Gold and Silver Sprinting Again

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The dollar has really taken a beating as shown on the first graph. Consumer confidence, housing reports, and the Fed talking heads almost announcing a further cut in interest rates pounded the dollar into the ground. That is a nasty graph which seems to show that the dollar will continue to dig into the ground. However, again we must wait and see.

The low term upward trend of precious metals and downward trend of the dollar are still intact and are very likely to continue. There will be sandy spots and bumps on the way, but both are fixed for the time being.

Well, both silver and gold hit new highs during the last 24 hours. At each such move, I ask myself if this is it? Then, I return to realism and answer, I don't know. Further in time, I remind myself that the technique to use is to wait and see. However, it seems that we should be getting a correction after these days of rapidly increasing price.

The mining stocks are moving upward. The silver miners are really moved. PAAS is up 1.61 now to 40.83; SLW is up 0.42 to 17.40, and SSRI is up 1.80 to 37.04. Silver is now 19.23 and gold 568.30. Both are strong in spite of the pending sale of gold by the IMF which is supported by the White House.

The Lord seems to be really shaking the commodity markets, including our precious metals. If you are waiting for the next correction to add to your portfolio, you must be patient. It could come at any time, but may not arrive until gold hits the magic of the psycological $1,000 point. Hang in there, because the trend which now exist will continue for some time.

Praise the Lord for letting us get on board. If you are not now on board, be very careful in entering the market at these levels. Even in a correction, it is likely not wise to sell the farm and jump in with both feet. make measurer investments as the market moves back up after a correction.

Best to each, Doug