Another Bump Along the Way
One must expect the upward movement similar to stair steps. Up, then back, but up higher the next time. How low will the dollar and other paper currencies go? That is the real question. The phenomenon can easily be observed in the price of gold and other natural resources.
Gold hit a low of $539.40 yesterday and a high today of $546.90 today. However, it is now at $544.80. DROOY dropped a bit to $1.68 yesterday and is at $1.72 today. It is interesting to follow the daily changes in market prices, but we must keep our eyes upon the long term trend in precious metals.
Also, it is well to examine the upward trend in other natural resources. Yesterday, I bought into PXE which is an investment in, primarily, oil stocks. My entry price was $18.08. Now, true to most of my buys, it is at $17.86 today. Am I concerned? No! The increased demand on oil and other natural resources is real and the supply is somewhat constant. Of course, there is always the possibility of interruption of delivery. Thus, it seems that the price of oil will continue to rise over time. I observed another upward trend in pump prices as I filled up yesterday.
As the dollar continues to lose purchasing power, one must find ways to preserve capital. I believe the way is precious metals, oil, and other natural resources. These assets tend to retain value over time.
The markets in 2006 will likely be more challenging than those of 2005. Let us continue to observe and see what happens. We must go with the trend or as many say, "Don't fight the trend."
Study to educate yourself, observe, analyze and make intelligent plans. Commit your plans to the Lord and ALWAYS give Him the glory for the results.
Best to each, Doug
Gold hit a low of $539.40 yesterday and a high today of $546.90 today. However, it is now at $544.80. DROOY dropped a bit to $1.68 yesterday and is at $1.72 today. It is interesting to follow the daily changes in market prices, but we must keep our eyes upon the long term trend in precious metals.
Also, it is well to examine the upward trend in other natural resources. Yesterday, I bought into PXE which is an investment in, primarily, oil stocks. My entry price was $18.08. Now, true to most of my buys, it is at $17.86 today. Am I concerned? No! The increased demand on oil and other natural resources is real and the supply is somewhat constant. Of course, there is always the possibility of interruption of delivery. Thus, it seems that the price of oil will continue to rise over time. I observed another upward trend in pump prices as I filled up yesterday.
As the dollar continues to lose purchasing power, one must find ways to preserve capital. I believe the way is precious metals, oil, and other natural resources. These assets tend to retain value over time.
The markets in 2006 will likely be more challenging than those of 2005. Let us continue to observe and see what happens. We must go with the trend or as many say, "Don't fight the trend."
Study to educate yourself, observe, analyze and make intelligent plans. Commit your plans to the Lord and ALWAYS give Him the glory for the results.
Best to each, Doug
posted by Doug @ 10:05 AM
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