Gold Takes a Breather
Gold is off to 529.80 as this is written. DROOY is trading at 1.63. My 5% trailing stop of yesterday was hit at market open today for a profit of about 33% in less than three weeks. Guess it would have been prudent to use a 10% stop this time.
Of course, I am hanging on to my core holdings in all the mining stocks of interest to me. My favorites are NEM, BGO, DROOY, IAG, & NTO. I also like PAAS and SSRI for participation in the rise in the price of silver and CEF for bullion gold. All of these are up nicely for the 2005 and now with our entrance into 2006.
Remember the rise in the market value of gold and associated investments is due only partially to the loss of purchasing power of the dollar, but mostly as an escape from the devaluation of all unbacked paper currencies. People are starting a run from the worthless paper to precious metals.
Our Federal Reserve Notes carry the phrase "This note is legal tender for all debts public and private." On the other side, the Notes have the phrase, "In God we trust." However, to very many people in and out of government, the second quotation is meaningless. If it had meaning, we would not have violated the Constitutional requirement in Article 1, Section 8 on the powers of the Congress - "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;". Notice there is no authority to print money. Also, it should be noted further down in the same Article, Section 10, is stated, "No State shall . . . make Thing but gold and silver Coin a Tender in Payment of Debts."
Throughout biblical history, gold and silver by weight were the money used in transactions. Our founding fathers knew well the value of gold and silver for money. To them both were money. Federal Reserve Notes or any other paper currency offers governments and bankers too much control over the economy.
A free market in which sellers and buyers meet without interference from government can best determine the appropriate price of goods and services when exchanges are based upon a stable money: gold and silver.
The bible teaches sound economics and exhibits the foundations for free markets. Men tend to take the expedient or easy ways which have built for us the mountain of public and private debt could topple in the not too distant future or at least be "repaid" with ever increasing mountains of paper currency of ever decreasing value.
Remember that the people of God rest in His sovereignty and depend upon Him even during times when situations give worry and consternation to others.
Best to each, Doug
Of course, I am hanging on to my core holdings in all the mining stocks of interest to me. My favorites are NEM, BGO, DROOY, IAG, & NTO. I also like PAAS and SSRI for participation in the rise in the price of silver and CEF for bullion gold. All of these are up nicely for the 2005 and now with our entrance into 2006.
Remember the rise in the market value of gold and associated investments is due only partially to the loss of purchasing power of the dollar, but mostly as an escape from the devaluation of all unbacked paper currencies. People are starting a run from the worthless paper to precious metals.
Our Federal Reserve Notes carry the phrase "This note is legal tender for all debts public and private." On the other side, the Notes have the phrase, "In God we trust." However, to very many people in and out of government, the second quotation is meaningless. If it had meaning, we would not have violated the Constitutional requirement in Article 1, Section 8 on the powers of the Congress - "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;". Notice there is no authority to print money. Also, it should be noted further down in the same Article, Section 10, is stated, "No State shall . . . make Thing but gold and silver Coin a Tender in Payment of Debts."
Throughout biblical history, gold and silver by weight were the money used in transactions. Our founding fathers knew well the value of gold and silver for money. To them both were money. Federal Reserve Notes or any other paper currency offers governments and bankers too much control over the economy.
A free market in which sellers and buyers meet without interference from government can best determine the appropriate price of goods and services when exchanges are based upon a stable money: gold and silver.
The bible teaches sound economics and exhibits the foundations for free markets. Men tend to take the expedient or easy ways which have built for us the mountain of public and private debt could topple in the not too distant future or at least be "repaid" with ever increasing mountains of paper currency of ever decreasing value.
Remember that the people of God rest in His sovereignty and depend upon Him even during times when situations give worry and consternation to others.
Best to each, Doug
posted by Doug @ 10:03 AM
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