The Christian Long Term Vision - Buying Opportunities
We are giving our marching orders in Genesis, "Be fruitful and multiply; fill the earth and subdue it; have dominion over the fish of the sea, over the birds of the air, and over every living thing that moves on the earth." (Gen. 1:28) This command was reinforced to Noah after the earth covering flood, as follows: "Be fruitful and multiply, and fill the earth. And the fear of you shall be on every bird of the air, on all the move on the earth, and on all the fish of the sea. They are given into your hand." (Gen. 9:1,2)
This is our task. It is an awesome task, but God always works through the weakness of man for His glory. As parents, we are to teach our children to continue this task. It is not likely to be completed in our life time. But our children, their children, and continuing generations of children prepared and diligently working for this will be blessed and aided by God to complete the task. Education of our children it our God given task, and is not that of the state. We must teach our children all about our King Jesus and His assignment.
We must also equip our children financially for the Kingdom work which they must do. Therefore, we have a very long term view of marching in the spiritual army of God. That is one of the primary reasons for protecting our wealth in the media which from biblical times has been the sure store of wealth. Our wealth must be used in the spread of the Kingdom of our Lord and Savior Jesus Christ.
As I have often reminded us, investing or maintaining wealth in precious metals is a long term project. Over time, gold have proven a vastly greater media than any unbacked paper currency. Thus, I wanted to look at the weekly, 3 year graph of gold today. Below, you can see that gold is above both its 50 and 200 day moving averages. Early in March, the graph shows a head and shoulders formation which is followed by a serious correction to the 50 day moving average. Now despite the hammering by the boyz as it struggles to go above 900. it has moved upward and has traded between about 875 and a little above 900 since. For it to advance much from here, it must surpass 916. However, since we are not in any type of free market, this could be a difficult challenge.
Belows are the 24 hour graphs for spot prices of gold and silver. Once again, we can clearly see the non market activity at the opening of trading in NY. Both metals were hammered down again. Currently, gold is 883.50 down 14.80 and silver 12.26 down 0.53. Both are on down ticks.
The miners are, as follows: DROOY 8.11 -0.36; HL 2.49 -0.11; HMY 9.43 -0.32; SLW 7.66 -0.29, and VGZ 2.00 -0.08. I bought a few VGZ shares at 2.03 and at 2.01. The miners are holding up quite well, even on drops in the price of gold. We are rapidly approaching May. The question now becomes, "Do we sell in May and run away." This is a saying on Wall Street, as that has been seen as good advice in some years. The market will soon give us the answer. By the way, the DOW is 8293 up about 107+.From MineWeb.com:
Are new rules setting new copper benchmark price?
What's driving copper to its recent high of $2.20 a pound? "We're playing by a different set of rules now," says Gianni Kovacevic*, corporate development strategist at Global Opportunities AG. Interview with The Gold Report.
Author: The Gold ReportPosted: Wednesday , 29 Apr 2009
VANCOUVER, BC -
The Gold Report: Gianni, can you give us your short-term and long-term view on the copper market? Any sense of what's driving copper to its recent high of $2.20 a pound?
Gianni Kovacevic: All investors need to recognize that commodities, and copper in particular, are following a new rule book that is still being written. In the past week or so, many people have been saying in the media that "copper is money." Certainly any commodity that is based in U.S. dollars can be considered money, and within the past six months, since the breathtaking fall of all commodity prices in all asset classes, we've seen copper bottom out at about $1.25. Since then, during the last three months, it has risen back up 40% to 50%. As copper traded below $1.50 for an extended period of time, the world's biggest user of copper, China, was able to buy market-finish copper on the market at $1.25 to $1.50. HERE.
The wise Chinese have been stock piling copper and other critical base metals for some time. That is a good use of their stash of ever worth less dollars. Things are better than dollars. Durable things that are useful are far better than dollars. Inflation will rear its ugly head soon enough, since the world has been flooded with dollars in quantities never before seen.
Derivatives Hit Austrian Railroad With Record Loss
By Zoe Schneeweiss
April 29 (Bloomberg) -- OeBB-Holding AG, Austria’s state- owned railroad company, reported a record 966 million-euro ($1.3 billion) loss after writing down the value of derivatives that went awry.
OeBB’s 2008 loss compared with a profit of 42.4 million euros a year earlier after the company wrote down the entire 613 million-euro notional value of synthetic collateralized debt obligations. The Vienna-based company, which bought the contracts from Deutsche Bank AG in 2005 and 2006, is appealing a February court ruling dismissing a claim that the lender didn’t disclose the risks associated with the derivatives. HERE.
They will hit here at some time in the future. It is inevitable that the derivatives will cause other crises in the not too distant future. As usual, the "solutions" will never protect the investors, it will only protect the financial institutions which have, along with governments, caused the problems.
From Politico.com:
Suite Talk April 23, 2009
Goldman Sachs is finalizing a deal to hire Michael Paese to head its Washington office, according to lobbying and company insiders.
Paese, now the executive vice president of global advocacy for the Securities Industry and Financial Markets Association, is viewed as “the capstone in an effort to reformulate the Washington office,” said a company insider.
Paese is a big-name Democrat with deep industry ties and an inside Washington game who had worked for House Financial Services Committee Chairman Barney Frank (D-Mass.).
Paese would replace Ann Costello, a Republican who recently announced she’s leaving Goldman to run Bank of New York Mellon Corp.’s global government relations. Mark Patterson, who partnered with Costello to run the office before leaving last year to advise Barack Obama’s presidential campaign, is now Treasury Secretary Timothy Geithner’s chief of staff. HERE.
See what I mean. Even those selected to save us are only attempting to save the insiders and the favorite institutions.
From Financial Times Online:
Fixing bankrupt systems is just the beginning
By Martin Wolf
Published: April 28 2009 21:59 | Last updated: April 28 2009 21:59
Can we afford to fix our financial systems? The answer is yes. We cannot afford not to fix them. The big question is rather how best to do so. But fixing the financial system, while essential, is not enough. HERE.
I don't know that we can save our FIAT paper currency system. While we know that a return to the gold standard would be the ultimate solution, I do not believe we will see that anytime soon. There is just too much invested interest in the paper "money." It would, also, show some wisdom to let inefficient businesses, including banks, to go bankrupt and allow more efficient ones to survive. It makes no sense to perpetuate inefficiency.
From TownHall.com:
From MineWeb.com:
Mining and metals and auto sectors principal beneficiaries of China recovery
With the Chinese economy tipped to expand 8 percent this year, companies with a Chinese presence may see sales there offsetting declines elsewhere, with mining and autos among the best placed.
Author: Dominic LauPosted: Wednesday , 29 Apr 2009
LONDON (Reuters) -
China's improving economic outlook is one of the bright spots on an otherwise murky horizon for European stocks, with the potential to fuel rises in miners, carmakers, chemical groups and capital goods stocks.
Signs of a Chinese recovery are emerging, and analysts say the impact of stronger growth on companies selling into that market could partly compensate for continued weakness in Europe and the United States.
Most European firms with a presence in China still generate only a small part of their sales in the country, where domestic consumption as a proportion of GDP is lower than in the West, meaning the impact is likely to be limited.
But any exposure at all to an economy tipped to expand at 8 percent while much of the rest of the world stays mired in recession carries potential benefits. HERE.
China seems to be on the road to recovery. From many sources, I have heard of their booming automobile industry. As the income of the people has risen, more vehicles are being purchased. Certainly, all is not milk and honey in China, but there are signs of recovery.
From Casey's Daily Resource Plus:
"'If you spent $1 million a day since the day Jesus Christ was born, you still wouldn't have spent a trillion dollars.' - Senator Mitch McConnell"
Even in our secular, pagan world Jesus Christ is known. Would that more Christians would step forward to spread the good news that Jesus Christ works in the world through His people who are solidly in covenantal relationship with Him. We have our marching orders, let's get to it.Best to each, Doug
posted by Doug @ 8:48 AM
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