Thoughts on Markets

Thursday, July 09, 2009

Both Gold & Silver Seem Oversold - Boyz Active

The boyz are loaded with shorts on the precious metals and may be taking them down to much lower prices. Would that this would be the last time. They certainly have the deep pockets to be able to do what they want and covering these shorts would be of great benefit to them. It could well be that silver will be the impressive performer for the near future even surpassing that of gold.


Our miners are rebounding a bit this morning as the price of the metals has stopped falling for the time being. Here are some >>AUY 8.59;CEF 11.21; DROOY 7.74; HL 2.33; HMY 8.60; SLW 7.63; SSRI 17.48, and VGZ 1.57. All are in reasonable buying range, but we do not know the immediate future for gold and silver. It is up to the boyz. Silver is oversold and gold is nearing that level, too.

Ron Paul on YouTube.com:

He is defending and explaining the purpose of his bill to audit the Federal Reserve for the first time ever. This non-government agency which has so much power has never been audited nor investigated. Listen to his comments HERE.

From MineWeb.com:

Commodity price manipulation breeding tougher regulation approach

UK (and European) regulators may well support possible measures being taken by the CFTC in the U.S. to reduce commodity and metal market speculation.

Author: Simon Hunt
Posted: Thursday , 09 Jul 2009

WEYBRIDGE,UK (SHSS) -

The statement that the U.S. Commodity Futures Trading Commission (CFTC) was considering further measures to reduce speculation in commodity and metal markets is in keeping with events which go back as far April last year.

This statement follows comments made after last month's G8 meeting and from minutes of a more recent Federal Reserve Board meeting. Both statements referred to the unwanted return of speculation in commodities which might impair the global recovery. Read it HERE.

There are two sides to this report. (1) We of Austrian (Biblical) Economics do want a minimum of government control. Of course, government should punish fraud and theft, but it does not seem to be of that mind in this case. (2) The manipulation should be stopped.

Therefore, I have mixed feelings on this subject.

From TownHall.com:

Government Care a Health Hazard
by Cal Thomas

Most of us are familiar with the old expressions: Look before you leap; a stitch in time saves nine; if it sounds too good to be true, it probably is. These phrases remind us to think before accepting anything as fact. And never have they been more applicable then now, as the Obama administration attempts to re-fashion the healing arts. Read it HERE.

Ask yourself, "What does government do well at reasonable costs?" I can find nothing that our government is currently doing that would meet these two criterion. Therefore, ask yourself, "Do I want government to manage my health care?"

From the WSJ:

Catching The Gold Bug

LARRY LIGHT

Worried about a harrowing, inflation-ridden future, Scott Van Steyn has found the answer in a batch of glittering one-ounce gold coins. In fact, they make up a large chunk of the physician’s assets.

“There’s 2,000 years of history to show that gold is the best thing to own during bad inflation,” says Dr. Van Steyn, a 45-year-old orthopedic surgeon in Columbus, Ohio. “People used to laugh at me for buying gold. They don’t anymore.” Read it HERE.

Wow! From one of the mainline media!

From Fox News:

Silver Set To Outperform Gold, Citi Argues

Short comment. Read it HERE.

A real possibility in the near term.

More on housing from Bloomberg.com:

Delinquencies on U.S. Home-Equity Loans Reach Record

By Margaret Chadbourn

July 7 (Bloomberg) -- Late payments on home-equity loans rose to a record in the first quarter as 18 straight months of job losses and a slumping economy left more borrowers unable to pay their debts, the American Bankers Association reported. Read it HERE.

From Reuters.com:

U.S. mortgage fraud 'rampant' and growing-FBI

SAN FRANCISCO, July 7 (Reuters) - U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and industry professionals tried to maintain their standard of living from the boom years, the FBI said on Tuesday. Read it HERE.

I am so glad to see that the housing bubble is finally going away. By the way, the U.S. mortgage fraud, if true, is another example of what happens with most government plans. It feeds the greed and larceny of people's hearts.

Have a great Thursday! If I were buying, it would be in small increments. And I would likely use some trailing stops at this point in time. Our success is up to the Lord, Who controls all.

Gold is 913.20 on an up tick and silver is 12.81 on a down tick. By the way, HL2.44 up a bit from what was reported, above.

Best to each, Doug





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