The above 1-Year Chart on Gold prices clearly shows that gold from a low of about $400 at the end of August last year, climbed through most of April of this year. Will there be a repeat of this beginning this week or next? Only the sovereign God of all knows for certain. However, the commodities are indicating a inflation in prices thereof. This seems to be the only sector of the economy which is rejecting a recession or worse.

For two plus years the U S economy has been supported by consumer spending based primarily upon the inflated price of real estate, particularly, homes. Not only did investors get into the act by early purchase and then flipping to the next investor at a higher price, but the housing market caused a major increase in employment in all areas of the real estate market. The increase dollar value of housing has slowed, leveled, and even begun to drop in many areas of our nation. This is strongly deflationary. The economy must slow and this is far from a rosy senario.

This blog is written not to make you rich, but to point to financial problems and situations for you to preserve and stretch whatever wealth you now possess. The fact is that the dollar will continue to go down in value. Historical money: precious metals, particularly gold will retain its value in the market place. Thus, it is a sure alternative to every paper currency in the world today. Facing this realistically will enable you to prepare for the future.

In investing, timing is critical. However, it is much better to be early than to be a day or a week too late. Gold around $616, as it is today, is very likely in a good buying range. However, the need for precious metals and mining stocks in your portfolio depends upon the composition of your present portfolio and your risk tolerance. There is no need to take risks which will cause you great concern and worry yielding in the extreme serious health problems.

It is wise to learn about personal finance and economics to prepare your family and friends for the world in which we live. The Bible has many references to money, debt, and finance. Remember this is the source of true knowledge. We are told to obtain knowledge and the wisdom to apply this knowledge. In the book of James, we are told that we do not have wisdom, because we do not ask. Have you prayed for wisdom recently? Each of us must urgently and diligently pray for wisdom from God.

He will provide freely great wisdom to His people.

Best to each, Doug