Thoughts on Markets

Thursday, November 20, 2008

Both silver and gold got slammed again this morning. This from Casey's Daily Resource Plus: "Today is options expiry on the Comex in both metals. It sure seems like someone is trying to keep the gold price under $740 until that happens. The vast majority of call options will expire out of the money (and worthless) at this price. The longs get screwed again...and the bullion banks "ring the cash register"...again. And your mining companies do nothing...again."

That is likely to have an impact upon the price of the precious metals which may show up as early as tomorrow. We will have to monitor the price rather closely, as it may be time to take some profit on our trades in DROOY (NOW 3.13)and VGZ (NOW 0.87). Both are in good buying range in my way of thinking. See what you think.

Gold is at 739.40 on an up tick and Silver at 9.04 on a down tick. Both were capped early this morning in anticipation of option expiration.

From Resource Investor this morning:

Gold In The Low $600s?

By David Galland, Editor, The Casey Report
19 Nov 2008 at 01:24 PM GMT-05:00

Of late, I have read a number of analysts, Jim Rogers even, who have expressed the view that gold could dip to the mid- to low-$600 level.

Read the article HERE.

From Mineweb this morning:


Record dollar demand for gold from safe haven buying - WGC

Buying up by 45% over the previous dollar record as ‘identifiable investment demand’ which includes ETFs, bars and coins, showing a 56% gain year-on-year.

Author: Rhona O’Connell
Posted: Wednesday , 19 Nov 2008

Read the article HERE.

More from Mineweb:


Where are the silver bulls?

Few listed resources subsectors are more reviled than that mining, developing and exploring for silver bullion.

Author: Barry Sergeant
Posted: Tuesday , 18 Nov 2008

Read the article HERE.

From the Daily Pfennig:
This is a fellow named Ted Cook, that Ty Keough sent my way...

"One hardly knows where to begin. America has currently embraced the monetary policies of a banana republic. The Argentine and Zimbabwe models cannot be far behind. For years (35 to be exact) we have warned about the consequences of unbridled credit expansion. We argued that artificially low interest rates would lead to catastrophe. Now the first installment of this crisis has been visited upon us. Our policymakers have greeted this dilemma with even more ruinous money and credit policies that compound the problem. We've had the earthquake. The Tsunami is yet to come.

The monetary authorities in Washington, who are supposedly the brightest among us, have adopted a short-term strategy resplendent with economic error. As usual, the politicians are clueless. Somehow the idea has gained ground that recklessly expanding money and credit (inflating) will cure our economic ills without repercussions. Nothing could be further from the truth. This is currency debasement on a grand scale."
From World Council Media Briefing:

PRESS RELEASE: Date 19 November, 2008

Strictly under embargo until 07.00 EST / 12.00 GMT 19 November, 2008


Dollar demand for gold reached an all time quarterly record of US$32bn in the third quarter of 2008 as investors around the world sought refuge from the global financial meltdown, and jewelry buyers returned to the market in droves on a lower gold price. This figure was 45% higher than the previous record in Q2 2008.Tonnage demand was also 18% higher than a year earlier.

Read the article HERE.

Both the DJI and Transportations dropped below their October lows yesterday re-confirming the drastic bear market of today. It is really bad, folks. The Lord is giving us what our leaders have asked for by their debasing of the dollar and vast borrowing from the rest of the world to support our consuming binge. Of course, we have enjoyed the easy credit and low prices of products as our manufacturing industry has been forced off shore by oppressive taxation, excessive regulation, and ever increasing demands by labor unions.

The Lord sits in Heaven and looks down at the folly of man. We are reaping what we have sown. We must now become extremely frugal, store up dollars for at minimum of one month of expenses, and maybe even begin an accumulation of food and other essentials (when on sale). This poor economy is not showing any realistic signs of turning around, so there is much more to endure.

We must carefully, prayerfully make our plans, commit them to the Lord, and ask for Him to give us success. King Jesus is THE Sovereign and is working all things according to His perfect plan even though we do not understand it all, we can rest in His love and care for His people. Praise Him daily!

Best to each, Doug


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