Thoughts on Markets

Monday, November 24, 2008

Look for Higher Opening for Precious Metals Today


Friday was a blast for gold. Trading in DROOY was really good. Mining stocks almost without exception were up for the day and most for the week. Gold blasted above 800 and closed at 801.60. It has been a high as 825 over the week end trading and is now at 815.30. Silver is at 10.18. Looks to be opening in those ranges in New York. Should be another exciting day in the precious metals.



The graph of gold, above clearly show what James Turk of www.goldmoney.com told us in his latest commentary that an upward move of 50+ in a day has occurred only two times in the last 20 years: Last Friday, and as I recall it was on September about the 17th. Both are this year and in very recent days. He attributes this to short covering and upward pressure of the bull market in gold. The demand for smaller bars and coins is much greater than the supply. Were gold to spring well above $1,000 in the near future, the supply might return, but will be bought up very quickly.

Of course, were gold to go above $1,000 and stay there, it should go much higher. The central banks and governments do not want this as it would reveal to one and all the fraud of the unbacked paper (counterfeit) money we are forced to use on a day to day basis.

By the way, Citicorp was handed a bail out of some $20 Billion over the week end with a promise of some more to cover their faulty business practices. Isn't it amazing that we continue to bail out failed companies? Perhaps, even our lousy automobile manufacturers will be bailed out and patted on the back for their failure to compete in the international market place. Of course, we must always remind ourselves that government regulation, taxation, and high demands of labor unions are some of the causes for the failures.

In a free market, failures would be solved by the unprofitable companies changing to profitable practice, improvement of products or services to better meet consumer demands, or bankruptcy. The free market by culling the inefficient businesses would provide the consumer satisfying products and ever decreasing prices, more efficient use of the scarce resources of raw materials and labor, steady increases in Gross National Product (GNP), and higher standard of living.

We have been living on a debt caused a falsely growing GNP giving a false sense of growth. The manipulation of and depreciation of our currency while it remains the reserve currency of the world has allowed us to plunder the world by paying for products with dollars of ever decreasing value. I believe this is coming to an end, because we can already see signs that the world is no longer willing to support our debt binge.

Yes, President Elect Obama, we do need a change. We need to return to the Constitution of These United States which includes sound money fully backed with gold. I sincerely pray that you will see this fact and move us in that direction. You will also have to acknowledge that the Sovereign God is putting you in office and requiring you to exercise your office in accordance with His word. In this way, These United States can be a breath of fresh air to the world as it once was.

Folks, the opening appears to be exciting. Check it out! Keep your mind focused upon the God of all and live in obedience to His word, else your life will be a failure. With Him there is life, without Him is death. Thank Him daily for His many blessings.

Best to each, Doug

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