Thoughts on Markets

Tuesday, July 15, 2008

There is a Run to Gold Away From Banks

Above is the latest graph of the DJI. It is a nasty graph and indicates further deterioration as time marches on. As always, trends continue until they end. The DJI is in very dangerous territory. Breaking below 10275 would be extremely critical. It is time to be out of the general market. Stay in gold and cash and precious metal stocks.

Dollar continues to be weak. It seems destined to lose more in the coming days.

Quoted in Casey's Daily Resource Plus.
“The news of Fannie and Freddie is just confirmation that the Federal government is willing to effectively nationalize and print money to bailout these monstrous (ticking) financial time bombs. With the news of the second largest bank failure on Friday afternoon also adding to the financial jitters, one must now question the integrity of the FDIC with some $50 billion to work with. Once the FDIC reserve is extinguished, where will further billions come from when more and more banks continue to crumble? Confidence is deteriorating and that will only foster this secular gold bull market!"

“It is not too difficult to see the path we are on and headed. Investors who now understand this are flocking into the metals."
I agree with this assessment. All must eventually realize that the banking crisis is not going away easily. Gold is currently trading at $982 and silver at $19.24. Both are off a bit from their respective highs of earlier. However, both are showing an up tick. Both are very strong at present!

One of these days we will see the third wave where the lemmings all jump on board. I always wonder if this is it. I doubt it, but only God truly knows and we gain the knowledge as He reveals it too us.

Plan well, commit your plans to the Lord, move out in accordance with the plans, and depend upon Him for the success or redirection.

Best to each, Doug


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