Confusion Everywhere
Folks this is a nasty market. Gold has done us in the last few days. For the last 24 hours, it has been as low as $582.70 about noon today from a high of $598.90 yesterday at about 11:50 last night. Silver went from a high of $11.35 yesterday afternoon to a low of $10.93 this evening at 8:16. We have really taken a hit on both precious metals. That is never fun! Today gold broke below its 40 day moving average which is more bad news. Will it go lower?
I don't know, and as the other commodities are also dropping, we may be headed into a recession/depression. In that case, even the paper dollar could fare better in the short run.
The 1-Year Gold Chart still shows the gold bull market intact, but it has taken a real blow. Long term, I am not concerned, but it is nasty now for the near term. Of course, we are looking forward to a typical surge in prices in the fall and winter. It maybe a bit later this year. Hopefully, this will materialize.
The reports on our economy are not good either. Optimisticly, many are looking for a "soft landing" of the housing market which has been the source of much of our consumer spending. It is expected that the FOMC will leave interest rates alone in September.
Speaking of the FED, there is a bias in the FED and the USG toward inflation rather than suffering recession or depression. In fact, these are both four letter words to those in "power" and they will take whatever means they see as necessary to delay either of these. That means as the economy slows more, there will be another expansion of the unbacked dollar.
It may be a good time to think of money market funds which are readily accessible for the immediate future. Even at 4+ %, these returns are better than twiddling the thumbs.
By the way, I am not selling gold or mining stocks. My friend, Kenneth Coleman (The-investmenttracker.com), sold Bema Gold (BGO) with the dropping prices. I did not and do not intend to do so even though I am more of a trader than he.
The Lord knows the future and we can only use "educated" guesses about it. Rest in Him and trust in Him. He will always care for His people. Be sure you are His!
Best, Doug
I don't know, and as the other commodities are also dropping, we may be headed into a recession/depression. In that case, even the paper dollar could fare better in the short run.
The 1-Year Gold Chart still shows the gold bull market intact, but it has taken a real blow. Long term, I am not concerned, but it is nasty now for the near term. Of course, we are looking forward to a typical surge in prices in the fall and winter. It maybe a bit later this year. Hopefully, this will materialize.
The reports on our economy are not good either. Optimisticly, many are looking for a "soft landing" of the housing market which has been the source of much of our consumer spending. It is expected that the FOMC will leave interest rates alone in September.
Speaking of the FED, there is a bias in the FED and the USG toward inflation rather than suffering recession or depression. In fact, these are both four letter words to those in "power" and they will take whatever means they see as necessary to delay either of these. That means as the economy slows more, there will be another expansion of the unbacked dollar.
It may be a good time to think of money market funds which are readily accessible for the immediate future. Even at 4+ %, these returns are better than twiddling the thumbs.
By the way, I am not selling gold or mining stocks. My friend, Kenneth Coleman (The-investmenttracker.com), sold Bema Gold (BGO) with the dropping prices. I did not and do not intend to do so even though I am more of a trader than he.
The Lord knows the future and we can only use "educated" guesses about it. Rest in Him and trust in Him. He will always care for His people. Be sure you are His!
Best, Doug
posted by Doug @ 7:22 PM
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