Capping Gold - China Prospering - Worship on the Lord's Day
WOW! Isn't it interesting that the hammer seems to have fallen upon silver again at precisely the same time as it dealt a blow to gold. I wonder if the dollar miraculously moved higher at precisely the same time. Coincidence my foot!
Our miners ETF is not looking as good as some of the individual miners. The RSI seems to be turning up, but the MACD is looking very negative. The price is near the bottom of the trading range bracketed by the red trend lines. Remember to check the current prices at the end of this posting.
Our speculation, BULM has treated us well. It is, at present, near the top (0.95) of a very narrow trading range. The RSI is neutral, but the MACD is quite positive. Longer term as the price of gold advances, this should be a big winner. For me, it would be a buy at the lower side of the trading range with a small correction in the price of gold. Use extra caution in any purchases made. I always try to buy these type of speculations in small bites. Maybe in quantities of 500-1000 shares. Of course, you must consider the impact of commissions on stocks priced < $1. 
BYD Company has been an exciting purchase for us and it looks to be headed higher. Note that the RSI is about neutral, but the MACD is positive. The volume has been dropping off indicated by the red trend line at the bottom of the center section of the graph, but today's total volume is yet to be recorded and it is likely up. The over all higher highs are indicated by the red trend line. The black trend lines show the stair stepping of the price of the stock as it moves upward. Today's current price of 11.18 is a nice move above 11. I look for long term growth in this stock.
From FXStreet.com:UPDATE: China 2008 Net Gold Imports 112 Tons - Minsheng Exec
Thu, Oct 22 2009, 10:20 GMT
By James Campbell
Of DOW JONES NEWSWIRES HONG KONG (Dow Jones)--China imported 112 metric tons of gold in 2008, an executive at China Minsheng Banking Corp. (600016.SH) said Thursday.A rise in net imports was driven by 176% growth in investment demand for the yellow metal, which hit 68 tons, and 21% growth in jewelry demand to 326 tons, said Lila Lu, the Beijing-based head of precious metals at China Minsheng Bank. Read it HERE.
China continues to spend its dollar instruments for things of real long term value. Remember, too, that China has made it easy for and encouraged the people to buy gold. They are not the dummies we would like to believe. Rather, they are showing more wisdom than our fearless leaders and the masses of Americans. Our leaders should learn to get out of the way and give us a free market for prosperity. And Americans should begin to recognize that precious metals are better than dollars.
From MineWeb.com:
China sovereign wealth fund speeding up investment - mining a target
China's sovereign wealth fund CIC has been speeding up its investment programme spending as much each month this year as in the whole of 2008 - and mining and energy are important targets.
Author: Lawrence WilliamsPosted: Friday , 23 Oct 2009
LONDON -
According to reports in the Chinese press, China's $200 billion sovereign wealth fund, China Investment Corporation (CIC) is stepping up its rate of investment in overseas companies and institutions to take advantage of what it perceives as longer term values resulting from the global financial crisis.
China's People's Daily reports CIC chairman Lou Jiwei as saying that the fund was circumspect in its investment in 2008 as markets plunged investing only $4.8 billion outside China that year, but this year it has been investing around as much each month overseas as it did in the whole of 2008 with the main targets including mining, energy and real estate.
While the principal purpose of the Fund is to create wealth for the country with its huge dollar surpluses there does also seem to be a dual approach in play, particularly with regard to the mining and energy sectors where an element of securing long term supplies for China's ever-growing industrial sector has to be an important factor.
According to official estimates, China's gold mine production reached 282 tons in 2008, making the country the biggest producer in the world.But that hasn't been enough to meet rising demand in the country, which is increasingly looking to gold as a means to diversify its large foreign exchange reserves.
"Exploration investment has only picked in the past two years, so mine supply output growth will not keep pace with (rising) demand," Lu said at Gold Outlook 2009, a gathering of industry participants. Read it HERE.
It must be nice to have almost unlimited surplus funds on hand to continue to shop the world for value in place of ever worth less dollars.
From MineWeb.com:
Gold in for volatile time in runup to G20
Not enough bang for the buck - pressure on U.S. administration to support dollar could create volatility in gold markets.
Author: Lawrence WilliamsPosted: Thursday , 22 Oct 2009
LONDON -
There is increasing global pressure on the U.S. Administration to do more than just pay lip service to a strong dollar policy. So far the ‘strong dollar policy' has actually been one of benign neglect with the U.S. letting the world's global currency drift downwards to the extent that much of the rest of the world is beginning to cry foul as exports are becoming uncompetitive against U.S. products, while in the U.S.A. itself the laissez-faire policy remains in place as long as the Fed sees inflation remains under control.
The worries about dollar weakness are already leading to some countries making moves to devalue their own currencies in the markets, and it seems likely that matters will be brought to a head at the G20 meeting due early next month in Scotland, with world leaders likely to gang up on President Obama to bring to an end the ‘strong dollar' policy which in reality has actually been a ‘weak dollar' policy. But, the U.S. seems more than happy to let the dollar drift downwards as a contributor to ending its own recession through creating a domestic business climate which will start putting people back into work as manufacturing drifts back from the developing world. Read it HERE.
Gold will continue its volatility as the intervention caps and hammers it from time to time masking the true value of gold in relation to the depreciated dollar.
From Bloomberg.com:
California’s Push for Electric Cars May Raise Costs for Power
Oct. 23 (Bloomberg) -- California’s push to lead U.S. sales of electric cars may result in higher power rates for consumers in the state, as a growing number of rechargeable vehicles forces utilities to pay for grid upgrades. Read it HERE.
The law of unexpected consequences of actions taken. Indeed, where is all the extra electric power to charge one's batteries. That is, the batteries of the electric cars.
From Bloomberg.com:
China May Add 11 Million Jobs as Recovery Gains Pace
By Bloomberg News
Oct. 23 (Bloomberg) -- China will probably create 2 million more jobs in urban areas this year than officials targeted, the government said, adding to evidence of an acceleration in economic growth.
Employment is “stable” and the nation will exceed the goal of 9 million additional urban jobs, Yin Chengji, a spokesman for the Human Resources and Social Security Ministry, said. Read it HERE.Aren't there many predicting a great deflation in China? What do they have to say about such reports coming out of China. Of course, the Chinese government is busy, as is the U. S., at putting rose colored glasses on the statistics. However, China is still running on reserves from exports and not building a larger monster of debt as we are.
From Bloomberg.com:
Bank Compensation Curbs Thrust Fed, Treasury Into Boardrooms
By Craig Torres
Oct. 23 (Bloomberg) -- Compensation curbs announced yesterday by the Treasury Department and the Federal Reserve thrust the U.S. government into decisions about pay and performance traditionally reserved for corporate boards. Read it HERE.
Who said that our government was not communistic at heart? Of course, it is only socialist, but with ever more control over more businesses and into businesses, is this not a quantum leap into communistic ownership of all business?
From The Daily Pfennig - pfennig@everbank.com: "Here is a question which needs to be asked: Can the world grow without a robust US consumer? I believe the answer is yes! Growth in Asia and Europe can propel the world out of the global recession without the help of the US consumer; and I think that there is a very good chance that is what is going to happen. Chuck has compared the current state of the US to what happened in Japan after its stock and real estate markets crashed in 1990. Japan plunged into a 10 year period of stagnant growth while the rest of the global economy prospered. Many will question how the global economy can grow without the help of its largest contributor, but Japan was the second largest economy during the 90's, and the rest of the world barely skipped a beat during their malaise.
With the emergence of the consumer in both China and India, the global economy can and will continue to grow even if the US is stagnant. I read a report this morning which stated China will create over 11 million jobs this year, 2 million more than the government had earlier predicted. These new jobs will continue to increase the standard of living in China, and create 11 million 'new' consumers.
While the current administration may talk about reversing the stimulus and government spending as the rest of the world starts to recover, their actions won't match their talk. I believe we will see interest rates stay low in the US for an extended period of time. We will also probably see additional stimulus proposals as US unemployment continues to rise and US consumers continue to tighten their purse strings.
As the rest of the world continues to recover, and central banks begin to increase rates in order to fight rising inflation; the US dollar will continue its slide. A strong dollar just isn't in the interest of the US if we have any plan to try and pay down the tremendous debts and stimulate growth through increased exports. The dollar will fall victim to policies which will be designed to try and push the US economy up to keep pace with the global recovery occurring in Asia and Europe. Despite all of the rhetoric about a 'strong dollar policy', the administration is willing to sacrifice the dollar in order to keep the US from slipping further into recession.
I don't think this is the right course to take for the US, but I firmly believe this is what is going to happen. The future is too far off for politicians to worry about; they focus on the short two year election cycle. They will continue to leverage the future of America with borrow and spend policies designed to keep the US economy on life support until it magically recovers. Their policies will cause a dramatic fall in the value of the US$ which will eventually make our exports competitive and finally spur growth in the manufacturing sector. This drop in the value of the US$ will also enable us to pay down our debts to foreign holders with cheaper US dollars.
I am not suggesting that the US will slip into a 'great depression', but I believe we will see an extended period of stagnant growth. Certain well run companies (like EverBank) will still be able to make a good profit, and the falling dollar will create opportunities for companies with a strong international presence. As an investor, you should look to hedge your portfolio against the inevitable fall in the value of the US$ by investing in non-dollar assets such as our WorldCurrency and MetalSelect accounts."
And we thought the world was totally dependent upon us. In fact, for many decades we thought the whole world circulated around us. Thus, for us, the rest of the world was of no consequence. My how that has changed in the last few decades. We are dragging the world down as we squandered our wealth and stole products from the rest of the world using our "reserve currency status" by making purchases with dollar which we were deliberately depreciating. That is coming to an end. "When?" is the real question. Think about it!
From Reuters.com:
How much is too much government debt?
Thu Oct 22, 2009WASHINGTON (Reuters) - When it comes to borrowing trillions of dollars, it helps to have a golden reputation, a steady income stream, and plenty of rich, trusting friends.
As the world's wealthiest nations pile on debt at a pace that in less developed countries would alarm investors they appear to have ample supplies of all three -- for now.
That helps explain why a $1.4 trillion U.S. budget deficit announced last week drew gasps from politicians but didn't rattle investors who remain willing to loan money to the U.S. government at low interest rates. Read it HERE.
The real question is "How much government is too much?" The less the government, the freer the people and then as government moves back within the Constitution, the needs for taxes will be much less spurring the economy to prosperity. Such a government would be interested more in protecting the life, liberty, and property of citizens as was intended.
Here are the miners using Scottrade's streaming quotes:
Here are the currencies from Kitco.com:
Once again we are approaching the Lord's Sabbath, a day God put aside as a day of worship, acts of mercy, fellowship with the saints, and rest. Let none of us neglect to join with fellow believers in corporate worship as is the practice of too many. We must obey and join with others to worship God. It is very important to hear the proclamation of God's word and to partake of the sacraments. It is equally important for each of us to be under the discipline of a sound church. If your church does not preach the whole council of God from His words in the Old and New Testaments without adding to nor taking away from any of them, then you must find a church that does. There are no perfect churches, because they are filled with men who are sinners like you and me, but many within are forgiven sinners who under the power of the Holy Spirit are growing in the likeness of Jesus Christ through a process which we call "sanctification." Join in the worship of King Jesus.
Best to each, Doug
posted by Doug @ 8:41 AM
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