Gold - Silver - Dollar - Lies - Rhetoric

There are two spots, marked by red arrows, which could be action by the boyz, but I do not know for certain. Silver, currently at 16.39 means that the Silver Eagles are available at about 18.49 and that is a tempting price. Could it go lower? Certainly! Will it? I don't know for the time being. By the way SLV (the silver trust) added some 4,275,780 ounces of silver as reported by Ed Steer's Gold & Silver Daily. That's a bunch and the highest in six months.
Looking at gold, we see a similar pattern. Not really normal or is it?
Gold is locked into a very strong long term bull market. Of course, it is true money while the FIAT unbacked paper currencies of the world, referred to as "money," really are nothing but empty promises. Thus, gold and silver with centuries of recognition as money will replace all of them. From the Gold graph below, we are seeing signs of another upward move. Notice, too, that gold remains above the 50 Day Moving Average which is another good sign not noted on the graph.
From InterFax.com:

Finance Ministry could sell 25 tonnes of gold, possibly on domestic market

MOSCOW. Oct 29 (Interfax) - The Russian Finance Ministry has not shelved plans to sell gold from the State Precious Metals and GemstonesRepository (Gokhran) and could sell approximately 25 tonnes of the metal, possibly on the domestic market, a ministry official told Interfax. Read it HERE.

The Russians cannot make up their mind on this. However, they could just be playing with the market. Others do, why not the Russians, too?

From 321Gold.com:

It's time to end World War II

Hugo Salinas Price
Oct 29, 2009

The shooting, the bombing and the killing of World War II stopped in August of 1945, and the War was formally over.

The United States and Britain knew the War was won, in 1944.

At that time, a Conference was called among the 44 Allied Powers, to determine the nature of the world's monetary and financial system after the fighting was over. It was held at Bretton Woods, New Hampshire, USA, in July of 1944.

As a result of the Conference, a set of Agreements were signed.

The most important of all the agreements was the one that established that gold should be the money to be used to settle all trade deficits between nations, but in lieu of gold, dollars could be used to settle these deficits; at the option of all Central Banks, these banks could demand gold from the United States Treasury at a redemption rate of $35 dollars for each ounce demanded.

Thus, the United States could pay for its trade deficits either in gold or in dollars. No other nation was allowed to pay for its trade deficits in its own currency; for all other nations, settlement of trade deficits had to be done with gold or with dollars previously acquired in the course of trade with the U.S. or with other nations who had dollars. In other words, dollars - and only dollars - were as good as gold.

General de Gaulle (President of France, 1959 - 1969) has been quoted as saying that this was "an exorbitant privilege". And so it was, a privilege of the victor in World War II.

Under the rules of war, a country at war may loot and plunder its enemy, if it can do so. Booty has always been a great incentive to get soldiers to fight, and World War II was no exception. When a war is over the looting and plunder stops and nations renew commercial relations, exchanging their goods in peaceful international trade.

In forcing on the Bretton Woods Agreements the acceptance of the dollar as a means of settling international debts, along with gold, the US established the will of a victorious power to continue to loot and plunder the whole world. Read the article HERE.

What an interesting perspective! It is true that we have bought from the rest of the world with a fraudulent currency which we were supposed to protect. Instead, we devalued the currency since 1971. Thus, it is becoming worthless day by day.

From Reuters.com:

Gold rises on economic optimism

Thu Oct 29, 2009

By Frank Tang and Jan Harvey

NEW YORK/LONDON (Reuters) - Gold rose toward $1,050 an ounce on Thursday, gaining 2 percent after data showing optimistic U.S. economic growth knocked the dollar and sent Wall Street into a rally mode.

Other precious metals rose sharply in gold's wake, with silver climbing more than 3 percent, platinum nearly 2 percent and palladium nearly 3 percent.

Gold has recently climbed in tandem with rising equities, driven by economic optimism. Historically, the metal moves in opposite direction to stocks because of bullion's appeal as a safe haven in terms of crises. Read it HERE.

I don't believe that gold increased in price due to economic optimism. It is still a store of value which is better than any unbacked piece of paper that governments force use as "money." People are beginning to recognize this. As more climb on board, we will have a last minute gold rush.

From TownHall.com:

Dismantling America: Part II

by Thomas Sowell

Many years ago, at a certain academic institution, there was an experimental program that the faculty had to vote on as to whether or not it should be made permanent.

I rose at the faculty meeting to say that I knew practically nothing about whether the program was good or bad, and that the information that had been supplied to us was too vague for us to have any basis for voting, one way or the other. My suggestion was that we get more concrete information before having a vote.

The director of that program rose immediately and responded indignantly and sarcastically to what I had just said-- and the faculty gave him a standing ovation.

After the faculty meeting was over, I told a colleague that I was stunned and baffled by the faculty's fierce response to my simply saying that we needed more information before voting.

"Tom, you don't understand," he said. "Those people need to believe in that man. They have invested so much hope and trust in him that they cannot let you stir up any doubts." Read it HERE.

This article and the following one discuss some of the problems with the current administration. If you bought into the pre-election rhetoric and lies, and voted for the current president, shame on you. You are now reaping the "benefits" of the leader you selected.

From TownHall.com:

The Public Option Is Not an Option

by David Limbaugh

Can you imagine the brazenness of President Barack Obama and his cohorts in going so far as to ridicule opponents of Obamacare for rightly pointing out that its ultimate goal is single-payer socialized medicine?

These people are propaganda virtuosos of the highest order. You might expect grand artists of deception just to silently dismiss such claims from critics or, at most, to summarily deny them. But they go further and mock the critics, trying to reduce them to acutely paranoid, tinfoil-hat-wearing, black-helicopter-hallucinating Cuckoo's Nest inpatients. Read it HERE.

From MineWeb.com:

A quiet storm among gold diggers

Apply the basic metrics, and Gold Fields apparently ranks as the world's most undervalued big gold stock.

Author: Barry Sergeant
Posted: Thursday , 29 Oct 2009

JOHANNESBURG -

An ebullient Nick Holland, CEO of Gold Fields, glowed with confidence when asked about the possibility of a stock valuation re-rating, given the clear discount at which Gold Fields trades to its Tier I global gold stock peers. Speaking on Thursday during question time after presentation of the group's latest quarterly profits, Holland conducted a quick virtual world tour and pronounced that only Australia and Canada could be rated as more friendly to miners than South Africa. On a comparative basis, he put down the rest of Africa, South America, Russia ("No . . . "), and China ("tough").

And Holland would know: Gold Fields operates across the world. In South Africa, its Driefontein and Kloof mines rate as two of the greatest gold mines ever known; Beatrix continues to surprise, and South Deep continues to develop to full mine status, as owner of one of the world's biggest known gold deposits, boasting a monstrous mineral resource of 63.8m ounces (excluding an astonishing further 14.6m ounces at Uncle Harry's). Read it HERE.

From MineWeb.com:

MOVING INTO MONGOLIA

China Investment Corp to invest $700m in second Mongolian mining deal this week

The deal, with Hopu-backed Iron Mining, represents the Sovereign Wealth Fund's determination to move from financials into mining.

Author: Michael Flaherty and Farah Master (Reuters)
Posted: Thursday , 29 Oct 2009

HONG KONG, (Reuters) -

China Investment Corp (CIC), a near-$300 billion sovereign wealth fund, plans to invest $700 million in Hopu-backed Iron Mining International Ltd, a source told Reuters on Thursday.

The investment would be the Chinese fund's second involvement this week in a Mongolian mining deal as it shifts its investment strategy to natural resources from financial institutions.

CIC's [CIC.UL] investment in Iron Mining follows a $500 million deal with SouthGobi Energy Resources (SGQ.V) earlier this week.

The fund's investments in Mongolian mining companies come after a recent change in Mongolian mining laws that have paved the way for foreign investment. Iron Mining International, part-owned by private equity firm Hopu and Singapore state investor Temasek [TEM.UL], plans to list shares in Hong Kong late this year or early next year, hoping to raise up to $1 billion. Read it HERE.

From MineWeb.com:

Sovereign wealth funds to focus on commodities, emerging markets in 2010

While financial stocks will take a back seat

Author: Saeed Azhar and Neil Chatterjee (Reuters)
Posted: Thursday , 29 Oct 2009

SINGAPORE (Reuters) -

Sovereign wealth funds will focus their buying on natural resources and emerging markets in 2010, after picking commodities over financials for most of their $94 billion investments this year, a senior Barclays banker said.

Sovereign funds, managing as estimated $3 trillion (1.8 trillion pounds) in assets, had their fingers burnt in their bold investments in Western banks such as Citigroup and UBS during the early phase of the global crisis.

The funds are returning to markets cautiously after portfolio losses last year forced them to rethink their strategy and risk management, said Gay Huey Evans, vice chairman for investment banking and investment management at Barclays.

"People are going back into the market, but they are going back quietly, gently, thoughtfully, not with a bang," Evans, Barclays' leading banker for state funds, told Reuters on Wednesday. Read it HERE.

China and others see the long term value of commodities and are scooping them up using dollars which are becoming worthless.

From Bloomberg.com:

Obama Bridge to Lasting Economic Expansion Risks Going Nowhere

Oct. 30 (Bloomberg) -- President Barack Obama and Federal Reserve Chairman Ben S. Bernanke built a bridge they anticipate will lead to a lasting U.S. economic recovery. It may end up being a bridge to nowhere they want to be.

The economy grew in the third quarter for the first time in more than a year, propelled by emergency programs to boost buying of cars and homes, according to Commerce Department figures released yesterday. Policy makers are betting those temporary measures will pave the way to a self-sustaining expansion as companies hire and consumers increase spending. Read it HERE.

From The DailyPfennig.com:

Chuck had this as one of his parting shots - "And then there was this... U.S. Treasury Sec. Tim Geithner, announced yesterday that he wants the power to not only tell a corporation that they are closed for business, but to also have the power to shrink Corporations that are not having problems! He will be the "death panel" that Barney Frank talked about a couple of months ago for non-financial institutions... Shake me, Wake me, when's it's over... Maybe I'm having a bad dream, folks..."

The lies and false rhetoric designed to deceive are rampant from this administration. Concentrate upon their actions which speak so loudly, we can barely hear their words.

From Ed Steer's Gold & Silver Daily: "Keynesian economics... and socialist central planning... have trapped the Western economies into a slow death. - Wayne N. Krautkramer"

Here are the miners from Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

BULM is 0.71; BYDDF 9.15; CYRS 0.29; AMNP 0.82; DOW -88to 9874; Gold 1038.30, and silver 16.32.

Folks, I put in orders to buy BYDDF @ 9.01. The price may not get there, but I thought it worth a try to get a few more shares.

The book of Proverbs has much wisdom for us even in investing. Here are a few verses: 10:4 "Poor is he who works with a negligent hand, but the hand of the diligent makes rich."; 11:25 "The generous man will be prosperous, and he who waters will himself be watered."; 12:11 "He who tills his land will have plenty of bread, but he who pursues vain things lacks sense."; 13:22 "A good man leaves an inheritance to his children's children, and the wealth fo the sinner is stored up for the righteous."

The Christian must have a long term perspective, because He knows that God is sovereignly working all things for His glory and for the eventual good of His people. King Jesus wants us not to be in a hurry, but to be sure to prepare our children and future generations to carry on His kingdom work. We must prepare them spiritually and financially.

Particularly, in precious metals investing, we are looking to the future failure of unbacked paper currencies. That would be the ultimate, but in the mean time, they are being depreciated daily.

Best to each, Doug