Gold Striving for $700

Both silver and gold are looking good for the time being. Both seem headed much higher. However, we have seen gold head for $700 only to be pushed back by reported gold sales by central banks or other anti-precious metal rhetoric. Central banks and governments hate gold in the hands of citizens. It simply provides more freedom from the paper currencies of the world which provides governmental monopoly on the circulating thing we commonly call, "money."

Gold is at 689 and silver at 12.88 now. Both are up a good bit from the past few weeks. One must wonder why the prices fail to reflect the loss of purchasing power of the dollar. We would expect gold to be above 875 and silver at least 18. Time will tell.

By the way, I suspect the precious metals are in stronger (longer term investors) hands at this time after the wash out of the last few weeks. We, with a longer term view on precious metals, can wait out most of the corrections and see them as buying opportunities. I am glad to have picked up more DROOY on the last dip. It is now well above my cost over the last two weeks. We must hang tough.

I have learned not to trade in and out on my total portfolio. At times, I will use a smaller batch of volatile stock shares for trading, but never my entire portfolio. Also, I am a believer in trailing stops and am currently using 15% trailing stops. Every time I place one, I ask the Lord to keep it from selling for a long, long time.

The general markets are highly volatile at the present time. They are seemingly bullish, but are having little overall change. As Richard Russell points out, there are buyers who are very bullish and sellers who are equally bearish. Thus, little action to suggest little but up and down in a trading range for the time being.

Sales of existing homes fell sharply. In spite of the assurances from the Federal Reserve and Washington, it seems that more of the housing fiasco is being revealed over time. The dollar has taken serious hits from competing currencies around the world. This has been positive for the precious metals and commodities.

Keep looking to the Lord for wisdom, His wisdom, which is vastly above that of men. Seek His word and follow it. Read the Bible daily. Meditate upon it and follow it for success here and hereafter.

Best to each, Doug