Gold & Silver Down Again - Buying Opportunity???

The bullion banks are actively hammering the price of gold and silver. They are, also, amassing shorts against the longs. Thus, they have not given up the game they play. Once again today, we see their activity at almost the same time of the day. The rebounds are there as the demand remains strong, but the bankers are having their dampening impact on the metals.
The manipulated lower cost of metals is having an impact upon the price of miners. All aspects of the RSI and MACD are negative at present. The gold trend lines in the center section could be tracing an inverted "W" which would be negative. However, they could be showing a stair step upward move for the miners into December. The upper red trend line across the higher highs shows a longer term upward trend. The lower trend line confirms this by following higher lows.

From Reuters India:

India festival saw unexpected jump in gold sales-trade

Wed Oct 21, 2009

* Sales on Dhanteras festival up 10-30 pct from benchmark

* Consumers chose gold coins over jewellery

* Historic data shows big price rise ups 2H gold imports

By Ruchira Singh

MUMBAI, Oct 21 (Reuters) - India's gold sales for the Dhanteras festival could have risen up to 30 percent from a benchmark, as consumers expecting the near-record prices to rise further bought freely.

The Dhanteras festival, celebrated last Thursday, is India's biggest gold-buying day and generally accounts for sales of 15-40 tonnes in the world's biggest market, according to various trade estimates. Read it HERE.

From Mine Web today:

Gold at $1250+ within 6 months - hold on to it!

The Gold Report interviews Eric Hommelberg, well known gold commentator and publisher of Gold Drivers Report who is looking for a bull run in gold to last at least until the middle of the next decade.

Author: The Gold Report
Posted: Wednesday , 21 Oct 2009

VANCOUVER, BC -

The rhythm of this gold market over the past eight years tells Eric Hommelberg that $1,000 gold is history, and we can expect the current climb to push the price past the $1,250 mark next spring. Hommelberg also reckons that while he prefers the precious metals in physical form, he recommends holding a select set of junior explorers, too-ones with trustworthy, savvy managements and promising drill results. Read it HERE.

It would be no stretch of imagination for such a prediction. From here that looks like a slam dunk. The precious metals have a much longer way to go, and the trend remains bullish.

From The Telegraph:

Mervyn King: bail-outs created 'biggest moral hazard in history'

Mervyn King, the Governor of the Bank of England, on Tuesday night launched his fiercest attack yet on big banking.

Mr King indicated that high street banks could and should be separate from their risky investment banking wings and calling for a reconsideration of the financial system's structure.

In comments which will be seen as a clarion call for a potential break-up of Britain's banks, the Bank of England Governor warned that the support handed out by the Government had "created possibly the biggest moral hazard in history". He said that it was insufficient to expect that in the future tighter regulations alone would be enough to prevent banks from generating financial crises. Read the article and see the video HERE.

From a speech by Gary Gensler, Chairman of the CFTC. In it, he speaks about the necessity of reining in the $100+ Trillion OTC derivatives market. See it in pdf HERE.

From Barron's:

Rally Has Less to Bank On

By RANDALL W. FORSYTH

Wednesday's late selloff may have been about more than one analyst's downgrade.

THE STOCK MARKET'S SUDDEN REVERSAL OF FORTUNE in the final hour of trading, taking the Dow Jones Industrial Average down 92 points to 9949 by the close, was blamed on Rochdale Securities' Dick Bove, who downgraded Wells Fargo (ticker: WFC) to a sell recommendation,

Notwithstanding the great (and deserved) respect accorded the dean of bank analysts, it seems a bit of a stretch to think that Bove's change of opinion on a single stock could drag down the entire market. Read it HERE.

Here are the miners from Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

Gold is 1059.20 and silver 17.58. The DOW is up 57+ to 10006+. BULM last was 0.96 and BYDDF was 10.84.

We could be approaching a buying time in the metals and miners. Will have to look closely. I will let you know what I am doing as the time arises.

Keep your focus on the Lord and His providence as He cares for us and continues His call to America for repentance and return to Him. Let's join in prayer to that end. Then King Jesus will bring His people together again to lead the nations to Him.

Best, Doug