Gold is presently living it up in Sidney and Hong Kong

Gold is on the run in In Sidney and Hong Kong over night. It went up above $980 and is now about $979.60. That is quite a start for the week. Of course, when the markets open here in the morning, we will have a better indication of the course for the week.

On the other hand, the DJI has run up against a strong resistance at about 12750 which it touched near the end of January and the week before last in late February. It would have to break above that to show any life. Of course, it may well do that in the near future, particularly when the FOMC lowers interest rates again this month. There is wide belief that it will lower the rates; however, the long term interest rates have not responded as the Fed thought it would. These rates seem locked in at a higher than expected level.

The DJI showed very poorly last week losing in excess of 315 on Friday, alone. Even the Transportations were down about 70+. The general market is showing mixed signals which are difficult to decipher.

It is still wise to stick with the precious metals and natural resource investments. There is now a indication that funds and retirement plans are shifting funds in these markets. We could be in for a real upward move in these sectors of the markets. The demand for precious metals, mainly gold is very strong as the wealth of China and India grows. The Asians have a real appreciation for precious metals.

Silver has been showing a good deal of life in recent trading. It is racing to catch up with gold and may even make a better percentage wise record than gold for the time being.

Iran has opened the oil trading in its currency. It will also accept the Renminbi as well for the time being. Perhaps, Russia will begin to trade oil for Rubles. These two together could deal a significant blow to the U. S. Dollar. Before, oil has been traded in dollars, only. That would greatly reduce the purchasing power of the dollar and result in a big increase in the price inflation which we are experiencing now. We would have no means, other than military, to defend the dollar, because of the debt we owe to the world.

The latest reports are over 25,000 condos for sale in Florida with many thousand more coming into the market weekly. Those stuck with condos in Florida are in deep trouble. Many are being sold to foreign investors who are moving in to pick up what they see as "bargains." America is being bought by those abroad.

It will be very expensive for Americans to travel to Europe these days with the Euro around $1.50. Everything seems to be getting more expensive for us. Of course, we realize that this is the result of a significant loss of purchasing power of the dollar by design of the Fed and the Federal Government. This is a form of theft of the citizens and a hidden tax on what we have left.

Thankfully, our Sovereign God is in control and will protect His people in the long run. We must daily praise and thank Him for whatever He provides for us. Remember, He owns the cattle on a thousand hills. In fact, He owns everything, is very generous to His people as the study His word and follow His way.

We have another exciting and challenging week ahead. Let us get a good night of rest and prepare to redeem the time that King Jesus gives us.

Best to each, Doug