$1,000 Gold!

From Casey's Resource Plus this morning: "It was an historic day: after a slow, steady climb, the price to buy one ounce of gold cost $1,001.50 at 10:35 am Thursday. Amazing, when you realize an ounce of gold could’ve been purchased for $269.30 on the same day in 2001, the year the current bull market in precious metals began. That’s a return of 370% in 7 years, from a yellow metal that has to be dug out of the ground and pays no dividends.

For the day, gold was up $11.70 (1.19%), ending at $995.10, its first close above $990. The next milestone: closing above $1,000. Overnight, gold was down 60 cents.

Silver’s move was even bigger percentage-wise, gaining 55 cents (2.75%) to close at $20.56 for the day. Year to date, silver’s move has now doubled that of gold’s."

Yes, folks gold touched $1000, but it must cross that milestone and continue upwards. The mining stocks are moving upward as well and should soon give us the rewards we expect. Beware of the corrections along the way. Once the $1,000 is crossed and the prices exceed that for a time, there will be even more interest in owning the real money.

The price of gold is responding to the value of the falling dollar, the increased demand from Asia, and, now, the fear which is spreading among investors. The last reason for the precious metals sprinting is beginning to have a strong impact upon demand.

The fear of the Federal Reserve and our government is shown in the massive interest rate cuts this year. It is further demonstrated in the billions of dollars thrown at the banks, and the proposed helicopter drop of the Federal Government this spring. Yes, those in power are under a great deal of stress over the situation they have created and are attempting to solve with more of the same. All of us pay the price as a result of these games they play.

From Washington today, "Good Morning, Americans, Welcome to stagflation with our compliments! We have worked very diligently to present you with this wonderful situation. Now we will use the same means to get you out of the trouble." Of course, this would never be admitted, as true as it it!

A well respected economist, Stephen Roach, stated that America is facing a similar situation to that of Japan after the easy money with lower interest rates of the 1980s. It took Japan two plus decades to have any relief. He expects ours to great much worse before it gets any better, because we are meeting the situation with the same tools Japan used. Also, we have a great deal of military involvements in most parts of the world which Japan never had.

Rest assured in the Lord of all. He moves all men everywhere in accordance with His divine plan. He loves and cares for His people and will make all things work together for their eventual good. Be still and know that He, alone, is God.

Best to each, Doug