Gold and Silver Down a Bit Over the Week End

Silver is slightly lower than on Friday, but holding fairly firm. Now at 11.15.
Gold is down over the week end, but is still above 830 at 833.10.
The longer term trend for gold is bullish. Notice the higher lows and the lower highs. This is forming a wedge from which we will see a break out >> either up or down. Time and the graphs will reveal this to us. Tomorrow is the inauguration, so I do not expect anything spectacular in the markets, but we will have to watch. Possibly, the reaction will show up on Wednesday. Maybe we will have more buying opportunities for the mining stocks.

Here is some bad news about DRD Gold (DROOY) from Mine Web. It is terrible for the trapped miners, but may give us a buying opportunity for the stock as the news is digested by the markets tomorrow:

167 workers rescued at DRD's Blyvoor shaft after "act of God"

DRD Gold says it will catch up with lost production at its Blyvoor mine's shaft 5 struck by a lightning. 167 Workers were rescued after spending 20 hours underground.

Author: Tessa Kruger
Posted: Monday , 19 Jan 2009

JOHANNESBURG (Reuters) -

DRD Gold hopes to resume production at its number five shaft at Blyvoor mine on Monday night after 275 workers were trapped over the weekend after an "act of God".

The company does not anticipate production losses from this important shaft.

DRD Gold spokesperson James Duncan said today shaft 5 at the Blyvooruitzicht mine near Carletonville was an important shaft for the company as it accounted for about half of Blyvoor's production of 30 000 ounces in the previous quarter. The shaft was also part of the company's "Way Ahead" growth project at Blyvoor. Read the whole article HERE.

Paper "money" to return to intrinsic value from Dollar Daze a good educational article:

The Fate of Paper Money

By Matt Hewett
Paper money eventually returns to its intrinsic value - zero." (Voltaire, 1694-1778)

Paper Money in Asia

The first well-documented widespread use of paper money was in China during the Tang (618-907 A.D.) dynasty around 800 A.D.1 Paper money spread to the city of Tabriz, Persia in 1294 and to parts of India and Japan between 1319 to 1331. However, its use was very short-lived in these regions. In Persia, the merchants refused to recognize the new money, thus bringing trade to a standstill.

The Kuan note is the oldest known banknote in the world. It was made in China circa 1380. Read the article HERE.

Casey's Daily Resource Plus quotes James Cook, as follows: "Our contemporary brand of socialism has one fatal flaw. It's too expensive. When you try to shower benefits on so many recipients, you eventually must resort to subterfuge. Foremost among those tricks is money and credit expansion. Inevitably, you debase your currency." I say a loud, "Amen!" However socialism is always too expensive and creates a lot of negative results. For example, aliens take advantage of the system even when they pay no taxes.

An interesting comment from today's Daily Reckoning:

"The founding charter of the U.S.A. made no allowance for going into the banking business...nor the auto business...nor any other kind of business. Neither did it allow invasions of foreign countries, without a declaration of war...or imagine a standing army that costs about as much as all the rest of the world’s armies put together.

In the beginning, the U.S. government was specifically limited in what it could do. Now, very little remains that it can’t do. But in all matters – big or small...torturing people or taking their money – government leaders must pretend to be acting in the national interest. It’s a low-down, dirty business that usually attracts people of the same sort. People like George W. Bush and Joseph Biden...people with no sense or no principles – or neither. People who don’t know a lie when they hear it or...don’t mind telling one."

Do any of our elected officials pay attention to the Constitution now? I think not, even though they all swore to uphold the provisions, thereof.

Yesterday was the Lord's Day which is a day proclaimed by the Lord as a day of rest. It was designated, as such, by God Himself on the seventh day after the six days of creation. It was restated in the 10 Commandments of God given to Moses on Mount Sinai. Originally, it was designated as the seventh day of the week, but that was changed by the resurrection of Jesus Christ on the first day of the week. Thus, Christians from the early days of the church as presented in the Book of Acts and now set aside as a day of corporate worship, rest, acts of mercy, fellowship, and rejoicing in the Lord. I trust that each of you obeyed the Lord and joined together in corporate worship with a church that honors and obeys the word of the Trinitarian God of all. If not, you missed out on the grace dispensed through the preaching of the word, the sacraments, and discipline under God. We need to take advantage of this means of grace, not only in obedience to God, but for our own spiritual growth.

Best to each, Doug