God's Blessings & Curses - Metals At Higher Levels

The 27th. and 28th. Chapters of the Book of Deuteronomy present an interesting picture. Following God's direction, Moses gathered the congregation of Israel together and put elders on Mt. Gerizim to loudly shout out blessings to the people for being obedient to God's Law. Then he put elders on Mt. Ebal to shout out curses to the people if they were disobedient to God's Law.

Each blessing was explicit; for example, "Blessed shall be the fruit of thy body and the fruit of thy ground." There also an explicit curse; for example, "Cursed shall be the fruit of thy body and the fruit of thy land."

It is interesting that every law of God carries with it both blessings and curses. Almost explicit throughout Scripture, the blessings and curses are on the same thing, as in the last paragraph. With certainty each blessing proclaimed in the Law-Word of God implies that failed obedience will bring a curse on the proclaimed blessing. For example, The Fifth Commandment is, "Honor thy father and mother: that thy days may be long upon the land which the Lord thy God giveth thee." The explicit blessing for obedience is long life. The implicit curse for disobedience in as shortened life.

Thus, when God said, "Blessed the nation whose God is the Lord." He, implies that cursed is the nation which follows after other gods.

Think about this as you go through the days which God has given you.

There are many blessings for those who "forsake not the gathering together of the saints" in corporate worship on each Lord's Day. Not attending would bring curses. Thus, it is important for each of us and our families to be in regular attendance at worship service.

Look at gold. Notice the drop each time the NY Globex opens. Does that look suspicious? YES! Now look at the opening of the NY today (green). Wow, what a drop! Free Market NOT! Nevertheless, the high demand for gold as a safe haven has the price higher than recently. From Casey's Daily Resource Plus, we find that Peter Spina of Goldforecaster.com predicts that the price for gold will be $1,000 to $1,200 within the next several months and that Goldman Sacks predicts gold at $1,000 within three months. Are these too optimistic? I think not. Currently, gold is 908.90 on a down tick and silver is 12.95 on an up tick. Take a look at the following 1 year graphs on my trading mining stocks.

It appears that VGZ is about ready to challenge the 50 day moving average. If it surpasses the average, it is likely to go higher very soon. It seems to have been in a trading range of about 2 to 2.5 after at the end of January. This is a strong chart picture.

Harmony has been in a higher trading range of about 11 to 12 every since the last days in January. This, too, is a strong technical graph and higher prices should be anticipated.

Our old friend DRD Gold has out performed the other too and appears to be very strong. It is off its strong run a bit today, but this is the strongest technical chart of the three.

From Mine Web:

GOLD'S BIPOLAR DISORDER
Gold investment demand surging but high price volatility likely

Gold commentator Jeffrey Nichols reckons the yellow metal is suffering from a form of bipolar disorder and he and others look to a significantly higher price, but movements likely to be volatile.
Author: Lawrence Williams
Posted: Friday , 06 Feb 2009

LONDON -

With totally contrasting factors in play the gold market seems to be in a state where investors don't know whether to buy or sell. ETF holdings continue to rise with the SPDR Gold Trust - the world's largest gold ETF - again reporting record levels on the positive side, while on the negative side there is a firm, but perhaps vulnerable, dollar and a total collapse in demand from the world's largest gold consumer, India.

U.S. gold commentator, Jeffrey Nichols, describes this as gold's bipolar disorder (see www.nicholsongold.com ). "With the price of gold lurching first one way then the other" says Nichols, "it looks like the market has been suffering from bipolar disorder. I expect this split-personality behavior, characterized by extreme price volatility, to continue for some time to come with big swings up and down -- but, importantly, around a rising trend with support levels moving up step-wise over time."Read it HERE.

Comment: There is still intervention into the precious metals market, but the surge in buying seems to be pushing to higher levels. The volatility may offer us the opportunity of buying on dips. This could be the early volatile portion of the Gold Rush. I am not ready yet to declare this is it, but I am keeping as much powder dry as I can for the last minute buying spree. I'm gearing up for it.

More from Mine Web:

Gold ETFs absorb more than $3 billion in first 24 trading days of 2009

With the gold price reaching records in a number of important consuming nations, jewellery demand is stagnant - but ETFs are soaring; are they establishing themselves as the west's answer to small bars?

Author: Rhona O'Connell
Posted: Thursday , 05 Feb 2009

LONDON -

The markets' renewed belief since the start of this year in gold's role as a risk hedge has been made abundantly clear and nowhere more so than in the figures released for the Exchange Traded Funds. These have been breaking records and making headlines on an almost daily basis and it is perfectly possible that this publicity has also aided gold's cause with a degree of self-fulfilling momentum. In the whole of last year the total net dollar inflow into the major ETFs was $16.4 billion, while in the year to date, just 24 trading days, the major ETFs have taken up some $3.1 billion in the absorption of 111 tonnes of gold. There has been only one day of net redemptions since the year began, and since the start of the year the amount of gold in these funds' vaults has increased from 1,121 tonnes to 1,231 tonnes. Read it HERE.

Comment: The news of the run on the GLD and other funds of this type certainly indicate there is a strong run away from the dollar to the safe haven of gold.

Economics 101 from Mine Web:

The end to the inflation-deflation debate

What is really meant by many of the buzzwords being flung about by commentators in the current financial environment plus views on what is happening in the markets and with gold stocks.

Author: Kenneth J. Gerbino
Posted: Friday , 06 Feb 2009

BEVERLY HILLS -

Before I address the inflation - deflation question, it's important to define some economic terms so everyone is on the same page.

Inflation: 1) Prices of goods and services increasing due to currency depreciation (printing or creating money). 2) The cost of living increasing without a corresponding increase in wages and salaries. 3) The result of currency depreciation that affects everyday prices of consumer goods. 4) The lowering of the standard of living of wage and salary earners.

Note: You can "inflate" a balloon. You can "inflate" the money supply by increasing the supply. You can have "inflated" home prices and commodity prices due to supply and demand and speculation BUT this is not the economic term we are dealing with. Therefore do not confuse something increasing in value or getting bigger or rising in price with the 1-4 monetary definitions above. If consumer items like toothpaste go up, that's usually inflation, unless there is a shortage of certain materials. If your home value goes up that's another thing entirely, because a home is a capital asset. If IBM goes up this is not inflation. Read it HERE.

Comment: This is a great start to good lesson in Economics. There are only two types of Economics: (1) The correct one that tracks most closely with Biblical Law. That is the Austrian School. (2) Man's pragmatic Economic Theory based primarily upon John M. Keynes. Remember, we either follow God's Law or we have the chaos of today in financial and moral areas of life.

From Bloomberg on the bail outs:

Gross Says U.S. Must Spend to Avoid Mini Depression

By Kathleen Hays and Dakin Campbell

Feb. 5 (Bloomberg) -- Bill Gross, co-chief investment officer of Pacific Investment Management Co., said the U.S. may slump into a “mini depression” unless policy makers spend trillions of dollars to spur growth.

“This economy needs support from the government, a check from the government in the trillions,” Gross said today in a Bloomberg Television interview from Pimco’s headquarters in Newport Beach, California. “There is a potential catastrophe if the U.S. government continues to focus on billions of dollars.” Read the article HERE.

Comment: If we continue to follow man's way, we will not dig ourselves out even with the multiple trillion dollars of pork, I mean bail outs. After all, that is what got us in the credit crunch in the first place.

From Reuters on the intervention team PPT:

UPDATE 1-US Treasury's Geithner to meet with top regulators

Thu Feb 5, 2009 10:32am EST

(Adds details on working group, background, Egypt call)

WASHINGTON, Feb 5 (Reuters) - U.S. Treasury Secretary Timothy Geithner will convene his first meeting as Chairman of the President's Working Group on Financial Markets on Thursday, but the expanded gathering also will include top banking regulators and White House economic adviser Larry Summers.

The group, created in the aftermath of the 1987 stock market crash to ensure orderly and efficient markets, is led by the Treasury and normally includes the heads of the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission. You can read it HERE.

Blessed is the nation whose God is the Lord. Best to each, Doug