Precious Metals Roared Out of the Gate This AM

Gold is really on the move again taking the miners with it. Our trading stocks are reaching much higher with this rebound in the precious metals. Here they are >> DROOY last was 9.42; HMY 11.00, and VGZ 1.90. Gold is presently 928.80 on an up tick. I still have unexecuted sell trailing stops on some, not all of my DROOY and hope they do not execute for a long time.
Silver, as gold, is on the upswing. It is presently, 13.11 on an uptick.

GLD (SPDR Gold Shares ETF) added 295,144 oz. of gold to an all time high. Euro went up against the dollar. The Swiss central bank lowered rates by 0.25% and sold francs for dollars and Euros. This was a very strong move by Switzerland to lower the value of their franc. That will put all of the European banks in the mood for another cut in rates to 0%, maybe. They are almost there now, as in the Federal Reserve here.

From Reuters:

Swiss investors pile in on money markets, gold

March 11, 2009

ZURICH, March 11 (Reuters) - Money markets accounted for the lion's share of inflows into Swiss-registered funds in February, while Zuercher Kantonalbank's gold-backed exchange-traded fund saw the largest inflows of any single fund, Lipper data showed. Read it HERE.

From Platts (Mac Graw Companies):

Banks were January net buyers of 1.1 million oz of gold: CPM

New York (Platts)--10Mar2009

Central banks, which have been net sellers of gold in recent years,were net buyers of an estimated 1.1 million oz in January, according to thelatest Market Alert by the CPM Group, the New York-based metals consultancy. The world's central banks were both buyers and sellers, but the quantity bought outstripped what was sold.

Ecuador is estimated to have purchased 920,000 oz of gold in January, Venezuela bought 240,000 oz and Russia purchased 130,000 oz, after having bought 310,000 oz in December. Read it HERE.

It is amazing that that banks selling gold to one another seems to depress the price from time to time. Who else would buy the quantities which are sold. Maybe from time to time the Sovereign Wealth Funds, but there are few buyers with deep enough pockets to make the purchases. Thus, banks sales of gold are mostly smoke and mirrors.

A great quote from the past for the day from Casey's Daily Resource Plus:

When you see that trading is done, not by consent, but by compulsion – when you see that in order to produce, you need to obtain permission from men who produce nothing – when you see money flowing to those who deal, not in goods, but in favors – when you see that men get richer by graft and pull than by work, and your laws don’t protect you against them, but protect them against you – when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed. - Ayn Rand, Atlas Shrugged (1957)

We are there and are seeing this come to pass. God's way is the only way to truly survive in the temporal as well as the life after death. We, as a nation, must repent and turn back to Him before it is too late. We must pray that one of our leaders would repent and call the nation to repent and answer God's call. His judgment upon us is His means of calling the nation to repentance. However, His patience, though long suffering will not last forever.

Let us repent for ourselves and seek God's forgiveness for the nation which at its founding was to be the city set on a hill to provide the light of God's word to all the earth.

Best to each, Doug