Gold Pushing 1980 Highs!
Gold bid 785.70, asked 787.20. That is up 42.60 over last 30 days, and up 187.70 over 1 year. That is a wow! It is likely to break through 850 this year.
Remember, that is not good for the dollar which remains below 80 as it has for about a month. This will translate into higher prices in virtually everything. Central banks and other foreigners sold $29.7 billion of Treasuries during August. We still require $2.1 billion per day to finance our spending binge. These folks may not provide this much longer. If not, the dollar will really take big hits. There will be times of small upward moves over time, but the major trend of the dollar is down. In fact, it looks a lot as though the dollar is nearing a collapse. It could happen. Don't believe it to be impossible.
These are very dangerous times in the markets. I am sticking with commodity currencies; such as, Canada, Australia, and New Zealand. I also like the Swiss Franc and the Euro. By the way, the Euro block has surpassed the US in consumption. China continues to keep its currency below market value, and it will get stronger only when it decides that it is to their advantage regardless of international pressure. Hollow threats continue, but that will never help. Perhaps, after the Olympics, there will be a change, but don't expect much until then.
The mining stocks are faring well with the higher gold prices in relation to the dollar. DROOY is .42; GSS 3.65; HMY 10.64; IAG 8.66; KGC 19.15; KRY 3.34; MRB 5.55; NEM 47.22; PAAS 31.53 SSRI 41.03; XRA 4.47. CEF is 10.44. These are all doing very well and will go much higher with the price of gold. Stick with the mining, other natural resource, and defense stocks for the time being as they are the most likely to move upward.
I trust that you attended corporate worship service yesterday. That is a very important part of holy life. All of life is to be lived in worship of the Sovereign God of the Universe. He is the God of love, but a God whose patience with men and nations will not last forever. When people nations shake their fists in His face by violating His word, His judgement will come. Maybe not soon, but He always balances the books in the end. Do not be deceived His word does not return void.
Best to each, Doug
Remember, that is not good for the dollar which remains below 80 as it has for about a month. This will translate into higher prices in virtually everything. Central banks and other foreigners sold $29.7 billion of Treasuries during August. We still require $2.1 billion per day to finance our spending binge. These folks may not provide this much longer. If not, the dollar will really take big hits. There will be times of small upward moves over time, but the major trend of the dollar is down. In fact, it looks a lot as though the dollar is nearing a collapse. It could happen. Don't believe it to be impossible.
These are very dangerous times in the markets. I am sticking with commodity currencies; such as, Canada, Australia, and New Zealand. I also like the Swiss Franc and the Euro. By the way, the Euro block has surpassed the US in consumption. China continues to keep its currency below market value, and it will get stronger only when it decides that it is to their advantage regardless of international pressure. Hollow threats continue, but that will never help. Perhaps, after the Olympics, there will be a change, but don't expect much until then.
The mining stocks are faring well with the higher gold prices in relation to the dollar. DROOY is .42; GSS 3.65; HMY 10.64; IAG 8.66; KGC 19.15; KRY 3.34; MRB 5.55; NEM 47.22; PAAS 31.53 SSRI 41.03; XRA 4.47. CEF is 10.44. These are all doing very well and will go much higher with the price of gold. Stick with the mining, other natural resource, and defense stocks for the time being as they are the most likely to move upward.
I trust that you attended corporate worship service yesterday. That is a very important part of holy life. All of life is to be lived in worship of the Sovereign God of the Universe. He is the God of love, but a God whose patience with men and nations will not last forever. When people nations shake their fists in His face by violating His word, His judgement will come. Maybe not soon, but He always balances the books in the end. Do not be deceived His word does not return void.
Best to each, Doug
posted by Doug @ 9:49 AM
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