Gold & Silver Strong, but Down a Bit
Silver is hanging in very well, too. It currently is down below $12 to $11.98. Perhaps, it is also being capped. We shall see.
Gold has moved down to $897.80 and both silver and gold are on down ticks. It seems that the game continues. The Federal Reserve through the bullion banks are interested in keeping a bridle on the precious metals. Governments greatly fear the monetization of the metals which threatens them in two ways: (1) They would lose the power of controlling their FIAT currencies, and (2) They recognize the freedom that monetized precious metals would provide for the citizens. After all, they covet control of citizens.
My previous trading stocks are down a bit today, but holding at near highest levels: DROOY 6.92; HMY 11.36; VGZ 2.46. In fact DROOY is the only one down today.
From TownHall.com:
Everyone is talking about how much money the government is spending, but very little attention is being paid to where they are spending it or what they are buying with it.
The government is putting money into banks, even when the banks don't want it, in hopes that the banks will put it into circulation. But the latest statistics shows that banks are lending even less money now than they were before the government dumped all that cash on them. Read it HERE.
Sowell is right on in this important article. Everything planned is too slow to meet the immediate need; therefore, it will be no solution. I suggest you at least scan the whole article.
From Zealllc.com:
Big Inflation Coming
Adam Hamilton January 23, 2009 3458 Words
Late 2008’s stock panic has certainly had a complex and multifaceted impact on popular psychology. Mindsets and outlooks that were scoffed at as recently as 6 months ago have suddenly become fashionable. One of the more intriguing is the meteoric rise to prominence of the deflation thesis.
The growing legions of deflationists see an unstoppable depression-like deflationary spiral approaching like a freight train. They cite some convincing data. The stock markets have been cut in half in just a year. In the past 6 months, some key commodities prices fell farther and faster than they did in the entire Great Depression. House prices are down by double digits across the nation, with no bottom in sight. And credit is a lot harder to come by today than in any other time in modern memory.
In light of these universal falling prices, how could we not be entering a sustained deflationary period? The case may seem airtight, but I’d like to offer a contrarian view in this essay. Believe it or not, despite 2008’s price collapse there is plenty of overlooked evidence suggesting big inflation is coming. You won’t hear much about this on CNBC, but it could have a big impact on your investments in the years ahead. You can read it HERE.
Guess I am a contrarian, too. I believe that we will see inflation beginning about the middle of this year. The deflation caused by bankruptcies, foreclosure, pay off of consumer credit, and write offs has masked most of the inflation which is rising (even in terms of government massaged reports). We can see it in shopping for groceries, all medical, colleges, books, and many other items. You know it, I know it.
More on the recession - depression debate from MineWeb.com:
Relax: There Will Be No Depression - gold and silver will outperform
LA-based gold commentator Kenneth J. Gerbino tells us why he feels there won't be a depression but we will be faced with inflation, and markets in general, and bonds in particular, will prove to be bad buys, while gold and silver will perform best of all.
Author: Kenneth J. GerbinoPosted: Tuesday , 27 Jan 2009
BEVERLY HILLS -
I want everyone to relax. You are being bombarded with numerous facts and figures that look pretty bad, but the facts are being interpreted with emotion and hype and hysteria. The predictive value of mis-emotion is usually chaos. There will be no Great Depression. Read it HERE.
He reviews the past and examines the present. Then moves to defend his premise.
More from Mine Web:
Gold continues to uncouple, positively
Gold stocks and gold ETFs are increasingly a natural home for investors fleeing from banking stocks.
Author: Barry SergeantPosted: Monday , 26 Jan 2009
JOHANNESBURG -
Dollar gold bullion prices moved to three month highs, above USD 900 an ounce, in the past few days, and to all-time records in currencies such as the euro and Swiss franc, underpinning the ranking of listed gold stocks as the world's best performing equities subsector. At the same time, listed bank stocks, seen on a global basis, rank as the worst-performing subsector, with, however, material discrepancies between country bank performances. Read it HERE.More from Mine Web:
Gold jumps above $900/oz on haven appeal
Bullion reaches its strongest level in more than three months.
Author: Jan HarveyPosted: Monday , 26 Jan 2009
LONDON (Reuters) -
Gold climbed above $900 an ounce to its strongest level in more than three months in Europe on Monday, lifted by interest in bullion as a haven from risk.
Spot gold
Gold priced in sterling
Remember, as reported by Merrill Lynch recently, even the big money investors are running to gold now.
From the Daily Pfennig Chuck Butler:
"I see that "the cheater" a.k.a. Tim Geithner was confirmed as our U.S. Treasury Sec. I really didn't think I would ever have another punching bag Treasury Sec. like I had with King Henry Paulson, but, then along came "the cheater"... I have to tell you that this is scary stuff folks... In his confirmation he said, not once, but twice, that "President Obama, backed by the conclusions of a broad range of economists, believes that China is manipulating its currency. President Obama has pledged as President to use aggressively all the diplomatic avenues open to him to seek change in China's currency practices."
OK folks, this is where the problems begin... If in his confirmation, he's making statements like that, you can expect that Obama will push for legislature to put tariffs on Chinese goods... Protectionism... This is ALL GOING IN THE WRONG DIRECTION!!!!!!! And believe me now and hear me later... "the cheater" didn't just make up this response! This was given to him by Obama, and "the cheater" made certain that everyone hear him, by repeating the answer!
I've told you before, folks, that Protectionism is to a currency, like kryptonite is to Superman... So... Not only is the Gov't on the path to spending even more than the previous administration spent, they look as though they will go down this protectionism path... Add to that, the recession and zero interest rates, and you've got the ingredients for a huge swat at the dollar..."
Trade wars are anathema. They cripple international trade and often lead to shooting wars. This is terrible political action. We must pray that it is only a rumor presented to pacify the unlearned.
"Options expiry is tomorrow. I'm sure there's a tonne of call options that would expire in the money on any gold price close over $900 at the end of Comex trading on Wednesday. It will be interesting to watch the price action over the next 36 hours. I would suggest the same thing for silver over $12.00. I don't think that the boyz want to part with all the premiums on these call options that they've written...plus I'm sure that they don't want to risk that someone is laying in the bushes waiting for their $900 call options to finish in the money so they can convert to futures and stand for delivery on the Comex. That's another big no-no. I also note that despite Monday's decent price action, the share action did not match that...and the major gold indexes all finished down a little on the day."
This will test the boyz resolve. Will they be brazen enough to slam both gold and silver to protect their profit? I think they will, so maybe tomorrow will be a good day for us to add to our portfolios. Consider it carefully and make your own decisions.
From GoldSeek.com:
Restoring Sound Money in America
By: James Turk, Founder & Chairman of GoldMoney.com
-- Posted Monday, 26 January 2009
There is a determined grassroots movement in the
This would provide a long term solution to much of the financial woes of the day. There would be a period of painful adjustment. Many would say there is not enough gold and silver to manage such a change. However, they fail to recognize that the currency price of gold would be moved high enough to make it feasible. Think of the advantages of a stable currency which would allow more accurate forecasting in budgets for the future. From a family perspective, it would allow families to confidently put aside funds for future college education of children. It would be one of the blessings of God, Who gave us the historical record of gold and silver by weight as true money.
The Bible prescribes the foundation for a free market while not explicitly demanding a free market. However, people are to become slaves to no man or government, because God's people were bought with an price of unbelievable magnitude, that of the blood of Jesus Christ the Son of the living God of all.
It is good to remember that when politicians, the media, and government schools speak or teach about inflation, they have redefined the term to an increase in prices which we know a price inflation. This double speak is to obscure that the only entity that can create inflation is the government with the help of the central bank. The historic definition of inflation is the unwarranted increase in the supply of unbacked paper currency in circulation which results in price inflation of virtually all goods and services.
Bill Buckler's The Privateer has accurately stated "When dealing with financial matters, and especially with money, modern "economics" is not designed to enlighten, it is designed to control." (The-Privateer.com)
This is a form of false witness in violation of God's Commandment. Nations, just as are individuals, must be obedient to God's law in all areas of life. Violations of God's Law-Word will not be taken lightly by God. We are promised blessings from obedience and curses for disobedience. Remember, God's Word does not return void, it accomplishes all for which it was sent in the first place.
Blessed is the nation who God is the Lord.
Best to each, Doug
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