Is the Correction Over?
For the last 24 hours, we have seen gold down to $636.80 yesterday afternoon and up to $645.30 early this morning. It is now at$643.10. For most of the time, it has bounced radically between about $640 and $644.
Is this correction over? Only time will reveal this to us. However, there are signs that it is at or near the bottom since there has been some heavy purchasing at the recent lows. It seems, however, that many shorts have not been covered. That is negative, but the market does tend to be deceptive at times. I do not believe that the precious metals will go much lower during this correction. However, there will be more corrections as the bull trend continues to dominate. Expect this volatility to continue, but perhaps at higher levels.
Though gold has dropped substantially over the last two plus weeks, the mining stocks have not dropped as significantly. More of the mining stocks must be held in "strong hands."
Examples are BGO 5.40; CBJ 3.17; CDY 2.34; CGDF 1.45; DROOY 1.60; EGO 5.011; GPTC 0.26; GSS 3.00; HMY 14.76; IAG 9.94; MFN 7.87; MNG 3.78; MRB 3.24; MRDDF 1.46; NEM 54.61; NTO 4.94; PAAS 19.48; QEE 0.40; RNO 2.06; SSRI 19.36. Central Fund Canada (bullion) is at 9.35.
The broad market remains very scary with the DJI off 80.92 @ 11160+. It is a jungle out there! The yield (dividends) on most of the general stocks is quite low. Bonds seem to be in trouble, as well.
All FIAT currencies, including the dollar, have no solid backing are valued only in relation to other currencies. Thus, investments in currencies have profit potential only in relation to weaker currencies. Selection, as someone said in a newsletter today, "It is like trying to pick the best among lepers." I believe it may not be quite that bad, but the quote does convey the truth.
This is the second day of the new week. I trust that each of you was blessed by corporate worship in a sound Christian church yesterday, as was I. Would that we could dwell in the house of the Lord all of our temporal life. However, as the Spirit brings us to life and sustains us, we will walk with the Lord here and for eternity as we each cross our Jordan into the promised land.
Best to each, Doug
Is this correction over? Only time will reveal this to us. However, there are signs that it is at or near the bottom since there has been some heavy purchasing at the recent lows. It seems, however, that many shorts have not been covered. That is negative, but the market does tend to be deceptive at times. I do not believe that the precious metals will go much lower during this correction. However, there will be more corrections as the bull trend continues to dominate. Expect this volatility to continue, but perhaps at higher levels.
Though gold has dropped substantially over the last two plus weeks, the mining stocks have not dropped as significantly. More of the mining stocks must be held in "strong hands."
Examples are BGO 5.40; CBJ 3.17; CDY 2.34; CGDF 1.45; DROOY 1.60; EGO 5.011; GPTC 0.26; GSS 3.00; HMY 14.76; IAG 9.94; MFN 7.87; MNG 3.78; MRB 3.24; MRDDF 1.46; NEM 54.61; NTO 4.94; PAAS 19.48; QEE 0.40; RNO 2.06; SSRI 19.36. Central Fund Canada (bullion) is at 9.35.
The broad market remains very scary with the DJI off 80.92 @ 11160+. It is a jungle out there! The yield (dividends) on most of the general stocks is quite low. Bonds seem to be in trouble, as well.
All FIAT currencies, including the dollar, have no solid backing are valued only in relation to other currencies. Thus, investments in currencies have profit potential only in relation to weaker currencies. Selection, as someone said in a newsletter today, "It is like trying to pick the best among lepers." I believe it may not be quite that bad, but the quote does convey the truth.
This is the second day of the new week. I trust that each of you was blessed by corporate worship in a sound Christian church yesterday, as was I. Would that we could dwell in the house of the Lord all of our temporal life. However, as the Spirit brings us to life and sustains us, we will walk with the Lord here and for eternity as we each cross our Jordan into the promised land.
Best to each, Doug
posted by Doug @ 9:00 AM
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