Precious Metals May Be Topping

Looking at gold today, we see that the rallies in gold were hammered in a big way at least three times over night. Gold is rallying again now. As long as the boyz are intervening, markets are not free to determine price based upon the economic laws of supply and demand. However, the demand must be very strong to continue to rally after the intervention.

Our proxy for gold (GLD) is showing signs of topping. While the prices remain well within the defined trough, see at the black arrow a drop in price today. Though the price is well above the lower trend line of the trough, it is ominous that gold is dropping here. Perhaps, we are about to go into a correction before the upward momentum will take over again.
The Miners are showing a similar topping pattern. It may be wise to place a few trailing stops on the more widely trading miners to cut losses and to preserve profit. If I decide on stops, they will be on some, not all of my portfolio. I never want to be "locked out" by higher prices in this bull market for precious metals. Remember that such stops are not possible on pink sheet stocks.
The silver graph shows identical hammering as was the case in gold. That is further evidence of intervention. The boyz are still at it and have successfully curtailed a strong rally in the precious metals.

From One News Now:

Bible verse ban spawns 'wave of support for Christ'

Despite a large public outcry over its decision to censor Bible verse banners held by high school football cheerleaders on the playing field, a Georgia school board is refusing to change its mind. However, the controversial policy has compelled many students to passionately defend their free-speech rights and proclaim their Christian beliefs.

The Catoosa County Board of Education in Georgia decided last night that it will continue to ban Bible-verse banners held by cheerleaders on the Lakeview-Fort Oglethorpe High School football field. The ban was put in place after one woman complained the on-field banners violated the Establishment Clause of the First Amendment.

Many Christian parents and students in the community have voiced their disapproval of the ban by wearing "Warriors for Christ" T-shirts to football games and displaying scores of posters with Bible verses. And the Board's decision on Tuesday night came despite another round of pleas from Christian parents who attended the meeting. Read it HERE.

This is simply more evidence of the pagan society in which we live. It is a challenge for Christian families to live up to their calling from Christ. We must be separate from the world's lack of moral and ungodly ways, but we are to live in the world. The challenge is greatest in raising children in the nurture and admonition of the Lord. They are easily lost to the electronic games and the peer pressure. This is more testimony to the evil which exists in the government schools which have been dedicated to removing King Jesus from every place within them. Thus, when we send our children to government schools, it is like sending them to worship in Satan's church. There is no education in truth apart from Jesus Christ.

From Telegraph.co.uk:

Harrods to sell gold bullion for first time

It is renowned for its glitzy clientele and upmarket Knightsbridge location, but shoppers at department store Harrods will from today be able to buy the ultimate luxury accessory – gold bars.

In a sign that the credit crisis has left his gilded customer base largely untouched, Harrods owner Mohamed Fayed has teamed up with Produits Artistiques Métaux Précieux (PAMP), the Swiss refiner, to sell gold in the store. Read the article and view the video HERE.

Here is real publicity for gold. Gold available to retail customers. Wonder if American retailers will ever see the potential. If they do, the Gold Rush will be on for certain.

From The Economist:

Slim pickings, no appetite

Oct 14th 2009 | NEW YORK
From The Economist print edition

Constrained lenders and wary borrowers explain falling levels of credit in America

THE worst may be over for America’s financial markets, but they are still abnormal. Bill Dudley, head of the Federal Reserve Bank of New York, captured the mood in a recent speech, bluntly titled “A bit better, but very far from best”. In a survey released this week, members of the National Association of Business Economics said markets would continue to drag on economic growth until at least mid-2010.

For many the big question is whether a lack of credit is holding back America’s nascent recovery. In a sign of easing conditions, usage of the Fed’s special liquidity facilities has fallen markedly and the central bank is gradually winding down its asset purchases. Securitisation markets are thawing, with volumes approaching pre-crisis levels in credit-card debt and car loans—though not in mortgages, which remain dependent on government support. Read it HERE.

Apparently, the consumers are wiser than all of our government. True recovery will be based upon a high rate of saving by consumers to provide funds for businesses and manufacturers for research & development and for capital improvements. The pumping into the economy of many trillions of unbacked FIAT currencies can at the very best provide a false sense of prosperity. In the end, there is the specter of inflation which is on the way. Inflation robs the citizens as a hidden form of taxation.

From the Daily Pfennig:

"I will end today's Pfennig with a prediction from Goldman Sachs. You may have seen where Goldman reported another quarterly profit of $3.2 billion yesterday. The profit is really no surprise when understand just how far 'inside' Goldman is with the administration. Given their position, I always like to read what Goldman is predicting for the currencies. Their latest report said the dollar is likely to extend drops against the euro and commodity-backed currencies over the coming six months (sound familiar?). The euro is now predicted to reach $1.55, revising previous forecasts of $1.45. "It now looks as though the dollar trough will be slightly deeper," Goldman analysts said."

This does, in fact, show how far in with the administration Goldman is. What an advantage! Thus, because of government Goldman is making huge profits and rewarding executives with big bonuses on the backs of taxpayers bail outs. How can this be in a nation of free men. OOPS, I forgot, we are no longer free. We are servants to our government.

Here are the miners compliments of Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

Gold is 1053.90 and silver 17.53 with both on down ticks. The DOW is 9978+ down 38+. BULM last trade was 0.875 and BYDDF was 9.91. Both of these are doing quite well and I am pleased that they are in my portfolio.

Tomorrow is Friday, the weird day of the week in markets. Well now we have had many weird days recently. There is a difference between the price of the precious metals and the prices of the miners. While the metals have gone up significantly, the miners are lagging behind. Thus, we have not seen the masses and probably even many of the big money funds jumping on the precious metals band wagon. It will come, but only the Lord knows when.

I still expect to see both metals and miners much higher by the end of the year. Thus, that is the way my portfolio is being managed. There are many shares of miners on hand, and I do not intend to sell many shares or put in trailing stops on many.

Best to each, Doug