Norwegian Krone & Precious Metals UP
Gold has been climbing in a rising trough with two corrections which almost penetrated the lower trough trend line about the middle and end of July. This week it has bounced off the 50 day moving average and is up 8.30 to 955.50 at present. That is a bit higher than the small red dot I posted on the graph a few moments ago. Notice that the RSI at the top of the graph and the MACD at the bottom area both seem to be initiating an upward move. All of this is encouraging for gold, but certainly not for the dollar which remains in a bear trend.
Below is the graph on Vista Gold which is showing a good deal of strength along with the price of gold. Both the RSI and the MACD are indicating an upward move. A negative is that the 50 day moving average appears to be near penetrating downward through the 200 day average. However, looking to the positive, it the price movement seems to be headed above the 50 day moving average. All in all VGZ remains strong and is firmly among my core holdings.
Silver Wheaton is showing a great deal of strength. Both RSI and MACD are moving strongly upward. The price is well above both 50 and 200 day moving average. Many are predicting that silver could out perform gold. I checked both Silver Standard (SSRI) and Pan American Silver (PAAS). Neither had as strong a technical graph as Silver Wheaton. SLW is among my core holdings.
The statistics, though padded and manipulated for July are discouraging. The budget deficit surged to $180.7 Billion from June's $102.8 B. Looking a bit deeper, June should have been a month of high income tax collections which were down considerably. Recovering economy is in doubt.
The FOMC left interest rates near zero and reported that quantitative easing would continue to October. That likely means that they will continue to buy U.S. Treasuries at the auction and stealthily from the dependent banks after the auction. Got to make the auctions look good without enthusiastic foreign buyers. Are the foreign banks losing faith in the U.S. Dollar? It really is beginning to appear so.
The Cash for Junkers CARS program will likely pad the poor retail sales for June. We will see by how much today.
The Norwegian Krone is one of the strongest currencies in the world. Their central bank left rates unchanged and hinted at a tightening with higher rates. The bank was wise and did not participate in the mortgage fiasco and the economy is running a surplus. Too cold for me, but on the economic front alone, it would be a great place to live.
Foreclosures, defaults, and seizures of real estate sprinted to 360,149 in July. Isn't it great that the real estate markets are looking up so well from the rosy reports to which we are treated. Look around and count the for sale signs which seem to be increasing in many parts of our nation.
Ron Paul seems to be getting some support for an audit of the Federal Reserve. It was alledgedly created to stablize the dollar. However, the dollar has been estimated to have lost some $0.95 since the Fed came into existance. We have also suffered severe recessions, the Great Depression, and the current fiasco which is a direct result of the Fed's manipulation of the dollar. They have a great track record, don't they? NOT!
The DOW is up about 24 and here are the miners and trusts: AUY 9.26; CEF 11.98; DROOY 7.70; GLD 83.95; HL 3.24; HLMY 9.57; IAG 12.27; KGC 19.02; NEM 41.88; PAAS 20.48; SLW 10.15; SSRI 18.75, and VGZ 1.84.
Miners are looking good! Maybe we need to start dollar averaging purchases of the miners. I am hesitant on that a this time, because of the continued threat of the boyz in action. After all we are dealing with political metals subject the ire of governments and the central banks.
We can only make educated speculations about the future. However, God in His word has assured us that the end for His people will be great beyond belief. Trust in His word.
Best to each, Doug
Below is the graph on Vista Gold which is showing a good deal of strength along with the price of gold. Both the RSI and the MACD are indicating an upward move. A negative is that the 50 day moving average appears to be near penetrating downward through the 200 day average. However, looking to the positive, it the price movement seems to be headed above the 50 day moving average. All in all VGZ remains strong and is firmly among my core holdings. 
Silver Wheaton is showing a great deal of strength. Both RSI and MACD are moving strongly upward. The price is well above both 50 and 200 day moving average. Many are predicting that silver could out perform gold. I checked both Silver Standard (SSRI) and Pan American Silver (PAAS). Neither had as strong a technical graph as Silver Wheaton. SLW is among my core holdings.
The statistics, though padded and manipulated for July are discouraging. The budget deficit surged to $180.7 Billion from June's $102.8 B. Looking a bit deeper, June should have been a month of high income tax collections which were down considerably. Recovering economy is in doubt.The FOMC left interest rates near zero and reported that quantitative easing would continue to October. That likely means that they will continue to buy U.S. Treasuries at the auction and stealthily from the dependent banks after the auction. Got to make the auctions look good without enthusiastic foreign buyers. Are the foreign banks losing faith in the U.S. Dollar? It really is beginning to appear so.
The Cash for Junkers CARS program will likely pad the poor retail sales for June. We will see by how much today.
The Norwegian Krone is one of the strongest currencies in the world. Their central bank left rates unchanged and hinted at a tightening with higher rates. The bank was wise and did not participate in the mortgage fiasco and the economy is running a surplus. Too cold for me, but on the economic front alone, it would be a great place to live.
Foreclosures, defaults, and seizures of real estate sprinted to 360,149 in July. Isn't it great that the real estate markets are looking up so well from the rosy reports to which we are treated. Look around and count the for sale signs which seem to be increasing in many parts of our nation.
Ron Paul seems to be getting some support for an audit of the Federal Reserve. It was alledgedly created to stablize the dollar. However, the dollar has been estimated to have lost some $0.95 since the Fed came into existance. We have also suffered severe recessions, the Great Depression, and the current fiasco which is a direct result of the Fed's manipulation of the dollar. They have a great track record, don't they? NOT!
The DOW is up about 24 and here are the miners and trusts: AUY 9.26; CEF 11.98; DROOY 7.70; GLD 83.95; HL 3.24; HLMY 9.57; IAG 12.27; KGC 19.02; NEM 41.88; PAAS 20.48; SLW 10.15; SSRI 18.75, and VGZ 1.84.
Miners are looking good! Maybe we need to start dollar averaging purchases of the miners. I am hesitant on that a this time, because of the continued threat of the boyz in action. After all we are dealing with political metals subject the ire of governments and the central banks.
We can only make educated speculations about the future. However, God in His word has assured us that the end for His people will be great beyond belief. Trust in His word.
Best to each, Doug
posted by Doug @ 9:27 AM
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