Gold Staying Fairly Above $620

Since April 18th, gold has remained in a trading range between $620 and $635. Note that on April 20th, gold touched $644.50 in London. During this period of time, there appeared to be an "inverted W" or "Double Top" on the 30-Day chart. However, the down ward portion of that ominous figuration was extended and it seems to have been broken with a high of $639.50 today at 11:32 (NY). The low for 24 hours was $628 earlier this morning.

Therefore, it looks as though we are on the move to a higher plateau of trading. At the same time, silver has run out of steam for the present. It has been trading below $13 for several days and is currently $12.77. Gold is the focus now!

Watch for much higher gold and, also, for rain in Texas. I am leaving the state next week. I am not superstitious, but it seems that God moves in these ways almost every time I leave.

EUROs and Asian currencies have been on a tear lately as the dollar has resumed its decline.

The mining stocks have been holding firm, but have yet to explode upward. We still have time to add to our portfolios in anticipation of the coming rise. I believe the downside risk is small. You might try trailing stops, if you are concerned. I place them from time to time and pray that they are not executed any time soon.

Here is a run down on some >> BGO 5.66; CBJ 4.06; CEF 9.64; DROOY 1.54; EGO 5.17; GSS 3.29; HMY 16.20; IAG 9.55; MFN 9.31; MNG 3.75; MRB 3.18; NEM 58.01; NTO 5.11; PAAS 24.58; PCU 99.75; QEE .42; RNO 2.32; SSRI 21.23.

It is better to be early, than to be a short time late and miss the train. As Christians, we are to have a long term view. That is why it is so important to train our children and grandchildren up in the "way they should go." It is through them that much Kingdom work will be accomplished. That is the manner in which the Lord worked through our patriarchs of old (Abraham, Issac, Jacob, etc.). They never actually realized on earth the fulfillment of the promises of God. It was their offspring who captured, by the hand of God, the promised land. However, they are all commended for their faith and trust in the Sovereign Ruler of all and His promises. We, too, must rely upon this wonderful King who can not lie. His will WILL BE DONE! Our opportunity is to contribute to the spread of His Kingdom through our offspring.

Best to each, Doug

Gold and Rain

Wow, I leave town for almost a week and gold gallops to new highs and it rains in San Antonio. I must leave again, as soon as possible, because we need much more rain to break the drought.

Gold closed out the week at $632.50 on April 23rd. For the last 30 days, we saw a London am high of $644.50 and a low of $546.50 on March 23. That is quite a gallop and a foretaste of what seems to be in our future.

Silver, on the other hand, had a 30-day high of $14.31 on April 20 and a low of $10.50 on March 23. However, it closed out the week at for a disappointing $12.95.

I suggest you read Jim Turk's Commentary. Paste the following into your browser: http://goldmoney.com/en/commentary.php#current He is very optimistic on gold and silver, as well.

What's the deal on mining stocks? I have addressed this issue briefly from time to time. In the past, the mining stocks have almost always lagged behind the rapid run up of the metal prices. This gives us a great advantage! One can accumulate the mining stocks as metal increase in dollar value. Then when the time is ripe, the mining stocks during the runup begin to, literally, spring upward as is the case with a sudden release of a compressed coil spring.

Consider the following:

(1) As the price of metals rises, the mining companies become more profitable. The value of gold exceeds the cost of mining and refining.

(2) Most people are consuming to the maximum extent of their income and borrowing ability. Savings is not seen as a necessity. This is a logical attitude, because they believe that their homes, 401ks, IRAs, and the government will take care of them for life. Thus, there is no necessity for saving. In Economic terms savings is foregone consumption. The mood in America is to live, eat, and be merry for tomorrow will care for itself. Thus, they live for today and prepare not for the future. It is like the nursery rhyme about the frugal ant and devil may care grasshopper. These people are not preparing for the future. Savings in America is at a ZERO level.

(3)Many investors put off buying bullion coins and mining stocks, because the time is never "right." The current price is too high, too low, or it may go even lower. There are many excuses for not acting.

Finally, as the realization hits the greater population, they jump in by the thousands. This will be the "gold rush." The limings will finally realize that the dollar has become almost worthless and rush to buy anything that looks like, seems to be, has the name of, or simply professes to be precious metal based. That is the time for those who bought early to unload enough mining stocks to pay off debts and rejoice in the fact that they had the foresight to board the train early. We will be able to supply the needs of the limings at a profit.

If we had perfect the perfect foresight which belongs solely to the Sovereign God, we could wait until the last minute and jump in an hour or a day before the last minute rush. However, lacking such perfect foresight, we must be wise and accumulate as the price rises and accumulate more should it correct briefly. This way, and only in this way, can we be ahead of the masses.

Certainly, God will protect His people and provide for them. However, He gives us brains for study, making plans and taking appropriate action. In His word, He says, "The horse is prepared against the day of battle, but victory is of the Lord." (Proverbs 21:31) This means that we must prepare for the future battles or situations, but must always give the glory to God for His provision of victory over the battle or other challenge. He, alone, provides the results. Nevertheless, we must made rational preparations.

I urge you to consider these thoughts today. Tomorrow may be too late. Always, prayerfully ask Him for wisdom. Then find His answers in His word.

By the way, though I am not superstitious, I want to warn you that I plan to be away next week. What will happen to precious metals and rain then?

Best to each, Doug

Is this the Gold Rush?

Gold is above $600 with jets blasting away! For the last 24 hours, gold has been very strong against the increasingly worthless dollar. High of $618.20 and low of $605.10. It is currently $615.20 and very strong. Silver staying above $13 and is now $13.52. The base metals are moving upward, as well, with copper leading the way.

Foreigners funded our debt above expectations which was a surprise. Guess they have nothing else to do with their funds. Of course, some must be buying precious metals.

The mining stocks have stirred up some, too. Not the big rush, but all are on the high side today along with the precious metals. DROOY is holding above $1.60. I may miss some opportunity, but I almost never short or play puts on precious metals or the mining stocks. I have sold calls against the box (Sold calls against stocks I owned). At these rare times, I have made the execution price well above the market at the time. Thus, the calls were almost never exercised and expired to my advantage. There may come a time for a reverse on this, but I believe the timing will not be correct until gold is well above $800, maybe above $1 or $2K. Don't get burned by doing this now! You have to be very nimble and on top of the market on a daily basis.

The markets are always exciting and interesting. The metals are gaining some interest. Maybe a few of the masses are beginning to take notice. NOT! Ask the man on the street and you will be amazed over how few are even taking notice. Maybe at $700!

We may be due for a correction. I do not expect an extended one, though. Even if the Iran nuclear threat were to be solved peaceably, I do not see a significant fall back in the price of precious metals. Those in the know are fueling the fire under them now.

By the way, notice how the Central Fund of Canada (CEF) has move above $9.00. Nice, eh!

I will be out of pocket until late Friday. Back then, Lord willing!

Best to each, Doug

Gold breaks $600 & stays for the time being!

I trust that you had a really great time of praising the Lord on our "official" Resurrection Day. He truly is the reason for this season! Without Him, all of us are lost in trespasses and sin. But through Him, alone, we are reconciled with His Father and made to appear as righteous. Praise the Lord for this!

At about 8 pm last night gold broke out of its low of $599.50 and sailed above $600 to a high of $608 at 9:23 am today. It is currently at $606.60 and looking strong. Silver left $12.91 yesterday and has been above $13 ever since. It is now at $13.15. Oil has broken $70, too.

Thus, it would seem that the dollar is taking yet more of a beating. Dollar denominated financial assets are being questioned more and more. The Net Foreign Investment (currency inflows to support our debt) are looking ever more shaky. The figure should be out today. Also, the CPI, of very questionable value, is due,as well. It will likely continue to hide the inflation we feel as we shop.

If you are not on board with the precious metals, when will it seem right for you? When the "gold rush" of the general masses of people starts will be too late. It is one of these situations when it is better to be a week, month, or year early than to be a day or two late. Think about it!

Often, people ask why the mining stocks are not responding to the upward move in the price of precious metals. A good question. However, it is easy to see that the stocks are responding, but not as rapidly as gold has moved. Here is a recap of some of those in which I have investment and/or interest: BGO 4.79; CBJ 3.93; CDY 2.84; DROOY 1.52; EGO 5.03; GSS 3.20; HMY 15.77; IAG 9.06; MFN 8.05; MNG 3.83; NEM 54.24; NTO 4.97; PAAS 25.79; QEE 0.40; RNO 2.10; SSRI 21.40. The big response will come when the late comers to the party join in as the reality of the unbacked paper currencies is recognized by the masses and they move to protect value in anything that looks, smells, or sounds like precious metals. Then it is too late!

What will be the end of the US - Iran "disagreement"? How will it affect the price of oil? How will it affect the price of precious metals? This is the immediate situation we are facing.

Best to each, Doug

Gold Stays Well Above $590

Gold is still hanging tough in the $590s. It has made a few runs at $600 and it broke through again yesterday morning to $601.10, but has not been able to stay above $600. The low for yesterday was $592.70 afternoon at 5:08. Gold is at $598.20 now.

Silver has outperformed gold in recent weeks. The high for the last 24 hours was $12.83 yesterday morning and the low was $12.43 in the afternoon. It is now at a respectable $12.77. The new silver ETF should be out very soon.

Mining stocks seem to be waiting, albeit, at a higher level, for a more stable gold price above $600 and beyond. I believe we will not see a significant drop in prices any time soon. Oil continues its upward climb, as well. putting more pressure on the us consumers. Air line tickets are climbing in response thereto.

The unrest over the illegal immigration problem is growing. It seems to approach what many consider an invasion from south of the border. Multiculturism and bilingual in our government "education" systems have encouraged such activities. We are destroying ourselves from within. It is no wonder, since we have elected officials who have no goal other than to be reelected the next time around. We must pray that the Lord will raise up statesmen and church members who will take a stand for what is right and true. Without this intervention, there is little hope.

I rejoice every day that the Lord is in control and working all things for the eventual good of His people. I pray that each of you are citizens of the Kingdom of God.

Best to each, Doug

Gold At New High $602.40 @ 10:47 pm NY Time.

Yes, gold traded above $590 and pushed through temporarily to $602.40 as the Title says. The low through 11:21 pm was$592.20 at 10:53 am. This further confirms the bull market for gold. Silver is sprinting even faster and is $12.77 tonight,as I write. Gold is at $600.60, so it is hanging tough,as well.

The mining stocks were a bit sluggish during the day, but trading at an improved level over two weeks ago. They should join the sprint as the higher precious metal prices become recognized by more investors. Both metals will be much higher soon. The normal summer slump may not occur this year. Then watch the moves in September. Of course, more unrest in the world will make the moves even more pronounced.

If you have an interest in lower priced stocks, as I do, here are some you might examine BVGIF, MRDDF, EGPLF, MNEAF, and for uranium JNRRF. I still like DROOY, IAG, NTO, SSRI.

BUYER BEWARE! What I like and what I see as correct for me, may not be for you. Check each out before you buy.

Time for bed. Best to each, Doug

Whew! Last Week Was A Rocket Shot for Gold!

Record high after record high last week. This week is starting off well, too! Last 24-hour Gold high $598.50 and price now $595. Silver is at $12.53 and out-performing gold so far. See James Turk's latest commentary at http://goldmoney.com/en/commentary.php#current. He discusses the gold/silver ratio and the prospects for the dollar.

Chinese Renminbi is up again! Of course, the dollar is not faring very well, so that is to be expected. Most other currencies are benefiting as well.

Pre-1965 dimes and quarters are a good way to accumulate silver. They are easily recognized and retain their value.

Put your faith in the living God and have a great week!

Best to each, Doug

Let the "Correction" Begin!

Gold touched $597.90 and hit a low of $590.60 over the last 24-hour period. It is currently at the low as this is written. Silver is at $12.01.

If this is a correction, I see it as an opportunity to accumulate more mining shares or physical metal in hand. An alternative to metal in hand is the CEF or Metals Direct at everbank.com world markets.

A correction is necessary to build up steam to crash through the $600 overhead resistance. The recent attacks upon $600 gold were rapid run ups. Perhaps, a bit too rapid, but that is how the metals markets go at times. The demand is building. It seems to be from jewelers, foreign banks (Asian and Mid-East), and, finally, a few investors.

Uncertainty in the currency markets, the open-ended war on terrorism, our deficits in exports and spending, the trillions of dollars of debt, the increased price of oil, and the lack of savings tend to point wise individuals toward the safety of precious metals >> Real Money! More will wise up as the price of gold in dollars rises.

I will be purchasing mining stocks on any reasonable correction. I believe it is wise to be ready to take advantage of such.

Study, make your plans, commit them to the Sovereign God and move out in accordance with your plan.

Best to each, Doug

Gold to $600?

For the last 24-hour period gold hit $596.50 on the up side and down to only $586.80 on the down side. It is currently at $595.40 and seems to be going up again to the $600 mark. Silver was also up to $12.07 and down to $11.66 and currently is at $12.07 which is also exciting!

I purchased Miranda Gold today at $1.75. This is, in my opinion, a really nice mining company with developed deposits. DROOY (DRD Gold) went up to $1.63, but is off a bet to $1.60 now. SSRI (Silver Standard) is up to $21.55. Most of the mining stocks are showing signs of greater life.

Incidentally, this is normally a slow time for mining stocks. Guess the dollar is on rejoining the down trend. Of course, if you have not noticed the other FIAT currencies are moving upward; for example, the EURO is back to $1.23+ today.

Well, rejoice in the Lord always, and as Paul repeated, "Again I say rejoice!" He is in control and all is well regardless of how the markets move.

Best to each, Doug

Gold Backs a Bit, but still above $580!

24-hour high $589.40 at 9:41 today, and the low $581.90 at 1:57 early this morning. Now at $584.80 and silver at $11.61.

The U.A.E. announced that they would delay the conversion of their reserves from dollar to EUROs for about a month. The news is still not good for the dollar bulls. Almost all currencies rose against the dollar overnight and into today.

Best to each, Doug

Gold Remains above $580

Since March 29th, the price of gold has been holding above $580. For the last 24 hours, the low was $584.40 at 4:59 today and the high was $590.40 at 10:17 today. It is presently at $586.20. Thus, from a technical perspective, the bull trend remains intact.

Silver over the last twenty-four hours had a low of $11.64 at 8:44 today and a high of $11.78 at 10:38 today. The new silver ETF will take about 25% of the current supply of silver off the market. Each new share is planned to account for 10 ounces of silver and will be sold above $100 per share.

For myself, I prefer the Everbank.com direct metals investment. It seems to me, that it will less expensive. However, that is my preference. What is your preference? One always has to deal his own presuppositions and risk tolerance.

The mining stocks are still trading at a higher level since March 29th. They have yet to begin the great run up as they will in phase three of the bull market. We are likely in the early stages of phase two which will continue as the precious metals stair step up with some smaller retraces and corrections.

The dollar received another boost toward the cliff as the dollar slipped lower still on Tuesday as Cheng Siwei, a vice chief of China's National People's Congress, was quoted as saying that "China can stop buying dollar-denominated bonds, increase buying of US products, and gradually reduce its holdings of US bonds." (as reported by gatacomm@aol.com today) This is scary news for the dollar. Even the thought of China backing off from purchases of US dollar instruments puts shivers down the spines of dollar bulls.

Have you ever thought about the story that gold is telling or will tell as the price rises? The message from a climbing price of gold in relation to the dollar is that the amount of un-backed dollars in circulation is increasing. The message is that true inflation is growing; therefore, as a result of the economic law of supply and demand, the value of the dollar is dropping. We see evidence of this as price inflation accelerates. The result is that it takes more dollars to buy things now than it did a while back. Thus, were gold to go to $1000 per ounce, as some are predicting, we should see a about 172% increase in the dollar prices we currently pay as we go shopping. For example, gasoline, which now costs about $2.45 a gallon, would be expected to go to about $4.21. Wages, on the otherhand never seem to keep up with the rate of price inflation. Many folks would have a very difficult financial time in such an environment. There definitely is a downside to the increase in the dollar price of gold.

With that on the horizon, it is wise to take advantage of the present time to prepare. I believe a large portion of our investment portfolio should be in physical metals: specifically, in one ounce gold bullion coins and pre-1965 US silver dimes and quarters. The early silver dollars are good, as well, but normally have a higher premium above the value of the silver content. To approximate the value of the silver content of these coins multiply the face value of the coin times ) 0.72 and then the result by the spot price of silver. For example, a pre-1965 silver dime would have 0.72 X 0.1 X 11.71 = $0.843. These coins in small quantities may be found at many flea markets. They are also available in bags of $1000 or $500 face value from various coin companies.

I strongly urge you to consider this. Make plans with which you are comfortable, then commit your plans to the Lord, and put them into action.

Best to each, Doug

Gold Streaks up to $590+.

Gold hit yet another 25-Year high at $591.20 today at 10:48. It had a quite respectable low of $581.40 at 9:01 p.m. last night. It is now at $589.70. The mining stocks are moving up in unison.

BGO 4.56, CBJ 3.43, CDY 3.00, CEF 8.12, DROOY 1.57, EGO 4.91, GSS 3.15, HMY 16.49, IAG 8.73, MFN 7.71, MNG 3.43, MRB 3.42, NEM 52.07, NTO 4.73, PAAS 25.58, RNO 1.93, SSRI 20.73.

It certainly appears that gold will break $600 before very long. That is another milestone on the road to who knows where. Once again the bull market in gold, and likely other commodities, is confirmed.

Best to each, Doug