Buying Opportunity Here Today!

As always, God is in control, but He seems to be providing a buying opportunity. However, if you buy, I would suggest that you buy in small increments several times as the price goes downward. Remember that we will likely never buy at the absolute bottom nor sell at the absolute top. However, near to either is great. The precious metals have a long way to go upward. The next upward move may be a really big leap. God knows, but we must make educated guesses.

Both gold and silver have been hammered again. Some of our miners are in reasonable buying ranges today. Here are some >> DROOY 9.52; HL 3.17; HMY 11.42; SLW 10.34, and VGZ 2.26. Both HL and VGZ look very inviting to me. I am particularly interested in HL and am likely to add some more of it at this price or lower.

Gold is 965.60 down 15.50 and silver is 15.47 down 0.49. They could go lower, but how low? I don't know, but believe that a low of 950 should be the bottom if it reaches that. However, the price has been rebounding with each cap on the way down to the present levels and the graphs should a slight upward move at the bottom of the current capping. China's buying is in opposition to the actions of the Gold Cartel which holds significant shorts in both these metals.

The DOW is off 94+ at present. The dollar continues to struggle to hold some semblance of value.

From Bloomberg.com:

Fed’s Role in AIG May Be First Target of GAO Audit

By Scott Lanman

May 29 (Bloomberg) -- Congressional auditors may soon examine the Federal Reserve’s role in the U.S. bailout of American International Group Inc. after gaining authority to review Fed documents under a law that took force last week, Acting U.S. Comptroller General Gene Dodaro said.

“We’re in the process now of developing our future work plans and certainly we’ll use our authorities,” Dodaro, head of the Government Accountability Office, said in his first interview on the topic since President Barack Obama signed the Fed audit powers into law on May 20. “In terms of exercising the newest authority, AIG will be the first entity.” Read it HERE.

This would be unique in the history of the Federal Reserve System. It has never been audited or even examined by any one.

From GATA.org:

German chancellor attacks central banks

Submitted by cpowell on Tue, 2009-06-02 20:25.

By Bertrand Benoit and Ralph Atkins
Financial Times, London
Tuesday, June 2, 2009

Angela Merkel, the German chancellor, criticised the world's main central banks in surprisingly strong terms on Tuesday, suggesting that their unconventional monetary policies could fuel rather than defuse the economic crisis.

The attack on the US Federal Reserve, the Bank of England, and the European Central Bank is remarkable coming from a leader who had so far scrupulously adhered to her country's tradition on never commenting on monetary policy.

"What other central banks have been doing must stop now. I am very sceptical about the extent of the Fed's actions and the way the Bank of England has carved its own little line in Europe," she told a conference in Berlin.

"Even the European Central Bank has somewhat bowed to international pressure with its purchase of covered bonds," she said. "We must return to independent and sensible monetary policies. Otherwise we will be back to where we are now in 10 years' time." Read it HERE.

Economists of the Austrian School would gladly tell all the truth in her statement. Keynesian economists are still using the methods for solution that created the financial fiasco in the first place. This continues at an accelerated pace here in America. Politicians never learn. They are reluctant to let the citizens and markets alone to solve problems quickly and with much less pain. We will get through this, but will not have the easy time we have enjoyed on the backs of the rest of the world for so many decades. We will have a lower standard of living.

From MoneyNews.NewsMax.com:

Chinese Begin Buying Up Gold

Wednesday, June 3, 2009 10:17 AM

Individual Chinese investors are now rushing to hoard the precious yellow metal, hoping it will retain value if the dollar collapses.

"The declining value of the dollar along with the worsening economic outlook is forcing investors to seek other anti-inflationary investment tools, like gold," Ping An securities analyst Xiao Zheng told The China Daily.

China is the world's second-largest gold consuming country. In late April, the People's Bank of China announced its gold reserves had risen 454 tons since 2003 to 1,054 tons, a signal that the central bank is taking gold as a reliable hedge against financial uncertainties as fears over the global recession deepen.

Analysts say they expect the Chinese government would continue to raise its gold holdings as the yuan becomes increasingly internationalized. Read the article HERE.

Though not new news, the stories are getting more play around the world. China is accumulating gold. Both individuals and the government are doing the buying. China's sovereign wealth fund could be one of the deep pockets which will do combat with the gold cartel's aim to cap gold. This could be a big battle with the cartel risking a squeeze on the shorts in the metals. That would be a big boost to the price of gold. Not today, but possibly before too long.

Gold and silver are both in a correction mode, so I may be buying some more of the miners. You decide with consideration of your portfolio, available funds, risk tolerance, and investment plans.

Best to each, Doug