Gold Off 21.20!
Wow! Gold is taking another hit today. It is down 21.20 at 576.40 as this is written.
While we had hoped that the fall rally had begun, this shoots holes in that thought. We will have to wait some longer for the rally. There really seems to be no reason for gold to be dropping, but that is the way markets are.
The stack of evidence supporting a weaker dollar is very high. However, the reserve status of the dollar and its wide acceptance keeps the dollar bulls at their party. It will end! But we do not know when.
Long term the dollar will go down and the price of precious metals and mining stocks will rise as it will take more dollars to buy them. By the way, I was at our local Sun Harvest (health food store) this morning and noticed that Buddy's organically raised chicken quarters were $1.25 per pound which was a an increase of 26+% over the last week price of $0.99. That is just a sample of Doug's measure of price inflation. The manipulated CPI published by government fails to reveal the true among of price inflation we consumers see in the market place. I trust that you have noticed the same.
Of course, gasoline prices are down to just above $2 per gallon and that is some fuel for rejoicing. That too, is likely temporary. Much will depend upon what happens in the Mid-East. Hopefully, the Iran situation will be solved without an escalation of the wars in that region. It is yet to be fully settled.
Keep your eyes upon Jesus Christ and trust in Him for the only real security. He is King and Ruler of all.
Best to each, Doug
While we had hoped that the fall rally had begun, this shoots holes in that thought. We will have to wait some longer for the rally. There really seems to be no reason for gold to be dropping, but that is the way markets are.
The stack of evidence supporting a weaker dollar is very high. However, the reserve status of the dollar and its wide acceptance keeps the dollar bulls at their party. It will end! But we do not know when.
Long term the dollar will go down and the price of precious metals and mining stocks will rise as it will take more dollars to buy them. By the way, I was at our local Sun Harvest (health food store) this morning and noticed that Buddy's organically raised chicken quarters were $1.25 per pound which was a an increase of 26+% over the last week price of $0.99. That is just a sample of Doug's measure of price inflation. The manipulated CPI published by government fails to reveal the true among of price inflation we consumers see in the market place. I trust that you have noticed the same.
Of course, gasoline prices are down to just above $2 per gallon and that is some fuel for rejoicing. That too, is likely temporary. Much will depend upon what happens in the Mid-East. Hopefully, the Iran situation will be solved without an escalation of the wars in that region. It is yet to be fully settled.
Keep your eyes upon Jesus Christ and trust in Him for the only real security. He is King and Ruler of all.
Best to each, Doug
posted by Doug @ 1:05 PM
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