Silver & Gold Holding - Buying Opportunity Soon

Silver is holding around 16 at present. It was below that over the week end. I am planning to buy US Silver Eagles if silver goes below 16.

Gold is back above 990, but was lower over the weekend. It will surprise me, pleasantly, if gold does not hit a low for now during the next two weeks, possibly as early as Thursday or Friday. If that happens, I will be adding to the mining stocks portfolios, as I expect a high near the end of December. We will have to watch our precious metals closely for buying opportunities soon.
BYD Co looks very toppy. The RSI and MACD have turned bearish. The stock price is in a strong upward trough, but has moved a bit toward the lower trend line of the trough. Any excursion into the less than $8 range could signal a move near the 50 day moving average. I do not expect it to break through that average, so I would see about 7.50 to 7.75 the low of this correction. A good buying range for me would be just < $8. This stock long term has a long way to go. It is in the correct industry and ahead of the time. From GATA:

Yikes! On CNBC: 'When you own gold, you're fighting every central bank' Submitted by cpowell on Sun, 2009-09-27 14:26.

10:23a ET Sunday, September 27, 2009

Dear Friend of GATA and Gold:

On Friday CNBC broadcast a remarkable six-minute interview with Jim Rickards, director of market intelligence for McLean, Virginia-based consulting firm Omnis (HERE).

Rickards was asked to analyze an essay published in Friday's Wall Street Journal by Fed Governor Kevin M. Warsh (yes, the Fed governor who this month acknowledged to GATA that the Fed is concealing records of its gold swap arrangements with foreign banks). That essay can be found HERE.

Read the GATA article HERE. See the important CNBC interview with Jim Rickards HERE.

From GATA:

Zero Hedge: The CIA chimes in on gold control

Submitted by cpowell on Sun, 2009-09-27 05:59.

1:52a ET Sunday, September 27, 2009

Dear Friend of GATA and Gold:

Yesterday Zero Hedge posted another U.S. government document from 1968 detailing the government's desperate interest in suppressing the gold price as a matter of rigging the international currency markets in favor of the dollar. This document is a declassified memorandum from the files of the Central Intelligence Agency. From reading some gold market analysts, we're supposed to think that the U.S. government interest in supporting the dollar by rigging the gold market somehow evaporated some time after 1968. Zero Hedge's posting about the CIA memo is headlined "The CIA Chimes In On Gold Control" and you can find it HERE:

From Ed Steer's Gold and Silver Daily:

From Telegraph.co.uk:

No reform, just a cosmetic patch for a discredited, flawed regime

'The ultimate result of shielding men from the effects of folly,' said the Victorian philosopher Herbert Spencer, 'is to fill the world with fools'.

These words sprang to mind as I watched last week's G20 Pittsburgh summit.

The world's leading nations have agreed "tough new regulations" to prevent another global financial crisis, declared Barack Obama, as the two-day meeting drew to a close. The G20 has "taken bold and concerted action to forge a new framework for strong, sustainable and balanced growth".

Obama's oratory was typically impressive. The trouble is, it wasn't true. No specific rules on banks' capital reserves were announced at this summit. No leverage caps were agreed. Nothing "bold" was done to lessen systemic dangers or overhaul the global regulatory regime.

Pittsburgh produced nothing more than the usual photo calls and drab theatre. The lack of questioning of the status quo was spectacular. The world needs to learn from what we've just been through and implement financial reform, so cutting the chances of a repeat performance.

What our "leaders" produced instead was a rhetorical patch for the existing flawed regime. Worse still, they did everything possible to protect the financial vested interests – above all, the big investment banks – from the damage caused by their deeply irresponsible use of derivatives and debt, while preserving the system that allowed such excess. Read it HERE.

From ProactiveInvestors.co.uk:

Gold Holds $990 Support as Investors Re-Evaluate Macro Picture

The overnight session in Asia saw Gold futures continue to trade lower. Since trading below $990 to reach an intraday low of $987 at around 8:30 (BST), gold has slowly began to recovery as the morning progressed in London. The overnight weakness largely reflects the relative performance of the US Dollar. The ICE Dollar Index steadily rose in the small hours of Monday morning to reach almost 77.5.

Approaching midday in London, the December Comex Gold contract was changing hands at around $991.
Over the weekend a number of issues have dominated the gold debate, with several commentators discussing the long term potential of a gold market which has risen over 4% in September. Read it HERE.

From MineWeb.com:

GOLD UPDATE

Typically bearish signals fail to dampen Gold's appeal

Despite the recent correction in gold, helped by things like IMF gold sales, growing crude inventories and lower US jobless claims, the upward trend remains intact

Author: David Levenstein
Posted: Monday , 28 Sep 2009

JOHANNESBURG -

Despite a series of news statements that are typically bearish for gold, the price of the yellow metal has shown relative strength. The first bit of bearish news which came out on Friday, September 21 was the announcement made by the International Monetary Fund (IMF) to sell 403 tons of gold. The IMF said in a statement the sales would be in a volume strictly limited to 403.3 tons, with these sales to be conducted under modalities that safeguard against disruption of the gold market. Reacting to the IMF decision, gold fell below $1000 an ounce for the first time in days. Read it HERE.

From MineWeb.com:

New Central Bank Gold Agreement went live on Sunday

But will anything really change?

Author: Rhona O'Connell
Posted: Friday , 25 Sep 2009

LONDON -

The third Central Bank Gold Agreement (CBGA3) goes live on Sunday 27^th September, with the same signatories as those to the second Agreement. These countries, listed below, plus the European Central Bank, have agreed to cap their combined annual sale at 400 tonnes per annum, down from the 500 tpa limit of CBGA2 and back to the original level imposed by CBGA1 in September 1999. The statement, released early in August, reads as follows:-

•1. Gold remains an important element of global monetary reserves.

•2. The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on
27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes. Read it HERE.

Folks, Our main emphasis must remain on the fact that the dollar is going to continue downward in purchasing power and in relative strength against other paper currencies. With the IMF issuing SDRs and the world of China, Russia, etc. rattling sabers about the failure of the dollar as the world reserve currency, it is inevitable that the dollar will continue to decline. The powers that be are hoping that it will be a gradual decline, but were the dollar to lose its reserve status, the decline could be precipitous. That would be a shock to all of us as price inflation would follow in spades. It would lead to an extreme stagflation and an end to our prosperity which was brought on through debt. Our debt instruments would no longer be marketable internationally.

We must continue to remind ourselves that our King Jesus is working all things in accordance with His will and that He loves His people and will work all things for their eventual good. It is up to us to give Him the praise, the glory, and the honor which is due to Him. We must follow His law to avoid chaos as individuals, families, churches, communities, states, and federal government. Thus, there must be national repentance and a return to Him or our nation providentially created by Him will no longer exist.

I believe that God has more to do with America and that we will eventually heed His call to repentance. His judgment we are currently experiencing is that call. Heed it and America will be restored. Ignore it and He will continue to pour His wrath upon us until we either turn back to Him or He destroys us and gives the banner of truth: His word to another nation to be the light of the world and the salt of the earth. That is what happened to the Israel of old and may happen to us. I rest securely and comfortably in Him.

Here are the miners compliments of Scottrade streaming quotes:

Gold is 993.50 and silver 16.12 with both on up ticks. The DOW is up 122+.

Best to each, Doug