The Boyz Whacked the Metals Again - But God is Sovereign

I rest solidly in the Sovereign God of all. It is wonderful to be able to trust Him for success. We are to use our brains and resources as wisely as possible as good stewards, but the success is up to Him. He, without doubt, knows what is best.

Too many citizens, today, are dependent upon the government and it has become a false messiah for them. There is only one Messiah. There is only one true God. All religions do not worship the same God. Jesus Christ is THE way, THE truth, and THE light. There is no other like Him. As the Holy Spirit awakens the sinner and brings Him to the feet of King Jesus, He begins to see his need for THE Savior.

Pray for a great revival in These United States. We certainly need one among the elected politicians to convert them into statesmen with sound principles and dedication to truth and righteousness.


Folks, look at the gap down in the red curve (Feb. 24) on both silver and gold at precisely 12:00 (NYT) on the NYMEX. That is, at the very least, suspicious. It seems that the boyz hammered each of our metals four times yesterday to whack a good bit off the price. They continue to do so unabated by the mining companies and the regulatory agencies. However, they did provide another buying opportunity.

Both are moving upward again today with gold at 974.50 and silver 14.11. I did make some buys yesterday in the mining stocks. HMY is a reasonable buy at 12.55. DROOY is now 8.246 and VGZ 2.29. Buying on dips seems to me to be a good time for purchases.



From FT.Com Financial Times:

Gold slips towards $950 amid profit taking

By Chris Flood

Published: February 25 2009 12:00 | Last updated: February 25 2009 12:00

Gold extended its retreat for a third session on Wednesday, dropping towards the $950 level, while oil prices moved higher ahead of the latest US weekly inventories data. Base metals rose, helped by gains for equity markets which led to a modest improvement in risk aversion.

Gold sank to $954.20 a troy ounce, trading between a low of $952.30 and a high of $966.35, after ending trading in New York on Tuesday at $963.15. You will have to register free to read the article HERE.

From Counter Punch:

Doomed by the Myths of Free Trade

How the Economy was Lost

By PAUL CRAIG ROBERTS

The American economy has gone away. It is not coming back until free trade myths are buried six feet under.

America’s 20th century economic success was based on two things. Free trade was not one of them. America’s economic success was based on protectionism, which was ensured by the union victory in the Civil War, and on British indebtedness, which destroyed the British pound as world reserve currency. Following World War II, the US dollar took the role as reserve currency, a privilege that allows the US to pay its international bills in its own currency.

World War II and socialism together ensured that the US economy dominated the world at the mid 20th century. The economies of the rest of the world had been destroyed by war or were stifled by socialism [in terms of the priorities of the capitalist growth model. Editors.]

The ascendant position of the US economy caused the US government to be relaxed about giving away American industries, such as textiles, as bribes to other countries for cooperating with America’s cold war and foreign policies. For example, Turkey’s US textile quotas were increased in exchange for over-flight rights in the Gulf War, making lost US textile jobs an off-budget war expense. Read the whole article HERE. Pay particular attention to the last paragraph.

From The National Review:

COVER STORY VI
Go Forward to Gold
How to lift the reserve-currency curse

LEWIS E. LEHRMAN & JOHN D. MUELLER

THE most disturbing aspect of the current financial crisis is that no U.S. official has correctly identified its primary cause. Experts variously attribute the economic reverses to subprime lending, derivative trading, excessive leverage, and regulation that was either too lax or too strict (take your pick), but these are symptoms rather than causes. Ignored is the main culprit: the dollar’s role as the world’s main official reserve currency. Though he almost certainly doesn’t realize it yet, President-elect Barack Obama will either set the dollar’s reserve-currency status on the path to extinction or risk becoming the next victim of what we call “the reserve-currency curse.”

Official reserves are money held by governments and central banks for the settlement of international payments. A Spanish bank may not want to accept Indian rupees, and it might be inconvenient for Qatar Petroleum to accept Mexican pesos for a million barrels of oil. An official reserve currency is one everybody agrees to accept, and right now that currency is the dollar. But foreign-exchange reserves are commonly held in the form of government debts of the nation that issued the currency. In the case of the United States, that includes all those government bonds piling up in China and elsewhere. The problem is that, unlike gold, official dollar reserves increase the money supply in one country without decreasing it in another. When reserves are being increased, the effect is inflation. When reserves are liquidated, the effect is deflation — potentially dangerous deflation. Read it HERE.

From Kitco Commentaries:

By James Turk

Feb 23 2009 10:08AM

Silver Is Again Outperforming Gold

I am often asked whether I favor gold or silver as my preferred sound money. It is a difficult question, and perhaps comparable to asking a parent which child is his or her favorite. As we parents know, they are all wonderful, but perhaps in different ways because no two children are alike. So too with gold and silver.

Both gold and silver can accomplish the same objective. Physical gold and physical silver – in contrast to the numerous paper representations of these precious metals – are tangible and not financial assets, so their usefulness and therefore value is not dependent upon any one person’s, company’s or government’s promise. Read it HERE.

Keep you eyes upon the Covenantal God of Scripture and dedicate yourselves to following His way as spelled out in the bible. There is no other way.

Best to each, Doug