Gold Is Correcting Some Over Night

This www.StockCharts.com graph is for GDX which is the Exchange Traded Fund (ETF) covering many of the major mining companies. It provides participation in the precious metals mining business for the larger well known companies.

Owning it, is similar to owning shares in a closed in mutual fund in that the shares are traded on the American Stock Exchange (AMEX). It enables one to participate in potential growth of the mining industry without directly purchasing shares of the major companies; such as, Newmont and Barrack.

By the way, for those of you with higher risk tolerance, options are offered on this particular ETF. I plan to purchase Call options on GDX for the first quarter of 2008, so I am letting you know in advance of my orders.

Gold over night is selling in the price range around $825, so we may be in for a correction on M0nday which will offer us another buying opportunity. For the last several days, it appeared that we would see gold trading between $830 and $845, but it has broken below the $830 support level. We saw it attempt a run at $850 twice only to fall back below about $845.

I will be making more purchases at these lower prices, but will be slow to commit a large amount of funds. It seems better for me to ease in over the next few days or weeks if the lower prices continue.

Be assured, this is in no way a break in the bull trend of gold. It will go higher. There is too much downward pressure on the dollar. Further, there seems to be a building exit from dollar holdings as banks, funds, and individuals seek protection from dollar losses. They are seeking a safer commodity than the paper currencies.

We must continually rejoice in the wisdom or our Sovereign God. While He is sovereign over everything and every body, He has given us brains to use. We are not to be blind and oblivious to the situations He brings upon us. We must prayerfully act in accordance with His word and trust in Him for success or new direction. Our plans are fallible, but His are not. Often it is His plan to redirect our plans through the failures He gives us. Praise King Jesus for each of His acts on our behalf.

Best to each, Doug