Though Correcting Precious Metals Still in Bull Market

From the www.kitco.com graphs above it is obvious that all of these precious metals are in a bull market. Gold was an early sprinter and then platinum joined the race. Finally, silver, a late comer, joined the race in a catch up mode. Notice Silver's sprint beginning in August. Also, note that platinum has been the BIG WINNER thus far.

With that said both gold at 897 and silver at 16.58 have backed off some today. I have been buying Harmony Gold (HMY) at the end of last week and today. It has been hurt by the power problems in South Africa. This has not been completely solved yet and makes the miners cautious as they must work far under ground to extract the precious metals. Safety has been the paramount concern for the mining companies. The power has been partially restored, but still has a way to go. More infrastructure will be necessary for a complete solution. Perhaps, it is not too far away.

I have also made an adjustment in currencies. The EUROs had run up nicely and I believe they have farther to go. However, I moved my EURO holdings into Everbank.com metals select silver and gold. I believe the play in the metals will be more advantageous than that in the paper currencies, particularly, the EURO. I do expect the EURO to move to $1.50+ this year.

The distraction of the primaries in the political process is in full swing. Decisions are being made among the tweedle dums and tweedle dees. Study the candidates on the basis of their records and not the minute sound bites designed to sway voters by hiding the truth about the candidates. For one to depend upon the sound bites alone, is foolish. The records speak so loudly, that the sound bites should be drowned out in every case. I urge you to vote on principal and not simply against whomever you feel is the worst of the lot or the lessor of the evils. A vote for the lessor of the evils is still a vote for evil. Carefully consider your vote and place it wisely.

Our sovereign God is the One who makes the decision, but He uses the votes of men to elect His candidate for our eventual good. Often, the decision seems to be more of a judgment on us as a nation. Remember that when the Israelites wanted an earthly king, God gave them Saul who did not turn out very well for that nation. However, God warned them in advance that they would not enjoy having an earthly king. Nevertheless, the people spoke and God let them have their way.

Best to each, Doug