,800 oz.) of silver with a value of $2.58 billion from January to May of this year. The U.S. imported silver bullion, silver dore, silver ores and concentrates, and silver ash and residues from Argentina, Belgium, Canada, Chile, Columbia, the Dominican Republic, Ecuador, Italy, Jamaica, Mexico, Morocco, Nicaragua, Panama and Peru.



source:
http://www.mineweb.com/mineweb/view/mineweb/en/page32?oid=157430&sn=Detail