Possible Buying Opportunity

Folks, here we go again with the intervention of JP Morgan and others into the precious metals markets. They have been active, but not as noticeable as today. It seems that they just do not want the market to take care of setting prices on its own. The lack of physical metal at the retail and very limited amount at wholesale levels indicate that the prices are being set based upon the paper futures rather than the metal itself. Were the prices to be set by the physical metal, they would be much higher.

However, the recent strong upward moves in gold and silver prices indicate that once if and when the restraint is removed, we will see giant steps upward. The deflation may be having a small impact upon the prices, but the run to the safety of the metals is very strong.

Once again, we may have opportunity to get back into our trading portfolio of mining stocks at bargain prices. If such turns out to be the case, we should be thankful for the intervention. The mining stocks are taking a hit today, but prices remain higher than before this intervention. Here are some: AGXM 0.10; CDY 1.064; CDE 0.95; DROOY 5.5615; GDX 30.42; GFI 8.695; GG 29.22; GSS 1.06; HMY 9.40; IAG 5.32; KGC 16.78; KRY 0.13; NEM 38.37; PAAS 16.10; SLW 5.84; SSRI 14.10; VGZ 1.34; XRA 1.698. They are looking interesting; for example HMY is down 0.88 today. I may have to buy some of that one.

Gold is 844 and silver 11.07. Both are on down ticks.

Even the rich are suffering:

Luxury prices are falling; the sky, too

By Guy Trebay

Thursday, December 4, 2008
Read this article HERE.

An explanation of the Ponzi Scheme from Seeking Alpha:

In Madoff We Trust

by: Peter Schiff December 17, 2008

Read the article HERE.

A contrarian view from Resource Investor:

Gold Losing Luster

By Chris McMahon
17 Dec 2008 at 11:34 AM GMT-05:00

In times of economic uncertainty gold prices ordinarily take flight; this process has been suspended, at least temporarily, as the recent flashpoint in the credit crisis has been accompanied by a resurgent greenback.

The article is HERE.

A different view from Mine Web:

Swiss gold bullion in huge demand as trust in banks dives

Swiss gold refiners are having great difficulty in keeping up with demand for gold bullion leading to long delivery times as investors wary of other stores of wealth.

Author: Arnd Wiegmann and Lisa Jucca
Posted: Wednesday , 17 Dec 2008

Find the article HERE.

More from Mine Web:

Gold and silver stocks in the limelight

Precious metals gold and silver bullion move to multi month highs, as dollar slips to multi month lows.

Author: Barry Sergeant
Posted: Wednesday , 17 Dec 2008

Find it HERE.

Here's some good news for Dr. Copper (copper is a good measure of how economies are doing):

MORE ROBUST SHORT TERM THAN EXPECTED

Chinese copper imports may be rising defying market belief

Detailed analysis of Chinese import statistics suggest that all is not what they have been believed and imports of copper are stronger than the market has suggested.

Author: Andy Home
Posted: Thursday , 18 Dec 2008

Find the article HERE.

An opinion on mining stocks:

M&A AND BETTER TIMES

The mining stocks picture is picking up strongly

Big rises from mining stock price bottoms, a resurgence in M&A activity, and an indication that finance may be becoming available again may make the mining sector shake-out survivors much stronger than before.

Author: Lawrence Williams
Posted: Wednesday , 17 Dec 2008

Read the article HERE.

From Money Morning:

Thursday, December 18th, 2008

Fraud and Greed of Trusted Rating Agencies Helped Spread the Credit Crisis

By, Shah Gilani
Contributing Editor
Money Morning

HERE is the article.

Once again we are celebrating the birth of the Lord Jesus Christ for Whom the Season is named. Each person is faced with the question by the Lord, "Who do you say that I am." The answer given has no impact upon the fact that He is the Only Begotten Son of God our Father. However, the answer that each of us gives from our heart is all important to our temporal life on earth and to the life we will live in eternity. If we know Him as Lord of our life, we will live with Him forever as joint heirs. If we deny this fact, we will face eternity in Hell.

Now is the time for each of us to carefully and prayerfully consider the question He asks. This is vitally important. Do not delay!

Best to each, Doug