China, India, Russia, & Banks Buy Gold - God is Sovereign

Folks, It looks as though gold is on an upward sprint. China, India, Russia, and now even banks are buying gold. Is this the beginning of the third phase where gold will take giant steps up to higher prices? If it will stay above $1,000, this could well be the start of the masses making it a gold rush.

The dollar strengthened a bit today, but that did not impact adversely on the price of gold. Has the demand become so strong as to overcome the action of the boyz containment of the price? It does not seem probable, but it is possible.

If we get a correction, I will be buying as if there is never to be another opportunity.

This is a very strong bull chart for gold.

Look at the jump in price after NY Close which continues into the Asian trading tonight. Of course, remember that night trading is very light and any amount of buying can have a big impact on price. Gold is now 1009.40 on an up tick.
Silver is making a very strong showing, as well. Silver is now 17.07 on an up tick. The strong move is clear on this graph as it was on the gold graph.
This from Bloomberg.com:

Gold Futures Advance on Inflation-Hedge Demand; Silver Gains

By Halia Pavliva and Nicholas Larkin

Sept. 15 (Bloomberg) -- Gold rose, closing above $1,000 an ounce for the third straight session, as commodities climbed on demand for a hedge against inflation. Silver also gained.

Federal Reserve Chairman Ben S. Bernanke said the worst U.S. recession since the 1930s has probably ended, while warning that growth may not be strong enough to reduce unemployment quickly. The Fed has kept its benchmark lending rate as low as zero since December. It authorized $1.45 trillion in purchases of mortgage-backed securities and other housing debt this year. Read the article HERE.

I do not believe the lies coming from the White House and the Federal Reserve about the recession being over. That is, unless they are saying that the recession is over and we are in a depression. The unemployment pictures is dismal and consumers are struggling with creeping inflation which is coming upon us before the wasted dollars come into the markets and create much more significant inflation. This is just around the corner and much closer than most would believe.

There is much enthusiasm about the "new bull market." However, I believe we are still in a rally within the long term bear market.

We had best learn to live beneath our means to put some aside for the unknown future we face. Any recovery will not restore the affluence we had before and should the dollar be replaced as the reserve currency of the world, our living standard will be much lower than many expect.

We must learn to depend upon the Sovereign God of all for life, liberty, and all necessities of life. Since He counts the hairs of our head and sees every Sparrow fall, He can certainly care for all His people. Let us develop and follow a world and life view with Jesus Christ at the center of all. He is our Creator and He is the One who sustains us moment by moment. Let us learn to fear Him sufficiently to follow His Law-Word throughout our lives. It is either Him or chaos.

Best to each, Doug