Sponsor Advertisement Drilling Intersects 102 Meters of 1.97 gpt Gold at Columbus Gold’s Paul Isnard Gold Project; Drilling Confirms Depth Extension of Gold MineralizationColumbus 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. Could JPMorgan Chase et al get over run here? I suppose, but I wouldn’t bet one red cent on that outcome.The gold price popped about five bucks at the open of trading in New York on Sunday night…and then didn’t do much until the 8:20 a.m. Comex open the following morning. Then the price came under some selling pressure, with the low of the day coming around 12:15 p.m. Eastern time.The tiny rally into the 1:30 Comex close, got sold off immediately in electronic trading…and the gold price closed down two bucks from Friday…at $1,728.80 spot. With volume as light as it was…around 70,000 contracts net…I wouldn’t read a whole heck of a lot into yesterday’s price action.It was pretty much the same story in silver as well. The real sell-off began at 11:00 a.m. Eastern time…which was the 4:00 p.m. GMT close of the precious metal markets in London. Like gold, the low tick of the day came at 12:15 p.m. in New York…and the subsequent rally lasted until shortly after the Comex close…and then got sold down in electronic trading.Net volume was only 24,000 contracts…and silver finished trading on Monday at $32.42 spot…down 21 cents from Friday’s close.It should be obvious that both metals would have closed in positive territory if they’d been left to their own devices…which they weren’t. Both platinum and palladium finished in the plus column.The dollar index closed the Friday session at 81:05…and then declined to just below the 81.00 mark by around 2:30 p.m. Hong Kong time on their Monday afternoon. From there, it rallied back to around the 81.00 mark…and chopped back and forth on either side of that line up until about 3:00 p.m. in New York.From there, a tiny rally commenced…and the index closed the day just about where it started…at 81:07. Nothing to see here.Although the gold equities opened in the black, they were in the red in just a few minutes…and were under strong selling pressure long before the 11:00 p.m. Eastern time sell-off in the gold price…and then traded more or less flat from there, despite the subsequent rally in gold that began at 12:15 p.m. in New York. The HUI finished down 1.26%…close to its low of the day.The silver stocks didn’t do well, either…and Nick Laird’s Silver Sentiment Index closed down 1.78%.(Click on image to enlarge)The CME Daily Delivery Report showed that 1 lonely gold contract was posted for delivery tomorrow…and that was it.There were no reported changes in GLD yesterday…but over at SLV, an authorized participant withdrew 629,301 troy ounces of silver.Nick Laird advised me late last night that the Sprott Physical Silver Fund…PSLV…has received/purchased 7,342,210 troy ounces of silver since last Thursday…5.9 million ounces on Friday and 1.4 million ounces yesterday…at least that’s what it says on their website. If that’s true, then delivery sure was fast. There may be a few more ounces to buy once the green shoe is announced later this month.The U.S. Mint did not have a sales report.The Comex-approved depositories were pretty quiet on Monday…as only 8,000 ounces were reported received…and 275,992 troy ounces were shipped out. The link to that activity is here.Here’s a graph that Nick sent me last night…and the reason I’m posting it is because of the number of stories about China’s gold imports for September that I have linked in this column.This is what Nick had to say about it in his covering e-mail…“The Hong Kong government statistics show “Exports to China“, “Re-Exports to China” and “Imports from China“.”“What the other analysts are doing is adding up the Exports and Re-Exports but not taking away the Imports to arrive at a Net Imports number.”“So Chinese Net Imports = Hong Kong Exports plus Hong Kong Re-Exports less Chinese Imports““In other words China sends some of it’s gold imports back to Hong Kong for further value adding before re-importing it again.”“This is a common occurrence and if you check the Hong Kong Government Statistics, you’ll find lots of countries doing it.”Distilled down to its essence, Nick is saying that you should be wary of all the analysts quoting Chinese import numbers, because some are not correct. You have been warned!(Click on image to enlarge)While on the subject of Nick Laird…the Yellow-Bellied Sunbirds are now sitting on eggs in the nest the female built that hangs from Nick’s Christmas lights…and here’s a photo of two Sulphur-crested Cockatoos that showed up in a tree in his yard about ten days ago. Although a protected species…they can be pests.It was a busy weekend for stories…and I have a lot for you today. I’m wimping out here…and I’ll leave the final edit up to you.I think this man [Obama] really does believe he can change the world, and people like that are infinitely more dangerous than mere crooked politicians. – Thomas SowellConsidering how low the volume was yesterday, I’m not prepared to read a lot into the price action, except to note that both metals got sold off in New York once London closed for the day.Options expiry for the December contract is still two weeks away, so we’ve got a fair amount of time before the traders have to make up their minds about one of the three choice they have to make between now and November 27th…sell, roll, or stand for delivery.As I said just recently, I’m not expecting a big rally between now and the 27th…or even prior to first day notice which will be posted on the CME’s website on Thursday evening of the 29th. The big short positions in both metals are still there. Gold is a bit better…but silver’s short position is still grotesque beyond belief.One thing I am looking forward to seeing, is if the huge and mysterious volume that occurred during last Wednesday’s trading session in the precious metals makes a material difference in this Friday’s Commitment of Traders Report. By the way, the cut-off for that report is at the 1:30 p.m. Eastern time Comex close today.Could JPMorgan Chase et al get over run here? I suppose, but I wouldn’t bet one red cent on that outcome…and I wouldn’t be surprised if “da boyz” didn’t smack the price one more time between now and the end of the month.At the moment, I’m not thinking too hard about it…as my thoughts are starting to turn to the holiday season now that the Christmas commercials have begun to show up on TV now that Remembrance Day is behind us. You can drive yourself crazy if you spend all your time thinking/worrying about what lies ahead…and it isn’t worth it.Just buy the dips as we wait these guys out.As I hit the ‘send’ button on today’s column at 4:55 a.m. Eastern time, both gold and silver are back to almost unchanged from being down at their London lows shortly after the 8:00 a.m. GMT open. The dollar index is up less than 10 basis points…and volumes are nothing out of the ordinary. I expect this price pattern to change substantially once trading begins at the 8:20 a.m. Comex open in New York later this a.m.See you on Wednesday.