U.S. Markets end year on high note

U.S. stocks closed out a second consecutive year of gains, recovering to levels last seen prior to the collapse of Lehman Brothers in September 2008 and the ensuing recession. Over the year, the S&P 500 index rose 12.8% and the Dow Jones industrial average gained 11%, both hitting two-year highs in late December. The tech-heavy Nasdaq composite rallied to a three-year high, soaring 16.9%.

For the holiday extended Dec. 20-31 report period, U.S markets were tepid. The S&P 500 closed 13.73 points higher, or 1.1%, at 1,257.64, marking its best December performance in 19 years. The Dow Jones was up 0.7% to 11,577.51, a rise of 85.6 points, while Nasdaq closed a fraction higher at 2,652.87.

Commodities finished 2010 on a high note. Crude oil ended the year up more than 12% at US$91.38 per barrel, thanks in part to some cold winter weather, rising global demand, falling inventories and the weak U.S. dollar. Expectations among analysts are that oil will soon hit the US$100 mark.

The Philadelphia Gold and Silver sector closed 7.6 points higher, or 3.5%, at 226.56, as the price of gold jumped US$42.20 during the two-week trading period to reach US$1,421.40 per oz, off slightly from its recent high of US$1,432. The spot price of silver rose 6% to end the week at US$30.92 per oz.

Among the active traders, were silver producers Hecla Mining, up US66 cents to US$11.26, and Silver Wheaton, which tacked on US$2.34 to end the trading period at US$39.04. Among the gold producers, Freeport-McMoRan Copper & Gold advanced US$6.38 to US$120.09, Barrick Gold closed up US$1.55 at US$53.18, and Newmont Mining gained US$2.03 to finish off at US$61.43.

Paramount Gold and Silver jumped US$1.25 in heavy trading to end the period at US$3.99 after reporting very promising drilling numbers from a new gold-silver discovery on its 100%-owned San Miguel project in northern Mexico’s Chihuahua state.

News that China was imposing export restrictions on rare earth elements sent the shares of those companies specializing in the high-tech mineral soaring, including Rare Element Resources, which climbed to US$16.06 for a gain of US$6.72. The junior has just closed a $57-million financing consisting of 6.4 million shares priced at $9 each. The proceeds will be directed towards advancing its Bear Lodge rare earths project in Wyoming through completion of a prefeasibility study.

International Coal Group, a leading coal producer in the Appalachia and Illinois Basin, ended the trading period up US74 cents at US$7.74.

China Shen Zhou Mining & Resources, a company engaged in the mining and processing of fluorite and non-ferrous metals such as zinc, lead and copper in China, nearly doubled in price to close at US$8.40. The company announced that China’s preliminary 2011 production targets for fluorite should have a positive impact on pricing.

After reporting final drilling results from an initial seven holes totalling 2,500 metres on its Guadalupe gold-silver property in Mexico’s Zacatecas state, Gold American Mining was off 40%, dropping to US27 cents.

With headquarters in Bakersfield, California, Tri-Valley Corp. was up 46% at US57 cents per share. Tri-Valley is a junior oil and gas producer in California, with mineral interests in Alaska. It has been shopping around an interest in its Shorty Creek porphyry prospect and recently announced the US$2.5 million sale of its Admiral Calder calcium carbonate quarry located on the Prince of Wales Island in Alaska.