Thoughts on Markets

Tuesday, June 24, 2008

Gold and Silver Better Today - America is Not


Gold and silver got hammered at the opening in NY yesterday. Today seems to be a different story. Gold is 891.90 and silver is 16.82. The options expire this week and action by the cartel is always more active just before expiration. As reported yesterday, this cannot be the normal operation of a free market and provides consistent proof of manipulation by the cartel. They are buying now so as to be able to sell into the next leg upward for the precious metals. Would that we had the capital to play in their game, but the stakes are well beyond most of us.

The mining stocks appear to be breaking upward off the double bottom formation mentioned yesterday. It is likely that they will languish for a time. With DROOY at 6.22 and HMY at 10.77, we are presented with buying opportunities given we have the free capital for purchase. These prices will be exceeded; perhaps, even today.

I am seriously considering trading in these two stocks, but never selling all. Both are core holdings for me. I plan to sell some at a profit and then buy back in as the price drops in the future. The big sell time will arrive as the third wave of late buyers jump on board at some time in the future. When? That is the big question!

Siddique Islam - AHN South Asia Correspondent

Dhaka, Bangladesh (AHN) - Central bank chiefs of the Asian Clearing Union (ACU) have agreed to introduce the Euro alongside the U.S. dollar for settlement of payments among the member countries beginning January, 2009.

The decision was made at the 37th ACU board of directors meeting held in Nay Pyi Taw, administrative capital of Myanmar, on June 17-18, officials said in Dhaka on Sunday.

The above from allheadlinenews.com is more testimony to the growing mistrust of the dollar. We are seeing more of the move away from the dollar every week or so. The moves have, for the time being been rather small with minimal impact. However, it does not take very many small bites by baby rattlers to make us sick. The same is true about these moves. Collectively, there will be an impact even ahead of the avalanche of larger moves on the horizon.

We are reminded that the U.S. did not invade Iraq until after they had threatened to price oil in Euros and moved much of their banked reserves into gold and Euros. Iran has done the same. Pray to the Sovereign God that He will not allow an invasion of Iran. The rumors are flying everywhere. Perhaps, they are just rumors. Think about it! Were there to be an attack upon Iran, would not that be a positive for the Republican election campaign?

I call your attention to II Chronicles 7:14, "If my people, which are called by My name, shall humble themselves, and pray, and seek My face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land."

Notice that the call is not for all the people, but for God's people: those of the faith of Abraham. So it is up to us who bear the name of Christian to follow these instructions to save our nation which has turned from the living God and is receiving His wrath. We are not doing our part, so God has virtually deserted America. He has, in concert with Romans Chapter 1, "given us over to our own desires." We must wake up and do our part ("remove the bolder in our eyes"), before we can even speak to others about about the speck in their eyes.

Let us from this day forward purpose to follow the instructions of Chronicles, above, and rebuild our nation from the ruins which now surround us.

Give praise to King Jesus!

Best to each, Doug

0 Comments:

Post a Comment

<< Home