God Laughs at Man's False Money - Metals Up

It is very interesting that when folks are concerned about financial stability and safety during crisis, they run to the Biblical historic real money - Gold and Silver. There is an increasing rush to the security of real rather than unbacked paper money. The FIAT currencies of all governments is simply legal tender - government created counterfeit currency, which citizens are forced to use by degree of governments.

Throughout Scripture, we see that people used real money. Initially, it was used by weight and then melted into coins which were widely recognized and used. God knew that it provided people freedom.

God must be hysterical at the folly of man using man's wisdom in place of God's perfect wisdom. We must each get on our knees and pray that God will give us wisdom as we face these challenging times of falling employment while we are compelled to use a dollar of ever less purchasing power.

God is calling all His people to repentance and a return to Him and His law. We need a national repentance and statesmen who will stand up and call the nation to seek the mercy and wisdom of God, as George Washington did so often during the perilous times of the winning of our Independence from England.

We need to have King Jesus as the God of our families, communities, and nation. Rather, we need to have a national recognition of His Sovereignty. We must pray that this will happen very soon. We need relief from the folly of man.

The graph, above, is for gold over the last two months or so. It clearly shows that gold is on the move upward. This has been very positive for the actual metal and the mining stocks have started to move upward, as well. The mining stocks are still lagging behind a bit, but they have held up well in January.

The 24 hour gold graph tells the same old story of the intervention as the Australian and Hong Kong markets open at night. The light trading invites intervention if there is to be any. Notice, too, that on the last two trading days, and particularly, on Friday, the prices were strongly upward during most of the New York trading.

The news from many sources are pointing toward higher plateaus of trading. If Richard Russell is correct in his suspicion that the third phase is starting, the time to buy at virtually any price may be upon us very soon. We will have to watch and monitor the price action this week. I am not ready to say it is time to jump in deeply, but it is time to buy on dips.

The following reports are very positive for the precious metals. I would like to see more in the general media which would indicate that the third phase (Gold Rush) is gathering steam.

Gold is 917.60 and silver is 12.48. Both are on down ticks, but they are staying at nice levels.

Remember that the metals are valuable to retain purchasing power while the mining stocks will offer leverage for substantial profit during the Gold Rush.


This by Bill Bonner from London in The Daily Reckoning Australia: " "Inflation is good," they say.

We're ready to do "whatever it takes" to get prices rising again, says the new U.S. Treasury Secretary, Tim Geithner.

What will it take? Economists and policymakers debate...but gradually a consensus is taking shape: it takes inflation!

The Dow fell 227 point yesterday. Gold rose $25 - it's back over $900.

Records were broken. New houses didn't sell in December - at a record pace. Consumer confidence fell to a record low. And the number of people getting jobless benefits rose to a record high.

Kodak said it was letting 3.5 to 4.5 thousand people go. Sprint cut 8,000. Corning axed 4,900. Unemployment is up in every state, reports the Wall Street Journal.

And the airline industry said it lost $5 billion last year.

There is a report at CNN about a woman who lost her $80,000 a year job and then couldn't find anything nearly as good. She's earning less than a quarter that amount, working at some make-do employment. "I never imagined in a million years," that something like this could happen to me, she said.

Little by little, the gravity of the situation is sinking in. The economy is weakening. But government is strengthening. Money, power...and hopes for the future...are flowing in its direction."

The venerable Richard Russell of Dow Theory Letters (dowtheoryletters.com) speculates: "A few sites ago, I wrote that I believe gold and silver are finally moving into their third (speculative) phase. Seasoned investors are thinking in terms of the demise of the dollar and of all fiat money. These investors are now actively swapping their fiat paper for the only lasting (time-tested) and intrinsic form of wealth -- gold."

From Times On Line:

From The Times

February 2, 2009

Stock markets may slide, banks may fold, but gold keeps its shine for wary investors

David Robertson, Business Correspondent

Gold investors now hold more of the precious metal than either Japan or Switzerland as volatility in the financial markets has prompted a flight to safety.

Exchange Traded Funds (ETFs), which allow investors to buy shares in physical gold, owned more than 1,190 tonnes at the end of last year, worth $33 billion (£22.7 billion).

The amount invested in ETFs grew by 307 tonnes last year, according to the World Gold Council. SPDR Gold, the largest fund, which is based in New York, now holds 795.25 tonnes, which is more than twice the amount held by the Bank of England. SPDR has the world's seventh-largest gold reserves. ETFs in total hold the sixth-largest reserves. Read the article HERE.

From Mine Web:

FORCE IS WITH GOLD

Rerating gold - upwards momentum building?

Gold has moved upwards despite dollar strength as its investment insurance qualities gain more and more credence among the investment fraternity.

Author: Lawrence Williams
Posted: Sunday , 01 Feb 2009

LONDON -

The recent rise in the gold price into the $900 range is indicative of the long-awaited (by gold followers at least) rerating of the yellow metal as a store of wealth - or an insurance policy if you like - in the light of the realisation that the global financial turmoil is unlikely to end soon. Initially, once the state of the global economy became apparent to the investment community, the unprecedented speed of the market collapse took the financial world by storm and gold holdings needed to be sold along with everything else to meet other financial commitments. As a result gold lost its lustre and many felt that, as it did not seem to be performing as experts had predicted in a financial meltdown, it did not meet its rating as a safe store of wealth. Read it HERE.

From the Canada Free Press:

Gold and silver Yes, “Amero” No!

By Alex Panameno Friday, November 28, 2008

(Editor’s note: Don’t let the government trick you out of understanding the true value of gold and silver in the coming era of economic survival)..

What’s really going on with gold and silver?

When gold hit $700 per oz, it brought the price to a negative 7% compared to a year ago. This would roughly mirror the huge correction “within” the bull market we saw from 1970 to 1980. The same Bull Run that took gold from $34.50oz. In January 1970, to $850oz. by January 1980, that’s roughly a 2,450% increase!

The question still lies… Why has gold dropped?

I challenge you to see things for what they really are, in terms of U.S. dollars; Gold has indeed dropped from its March highs of $1,000 per oz.

That’s only because gold is traded in U.S. dollars and the U.S. dollar has rose so much against other currencies. In fact, if you are in Australia, New Zealand, Europe, or most other countries, gold is actually at an all time high! Read it HERE.

Tomorrow may be a day when the markets will again give us a buying opportunity.

Blessed is the nation whose God is the Lord.

Best to each, Doug