God is Sovereign - Precious Metals Still in Slump

Since God is in control, there is no cause to worry. Certainly, all will go through a time of reduced standard of living, but we came through the Great Depression as survivors. With God's help we can do it again.

His care is in particular for His people, but the others even benefit in the short term. Eternity is another matter, His people will live with King Jesus forever, but the others will taste ovens down south with our enemy, Satan. The bible clearly presents these facts. We dare not ignore them or try to push them aside out of our minds.

God is truly a God of love, but He will spue out His wrath on the workers of iniquity. Read and study the bible prayerfully asking the Holy Spirit to reveals the truth to you. This will lead the way to eternal success. Then join a sound Christian church and enjoy the fellowship and support of other Christians. This, too, is essential for true life.

Below is a one year graph of the Gold Trust Shares. The 50 day moving average seems to be a resistance line for the price of the shares. These type of gold shares around the world have enjoyed an increase in investment and have added substantial quantities of the metals to their holdings this year.


Gold took some real downward pressure over night, but as the graph shows there is an upward move gaining some steam. My purchases of VGZ yesterday may pay off in the next couple of days. Gold is currently at 904.90 on a down tick.
Silver, like gold bounced off the NY opening hit and is now at 12.54 on a down tick. Silver has been hit particularly hard the last few weeks. Looking at my trading mining stocks >> DROOY is 9.03; HMY 10.91, and VGZ 1.66. The HMY is moving toward buying range which for me would be less than 10.50.

From the Telegraph UK:

IMF poised to print billions of dollars in 'global quantitative easing'

The International Monetary Fund is poised to embark on what analysts have described as "global quantitative easing" by printing billions of dollars worth of a global "super-currency" in an unprecedented new effort to address the economic crisis.

By Edmund Conway

Last Updated: 9:07AM GMT 16 Mar 2009 - Read it HERE.

Even the IMF can print phony dollars. And some say that inflation is not in the pipe stream. How can they really believe all of these FIAT currencies will not give us inflation? Hold on to your one secure currency: Precious metals.

From Reuters:

U.S. credit card defaults rise to 20 year-high

Mon Mar 16, 2009 -

By Juan Lagorio

NEW YORK (Reuters) - U.S. credit card defaults rose in February to their highest level in at least 20 years, with losses particularly severe at American Express Co (AXP.N) and Citigroup (C.N) amid a deepening recession. Read it HERE.

Credit cards are a convenience, but can easily be abused unless you are very careful about the purchases. They make purchases too easy and often encourage one to spend beyond his means. They are fine if paid off monthly and one never carries a balance beyond the "grace" period. If one cannot control his spending, he should never use credit cards.

From Market Watch:

Where have all the gold bugs gone?

Commentary: Huge shift among gold timers from bull to bear

By Mark Hulbert, MarketWatch

Last update: 12:01 a.m. EDT March 17, 2009

ANNANDALE, Va. (MarketWatch) -- Call it the retreat of the gold bugs.

Over the past three weeks, the editor of the average gold timing newsletter I monitor has hastily jumped off the bullish bandwagon. And a not insignificant number have taken the occasion to furthermore jump onto the bearish bandwagon. Read it HERE.

From Mine Web:

Gold-en' times may endure as dark days loom over commodity markets

BMO's Bart Melek observes investors are migrating into cash, government paper and gold at the expense of industrial commodities and equities.

Author: Dorothy Kosich
Posted: Wednesday , 18 Mar 2009

RENO, NV -

While safe-haven buying has lifted gold to historic highs in recent weeks, BMO Capital Markets Global Commodity Strategist Bart Melek cautioned Tuesday that a correction may be coming before the rally resumes.

The picture is bleak as Melek warned "it looks quite probable that base metals and bulk commodities will be under siege for the first nine months of the year." Read it HERE.

More from Mine Web:

Chinese Central Bank sees gold, oil and other resources recovering this year, but dubious on dollar

The People’s Bank of China sees potential rebound in gold, oil, other resource prices, but feels outlook for U.S. dollar uncertain beyond start of year as the U.S. deficit and low rates sap attraction of dollar assets.

Author: Zhou Xin and Simon Rabinovitch
Posted: Friday , 13 Mar 2009

BEIJING (Reuters) -

The prices of resource products from gold to crude oil are likely to see upward pressure later this year, while the outlook for the dollar is uncertain, China's central bank said in a report issued on Friday.

In its annual international financial markets report, the People's Bank of China said it expected global demand to continue to weaken this year but held out the hope that the forceful policy response of governments could lead to a turning point in the world economic crisis. Read it HERE.

China seems to be more concerned about the dollar. When will they dump the dollar in bulk? They are using dollars from their reserve to purchase natural resource companies around the world and to build their own infrastructure. Thus, they are reducing their dollar reserves.

Best to each, Doug