Precious Metal Continue Correction

Another correction presents another opportunity for beginning or adding to your portfolio. The precious metals appear to be the only game in town worth our attention. You must decide this for yourself. The intervention will end at some point in time and then the coiled spring of price will sprint upward at a pace we have not seen since 1979-1980. I believe the time will come.

It is time to be very cautious in buying both the metals and the mining stocks. I am buying a little at a time as the prices drop. They are likely to go lower, but one never knows where the bottom is or when the reverse will come. Depending upon your situation and your portfolio, you may want to cautiously jump in with incremental buying. That is the way, I proceed. Yesterday, I purchased DROOY, HMY, and VGZ all at prices above the present. With gold at 932.80 and silver at 13.01 with both on down ticks here are our trading stock prices: DROOY 7.96; HMY 12.16, and VGZ 1.98. Here are the trusts and ETFs in precious metals: CEF 11.53; GLD 92.09, and SLV 13.01. Below are two of the precious metals trust ETFs. Notice that both are moving upward in a trough and that the price today is near the bottom of the upward trough.


Both gold and silver were hammered down during the last two days. The downward pressure is still evident; however, now it seems to be more profit taking.



This from Casey's Daily Resource Plus: "No sooner had I sent in my Wednesday rant, when rallies began in both gold and silver shortly after London opened. The rallies really developed some legs once Comex floor trading got underway in New York. But, it all came to an end at the London p.m. fix. Then, shortly after London closed for the day, the New York bullion banks went to work and erased not only the wonderful N.Y. gains...but all the gains in London as well! However, prices did manage to recover slightly, later in electronic trading in New York."

I pray that some day the intervention will cease. The free market would provide a better price for precious metals and a better solution to the present financial debacle.

From Mineweb:

SA GOLD "BLEAK"

Gold market surplus to widen in 09

The VM Group looks at what lies ahead for the gold market this year in its Yellow Book.

Author: Tessa Kruger
Posted: Thursday , 26 Feb 2009

JOHANNESBURG -

The gold market surplus will widen from 60t (1.9m ounces) to 284t (9.1m ounces) this year, despite the fact that total gold supply is expected to weaken slightly to 3,770t (121m ounces), says the VM Group.

The Group said in its recent Yellow Book that although this was the largest surplus for a number of years, it was "relatively modest" given the potential for investment demand outside of ETFs and coins to absorb this metal.

"It does emphasise however, how it is investment demand that is driving this market, given the decline in support from dehedging and jewellery sales," commented the VM Group. Read it HERE.

More from MineWeb:

HAVES AND HAVE-NOTS

Gold miners talk of expanding; base metals miners cutting back

The BMO Metals and Mining Conference has highlighted the differing fortunes of gold and base metals miners in the current economic environment.

Author: Cameron French
Posted: Thursday , 26 Feb 2009

TORONTO (Reuters) -

Soaring gold prices and rock-bottom base metals have split the mining sector into camps of haves and have-nots, with the contrast clearly evident at the BMO Capital Markets Metals and Mining conference, which wrapped up on Wednesday.

With gold prices having flirted with record highs this week and mining costs in decline, gold producers in attendance talked up expansion possibilities and tried to sell potential investors on new projects. Read it HERE.

From Bloomberg:

Jailed Billionaires Show New Face of China as Markets Unravel

y William Mellor

Feb. 24 (Bloomberg) -- If China’s richest man knew he was about to become the most prominent casualty of the country’s love-hate relationship with capitalism, he didn’t show it this past August.

Huang Guangyu, a peasant’s son who became a billionaire by building Gome Electrical Appliances Holding Ltd. from scratch, outlined plans for continued expansion of the 800-store appliance chain. Read it HERE.

The Sovereign God of all has been patient with us for many years, but now seems to at an end of His patience with us. Perhaps, all of the moral decay we see about is due to the fact that He has, as He often does given us over to our own devises. (See Romans Chapter 1)

He does this to show us how stupid and ungodly we are acting and to call us back to Him. Remember there is no guarantee in scripture that These United States will last. We were blessed with founders who were greatly influenced by the word of God as they designed our Constitution and established a limited government under law. Now the nation acts as if it were not under Constitutional law, but subject to the evolving, changing laws of man. At one time in our nation ignorance of the Constitutional law and law of God was not a legitimate excuse for violation. Now, with ever changing and multiplicity of laws, no man can live with violating some obscure law. What a change!

King Jesus must ever look down from Heaven and weep over the way mankind is trampling upon Him and arrogantly shaking his fist in the face of our Lord. We must weep before our God for the wickedness of our governments and seek forgiveness for our own sins. Then, perhaps, He will heal our land as we turn back to Him.

Would that our leaders would sincerely call for national repentance as did Nineveh when Jonah brought the word of the Lord to the corrupt city. God spared Nineveh, because they repented and sought forgiveness. Perhaps, He will do the same for us. I urge you to pray to that end.

Best to each, Doug