WOW! Look at Gold.

While I was gone, gold did a reverse last week. It went down $11+. That is a another real drop! For the last 24 hours, it has hit a low of $612.20 and a high of $619 on overseas trading.

More importantly, the mining stocks have been hit even harder. I am a buyer of DROOY at less than $1. This is a price I never expected to see this year. However, the markets reflect the perception of a vast number of people and are also subject to manipulation which seems to be increasingly against gold presently.

Look at the 1-Year graph on gold from kitco.com, below. Visualize a short term trend line from the low about October 6, extend it to the low about October 25, and then on over to the right of
the graph. It is clear that the recent correction has not broken even this short term upward movement of price. Longer term upward trend is well intact.


We are being treated to more drastic corrections or detours in the long term bull market for gold. Of course, we must continue to realize that it is more a depreciation of the dollar than an appreciation of the price of gold. There is almost nothing on the horizon which should encourage us to believe in other than a short term rise in the value of dollars.

There is a rumor about that more banks are to exchange dollars for Euros about January 1st. There could be some truth in this, but we will have to wait and see if it is true or just another false rumor.

We must always remember that while we have perfect hind sight, we lack perfect foresight. However, we must go with clear long term trends while they remain intact.

We must study to prepare ourselves to make decisions and then make plans, prayerfully commit them to the Lord, move out in concert with the plans, and look to the Lord for success. The success He grants comes in His timing. We are often too impatient and put too much hope in our own timing. He is the ONLY ONE who can grant success.

Best to each, Doug