Dollar Dipping - Gold & Silver Holding - A Jealous God

Both silver and gold are strong in the environment of the ever weakening dollar. The Euro hit about 1.48 over night and is strong this morning. Gold hit almost 1020 overnight and is now 1015.60 while silver is a strong 17.17. The metals a basking the sinking sun of the dollar.




From Reuters.com:

RPT-UPDATE 1-China weighs purchase of IMF gold -report

Mon Sep 21, 2009

* China could consider IMF's sale of 403 tonnes of gold

* China looking to diversify, has 1,054 tonnes already

* Market value of IMF sale around $13 billion (Adds comments of central bank officials, paragraphs 7- 15)

BEIJING, Sept 21 (Reuters) - China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed.

"China will consider buying if the price is right and the return is relatively high," MNI quoted one of the government sources as saying.

Gold XAU=, which had dipped just below $1,000 an ounce, rebounded to $1,003.45 after the report. That would put the market value of the 403.3 tonnes on offer from the IMF at close to $13 billion. Read it HERE.

This is likely to be the case if the central banks (Fed Reserve, and others) agree to let China buy the gold. Why is it that the Chinese are showing far superior economic action than the progressive western nations?

From Telegraph.co.uk:

HSBC bids farewell to dollar supremacy

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

"The dollar looks awfully like sterling after the First World War," said David Bloom, the bank's currency chief.

"The whole picture of risk-reward for emerging market currencies has changed. It is not so much that they have risen to our standards, it is that we have fallen to theirs. It used to be that sovereign risk was mainly an emerging market issue but the events of the last year have shown that this is no longer the case. Look at the UK – debt is racing up to 100pc of GDP," he said. Read it HERE.

Folks, items like this in the news are warnings about the viability of the our dollar. In case you do not know HSBC in no small bank, it is a major international player. The dollar is living on shaky ground which is crumbling beneath it. The dollar is being trashed, not by the world, but by the care takers in the Federal Reserve and White House. It is being sacrificed on the alter of government spending and empire building. However, it is now being seen for what it is by the world. It will be interesting to see, if we are allowed to, how much of the week's auction will have to be covered by the Fed. Examine the Kitco.com Exchange Rates Chart to see that the dollar is down this morning against all currencies reported. Note that the Euro has hit almost 1.48.

Before you invest in SLV, it would be wise to consider what Ted Butler has to say in his June commentary which may be found HERE. It is estimated that SLV is owed a substantial number of tons of silver which is yet to be delivered. Ted explains the issue and the stealth action allegedly taken by SLV.

Below is the Scottrade Streaming quotes of our mining stocks which are all in the green with the nice recovery of precious metals.

As in the days of the Old Testament, God blew, as He said through Hagai, upon the crops of Israel, because they had not followed His orders to rebuild the temple, God is blowing upon the prior success of America, because we have not honored Him. In fact, we have gone through a process of removing from history books, much media, and plaques on national monuments all reference to God and His providence. We have erected another god in the federal government which many see as a messiah. The bible would proclaim this god a false god. It is a god with ears and is faint of hearing of the people. It is a god with eyes which are dim at seeing truth. It is a god with lips which continually lie and deceive by design. God does not share His sovereignty and honor with any. He crushes all enemies in His timing. Let us turn back to the God through whom this nation was given freedom, founded, and sustained for a long time. Let's do it now through national repentance before God destroys America: The City Once Set on a Hill that it might be the Light of God to the world.

Gold is now 1015.20 and silver 17.16.

Best to each, Doug