Gold to 845 & Silver to 16

Gold broke through $845 and silver through $16 overnight. Both are off a bit, but still well up for the day (It is early): Gold $835.90 and Silver $15.54 with both operating on an up tick.

From today's Daily Pfennig (Free from www.everbank.com World Markets)"How about the Commodity Currencies? WOW! What a super ball bounce! Initially, the Asians bought the Commodity Currencies of Aussie, New Zealand, Canada, South Africa, Norway, the U.K., But then it spread, like wildfire after comments by Cheng Siwei, vice chairman of China's National People's Congress. Cheng was originally quoted as saying China should diversify its reserves by buying more "strong currencies" such as euros.  Although Cheng, who a history of making slightly maverick comments, later retracted the remark on euros, the dollar managed only a marginal rebound and sentiment clearly remains very sour.  Very sour indeed! This is HUGE! The dollar has literally fallen out of bed overnight... And the European traders are adding insult to injury! Go ahead and skip down to the currency roundup and take a peek at those currency levels... This is a day to remember, folks... And it's not just the high yielders plus euros that have gained VS the dollar... Shoot Rudy, even Japanese yen, and Swiss francs have joined the party!"

What a party for the currencies, precious metals, and oil (to over $98). Is this it? Is this the final demise of the dollar with precious metals and everything we buy escalating in price? I do not think so, but am pleased to wait and see what each day brings forth. Long term, the dollar seems to be destined to lose purchasing power. King Jesus is the one in control and the one who has the knowledge of the future. We can only examine what we see to attempt to find the trend in markets. It is wise to stay with the prevailing trends which at present are dollar down and precious metals and commodities up. Remember the trend always continues until it ends. The masses have yet to join in on the party. That comes later. Until then, I am riding the upward trend in precious metal prices as the dollar moves down.
International central banks realize this without a doubt. Many are diversifying out of dollar reserve and replacing the dollars with other currencies and precious metals. Many investors are beginning to wise up and begin a flight from the failing dollar. The loss of wealth by those continuing to hold dollars will be very great.

I am buying cautiously into mining stocks and call options on some of the better ones. I am also moving out of dollar denominated money market funds. You must make up your own mind in consideration of your risk tolerance and the present state of your portfolio.

Some of us have an early start in this bull market while many more folks are oblivious to what is happening. Will the price of gold go up for the foreseeable future? I doubt that it will continue upward without a correction along the way. However, the upward trend is very strong, at present. The dollar is under extreme present pressure as banks are moving away from it. Were it to lose its world reserve status, the downward drop of the dollar would be significant and virtually instantaneous. At that time, it would be a bit late to be joining on the precious metals bandwagon as there would be a mass exodus with the late comers jumping in with both feet. That is the time to be unloading your mining stocks.

Rest in the comfort and knowledge that King Jesus is in control of this and that there is nothing in Heaven or on earth that can separate His people from His love.