Gold Must Decisively Pass $850
For gold to continue on its current upward thrust, it must pass $850. It has made three good spikes to about $840 in the last 36-48 hours during which time, it has stayed mostly above $830. The $850 presents a near term resistance level. This is certainly a psychological barrier which must be broken. At this time, gold is at $837.
Silver is lagging behind gold, due to the very strong cartel involvement in silver. The shorts on silver are extremely numerous, much more so than those on gold. This is a drag on silver. However, silver is at $15.57 as this is written. At some time, silver will lash out at the short positions and crucify the holders thereof. It is only a matter of time for this to happen.
I have recently bought speculative mining stocks >> Brett Resources (BBRRF) and Jinshan Gold (JINFF). Both are plays on China's gold mines. While I am not overly bullish on China, because of the totalitarian government, there should be no real danger until after the 2008 Olympics. That is, if there is really any danger. By the way, the government is allowing a good deal of economic freedom for businesses. Perhaps, laying fewer regulations and less taxes on them than we experience here in America.
The Chinese Yuan is at an all time high against the dollar. It, too, is a paper currency, but has much more upward potential than the ailing dollar at this time. The Euro is much stronger. Even the Canadian Dollar has surpassed our dollar for the first time in history. For the dollar, it is look out below! We must find better assets to preserve whatever wealth we currently have. As mentioned yesterday, I am moving funds out of dollar denominated money market funds to brokers, so they may be used for mining stocks and ETFs in precious metals.
Tomorrow is Friday and we will see how the traders react in anticipation of the week end away from markets. Friday may well be a day of decision on the direction of the markets, as well as precious metals. We will have to wait and see what the markets reveal to us.
Review your portfolios on a continuous basis. It is not the time to buy and hold, except for the precious metal investments. Continue to commit your plans to the Lord Jesus Christ and depend upon Him for the results >> whatever they may be.
Best to each, Doug
Silver is lagging behind gold, due to the very strong cartel involvement in silver. The shorts on silver are extremely numerous, much more so than those on gold. This is a drag on silver. However, silver is at $15.57 as this is written. At some time, silver will lash out at the short positions and crucify the holders thereof. It is only a matter of time for this to happen.
I have recently bought speculative mining stocks >> Brett Resources (BBRRF) and Jinshan Gold (JINFF). Both are plays on China's gold mines. While I am not overly bullish on China, because of the totalitarian government, there should be no real danger until after the 2008 Olympics. That is, if there is really any danger. By the way, the government is allowing a good deal of economic freedom for businesses. Perhaps, laying fewer regulations and less taxes on them than we experience here in America.
The Chinese Yuan is at an all time high against the dollar. It, too, is a paper currency, but has much more upward potential than the ailing dollar at this time. The Euro is much stronger. Even the Canadian Dollar has surpassed our dollar for the first time in history. For the dollar, it is look out below! We must find better assets to preserve whatever wealth we currently have. As mentioned yesterday, I am moving funds out of dollar denominated money market funds to brokers, so they may be used for mining stocks and ETFs in precious metals.
Tomorrow is Friday and we will see how the traders react in anticipation of the week end away from markets. Friday may well be a day of decision on the direction of the markets, as well as precious metals. We will have to wait and see what the markets reveal to us.
Review your portfolios on a continuous basis. It is not the time to buy and hold, except for the precious metal investments. Continue to commit your plans to the Lord Jesus Christ and depend upon Him for the results >> whatever they may be.
Best to each, Doug
posted by Doug @ 11:45 AM
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