January Fading Along with the Newness of 2006
Gold is struggling in the $550 - $560 per ounce range. For the last twenty-four hours, it has been as high as $560.03, as low as $552.90, and is now at $558.20. That is a range of almost $10.
Thus far, the $550 low is holding up pretty well. We may still have a further correction. Uncertainty over Iran, the drain on the U.S. in Iraq and Afghanistan, and the potential of higher oil prices are causing market troubles. At the same time the Fed is pumping up the dollar supply. The price of gold is revealing potential trouble. Add to that the fact that housing prices are leveling off and even getting lower in many areas. All is putting pressure for the dollar to drop even further in the near future.
The mining stocks are holding up well and have not been as volatile of the metal. DROOY traded today $1.84 - $1.95 and last at $1.88. RNO $1.62 -$1.73 and last at $1.73.
We are near the point when the leverage available in mining stocks gives them favor over silver and gold metals. However, each must judge his own portfolio in light of the financial situation and make his decisions. In my opinion, those without metals or mining stocks are flirting with a major loss of capital. Those loaded with debt are in great trouble, as well.
I trust that you attended corporate worship service at the church of your choice yesterday. We are worshiping with Christ Covenant Church (Pastor L. David Givler)
at 5810 Blanco Road, San Antonio, Texas. For more information: snail mail - 107 Sheffield Place, San Antonio, Texas 78213 or email - lgivler@satx.rr.com. All are welcome.
Best to each, Doug
Thus far, the $550 low is holding up pretty well. We may still have a further correction. Uncertainty over Iran, the drain on the U.S. in Iraq and Afghanistan, and the potential of higher oil prices are causing market troubles. At the same time the Fed is pumping up the dollar supply. The price of gold is revealing potential trouble. Add to that the fact that housing prices are leveling off and even getting lower in many areas. All is putting pressure for the dollar to drop even further in the near future.
The mining stocks are holding up well and have not been as volatile of the metal. DROOY traded today $1.84 - $1.95 and last at $1.88. RNO $1.62 -$1.73 and last at $1.73.
We are near the point when the leverage available in mining stocks gives them favor over silver and gold metals. However, each must judge his own portfolio in light of the financial situation and make his decisions. In my opinion, those without metals or mining stocks are flirting with a major loss of capital. Those loaded with debt are in great trouble, as well.
I trust that you attended corporate worship service at the church of your choice yesterday. We are worshiping with Christ Covenant Church (Pastor L. David Givler)
at 5810 Blanco Road, San Antonio, Texas. For more information: snail mail - 107 Sheffield Place, San Antonio, Texas 78213 or email - lgivler@satx.rr.com. All are welcome.
Best to each, Doug
posted by Doug @ 6:37 PM
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