Both Gold and Silver Move Higher

The patterns in both graphs are about the same as prior days. However, both silver and gold are higher. The mining stocks are mostly green, as well. On to other news.

The rumor of a coordinated rate cut among central banks came to fruition this morning according to this morning from the Daily Pfennig:

"The Fed, European Central Bank, Bank of England and the Bank of Canada have all cut interest rates in a coordinated rate cut move before the markets in the U.S. open! The Fed cut rates 50 BPS to 1.50%! I'm looking all over the board for the size of the other Central Bank cuts... The Fed made the announcement, and said the other banks would announce their rate cuts...

I saw a blip that the ECB said that "inflation risks had weakened"... Since when? I guess when Big Brother (the Fed) calls and says they need a rate cut from them, they say, "how big?" I'm shaking my head in disbelief... The ECB has allowed the Fed to dictate rate policy...

OK... I now see that the ECB also cut 50 BPS... So... You see, the Fed needed a cut, like I said earlier today, and to keep the markets from jumping all over the dollar for lack of rate differentials, the Fed got the ECB to keep in line, to keep the differentials the same, etc."

From the FT.com:

Central banks all but stop lending bullion

By Javier Blas in London

Published: October 7 2008 21:44 | Last updated: October 7 2008 21:44

Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.

The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.

Read full article HERE

Would you believe that a demise of paper currencies was mentioned on CNBC? You can view it HERE It is worth a listen and I am surprised that it would be on the broad media.

Folks, as this is written, gold is 912.70 up 25.60 and silver 11.75 up +0.19. Are the boyz simply asleep or given up for the time being on slamming the $900 cap?

The Lord knows for certain and we have to be patient and wait. He does not always bring His providence in the way we would expect. But His ways are not only higher than ours, but they are always better. That is the for His glory and for us to learn patience and other virtues as He grows us in the image of His Son our Lord and Savior Jesus Christ. Praise the Lord daily for His blessings.

Best to each, Doug