Demise of the Dollar - Gold in record territory

Silver is strongly following gold, but is percentage wise far behind. At some point, we should expect it to catch up with gold. Silver is 17.16 now.

Gold is in record territory and has gone to 1037.70 since I captured the gold graph. I posted in purple today's price range on the graph, below.
Here is gold overnight! What a performance. Could this be the third phase. It is a bit early to tell, but with all of the bad news on the dollar one wonders. "How long O Lord?", as David was prone to ask. All is in His hands and I am content to leave the control to Him and praise Him daily for His gracious provision.

From The Independent.co.uk:

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

By Robert Fisk Read it HERE.

Folks, The pressure on the dollar reserve status is building. This has been denied by some of the alleged participants. However, we have seen this happening around the world as China makes deals with other nations to trade in their respective currencies. This is simply an expansion which could be very significant. Those in governments who deny have often been speaking with forked tongues. So beware!

From the Daily Pfennig:

"The first hike... It has opened Pandora's Box of interest rate hikes around the world... For, if the RBA went this soon, then we can expect Norway's Norges Bank to push their rate hike earlier on the calendar, maybe even later this month! And they won't be the only ones! Look for New Zealand to hike rates this year, and who knows what other country (Brazil?) will follow after that... But I see them coming, and they're marching the death march of the dollar!

OK, that was a little dramatic, while I don't believe, although I have more doubts every day, that the dollar would collapse to nothing, I do believe it has a long way to go when it comes to weakening. How else will the U.S. pay pack their debts in the future? It sure won't be because of a cut in Gov't Spending! That is... Unless all this deficit spending can be reversed and Gov't is cut (in size) to resemble something from 50 years ago! But, that's like asking for the moon and sky, eh?"

As Chuck Butler graphically states, real solutions will not be found by our government. The political cost to the incumbents is too high. The dollar is on the way down. At some point there will be a mass exodus from the dollar. We must be prepared ahead of that time. Often it is better to be days, weeks, even months ahead than one hour or day late. One means of preparing is to jump on the BRIC CD to be issued by Everbank.com's World Markets on October 13th. I am buying that for my self. Check it out HERE.

From Kitco.com:

Too Fast and Too Furious - Istanbul Drift

By Jon Nadler

Good Day,

Gold's incursion at figures above the $1000 level continued overnight, as the dollar came under renewed pressure following tepid pro-dollar statements from the Istanbul conclave of the G-7 this weekend. Group of Seven finance chiefs stopped short of singling out the weaker dollar for criticism and stuck to their mantra that “disorderly” swings in currencies threaten economic growth. Although the round-table generated no less of a dollar-supportive statement than that made in the spring of this year, currency traders took the absence of more forceful and/or explicit concerns about the dollar's current state of weakness as a sign that they could continue selling it for the time being. And, that, they did on Monday as well.

Curiously, and for the past several sessions, gold reacted quite a bit less than expected to the dollar's daily gyrations. We have seen this emerging pattern in the declines in gold of previous sessions (when the dollar's rise was not equated by more significant sell-offs on gold) as well as in today's dollar fall, which did not engender a more robust (than $1-$3) gains in bullion. For today, at least, we will attribute the muted response in gold to the continuing sell-off in crude oil (down another $1.60 to 468.35 pbbl). But, the trend of disconnects is worth keeping an eye on. Read it HERE.

Folks, Gold has been holding so strongly above $1,000, I am wondering if we have not already seen our cyclical low which was due the first two weeks in October. If we have, we should have been buying yesterday when both DROOY and HMY were hammered. They have bounded back today. I will be interested in buying on any correction in the metals, regardless of how small it is.

Here are the Scottrade streaming quotes on our miners:

BULM last trade was 0.78; BYDDF 8.50; DOW 9716 +115; Gold 1039.30 and Silver 17.26. Both metals on up ticks.

A bad day for the dollar and a great day, so far for the precious metals. Don't neglect the BRIC CD opportunity. I highly recommend it in good conscious.

Praise the Lord daily. Pray for revival in America. We are in bad need of it as the Lord is using His judgment upon us to call us to repentance.

Best to each, Doug