Rest in the Lord - Metals and Commodities Showing Life

It is critically important for us the KNOW that King Jesus is in absolute control of everything and everybody. He is the Creator and He sustains of all of creation. Thus, we are totally dependent upon Him for our next heart beat and breath.

He shows great compassion toward His people. Before the Holy Spirit brings the natural man to life from a state of being dead in trespasses and sins, each of us was ignoring or shaking our fists in His face. But by the grace of God, we were awakened to new life, shown the gravity of our sins, the fact that we could not save ourselves and led to the foot of the ONLY Savior. Then in the power of the Holy Spirit, the new man is grown ever more toward the image of Christ.

Our covenantal God watches over each of His people. He causes all things to work for their eventual good. Even the challenges and perceived problems are brought upon us for our growth and better knowledge of King Jesus. Plus, He reminds us in His word that nothing in Heaven or on earth can ever take away God's love for His people in Christ Jesus our Lord.

All of this is to teach us that, we are safe and secure in Christ Jesus, and to remind us that it is our pleasant duty to serve Him 24-7 in all that we do and say. We live to the glory of God and for the purpose of bringing all in surrender to His Lordship. Let us go out today with confidence in His promises to us.


The GDX (miners) shows that the mining stocks are holding their own during this volatile period. Yes, they have yet to sprint ahead, but they are hanging tough in spite of the violent movement of the metal prices. Examples are our "trading" stocks: DROOY up 0.16 to 7.70; HMY up 0.05 to 11.65, and VGZ up 0.06 to 2.2603. The precious metals ETFs: CEF 11.1325; GLD 89.11, and SLV 12.0408. The DJI is up 42.61 to 8120.02 after a good showing yesterday.

The metals are bouncing back rather strongly in spite of capping by the boyz. There seems to be more buying on every dip. It could be that this is making it a bit more of a challenge for intervention. If this strong buying on dips continues, we could well be in the early days of the third phase leading to the Gold Rush. Currently, the metals are holding at a higher plateau than a few weeks ago. We have to use caution, because the interventionist have very deep pockets and can manipulate well beyond our belief.

Gold is up to 906.70 and silver 12.58. Both are on up ticks. Gold was down below 900 yesterday, but only briefly. This is the best action we have seen in a while. There definitely is a movement toward the wealth preservation of the precious metals.

Some cautious good news from the Daily Pfennig: "I guess a review of the Pending Home Sales data is in order, eh? U.S. December pending home sales rose 6.3%, which as far better than the forecast (0%)! Let's look further into the data release to get an overall feeling of what's up here...

According to the report, Pending Home Sales are now up 2.1% year-on-year, but down by a cumulative 31% since the peak in April 2005. Hmmm... Does this mean we've turned the corner with housing? Well... I'm from Missouri, and I'm going to have to be shown more than just this one report. Pending Home Sales has been barely keeping its head above water for 1 1/2 years now... So, I'll hold out judgment until I see some follow up data... But... Maybe, just maybe, you never know... This could be good..." Comment: This could be a change for the better. There is one detractor from the good news, and that is, the price of homes has dropped a great deal. Perhaps, some are seeing this as a buying opportunity. Also, for the better, perhaps, the mortgage companies are beginning to loosen up a bit.

Another fine article from Walter E. Williams:
Wednesday, February 04, 2009

The National Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) was set up to combat fraudulent practices. The SEC's website explains that "Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s." It goes on to say, "Decades later, the Ponzi scheme continues to work on the 'rob-Peter-to-pay-Paul' principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses." That is how the SEC described the recent Bernard Madoff $50 billion Ponzi scheme, "a stunning fraud that appears to be of epic proportions."

We have a national Ponzi scheme where Congress collects about $785 billion in Social Security taxes from about 163 million workers to send out $585 billion to 50 million Social Security recipients. Social Security's trustees tell us that the surplus goes into a $2.2 trillion trust fund to meet future obligations. The problem is whatever difference between Social Security taxes and benefits paid out is spent by Congress. What the Treasury Department does is give the Social Security Trust Fund non-marketable "special issue government securities" that are simply bookkeeping entries that are IOUs. Read the Town Hall article HERE.Comment: This article calls for a loud "Amen."

From Bloomberg:

Sprott Says U.S. Depression Will Boost Gold Price

By Stewart Bailey

Feb. 3 (Bloomberg) -- Eric Sprott, the Canadian money manager who last year predicted banking stocks would collapse, said the U.S. is at the beginning of an economic depression that will help gold prices more than double.

Bullion may top $2,000 an ounce in coming years amid a series of financial catastrophes, the chairman and founder of Toronto-based Sprott Asset Management Inc. said yesterday in an interview. Banks will battle to replenish capital, Treasury auctions stand the risk of failing and the moribund economy will create a dire operating outlook for many companies, he said. Read the article HERE.

From Sprott Management in January:

So You Think 2008 Was Bad? Welcome to 2009

Read the article HERE.

From the National Post:

U.S. dollar devaluation on its way

Posted: February 02, 2009, 4:01 PM by Diane Francis

In 1992, I was given what became my favorite hotel bill keepsake when I stayed in Mexico City and was charged one million for a brief business stay.
It wasn’t a mistake. That was one million pesos and the Mexican peso was becoming worthless. By 1993, then-President Carlos Salinas de Gortari stripped three zeros from the currency and renamed it the Nuevo (or New) Peso.
The transition from worthless to one Nuevo Peso to one U.S. dollar was done in three years from January 1, 1993 to January 1, 1996. The word "nuevo" was removed from the currency and it returned to be called "peso".
Now it is 2009 and what appears to be looming, according to one authoritative press report this weekend, is a massive pre-emptive devaluation of the U.S. dollar as Team Obama readies itself to announce the “Big Bang” – a gigantic bailout of the frozen U.S. economy involving trillions of dollars. Read the article HERE.

Ted Butler's article, "Unfinished Business" on the short selling in GLD can be found HERE. Comment: Ted Butler is an expert in the precious metals. I suggest you read this article and make up your own mind about the activity of the ETFs in precious metals. His ideas are alarming. I have always preferred the Canadian Gold & Silver Trust Fund (CEF). There is a delay between purchase and delivery of the metals these days, but short selling should be out.

Precious metals, base metals, and energy seem to be moving higher currently. This is a sign of the inflation which is creeping into the market places of the world from the vast infusion of unbacked paper currencies. This is growing, albeit, weak at present.

Best, Doug