Gold is Moving Upward Again!
On December 21st, I reported that I was buying DROOY and I was. Of course, I failed to buy at the low of about 1.30, but got mine at 1.32 and 1.33. DROOY has traded today in a range of 1.44 to 1.52 and is currently at 1.47. That is about 11.25% increase in just over a week. This is what can, and often does happen with these low priced mining stocks.
For those of you with little tolerance for volatility, the Central Fund of Canada trading under the symbol CEF may be more to your liking. It holds both gold and silver and the shares represent an investment in the bullion metals. This is one of my favorite ways to hold the precious metals and be able to trade rapidly should the need arise. Late May the CEF was trading at a low of about 5.10. From there it has risen with only one small set back to 6.70 or an increase of about 31.4% in the six months. That, too, is not too shabby. I'm not selling this holding as I consider it a core in my portfolio.
Last year at this time gold was about 440 and though it was pushing above 540 about mid December, it is at 515.40 as I write. That is also a nice gain for the year. What about the year 2006? That is the big question.
I believe we will see gold climb even higher. The Fed under Greenspan has been increasing the money supply and has left a legacy of inflation rather than recession. This seems to be the approach of all politicians and bankers. After all, to stay in power, governments and bankers have to have the economy look rosey on the surface regardless of the long term consequences.
During Greenspan's term and as a result of his actions, manufacturing in the United States has been greatly reduced and we, consumers have become totally dependent upon foreign products. Even our automobile industry has suffered as has been carried in the major media. Both General Motors and Ford are in what appears to be deep financial trouble from the foreign, mainly Asian competition.
This all leads me to believe that the glowing government reports on our economy are suspect. Thus, an ever greater supply of dollars will be necessary. Equally important is the continued readiness of foreign banks to purchase our debt.
2006 will be another interesting year. In fact, each and every year is interesting and presents us with challenges and opportunities which we must overcome or recognize and accept.
The key to long term success is a trust in the Lord, diligence in studying His word, and applying it in every area of our lives. With Him is the wonderful eternal life of the future; as well as, peace and joy during our remaining years here on earth.
I am praying for a blessed and wonderful New Year for each and every one of you. Find it submission to the Lord Jesus Christ and His word.
Doug
For those of you with little tolerance for volatility, the Central Fund of Canada trading under the symbol CEF may be more to your liking. It holds both gold and silver and the shares represent an investment in the bullion metals. This is one of my favorite ways to hold the precious metals and be able to trade rapidly should the need arise. Late May the CEF was trading at a low of about 5.10. From there it has risen with only one small set back to 6.70 or an increase of about 31.4% in the six months. That, too, is not too shabby. I'm not selling this holding as I consider it a core in my portfolio.
Last year at this time gold was about 440 and though it was pushing above 540 about mid December, it is at 515.40 as I write. That is also a nice gain for the year. What about the year 2006? That is the big question.
I believe we will see gold climb even higher. The Fed under Greenspan has been increasing the money supply and has left a legacy of inflation rather than recession. This seems to be the approach of all politicians and bankers. After all, to stay in power, governments and bankers have to have the economy look rosey on the surface regardless of the long term consequences.
During Greenspan's term and as a result of his actions, manufacturing in the United States has been greatly reduced and we, consumers have become totally dependent upon foreign products. Even our automobile industry has suffered as has been carried in the major media. Both General Motors and Ford are in what appears to be deep financial trouble from the foreign, mainly Asian competition.
This all leads me to believe that the glowing government reports on our economy are suspect. Thus, an ever greater supply of dollars will be necessary. Equally important is the continued readiness of foreign banks to purchase our debt.
2006 will be another interesting year. In fact, each and every year is interesting and presents us with challenges and opportunities which we must overcome or recognize and accept.
The key to long term success is a trust in the Lord, diligence in studying His word, and applying it in every area of our lives. With Him is the wonderful eternal life of the future; as well as, peace and joy during our remaining years here on earth.
I am praying for a blessed and wonderful New Year for each and every one of you. Find it submission to the Lord Jesus Christ and His word.
Doug
posted by Doug @ 12:41 PM
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