Precious Metals Beaten Down Badly

Folks,

This is another exciting day in the precious metals and commodities markets. Which ones aren't? However, today both gold and silver got kicked in the teeth and seemed to be headed for the 10-count on the mat. Both have rebounded some from the low around 10:30 or so. Notice that silver has a better, although bad showing than gold. Silver did not go down as far percentage wise and rebounded more smoothly.

The mining stocks did not react as violently to the losses in precious metals today. However, one of my trailing stops was hit and a portion of DROOY was sold. Of course, as it always seems, mine were sold at the low for the day and DROOY has rebounded. Nevertheless, I was able to pick up some options on Silver Wheaten (SLW) and am trying on CDE. I thought it was a good time to buy into more silver mining stocks, since silver is acting better than gold.

I am still convinced that the precious metals are in a bull market. The other commodities are there, too, but have been hit extremely hard. Even copper suffered a great deal. Perhaps, we are in and will go deeper into recession before the economy improves at all. Even China is having some challenge with inflation. We may be exporting our recession to the world.

The Federal Reserve is seeking some Draconian powers over both the stock and commodity markets. This is all designed to "save the big banks." Of course, it will be at our expense in both freedom and taxation. We are destined to bail out the failing banks. This seems to be in concert with the actions of our president in the "Patriot Act" and other unconstitutional actions he has taken, often with approval of the Congress. Aren't you glad that our Sovereign God is watching all of these questionable actions and laughing at the folly of man as they seek to achieve ever greater power and wealth.

We will need to hang tough and patiently await the return of freedom in our markets. Hopefully, the manipulation will begin to dwindle. It is important to follow the markets and remember the longer term trends within the markets. Each correction is no fun at the time and all of us wonder how long and how deep the moves will be. These are the times that try us to the core.

Keep your mind alert by daily studying the Scriptures of the Old and New Testament to find the way, the truth, and the life in Jesus Christ our Lord. It is through Him alone that we can receive forgiveness of sin and reconciliation with God, the Father. There is no other way. Do not neglect the power of corporate fellowship in worship together with the saints of God.

Best to each, Doug