Silver Ahead of Gold - Economy Not Rosy
Gold continues to bounce around with no consistency of short term direction. The high for the last 24 was $630.20 at 10:02 today and the low $620.60 yesterday at about the same time. Silver, which appears to be doing a bit better than gold, had a high of $12.63 today at 8:57 and a low of $12.06 yesterday at 10:28. (NY times)
Silver has remained in a trading range of 12 to 12.50 for almost all of this month. It is higher than it was in July. PAAS is holding at 22.01 and SSRI at 23.75. Both of these are sound silver mining stocks. On the other hand gold has been more volatile trading in a range of about 650 to 613. Quite a ride, eh what?
The precious metal mining stocks are up so far today. Of course, the market has been open only about an hour now. The DJI is off 11.12 to 11330+. There is a lot of indecision in the general market. It remains a dangerous place to play.
There is a lot of news indicating that the housing boom is beginning to lose steam. Mortgage companies are placing fewer new loans, foreclosures are up, and the inventory of new and resale homes is increasing. The economy has been fueled by the housing boom. Think about it! Mortgage companies and real estate agencies added employees. Builders added employees, as did suppliers of construction materials. Now all that is beginning to slow. There will be a reduction in employees which is already beginning. Thus, the economy will slow down.
On the oil front, most of the Venezuelan oil will now go to China as recent deals are being finalized. Also, much of the foreign oil is under the control of countries which are either enemies or not friendly toward America. So, even the oil situation will put more downward pressure on the dollar.
In spite of glowing manipulated reports on the economy, all is not well. Being forewarned is critical to financial survival. I still believe that precious metals, mining and other resource stocks are the hedge against financial loss. Of course, it is important to get out of debt. As scripture tells us, "Owe no man anything except to love one another."
Always, keep you focus upon King Jesus. He must be Lord and Savior for peace of mind and spirit.
Best to each, Doug
Silver has remained in a trading range of 12 to 12.50 for almost all of this month. It is higher than it was in July. PAAS is holding at 22.01 and SSRI at 23.75. Both of these are sound silver mining stocks. On the other hand gold has been more volatile trading in a range of about 650 to 613. Quite a ride, eh what?
The precious metal mining stocks are up so far today. Of course, the market has been open only about an hour now. The DJI is off 11.12 to 11330+. There is a lot of indecision in the general market. It remains a dangerous place to play.
There is a lot of news indicating that the housing boom is beginning to lose steam. Mortgage companies are placing fewer new loans, foreclosures are up, and the inventory of new and resale homes is increasing. The economy has been fueled by the housing boom. Think about it! Mortgage companies and real estate agencies added employees. Builders added employees, as did suppliers of construction materials. Now all that is beginning to slow. There will be a reduction in employees which is already beginning. Thus, the economy will slow down.
On the oil front, most of the Venezuelan oil will now go to China as recent deals are being finalized. Also, much of the foreign oil is under the control of countries which are either enemies or not friendly toward America. So, even the oil situation will put more downward pressure on the dollar.
In spite of glowing manipulated reports on the economy, all is not well. Being forewarned is critical to financial survival. I still believe that precious metals, mining and other resource stocks are the hedge against financial loss. Of course, it is important to get out of debt. As scripture tells us, "Owe no man anything except to love one another."
Always, keep you focus upon King Jesus. He must be Lord and Savior for peace of mind and spirit.
Best to each, Doug
posted by Doug @ 12:55 PM
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