Long Term - Long Term - Long Term

We must keep our eyes trained on the long term bull market in gold. While there is great volatility from day to day, the trend remains solid.

One again, we see on the graph similar capping activity at almost exactly the same time each day. I do not believe this is normal market action. Gold is 810.10 at present. More buying opportunity.

From Bloomberg today:

Gold Falls to Five-Week Low as Dollar Advances; Silver Drops

By Pham-Duy Nguyen

Jan. 14 (Bloomberg) -- Gold prices fell to a five-week low as gains by the dollar eroded the appeal of the precious metal as an alternative investment. Silver also dropped.

The dollar climbed for the fourth consecutive session against a weighted basket of six major currencies. Some investors hoarded cash on concern that the economy’s slump is accelerating. Sales at U.S. retailers fell more than twice as much as forecast in December amid escalating job losses and a credit crunch.Read the article HERE.

Silver seems to have been capped at precisely the same time as gold. Suspicious, don't you think? Silver is at 10.46. Potentially, a good buying price, as is gold.

From the New York Magazine:

The New Paranoia: Hedge-Funders Are Bullish on Gold, Guns, and Inflatable Lifeboats

By Timothy Sohn Published Jan 11, 2009


Illustration by Mark Nerys

During the final months of 2008, as the financial markets imploded, talk on trading desks turned to food and water stockpiles, generators, guns, and high-speed inflatable boats. “The system really was about six hours from failing,” says Gene Lange, a manager at a midtown hedge fund, referring to the week in September when Lehman went bust and AIG had to be bailed out. “When you think about how close we were to the precipice, I don’t think it necessarily makes a guy crazy to prepare for the potential worst-case scenario.” Read the article HERE.

How about that! Some folks are awakening to the writing on the wall.

From 321 Gold:

Is President Obama Wearing A Giant Gold Mask?

Stewart Thomson Jan 14, 2009

1. Hands up all those who have heard President Obama utter the word "Gold" repeatedly.
2. How about a few times? Hmmm. Still no hands.
3. That's because he may only need to mention the word "Gold" one time.
4. I submit that the incoming President of the United States may be wearing a mask. A mask he will take off very soon.
5. Revealing the real new President of The United States of America: President Gold.
6. Some analysts have noted the uncanny similarities between the current financial crisis and the crisis of 1929.
7. Some have noted the uncanny similarities between President Roosevelt and President Obama. Infrastructure spending. Tax cuts. A "new deal".
8. Here's a quotation from President Obama: "There's a new book out about FDR's first 100 days and what you see in FDR that I hope my team can emulate, is not always getting it right, but projecting a sense of confidence, and a willingness to try things. And experiment in order to get people working again." Read the article HERE:

From Sprott Management:

Surviving Depression

By Eric Sprott December 2008

Far be it from us to mince words. Make no mistake – we are in a Depression.
That’s right, it’s the dreaded ‘D’ word. And we are knee deep in it right now. This is
not a run-of-the-mill recession. Does anyone still believe we’re in for just a few
quarters of, at worst, low single-digit economic contraction, after which things will
return to normal? We find it shocking that most economists still do. This is far
worse than a recession. It’s a Depression. To call it anything else is to ignore the
obvious. Read the article HERE:

Some folks out there do tell it like it is. We must, as families, face the true even when it is foreboding and scary. There is no escape, so we must stand up to the future knowing that God promises that ALL things, including situations, work for the eventual good of His people.

Some bad news from China reported by Mine Web:

HUGE OVERCAPACITY

China to halt steel mill expansions to help stabilise markets

The Chinese State Council has said it will not allow any new steel mill expansion projects and try to help stabilise the domestic and global steel market.

Author: Lucy Hornby
Posted: Wednesday , 14 Jan 2009

BEIJING (Reuters) -

China vowed on Wednesday to stop its steel mills from expanding further as industry figures showed the sector carrying massive overcapacity which risks swamping domestic and foreign markets.

The State Council, which also agreed measures to support its carmakers, said it would allow no new steel capacity expansion projects and would adopt a flexible tax policy on steel exports to "stabilise" China's share of the global steel market.

China has the world's biggest steel sector, with rampant growth fuelled by an economic boom that ran out of steam over the last few months. Read the article HERE.

Though China has a great deal of malinvestment in overbuilt manufacturing capability, I believe we must still look to Asia as the coming power house of the world. The is a sea change from what we have known since WWII. It means a lower standard of living for America and most of the West.

Currently, the DJI is at 8083.46 down 116+. These are nasty days in the markets. We are teetering between the horns of the bull and claws of the bear. There seems to be a great battle with no winner in sight. The recent down days are particularly interesting in view of the expected Obama bounce. Will there be one? I think it would have already started in a pre-Obama bounce. Where is it?

Thank the Lord that the He is in control. He has the situation well in hand and is working it our according to His will. We have muddied the water with our leaving Him and seeking man's way which is always folly. We must pray that the Lord Jesus Christ will bring our nation away from our pagan ways. Remember, blessed is the nation whose God is the Lord.

Best to each, Doug