Gold Bull Trend Continues - Hang Tough

Today, I have included both the 1 Year and 5 Year www.Kitco.com graphs on gold to illustrate the point that the bull market in gold is firmly intact. The past and current corrections are a mere blip on the longer term graphs. This is very comforting and gives assurance that gold looks great as a store of value versus the dollar and other unbacked paper currencies.

Meanwhile, gold is in a consolidation phase in preparation for the next upward move. It is now at $784.60 which is up some $22+ or about 2.95% over the last 30 days and up $164+ over the last year. This is far from negative performance.

As always, we must have a long term view on preserving wealth via the precious metals. Further, it is very important that we take advantage of dips in the prices to add to our portfolio of physical precious metals, ITFs which hold bullion (CEF and GLD), perhaps in www.goldmoney.com or www.everbank.com metal select accounts, mining stocks, mutual funds in mining stocks, and in the Gold Miner's Index fund (GDX). Selection of the specific target for new dollars should be tailored to provide a balance of investment media which is in tune with your individual risk tolerance.

While the precious metals remain in a strong upward long trend, the dollar is locked in a downward trend which may be accelerating in the near future. Even the foreign central banks and individual investors are beginning to shun the dollar or, at the very least, are losing their love affair with the dollar as a trustworthy store of value. In fact, there is so much negative sentiment toward the dollar now, that one would suspect that it might be in for a short term upward bounce.

The world about us proclaims the philosophy of "Live for today, for tomorrow we die!" or "Eat drink and be merry, for tomorrow we die!" Both of these ideas give one a short term view of life and encourage each one of us to continuously party up and seek immediate fun or relief from any problems which come to us. Most of us want instant relief from the slightest head ache or other ailment. We are encouraged to live for the moment which shortens our view of life. On the other hand, Christians have a different view of life.

We know Who is in control of all that takes place and He has given us His word in the Bible. This word of the Creator of all that was, is, and shall be has given us instruction for all of life. This even applies to investments. Don't get me wrong on this, He does not say "Invest in gold today." And I have never heard Him speak directly to me, but throughout the Bible, we see examples of gold and silver by weight used to make purchases. That is sufficient for me to know that He intended the precious metals to be real money. For centuries nations used silver and gold coinage as the only money. Our forefathers knew this and put in the Constitution (Article 1, Section 8) the power "To coin Money." They were explicit about this and certainly wanted to insure that These United States would have sound money.


It is only in recent history that nations have violated the principle of sound money. From a pragmatic perspective, paper and ink are very cheap. On the other hand, precious metals are very dear. Thus, it is easy to print paper currencies and declare them as "Legal Tender for all debts public and private." So, using the printing press and now blips on the computers banks and governments can deceive the citizens and create out of nothing all the paper "money" they want. Therein lies the problem. This paper currency is used to deprive the citizens of wealth through inflation: Inflation is the increase of unbacked currency in circulation which results in price inflation in virtually all products and services.

I continue to be thankful that Jesus Christ is the reigning Sovereign over every thing, every institution of man, and every body on the earth and heaven. He is working through His people to bring all into submission to Him. This He accomplishes through His church. Resting in Him gives peace and comfort while facing the challenges of each day. May each of you enjoy this lasting peace.

Best to each, Doug