Gold Above $1000

Well, folks, we are above $1000 and have been there all through the night. Of course, we should realize that the $1000 mark is but another milestone in the route to higher prices. However, it is a psychological point which has an impact only from that perspective. The Kitco.com graph, above, shows that there has been a slight drop in the price of gold with the opening of the New York markets.

This seems to happen quite often. Many believe that it is a concerted effort on the part of the cartel to put a cap on the price of gold. As I have mentioned before, governments and banks do not like for gold to be seen in its true light: Real Money. Gold tends to expose the fraud of the fiat unbacked paper currency. Paper currencies allow governments to steal in violation of God's Word, "Thou shalt not steal." You bet, this applies to all of us and all organization, including governments on the face of the earth. Remember God is not mocked, "what we sow, we will reap."

As the price of precious metals moves up, we are hesitant to add to our portfolios. Remember as it moves past each milestone: 400, 600, 700, 800, and 900, we thought to ourselves the price is too high. We wanted to wait for a correction. When that came, we were afraid to jump on board for fear that the price would drop further. Then it moved higher, and we decided to wait for another correction. That fear resulted in procrastination and prevented us from obtaining the security of more precious metals in our portfolio. Now we are just above $1000. Are we going to wait for another correction?

It is better to dollar average into an asset which is increasing in value than to do so on one that is decreasing in value. Putting the price into perspective with inflation of the dollar since 1980, gold should be somewhere between $2,500 and $3,000. It is not there yet. Will it go that high? I do not know, but look at what the Federal Reserve in concert with the Federal Government is doing and think about it.

The lowering of interest rates, the flooding of dollars into banks, and moves to save hedge funding brokerage house does exactly what has been done since 1971. Remember that is the time that the dollar was completely severed from gold. What has happened to the purchasing power of the dollar since then? Yes, it has dropped like a rock in the family swimming pool. Now the Federal Reserve is staying the course of pumping up the economy with a flood of more dollars and lower interest rates. Will the result of that have a different effect upon the purchasing power of the dollar? I think not! It will continue its slide to dangerous levels in its current cruise over uncharted waters. Thus, the precious metals should continue to increase in value.

I am now investing more in the mining stocks and mutual funds which are invested therein. Also, the ETFs and trusts which invest in bullion gold and silver. I like CEF, GLD, and SLV.

Gold is now at $1,010.40 and silver at $20.39. Silver still has a way to go to catch up with gold, so it could be a good choice for investment at this time.

In all investing, be sure that you understand your risk level. Commit the investments to the Lord and ask Him for results.

Best to each, Doug