Metals Down Some - Correction? - Use Caution

It seems that we have been due for a correction in precious metals as both of ours are oversold. However, they have been for several days. I would expect a sharp correction to materialize, but it is likely to last a short time. We still expect higher prices between now and the end of 2009. Only God really knows what will happen even tomorrow. We make our best educated guesses and leave it up to Him.


DROOY is not as technically strong today as it was yesterday, but it is still showing mostly positive indications. It could correct here along with the precious metals. We will have to see what the day reveals to us. I would be extra cautious about further buying until we see where the metals will go from here.
This is one of my favorite silver stocks and has been performing very well with the run up in silver. It will suffer some with a correction, but I am not selling.
From Bloomberg.com:

Arming Goldman With Pistols Against Public

Commentary by Alice Schroeder

Dec. 1 (Bloomberg) -- “I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank. Read it HERE.

Graphs are from CoinExpert.com through Ed Steer's GoldandSilverDaily:

Though the numbers on the graphs are too small for most to read without a magnifying glass, the bars in the graphs reveal the great pick up in sales of these coins by the U.S. Mint in the last two years. There is a great deal of interest in buying gold and silver coins.

From MineWeb.com:

Silver's turn to shine

As silver approaches $20 an ounce again, Peter Grandich reckons it is a sector which could well shine, but thinks America's underlying economic problems will result in prolonged sagging trading performance elsewhere and advises investors "to remove their bullish hats if they're still wearing them." Interview with The Gold Report">

Read it HERE.

From MineWeb.com:

Dollar: not dead, just smells funny

BCA Research expects the trade weighted greenback to fall to fresh lows.

Author: Barry Sergeant
Posted: Wednesday , 02 Dec 2009

JOHANNESBURG -

Over the past year, with the possible exception of the Kazakhstan tenge, the dollar ranks as the world's worst performing currency, among 50 used around the world, and that includes the Icelandic krone, which two years ago looked like it would disappear under an island of ice. Currency volatility is the global order of the day, creating uncertainties everywhere, turning planning and budgeting exercises into epic headaches. On the bright side, the beleagured greenback is universally good for dollar commodity prices, as the same commodities fall in other currency denominations. Read it HERE.

From TownHall.com:

The Pretense of Knowledge

by Walter E. Williams

The ultimate constraint that we all face is knowledge -- what we know and don't know. The knowledge problem is pervasive and by no means trivial as hinted at by just a few examples. You've purchased a house. Was it the best deal you could have gotten? Was there some other house you could have purchased that 10 years later would not have needed extensive repairs or was in a community with more likeable neighbors and a better environment for your children? What about the person you married? Was there another person who would have made for a more pleasing spouse? Though these are important questions, the most intelligent answer you can give to all of them is: "I don't know." Read the thoughtful article HERE.

Miners in Scottrade's streaming quotes:

Currencies from Kitco.com:
BYDDF 9.59; BULM 0.81,DOW 10452 Unchanged; Gold 1213.80, and Silver 19.03. Both precious metals were lower a short time ago this morning. However, they are both on down ticks.

Any buying done now should be very cautious, but not impossible as prices of most of the miners are down a bit. Are we going into another gut wrenching correction? I don't know, but one is over due. It would provide a real buying opportunity as the metals consolidate for another upward spurt.

Best to each, Doug