Gold to New Heights

Currencies from Kitco.com


ON the road today, so this will be brief. Almost up to 1120.

Best to each, Doug

Silver & Gold Holding Strong

Here are the opening prices of miners from Scottrade.com:
Currencies from Kitco.com:

The volatile silver has been as high as almost 17.80 and as low as 17.25 over the last 24 hours. I am beginning to prefer silver to gold. Our silver stocks SLW, PAAS, SSRI, and CDE are beginning to respond, but very slowly. We may have to wait for the last minute rush to metals for silver to catch up with gold. However, if the past is any indication of what will happen, it is a sure thing.
Gold has remained above $1,050 and bounced around $1,100 for 24 hours. It is holding most of the recent gains. This could continue as there is more news on gold even in the broad media.

From The Daily Pfennig today: "And then there was this... The folks over at Barclays say that they have recalculated the dollar's share of global currency reserves... The dollar, which once stood at 80% of global reserves, and right before the current weak dollar trend began in 2002, it stood at 73% of global reserves, has fallen to 62.8%... But... Says Barclays... This is almost entirely a result of weaker valuation rather than attempts by central banks to diversify holdings away from the dollar... Hmmmm... Now... I do agree that the euro's gains VS the dollar in the past 7 years would cause quite a bit of slippage in the dollar's value in terms of reserves held by central banks... But "almost entirely"? I doubt it... One could point at the Reserve Bank of India's purchase of Gold last week... They bought $6.7 Billion "worth" of Gold... You can't tell me that wasn't to diversify their reserves!

OK, to recap... Chuck's running late today... The non-dollar currencies are trading in the same clothes as yesterday. The ZEW German Business Confidence slipped this month, although Industrial Output rose. The U.S. is auctioning $81 Billion worth of Treasuries this week, and the demand for Gold is really pushing the envelope in terms of Gold's price!"

From MineWeb.com:

Silver Wheaton reports record profit, record silver equivalent production
Silver Wheaton CEO Peter Barnes called it "very pleasing to report record attributable silver production, sales earnings and cash flows" during the third quarter and first nine months of this year.
Author: Dorothy Kosich
Posted:  Tuesday , 10 Nov 2009
RENO, NV - 
Silver Wheaton reported record attributable production of 4.3 million silver equivalent ounces and record net earnings of US$33.6 million or 11-cent per share during the third quarter of this year.
However, net income for the first nine months of this year dropped from $71.4 million or 32-cents per share a year ago to $67.1 million or 23-cents per share.
During the first nine months of the year, Silver Wheaton reported the production of 11,761,000 silver equivalent ounces, compared to 8.7 million ounces for the same period of 2008.
Silver Wheaton generates its revenue primarily from the sale of silver streams produced by other mining companies. The company reported record silver equivalent sales of 4.6 million silver equivalent ounces for the third quarter and 10.7 million silver equivalent ounces for the first nine months of the year. This compares to silver sales of 2.7 million and 8.4 million ounces, respectively for the comparable quarters of 2008. Read it HERE.
SLV is a very good silver stock which is part of my portfolio core holdings.
From MineWeb.com:
India-IMF Deal: Tipping Point for Gold
Has a new floor been set at $1,000 per ounce?
Author: Frank Holmes
Posted:  Tuesday , 10 Nov 2009
SAN ANTONIO - 
India's deal to buy 200 metric tons (6.4 million troy ounces) of gold from the International Monetary Fund (IMF) is a huge deal - not just the fact that the New Delhi government is handing over $6.7 billion for the metal, but what it may mean for gold going forward.
India, the world's largest gold jewelry market, is making a rational and bullish call on gold. The supply of gold continues to decline - the biggest supply is from governments with socialist policies that are selling their gold to pay for social welfare and bailout programs. The IMF is a classic case of this. Read it HERE.
The world remains solidly in the hands of the creator God and all is working in concert with His plan. He cares for and protects His people as they are obedient to Him. Study His word to learn His law and His required ways for us. Then repent of sins and be forgiven by His grace.
Best to each, Doug

Gold > $1100 - I'm Speculating with DROOY

Currencies from Kitco.com:
Miners from Scottrade:
24-Hour Gold from Kitco.com. Notice that the price has moved above 1100.

Here is DRD Gold. The graph is showing signs of deterioration, but I am buying below $6.00 as a speculation on a return above $7.00. There are some articles below which report some problems with DROOY.

From MineWeb.com:

Gold's big taboo

Six of the world's major gold diggers truly sweat for cash, and hoodwink with headlines.

Author: Barry Sergeant
Posted: Monday , 09 Nov 2009

JOHANNESBURG -

Don't be fooled by high dollar gold prices, don't be hoodwinked by flattering headlines from gold companies, and don't deny the patent overvaluations. The world's major gold producers are sweating for free cash flow, the ultimate test of underlying performance.

The numbers can be aggregated from historic reports, and the latest set of quarterlies from global Tier I gold miners AngloGold Ashanti, Barrick, Goldcorp, Newmont, Yamana, and Kinross. Gold Fields and Harmony report with 30 June year-ends, and will be included in future surveys; Australia's Newcrest and Lihir, and Russia's Polyus are excluded, on a quarterly basis, on the basis of publishing limited details in quarterlies, and Buenaventura and Freeport-McMoRan are excluded as diversified metal miners.

The aggregated numbers for the six gold majors selected show that the grouping produced free cash flows of US$1.058m in the first nine months of the year, with free cash flow defined as operating cash flow minus cash outlaid on capital expenditure. The calculation of FCF excludes cash from selling/buying assets, cash spent on acquisitions/sales, and cash spent to close out hedge books. Of the free cash flow generated by the six companies in the first nine months of 2009, more than half, at US$554m, was paid out in dividends. Read it HERE.

From the Daily Pfennig this morning:

"The IMF issued a report this past weekend that isn't helping the dollar... The IMF said that there are "indications that the U.S. dollar is now serving as the funding currency for Carry Trades" was one of the things that hurt the dollar... The other thing was that the IMF felt that the dollar was still "overvalued"... Which in anybody's book means it can fall further!

The IMF also said that the euro had "experienced the most appreciation among major advance economy currencies and that it remains on the strong side of its equilibrium."

Hmmm... So... First it was the silence by G-20, and then the slap in the face by the IMF that has the dollar on the run this morning... I wonder what direction this will go once the New York traders arrive at their desks, and see what the overnight markets have done to the dollar... My guess is they will first take some profits, and then add on to the dollar's woes... But that's just a guess, who knows what those "fickle" traders will do!

So, like I said above, the euro, A$, Swiss are all moving higher VS the dollar... But the "winner" for best performing currency overnight is the New Zealand dollar / kiwi! At one point overnight, kiwi traded at 74-cents... It has since given back some ground, but the move overnight was impressive! Kiwi got a nice bump when Dairy Giant Fonterra raised their forecast dairy payout... With farmers' incomes representing .7% of the GDP, this was good news for the economy, and thus the thoughts begin to switch to a rate hike by the Reserve Bank of New Zealand (RBNZ), which just last week was downplaying any such rate hike... This might change their mind..."

The result of the drop in the dollar is gold at 1106.40 and silver at 17.67. The Gold/Silver Ratio is 62.61 which remains very high. Silver will catch up, but not for the time being. This is a bit strange, but if we are or when we get to the third phase of the bull market in precious metals, silver will spring to catch up with gold.

Overview from ETrade.com:

DROOY Company Overview

DRDGOLD Limited (DRDGOLD) is an unhedged gold producer and has operating gold mines and exploration assets in South Africa. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company produced 247690 ounces and declared Mineral Resources of 56.4 million ounces and Ore Reserves of 6 million ounces. The Company focuses on improving the potential of existing South African underground and surface retreatment operations and expanding surface retreatment activity. Its operating segments include Blyvoor, Crown, ERPM, ErgoGold, Ergo JV and Offshore. The company's subsidiary is DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA). On March 31, 2009, the Company acquired 35%interest from Mogale Gold (Pty) Limited. On February 28, 2009, DRDGOLD, through its subsidiary, Argonaut Financial Services (Pty) Limited acquired a 50% interest in Witfontein Mining (Pty) Limited.

According to most reports that I have seen, DROOY is at best a HOLD and at worst a SELL. It has rebounded from its low of the day. It is now bid 5.66, ask 5.67, last 5.66, high 6.01, and low 5.52. However for me, it remains very volatile and possibly a good stock for cautious trading.

BULM last 0.67; AMNP 0.765; CYRS 0.324; BYDDF 9.30; DOW +152+ at 10176+; gold 1107; Silver 17.67.

Best to each, Doug

Gold Flirting with $1100

Folks, Gold is looking quite strong, but seems to being capped at $1100. It is very near the top of the upper trend line and under normal circumstances, I would expect it to exceed $1100 this week. Remember a critical day will be the 23rd or possibly the prior week when paper options expire. This could be a significant turning point or more of the same old stuff. We shall see as the time approaches.
Gold in international markets is really pushing at the $1100 resistance. It has exceeded it twice in the last 24 hours, but must close above this line to continue its upward move. Perhaps, we are seeing some consolidation before it really takes off.
BULM must move above the 50 day moving average for it to be strongly positive again. I did not sell all of my holdings. The MACD is definitely showing that there will be more down days.
AMNP is giving off mixed signs. The only clear positive sign is that the price is above the 50 Day MA. All else is questionable, at best. There was positive "buy" article on Friday, but I believe this is not the speculation I saw from the prior technicals. I will be selling more if it moves above $1.00.
The mining stocks and silver have been trailing gold. The gold to silver ratio remains a very high 62+ which is not normal. Thus, silver could be a better buy than gold. But it is a time for more caution. I would like to see the miners decouple from the general market, but for the time being they seem to be tracking the general markets moves rather than those of gold and silver.

I hope to have some new suggestions for you tomorrow after I do some more research. Meanwhile, I am holding and not selling the miners except for AMNP, mentioned above.

I trust that you attended corporate worship in a sound church today to worship the Lord. This is very important for a life in tune with King Jesus upon whom all life is dependent.

Best, Doug

AMNP

Folks,

This just may be a promotion through advertising rhetoric. I suggest we get out of it. I am not buying, but will wait a bit before selling to allow you time to escape.

The graph shows signs of deterioration. It is down today in the range of 0.98 with a high of 1.145. Bid is 0.975 and asked is 0.98. Let's get out a 0.98 or so.

Gold is 1095.20 and holding pretty well. This will carry most miners with it.



Best, Doug

Precious Metals Capped Higher - Consider AMNP

We are being given mixed signals on the precious metals. As Ed Steers warns, below, with the November 23 options expiration, there could be a correction coming. If it does, this may be one of the last buying opportunities for a long while as gold is currently pushing toward a break through of the $1100 psychological level. Above that, there is little resistance except for the boyz. Note, too, that central banks have begun replacing dollars with gold. The one detractor is the fact that the Lemmings have not yet taken much notice of the sprinting price of the precious metals.
The graph on 24 Hour Gold clearly shows the boyz in action again. Nevertheless, gold is holding above 1090 which is a nice level.
Silver is also showing mixed signals with the RSI leveling off or turning downward. Silver recently crossed above its 50 Day MA which is a good signal. It is also in about the middle of the upward trough bracketed by the blue lines. Silver is lagging behind gold with a gold to silver ratio very high at 62.86. We would expect it to be 20-40, so silver has a long way to go. Should it correct in the immediate future, I would be interested in some more Silver Eagles.The boyz hit silver, too. Notice that it is at almost the exact time that gold was hammered. Coincidence? NEVER!

From Casey's Ed Steer's Gold & Silver Daily: "I'm still very nervous about a short-term correction between now and December options expiry on the Comex on November 23rd. The silver, gold and HUI charts are all indicating a bearish scenario. Neither silver nor the gold shares have confirmed this record run-up in the gold price, and the RSIs for both are not pretty."

From Forbes.com - Reuters.com:

Sri Lanka c.bank buying gold to diversify reserves

NEW DELHI, Nov 5 (Reuters) - Sri Lanka's central bank has been buying gold for the past five or six months as it diversifies its reserves amid volatile markets, the bank's governor said in an interview on Thursday.

'We have been fairly strong accumulators of gold reserves over the past few months,' Sri Lanka Central Bank Governor Ajith Nivard Cabraal told Reuters in a telephone interview from the southern Indian city of Chennai. Read it HERE.

This is no real big diversification from dollar reserves, but is evidence of the growing trend among banks.

From TownHall.com:

The "Costs" of Medical Care: Part IV

What is so wrong with the current medical system in the United States that we are being urged to rush headlong into a new government system that we are not even supposed to understand, because this legislation is to be rushed through Congress before even the Senators and Representatives have a chance to read it? Thomas Sowell asks profound questions in this article HERE.

From TheHinduBusinessLine.com:

Gold comfort

Ten years ago, almost to the day, Robert Mundell, the Economics Nobel laureate for 1999 predicted that, over the next decade, gold would play a very major role in the world’s central bank reserve systems. As it turned out, the world took almost that many years to realise the importance of his forecast; today, most European central banks and the US Fed hold more than 60 per cent of their foreign currency reserves in gold. This is a short, but very important read - Click HERE.

That is very interesting! There is a diversification from dollars to gold by central banks. I wonder how much of a move in that direction is being taken by the Federal Reserve.

From MoneyMorning.com:

Has Asia Dethroned Detroit as the Auto Sector Leader?

By Martin Hutchinson
Contributing Editor
Money Morning

Back in May I recommended that readers should buy shares in Ford Motor Co. (NYSE: F) on the grounds that the U.S. carmaker would gain market share from the bankrupt General Motors Corp.

More likely – while Chrysler will become a money-pit that is closed only by political means, and GM will limp on as a smaller and marginally profitable U.S. and European producer – Ford will slim down to become a specialty producer of cars tailored to the tastes and needs of the U.S. market. It’s well known that the auto preferences of U.S. consumers differ greatly from those of their European counterparts.

It comes down to this: Ford should be able to make money by limiting its “world car” ambitions and focusing on those needs.

Detroit Will Need to Learn From Asia

In the world as a whole, the big auto story has been the continued advance of manufacturers from China and India. Read the entire report HERE.

Who would have believed such a story until 2009? My auto repair friend has told me that less repair maintenance in his experience has been for the last two plus years for Toyota, Honda, and Hyndai. These brands normally require only regular maintenance. One of my daughters bought a Santa Fe recently based upon that revelation.

From InReuters.com:

Chinese gold cheaper than IMF's - ex-PBOC adviser

By Zhou Xin and Tom Miles

BEIJING (Reuters) - It would be cheaper for China to buy domestically mined gold than purchase bullion the International Monetary Fund is seeking to sell, a former adviser to the People's Bank of China said on Thursday. Not very long and worth a read HERE.

From ft.com:

View of the Day: Gold dances to its own tune

By James Turk

Published: November 5 2009 15:33 | Last updated: November 5 2009 15:33

Gold’s recent surge to record highs has not been accompanied by the usual market actions explaining its advance – instead, different factors are at work, says James Turk, chairman of GoldMoney.

He notes that the US dollar remains trapped within the same range it has occupied for several weeks. Nor, he says, has gold been tracking other commodities, as evidenced by the CRB Index, which remains below last month’s high. Oil and even silver have not been able to better their highs from October – at least not yet.

“For now, gold is marching to a different drummer,” says Mr Turk. “We are seeing a scramble for physical metal, and that demand is driving gold higher. Buyers are opting for physical gold, not paper gold.” This is an important article which can be read HERE. You are likely to have to register, but it is free for two articles a month.

From TownHall.com:

White House Postelection Arrogance

By David Limbaugh

The White House arrogance on display in denying that Tuesday's election results were a repudiation of President Barack Obama's radical agenda is of a piece with its arrogance in attempting to advance this agenda against the people's will. We should be surprised at the arrogance of the White House? Read it HERE.

From Sprott Management:

Con Job in the Financial Markets Continues

Download it in PDF HERE to read at your leisure.

I am replacing BULM with AMNP for a speculation miner. Here is a graph. I would add more AMNP under $1.00. On the graph we see one detractor in the RSI area. This has turned downward. The MACD seems to be turning upward and the negative volume appears to be turning positive. The volume has increased on the up move; possibly due to some promoting, but it is very strong. The price has significantly sprinted through and above the 50 Day MA. By the way, I have not sold all of my BULM, but I am concerned that it did not positively respond to the strong move of gold.

Here are our miners from Scottrade:

Currencies from Kitco.com:

BULM last 0.69; AMNP 1.02; BYDDF 9.25; DOW off 9 at 9996+; Gold 1094.40; Silver 17.42. Expect volatility.

Trust in the Lord, because He is faithful and ever good and perfect gift comes from Him. Praise Him daily. I hope and pray that each of you are members of a sound Christian church which presents the whole counsel of God, practices the two sacraments ordained by King Jesus, and exercises discipline over the members. King Jesus is coming again, but until the time He comes we are to continue business in accordance with His word.

Best to each, Doug

Precious Metals Consolidating for Another Sprint

Gold is holding strongly, thus far, around the 1090 price. This is very bullish. I have been thinking correction or consolidation before going higher. It seems that it is consolidating here for the next move.
Silver, though lagging gold, is holding in the range of just below 17.40 to 17.60. This could be another example of consolidation for a higher move. An article, below, predicts silver at $20 in the near future. Will it make it? Hang on, we are in a strongly bullish mode now.

Gold has made a strong bullish move and it looks to be headed higher. Notice that the price is at the top of the trend line trough. Will it break through 1100? That is the big question. From a technical perspective, there seems to be no doubt that it will. The Lord knows, but we will have to wait and see what the market says.


From Chuck Butler in The Daily Pfennig: "The FOMC was not a 2-day meeting after all! Just one day, so no time to pull out the board games and cards...

I nailed that FOMC statement yesterday... WOW! You might begin to think that I have some inside info on the Fed Heads, the way I've been able to basically call every move they've made since the beginning of this whole meltdown in August of 2007! But that's not important here... The important thing is that the Fed said that "economic growth is not enough to hike rates, and therefore they will keep interest rates at near zero for an "extended period"...

Hmmm... Where have I heard that before? Any way, I thought that by continuing to use the words "extended period" that the dollar would get pummeled... And momentarily, it looked as though it might, as the offset currency to the dollar, the Big Dog, euro, raced to trade above 1.49... But a funny thing happened on the way to the forum, and the invisible hand reached down and reversed this move in a NY Minute! The work of the PPT? Probably... The Plunge Protection Team, probably stepped in to keep the dollar from a free-fall... That's my take on it any way!"

The PPT (boyz) may not be able to spur the dollar on higher. See the next article.

From CNBC.com:

Gold Spells Trouble for Greenback: Charts

The value of gold and silver are on the rise, but this spells trouble for the declining dollar index which could push as low as 66 points, according to Chris Zwermann, strategist from Zwermann Financial. Read & Hear it HERE.

From Bloomberg.com:

U.S. to Sell $81 Billion in Long-Term Debt Next Week

Nov. 4 (Bloomberg) -- The U.S. Treasury Department said it plans to sell a record $81 billion in its quarterly auctions of long-term debt next week and will replace the inflation- protected 20-year bond with a reintroduced 30-year security.

The Treasury will auction $40 billion in three-year notes on Nov. 9, $25 billion in 10-year notes Nov. 10 and $16 billion in 30-year bonds Nov. 12. The amounts were in line with the median forecast of $80 billion in a Bloomberg News survey of nine analysts. Read it HERE.

Is the Treasury dreaming or will the Fed come in as the buyer of last resort to save the auction?

From GATA:

Fed statement may let gold continue upward course

By Allen Sykora
The Wall Street Journal
Wednesday, November 4, 2009

Federal Reserve officials did not offer any hints Wednesday on when they might start to tighten monetary policy for the foreseeable future, which may well mean a green light for further gains in gold.

Analysts said there were at least some concerns ahead of time that the Fed language might have changed just enough since the last meeting to be seen as the first sign that policy-setters might start tightening down the road as the economy improves.

But this did not happen, they said, with the statement after a two-day meeting saying conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period" of time.

"The Fed inaction allows gold to continue on course," said Dave Meger, director of metals trading at Vision Financial Markets. Read it HERE.

It would really be something if the Fed (boyz) would back off and let the precious metals reach their actual market value. We need to be on board when that happens. Hang tight, we are in for a real ride - on a roller coaster. Lots of fun! Do you enjoy roller coasters, as I do? Of course, I would rather be on a physical one rather than a volatile market one.

From MineWeb.com:

Yamana Gold 3Q09 revenues hit by derivatives loss

Derivatives loss sends Yamana net profit spiraling downward by 59% during the third quarter.

Author: Dorothy Kosich
Posted: Wednesday , 04 Nov 2009

RENO, NV -

Yamana Gold revenues fell 59% during the third quarter of this year from $150 million and 21 cents per share for the third-quarter 2008 to $60.8 million and 8-cents/ sh.

The Toronto-based company reported a $21 million loss of derivatives for the third-quarter 2009, compared to a gain of $138.9 million for derivatives for the same quarter a year ago.

During the third-quarter 2009 the company realized a foreign exchange gain of $15.1 million. Read it HERE.

AUY seems to be rebounding nicely even though it took this hit. Note the breakout in spite of the bearish inverted "W." Many miners show the same break out.

Looks like AUY got hit pretty hard.

From Bloomberg.com:

India Shows Hedge-Fund Savvy With Huge Gold Buy

William Pesek

Nov. 5 (Bloomberg) -- Barack Obama and Timothy Geithner must be as annoyed as they are bewildered.

Didn’t India get the memo? Developing nations are supposed to keep their excess cash in Treasuries, the U.S. president and his Treasury secretary are no doubt thinking. Gold? That relic of the past that doesn’t pay interest or dividends and can’t be eaten? A fool’s game best left to the dinosaurs out there.

India is going its own way with a $6.7 billion gold purchase. The transaction turned heads in markets. It should do the same in capitals from Beijing to Washington. Very Important read it HERE.

From MineWeb.com:

World's 100 hottest gold stocks

Gold stocks of all sizes are in good demand; buying remains selective in the face of booming dollar gold bullion prices.

Author: Barry Sergeant
Posted: Wednesday , 04 Nov 2009

JOHANNESBURG -

Dollar gold bullion traded within whiskers of US$1,100 an ounce on Wednesday, on factors that have been canvassed at length, ranging from India buying metal from the IMF, to the contrarian move of the metal to a neutral to stronger dollar, but which listed gold stocks are drawing the most buying attention?

Looking at stocks with a market value of at least US$10m, junior gold stocks are among the cream, with prime mention going to Ventana Gold, which has registered a stock price gain of more than 26,000% (yes, twenty six thousand percent) in less than 12 months. Read it HERE.

From MarketWatch.com:

Is India clearing the way for gold 'moonshot'?

Commentary: India's IMF bullion purchase excites the gold bugs

Peter Brimelow

NEW YORK (MarketWatch) -- Does India like gold, or dislike Washington's anti-gold dollar domination?

Let Mary Anne and Pamela Aden tell the story. Their Aden Forecast first came to fame in the great gold bull market 30 years ago. The Adens are careful and adroit traders, and have a strong track record according to Hulbert Financial Digest, but they were speculating that gold might ultimately reach $5,800 when I last looked. Read it HERE.

From MineWeb.com:

Current silver:gold ratio suggests silver very undervalued

This article suggests that silver is undervalued compared to gold by anywhere from 10% to 50% based on historical gold to silver price relationships.

Author: Lorimer Wilson
Posted: Thursday , 05 Nov 2009

TORONTO -

With primary secular bull or bear trends easily running from 10 to 20 years of the average investor's 40 year investing lifespan it is crucial to identify optimal accumulation points within these primary trends to avoid prolonged periods of under-performance and potentially negative returns and to avoid dramatically reducing the number of productive years in which to build one's fortune.

Within these trends are zigs and zags, up and down, and we can ride these medium term and short term waves to profits by either buying what is going up and/or shorting what is going down. As such, it is critical to step away from all the noise and clutter that passes for knowledge and take the time to gain perspective on where the market is in terms of the ‘big picture' and to determine which investments are in a powerful unfolding trend so that an informed investment strategy can be developed and implemented. Read it HERE.

Here are the miners from Scottrade:

Here are the currencies from Kitco. com:
Hang tight. I did not get all of my sell orders off on BULM, so I put them in again. BULM last 0.65; AMNP 0.925; BYDDF 9.41; HLAA (HL Jan 2010 5 Call) 0.77; DOW +176.39 to 9978+; gold 1092.40, and silver 17.49.

These are times of some confusion which demand that we are patient. The market will reveal the direction to us soon. I suspect we will see higher precious metal prices very soon. We must rest in the fact that our God is in control. After all, it is He who has made us and is managing every thing in accordance with His will. King Jesus rules and we are to follow His word in every area of our lives. Praise Him daily.

Best to each, Doug

Gold Raging Upward - Important Graphs & Charts

Here is up to date GLD (gold proxy) with all signs very strong. These are very strong technical signs. In the back of my mind, I wonder why the boyz have not swung the hammer. Perhaps, after India jumped on the IMF gold, other bullion banks, even the boyz, may have swung over to the buying side. Could be, but I just do not know. By the way, India paid with SDRs, not dollars. Was that their choice or did the IMF not want dollars???? Could be that the IMF is avoiding dollars.

Gold is moving up very rapidly. It is racing toward 1100 and could make it today. Were this to continue, the Lemmings would be piling on very soon. Even at this late date, if we are in the third phase, there is still profit to be made.
I'm bailing out of BULM, because with the the run up in gold it is under performing most of our miners. I have been selling at 0.69 and 0.70. My orders are in now, but only one has been executed as this is written. Most of you should have received my email as the orders were being prepared.
The miners are tagging along with all of the precious metals. This GDX graph is very strong, almost as strong as the metal, itself.
Silver is making a very strong move, too. The silver eagles are now in the range of $20.03 or so. We should have bought yesterday. Ever consider how accurate hind sight is. They are likely still a good buy at this new price. That is particularly true if you have none.
Hecla Mining is making a strong showing following silver. However, we do need a close above $5.00 to give more confidence. This is likely today unless the situation changes drastically.
Here are the miners from Scottrade:
Here are the currencies from Kitco.com:
BULM last was 0.68; BYDDF 9.50; AMNP 0.83; DOW is 118.80 to 9890; Gold is 1092.10, and silver 17.49.

My last thought on this market is that both of our metals have run up very rapidly. It may be time for a consolidation or correction before the climb is continued. Remember that it is not always one continuous climb unless we are deep into the third phase streaking for the blow out. I would add that we should be a bit cautious presently, because only God knows the future. We often think we have great hold on what the future holds, but we do not. We can only judge on the basis of what we have seen in the past and immediate present.

We make our plans in accordance with God's word and the wisdom which He provides, then we act, and wait for Him to provide the results. However, the results are totally in accordance with His word, and not necessarily in concert with our wishes, dreams, or prayers. However, we always give the praise to Him for what He provides. He also promises that if we will seek first His Kingdom all our needs will be met. That is the wonder of our magnificent King Jesus.

Best to each, Doug