Markets Up Today!

From the Daily Pfennig this morning:

"Our good friend John Nadler of metals dealer Kitco was on TV this morning talking about gold and commodities in general.  He believes we could see one more dramatic move up, but expects a correction toward the end of the year which could bring prices back closer to $800 and ounce.  He said long term investors should maintain positions, as it is an excellent diversification; but short term traders should look for an opportunity to lock in some gains and wait for better buying opportunities.  John believes the supply and demand picture does not support the levels for gold, platinum, and especially oil which shot up to another record overnight."

What Nadler said is entirely possible. The precious metals have sprinted upward with great speed. As long as the dollar continues its downward trend which seems to be the direction, the price of the precious metals and commodities will continue to rise in terms of the dollar. The prices are not totally dependent upon the price of the dollar. The increased demand from China,India,and the oil laden Mid-East is exerting upward pressure, too.

The will be corrections along the way. I continue to suggest holding both silver and gold metals and investments in the ETFs, etc. which hold the metals: CEF, GLD,and SLV for the long term. The mining stocks will do well as the metals increase in price and will provide more leverage as gold moves above 1000. For trading, I use options on the mining stocks. These are for short term trading since options have an expiration date.



The 24-Hour Gold Graph, above shows once again that gold was higher over night in Asian trading, but dropped during the last half of trading time in London. It has moved upward again just before the New York opening. Gold is now at 973.70 up 323.79 from a year ago and silver at 19.65 up 6.72 from a year ago. These are not too shabby performances over the year.

The DOW is up 216-217 to almost 12000. It is showing more strength than it has for the last few days. This provides some encouragement to the general stock investors, as well. It must go much higher for the bear trend to be broken. But this looks good at present.

Almost all of the mining stocks are moving up again. Here are a few: AGYM 1.33; CDY 1.24; CDE 4.84; DROOY 11.26; GFI 15.42; GSS 3.82; HMY 13.37; IAG 7.59; KGC 25.12; KRY 25.13; MRB 5.20; MEM 50.44; PAAS 39.57; SLW 17.36; SSRI 34.52; VGZ 4.54; XRA 4.51. Good day for the mining stocks, too.

Had some nice rain for a change yesterday and it is nice and clear today. The Lord has provided the much needed rain and given us a beautiful follow on day. We certainly must praise Him daily for the blessings He gives.

Best to each, Doug