Gold Correcting; Silver & Platinum Still Very Strong

Above is a graph from www.StockCharts.com of the Street Tracks Gold Trust which shows the correction in the price of gold. This is a good way to participate in gold without holding the metal in hand.

Gold is correcting at present which presents us with another opportunity to add to our holdings. A correction was due after the recent upward sprint. Gold is down 15 at 908.20. Silver is still strong at 16.80. It is off some from a high above 17.00 during the night trading. Platinum is holding very strong at 1756.

The South African mining stocks are still suffering from the electrical power supply problems of the government controlled utility. As is often the case, government owned businesses are seldom efficient. One of the better mining stocks, Harmony (HMY) is trading in the 9.70 range. It is very tempting at this price. Our DROOY remains very strong above 11.50.

There are indications that many banks have been oversold on the sub prime and other news of late. Perhaps, even the housing industry is beginning to show some signs of life. Could it be that the worst is over? I do not know; however, there have been newsletters on the internet which point toward the possibility that the Fed's rescue attempts may be paying off. Of course, all of the actions are inflating the unbacked paper currency in circulation which will result in price inflation, lower purchasing power of the dollar and increased price of the precious metals and natural resources.

The severe winter in China is causing increased demand for heating and slowing transportation of consumables to stores. The prices of everything in China are increasing, and if, as it suspected, the government and bank of China will begin to fight price inflation by letting their currency float to more realistic values. Thus, the Renminbi will appreciate in value. Hold your Chinese Renminbis for profit against the dollar. They are available through Everbank.com World Markets which I use for myself.

A new month has begun. It is a time for us to look forward to better days. As we approach the weekend, it is time to prepare for active corporate worship of King Jesus. Blessed is the nation whose God is the Lord. There is no other way. We must return and teach our children and grand children to depend upon the One true God of all. Without Him, we are lost as individuals, families and nations.

Best to each, Doug