Precious Metals Up in Asia - Judgment is Coming

I trust that each of you took advantage of the opportunity for corporate worship today. It is a wonderful experience to fellowship with fellow believers who meet together to praise, thank, and worship the Lord our God.

Participation in the sacrament of the Lord's Supper is a joy. We share fellowship with believers of all times -- past, present, and future. Jesus Christ told us that we should do this and as often as we do it, we should recall and meditate upon His might works through the ages and the fact that He is to come again for the final judgment. It is at that particular time when it will be a time of rejoicing and celebration for all who are His joint heirs. It will not be a time of rejoicing for the other people.


Gold is looking quite strong in Asian trading tonight. It could be capped again at the opening in NY, but that is not for us to know at present. Currently, gold is at951.50 up 11.90 and silver is 13.27 up 0.16. The bear is raging through the general market with both the DJI and Transportations reconfirming with new lows. This is CRASH MODE! We best not fight the trend. It will be wise to closely follow our mining stocks this week.

We may be offered new buying opportunities. I will try to provide and update when the US markets open.

This from Business Intelligence Middle East will most certainly increase the demand for precious metals:

Dubai gold tradeable security to be launched Monday

Source: BI-ME , Author: BI-ME staff

Posted: 27-02-2009 Read the article HERE.

From USNews:

Obama's $646 Billion Cap-And-Trade Green Tax

February 26, 2009 11:09 AM ET | James Pethokoukis |

As I see it, the most important single item in President Obama's budget is his commitment to a cap-and-trade plan (to limit and reduce carbon emissions). It represents nothing less than an absolutely breath-taking attempt at reengineering the entire American economy. The White House expects the system will begin generating revenue for the government in 2012. By auctioning off carbon permits, the White expects the plan to bring some $80 billion a year between from 2012 to 2019. Read it HERE.

From White House Press Office:

Friday, February 6th, 2009 at 12:00 am

Executive Order: Use of Project Labor Agreements for Federal Construction Projects

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release
February 6, 2009

EXECUTIVE ORDER

- - - - - - -

USE OF PROJECT LABOR AGREEMENTS FOR FEDERAL CONSTRUCTION PROJECTS

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Property and Administrative Services Act, 40 U.S.C. 101 et seq., and in order to promote the efficient administration and completion of Federal construction projects, it is hereby ordered that:

Section 1. Policy. (a) Large-scale construction projects pose special challenges to efficient and timely procurement by the Federal Government. Construction employers typically do not have a permanent workforce, which makes it difficult for them to predict labor costs when bidding on contracts and to ensure a steady supply of labor on contracts being performed. Challenges also arise due to the fact that construction projects typically involve multiple employers at a single location. A labor dispute involving one employer can delay the entire project. A lack of coordination among various employers, or uncertainty about the terms and conditions of employment of various groups of workers, can create frictions and disputes in the absence of an agreed-upon resolution mechanism. These problems threaten the efficient and timely completion of construction projects undertaken by Federal contractors. On larger projects, which are generally more complex and of longer duration, these problems tend to be more pronounced. Check it out HERE.

Remember these ads promoting Made In USA by union workers >> Click HERE. You should be hearing more of these type ads or legislation of trade barriers.

More of this labor union pandering is on the way with this White House. You should expect it in spades as the push for larger government, central planning, and socialism advance to the fore front. Trade barriers are on the way, too. That is disastrous to international trade and has led to many wars in the past.

You should really listen to this CNN Youtube video >> Click HERE. Watch it again with the whole family!

From The Examiner:

America's biggest problem is big government

By Dr. Gary Wolfram
- 2/26/09

It is clear that members of the Democratically-controlled Congress and President Barack Obama have either not read or have choosen to ignore the 10th amendment to the United State constitution.

That’s the amendment that reads: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

In his recent address to the joint session of Congress, Obama, cheered on enthusiastically by Speaker of the House Nancy Pelosi, D-CA, declared how the federal government will become more fully involved in the financial industry, the auto industry, the health care industry, the energy industry, higher education, and K-12 education among other things.

This speech reflects an attitude of a federal government that is unbounded in its powers and responsibilities. It is consistent with the so-called stimulus package that contains a vast array of federal government intrusions into the private sector and what are properly the responsibilities of state government. Read the article HERE.

From Commodities OnLine:

Why China wants to buy $93 billion worth of gold

2009-03-01 15:15:00

Commodity Online
BEIJING: Chinese investors beware! Don’t get trapped in the glitter of gold. In China, investors have been rushing to gold following the crash of global markets. Read the article HERE.

Best to each, Doug

Metals Capped Again, but Climbing Upward

The financial situation here in America should not rob us of hope. As we examine the world about us, we can let ourselves be fearful or we can look to and trust in our Lord and Savior, Jesus Christ.

As joint heirs with Him, we can rest in Him amidst any storm which He brings into our lives. We know that each challenge is for our growth. Also, we know that each challenge has been experienced by men before us and that He will always provide a way of escape that we would not be tested or tried beyond that which we can endure. We must always trust in Him and know that He will not leave us.

So many are His promises and we are certain that He cannot lie. Were He to lie, He would not be God. But HE is THE GOD. Praise Him daily and be sure to join in corporate worship on the coming Lord's Day. It is our joyful duty!

Gold seems to be capped each time it moves upward. However, the upward pressure is still very strong and I would expect it to resume its upward thrust very soon. Presently gold has moved up to 853.10 and silver to 13.35 with both on up ticks. There is still a lot of buying into the metals and the mining stocks. Our trading stocks are showing signs of life. DROOY is up to 8.18; HMY is slightly lower at 12.30, and VGZ is 2.12. Both HMY and VGZ are in careful, cautious buying range for me.


From Bloomberg:

Banks Vacate Towers Pushing Empty NYC Space to Record

By David M. Levitt

Feb. 26 (Bloomberg) -- New York’s biggest banks and securities firms may relinquish 8 million square feet of office space this year, deepening the worst commercial property slump in more than a decade as they abandon a record amount of property.

JPMorgan Chase & Co., Citigroup Inc., bankrupt Lehman Brothers Holdings Inc. and industry rivals have vacated 4.6 million feet, a figure that may climb by another 4 million as businesses leave or sublet space they no longer need, according to CB Richard Ellis Group Inc., the largest commercial property broker. Read it HERE.

From Reuters:

Swiss party wants to punish U.S. for UBS probe

Sat Feb 21, 2009 9:53am EST

ZURICH, Feb 21 (Reuters) - The right-wing Swiss People's Party (SVP) called on Saturday for retaliation against the United States over a U.S. tax probe into the country's biggest bank UBS that threatens prized banking secrecy. Read it HERE.

From GATA:

Gold coin shortage as demand soars

Submitted by cpowell on Wed, 2009-02-25 20:22.

By Javier Blas
Financial Times, London
Wednesday, February 25, 2009

NEW YORK -- The rush by retail investors into bullion coins is creating shortages as mints across the world struggle to meet the surge in demand, dealers and mint officials say.

The scarcity is lifting coin premiums to as much as 5 per cent above the spot gold price, a level reached briefly after the collapse of Lehman Brothers last September, when coin shortages also surfaced. Read it HERE.

From The Telegraph UK:

The people say they'll keep calm and carry on. . . but for how long?

Labour has failed us – and if the Tories can't find a solution to our problems, the public mood could turn ugly, warns Simon Heffer.

Simon Heffer
Last Updated: 7:27PM GMT 25 Feb 2009

Last Saturday we went for an outing to Woodbridge, a charming and apparently prosperous market town in east Suffolk. It took but a few moments wandering along the main shopping street to note something unusual. Almost every shop (excluding the handful that have closed down) had at least one poster in the window proclaiming KEEP CALM AND CARRY ON. You may have seen this poster. It was printed by the government in 1940 for use in the event of an invasion. It is a tribute to the temper of our people in those times that it would probably have been taken seriously. Read it HERE.

From MineWeb:

Gold ETFs - are these the World's best-performing securities?

Retail-style gold bullion ETFs this week hit record levels, holding 45m ounces of gold, more than China and India combined.

Author: Barry Sergeant
Posted: Thursday , 26 Feb 2009

JOHANNESBURG -

This week, the world's six largest gold ETFs (exchange traded funds) held an aggregate 44.6m ounces of gold, or 1,247 metric tons, under management, an all time record. Commodity ETFs, such as these, trade just as do listed stocks, but instead of running as operating gold diggers, the funds buy (and sometimes sell) physical gold bullion, on behalf of investors, saving them the hassles of transport, delivery, storage, security, insurance, and handling. This is real gold, with electronic convenience. Read it HERE.

This is an interesting article fairly covering the gold ETFs reporting the total holding and value of the metals held. It seems that they have been the best securities for some time. And the mining stocks are not far behind.

Below, are the graphs of GDX (Miners) and GLD (Gold ETF). Note that both are in a strong upward move. Tracing the highs with a trend line and the lows with a trend line, we would define an upward trough. For me, as the price neared the lower trend line, it would be a buy sign. Carefully, consider your portfolio and situation to see if it would be right for you.

More from MineWeb:

Witnesses testify mining law reform bill will result in more U.S. job losses

What former Interior Solicitor John Leshy called the most important task among public lands issues-mining law reform--is once again gathering momentum in a congressional subcommittee. Author: Dorothy Kosich
Posted: Friday , 27 Feb 2009

RENO, NV -

As yet another in a steady stream of mining law reform bills kicked off in its first hearing in a congressional subcommittee Thursday, a Nevada local government official warned representatives, "It would be unforgivable if-especially now in a time of economic crisis-this industry was damaged or destroyed by well meaning but misguided officials from our own government."

In testimony before the House Natural Resources Subcommittee on Energy & Mining, Elko County, Nevada, Commission Chair Sheri Eklund-Brown asked, "In my community, and maybe in yours, we often hear people wondering: why are Americas losing high-wage jobs? Why are industries that support them moving off shore?" Read it HERE.

This is just more of the intervention by the Federal Government into the market place. We must keep that bull out of the china, or the results will certainly be fewer jobs. Look at the loss of manufacturing, as well as mining industry over the last two decades. This is the result of the bull thrashing around with regulation, taxation, and what all. We need no more of this.

Best to each, Doug

Precious Metal Continue Correction

Another correction presents another opportunity for beginning or adding to your portfolio. The precious metals appear to be the only game in town worth our attention. You must decide this for yourself. The intervention will end at some point in time and then the coiled spring of price will sprint upward at a pace we have not seen since 1979-1980. I believe the time will come.

It is time to be very cautious in buying both the metals and the mining stocks. I am buying a little at a time as the prices drop. They are likely to go lower, but one never knows where the bottom is or when the reverse will come. Depending upon your situation and your portfolio, you may want to cautiously jump in with incremental buying. That is the way, I proceed. Yesterday, I purchased DROOY, HMY, and VGZ all at prices above the present. With gold at 932.80 and silver at 13.01 with both on down ticks here are our trading stock prices: DROOY 7.96; HMY 12.16, and VGZ 1.98. Here are the trusts and ETFs in precious metals: CEF 11.53; GLD 92.09, and SLV 13.01. Below are two of the precious metals trust ETFs. Notice that both are moving upward in a trough and that the price today is near the bottom of the upward trough.


Both gold and silver were hammered down during the last two days. The downward pressure is still evident; however, now it seems to be more profit taking.



This from Casey's Daily Resource Plus: "No sooner had I sent in my Wednesday rant, when rallies began in both gold and silver shortly after London opened. The rallies really developed some legs once Comex floor trading got underway in New York. But, it all came to an end at the London p.m. fix. Then, shortly after London closed for the day, the New York bullion banks went to work and erased not only the wonderful N.Y. gains...but all the gains in London as well! However, prices did manage to recover slightly, later in electronic trading in New York."

I pray that some day the intervention will cease. The free market would provide a better price for precious metals and a better solution to the present financial debacle.

From Mineweb:

SA GOLD "BLEAK"

Gold market surplus to widen in 09

The VM Group looks at what lies ahead for the gold market this year in its Yellow Book.

Author: Tessa Kruger
Posted: Thursday , 26 Feb 2009

JOHANNESBURG -

The gold market surplus will widen from 60t (1.9m ounces) to 284t (9.1m ounces) this year, despite the fact that total gold supply is expected to weaken slightly to 3,770t (121m ounces), says the VM Group.

The Group said in its recent Yellow Book that although this was the largest surplus for a number of years, it was "relatively modest" given the potential for investment demand outside of ETFs and coins to absorb this metal.

"It does emphasise however, how it is investment demand that is driving this market, given the decline in support from dehedging and jewellery sales," commented the VM Group. Read it HERE.

More from MineWeb:

HAVES AND HAVE-NOTS

Gold miners talk of expanding; base metals miners cutting back

The BMO Metals and Mining Conference has highlighted the differing fortunes of gold and base metals miners in the current economic environment.

Author: Cameron French
Posted: Thursday , 26 Feb 2009

TORONTO (Reuters) -

Soaring gold prices and rock-bottom base metals have split the mining sector into camps of haves and have-nots, with the contrast clearly evident at the BMO Capital Markets Metals and Mining conference, which wrapped up on Wednesday.

With gold prices having flirted with record highs this week and mining costs in decline, gold producers in attendance talked up expansion possibilities and tried to sell potential investors on new projects. Read it HERE.

From Bloomberg:

Jailed Billionaires Show New Face of China as Markets Unravel

y William Mellor

Feb. 24 (Bloomberg) -- If China’s richest man knew he was about to become the most prominent casualty of the country’s love-hate relationship with capitalism, he didn’t show it this past August.

Huang Guangyu, a peasant’s son who became a billionaire by building Gome Electrical Appliances Holding Ltd. from scratch, outlined plans for continued expansion of the 800-store appliance chain. Read it HERE.

The Sovereign God of all has been patient with us for many years, but now seems to at an end of His patience with us. Perhaps, all of the moral decay we see about is due to the fact that He has, as He often does given us over to our own devises. (See Romans Chapter 1)

He does this to show us how stupid and ungodly we are acting and to call us back to Him. Remember there is no guarantee in scripture that These United States will last. We were blessed with founders who were greatly influenced by the word of God as they designed our Constitution and established a limited government under law. Now the nation acts as if it were not under Constitutional law, but subject to the evolving, changing laws of man. At one time in our nation ignorance of the Constitutional law and law of God was not a legitimate excuse for violation. Now, with ever changing and multiplicity of laws, no man can live with violating some obscure law. What a change!

King Jesus must ever look down from Heaven and weep over the way mankind is trampling upon Him and arrogantly shaking his fist in the face of our Lord. We must weep before our God for the wickedness of our governments and seek forgiveness for our own sins. Then, perhaps, He will heal our land as we turn back to Him.

Would that our leaders would sincerely call for national repentance as did Nineveh when Jonah brought the word of the Lord to the corrupt city. God spared Nineveh, because they repented and sought forgiveness. Perhaps, He will do the same for us. I urge you to pray to that end.

Best to each, Doug

The Boyz Whacked the Metals Again - But God is Sovereign

I rest solidly in the Sovereign God of all. It is wonderful to be able to trust Him for success. We are to use our brains and resources as wisely as possible as good stewards, but the success is up to Him. He, without doubt, knows what is best.

Too many citizens, today, are dependent upon the government and it has become a false messiah for them. There is only one Messiah. There is only one true God. All religions do not worship the same God. Jesus Christ is THE way, THE truth, and THE light. There is no other like Him. As the Holy Spirit awakens the sinner and brings Him to the feet of King Jesus, He begins to see his need for THE Savior.

Pray for a great revival in These United States. We certainly need one among the elected politicians to convert them into statesmen with sound principles and dedication to truth and righteousness.


Folks, look at the gap down in the red curve (Feb. 24) on both silver and gold at precisely 12:00 (NYT) on the NYMEX. That is, at the very least, suspicious. It seems that the boyz hammered each of our metals four times yesterday to whack a good bit off the price. They continue to do so unabated by the mining companies and the regulatory agencies. However, they did provide another buying opportunity.

Both are moving upward again today with gold at 974.50 and silver 14.11. I did make some buys yesterday in the mining stocks. HMY is a reasonable buy at 12.55. DROOY is now 8.246 and VGZ 2.29. Buying on dips seems to me to be a good time for purchases.



From FT.Com Financial Times:

Gold slips towards $950 amid profit taking

By Chris Flood

Published: February 25 2009 12:00 | Last updated: February 25 2009 12:00

Gold extended its retreat for a third session on Wednesday, dropping towards the $950 level, while oil prices moved higher ahead of the latest US weekly inventories data. Base metals rose, helped by gains for equity markets which led to a modest improvement in risk aversion.

Gold sank to $954.20 a troy ounce, trading between a low of $952.30 and a high of $966.35, after ending trading in New York on Tuesday at $963.15. You will have to register free to read the article HERE.

From Counter Punch:

Doomed by the Myths of Free Trade

How the Economy was Lost

By PAUL CRAIG ROBERTS

The American economy has gone away. It is not coming back until free trade myths are buried six feet under.

America’s 20th century economic success was based on two things. Free trade was not one of them. America’s economic success was based on protectionism, which was ensured by the union victory in the Civil War, and on British indebtedness, which destroyed the British pound as world reserve currency. Following World War II, the US dollar took the role as reserve currency, a privilege that allows the US to pay its international bills in its own currency.

World War II and socialism together ensured that the US economy dominated the world at the mid 20th century. The economies of the rest of the world had been destroyed by war or were stifled by socialism [in terms of the priorities of the capitalist growth model. Editors.]

The ascendant position of the US economy caused the US government to be relaxed about giving away American industries, such as textiles, as bribes to other countries for cooperating with America’s cold war and foreign policies. For example, Turkey’s US textile quotas were increased in exchange for over-flight rights in the Gulf War, making lost US textile jobs an off-budget war expense. Read the whole article HERE. Pay particular attention to the last paragraph.

From The National Review:

COVER STORY VI
Go Forward to Gold
How to lift the reserve-currency curse

LEWIS E. LEHRMAN & JOHN D. MUELLER

THE most disturbing aspect of the current financial crisis is that no U.S. official has correctly identified its primary cause. Experts variously attribute the economic reverses to subprime lending, derivative trading, excessive leverage, and regulation that was either too lax or too strict (take your pick), but these are symptoms rather than causes. Ignored is the main culprit: the dollar’s role as the world’s main official reserve currency. Though he almost certainly doesn’t realize it yet, President-elect Barack Obama will either set the dollar’s reserve-currency status on the path to extinction or risk becoming the next victim of what we call “the reserve-currency curse.”

Official reserves are money held by governments and central banks for the settlement of international payments. A Spanish bank may not want to accept Indian rupees, and it might be inconvenient for Qatar Petroleum to accept Mexican pesos for a million barrels of oil. An official reserve currency is one everybody agrees to accept, and right now that currency is the dollar. But foreign-exchange reserves are commonly held in the form of government debts of the nation that issued the currency. In the case of the United States, that includes all those government bonds piling up in China and elsewhere. The problem is that, unlike gold, official dollar reserves increase the money supply in one country without decreasing it in another. When reserves are being increased, the effect is inflation. When reserves are liquidated, the effect is deflation — potentially dangerous deflation. Read it HERE.

From Kitco Commentaries:

By James Turk

Feb 23 2009 10:08AM

Silver Is Again Outperforming Gold

I am often asked whether I favor gold or silver as my preferred sound money. It is a difficult question, and perhaps comparable to asking a parent which child is his or her favorite. As we parents know, they are all wonderful, but perhaps in different ways because no two children are alike. So too with gold and silver.

Both gold and silver can accomplish the same objective. Physical gold and physical silver – in contrast to the numerous paper representations of these precious metals – are tangible and not financial assets, so their usefulness and therefore value is not dependent upon any one person’s, company’s or government’s promise. Read it HERE.

Keep you eyes upon the Covenantal God of Scripture and dedicate yourselves to following His way as spelled out in the bible. There is no other way.

Best to each, Doug

Precious Metals are Correction - Offering Buying Opportunities

All of this financial chaos may well be the wrath of God being poured out upon the nations of the world who have without exception instituted FIAT unbacked paper currencies clearly in violation of God's law again unequal weights. Here in These United States of America, this is a violation of our Constitution.

We must as a nation get down on our knees and pray that God will forgive us for national sins. Our national sins are legion. We murder unborn children, just as the pagan nations of the world did in the past. Even our "noble" savages in the New World sacrificed children to their gods. Generations of Americans see the government as a messiah with all the solutions for the perceived problems of today. It is not the Messiah, and only can offer solutions which are continuation of the same tactics that created the problems we face.

The New World Order spoken of by both Bushes and Clinton is simply another Tower of Babel which is against the law of God. We fail to learn from the mistakes of the past. God created the individual nations and does not intend to let us move to a World Government and its totalitarian government.

We must earnestly pray for an end to our sins. Repentance and a return to the God of the foundation of our nation is absolutely essential for any blessing of God.

Folks, the miners have broken below the 50 day moving average, as is clear on the, above, graph. Today I have been buying DROOY at just over $8 and VGZ at about $2.20. I have GTC Limit orders for DROOY @ $7.99 and VGZ @ $2.09. I have started buying small additions to my portfolios as this correction proceeds. I want more mining stocks. Also, additions to precious metals can be accumulated by buying shares in CEF, GLD, and SLV. I, also, like Everbank World Markets Metals Select Funds or James Turk's Goldmoney accounts.

Both of our precious metals clearly indicate intervention. Gold and silver are being hammered down by deep pocket banks. See the report from Casey's, below. As this is written Gold is down to 962.10 and silver to 13.81.

From Reuters:

Some U.S. jobless find hope and solace as volunteers

Tue Feb 24, 2009 12:15pm EST

By Andrew Stern

CHICAGO (Reuters) - When out-of-work accountant Jim Ammon tires of scouring for scarce job listings, he takes out his frustrations by driving in nails for new houses he volunteers to build for the working poor.

Laura Spelke volunteers at the United Way charity in Portsmouth, New Hampshire, in part to escape the sting of losing her sales job: "Volunteering is a way to stay active and stay in touch and not sit home and eat bonbons feeling sorry for myself." Read it HERE.

From Casey's Daily Resource Plus:

"One more thing today. I've been talking about JPMorgan and HSBC USA being the big gold and silver shorts. That's true...but the percentages I was using were incorrect. Yesterday I got my hands on the third quarter precious metals derivatives report for U.S. banks...and these are the actual percentages...Bank of America - 0.3%, Citigroup - 2.0%, HSBC USA - 19.1%, JPMorgan 78.5%. All the other reporting banks (hundreds of them) hold an insignificant 0.2% divided up between them. So...JPMorgan, HSBC USA and Citigroup hold 99.5% of all precious metals derivatives positions by all U.S. banks. Any further questions?"

This should prove to all that the banks are playing a game with the precious metals. There can be no doubt now. Further, I would suggest that the Federal Reserve is using the major banks as a proxy for the game.

From Reuters:

Soros sees no bottom for world financial "collapse"

Sat Feb 21, 2009 4:19pm EST

NEW YORK (Reuters) - Renowned investor George Soros said on Friday the world financial system has effectively disintegrated, adding that there is yet no prospect of a near-term resolution to the crisis.

Soros said the turbulence is actually more severe than during the Great Depression, comparing the current situation to the demise of the Soviet Union.

He said the bankruptcy of Lehman Brothers in September marked a turning point in the functioning of the market system. Read it HERE.

From The Telegraph UK:

Will Germany deliver on the Faustian bargain that created monetary union?

If Der Spiegel is correct, the German finance ministry is drafting rescue plans to prevent default on the edges of the eurozone leading to a full-blown collapse of Europe's monetary system.

By Ambrose Evans-Pritchard

Last Updated: 6:57AM GMT 23 Feb 2009

his is an entirely appropriate policy in economic terms. One dreads to think what would happen if the world's twin reserve currency were to disintegrate at this stage.

But what about the solemn pledge to voters by Germany's political elites – promiscuously given over the years – that monetary union would never leave them on the hook for the debts of half Europe?

The vast imbalances that have been allowed to build up under the seductive protection of EMU leave German taxpayers facing bail-out liabilities that exceed the cost of reparations after the First World War, in proportional terms. The political ground has not been prepared for this. EMU was foisted on the German people without a referendum, in the face of deep public scepticism and scathing criticisms by the professoriat. This failure to secure a mandate for such a revolutionary undertaking is coming back to haunt them. Read it HERE.

From Mine Web:

Gold will be the last man standing - Lou Paquette

Newsletter writer and commentator Lou Paquette believes that as people finally begin to realize that gold is the only asset we can count on any more, the bull market will "come out of its shell." He shares some of his favorite mining companies that are well-positioned to ride out these turbulent times. Interview with The Gold Report.

Author: The Gold Report
Posted: Monday , 23 Feb 2009

VANCOUVER, BC, CANADA -

The Gold Report: Lou, you have indicated that you think the bailout plan will be really good for people who own gold. Can you give us your overview of what's happening and how it's going to help those who hold gold?

Lou Paquette: You know, sometimes, it's the simple answers that are the right answers, and it's becoming obvious that the printing presses are going to get turned on and they're not going to stop. They're going to keep going 24 hours a day.

At the beginning of the gold market, it was the hard-core gold bugs that were getting bullish. And then it started to spread out to other investors who liked alternative investments, but now mainstream banks are recommending gold-banks that you never heard talk about gold before.

So, it's really spreading out to the common person right now; everybody's hearing that about the only thing we can count on anymore is gold as an asset. So, the bull market is just coming out of its shell.

TGR: The U.S. is not the only country printing money at this point; there are many countries that are doing rescue packages, also inflating their currencies. If every country in the world is inflating its currency, doesn't that kind of neutralize it all? Read it HERE.

Let us purpose to repent of our sin and turn back to the Sovereign God of all before it is too late.

Best to each, Doug

Gold Down a Bit, but Miners Holding Firm

Silver is hanging in very strongly - Now 14.56 on an up tick.

Gold is holding fairly well and is now 992.90 on a down tick.

The HUI Miners Index and GDX Miners are holding firm. Our trading stocks: DROOY is off 0.49 to 8.68; HMY up 0.07 to 13.12; VGZ up 0.06 to 2.57. Trusts & ETFs CEF up 0.16 to 12.47; GLD up 0.08 to 97.88; SLV up 0.16 to 14.42.

Over all this is good performance for the precious metals and mining stocks. The DJI are off 1.04.66 to 7261. Thus, the general markets remains in crash mode.

This update is going to be short, because I wanted to get the info out ASAP. I am not doing any trading at present, but have my powder dry for when the time is right. I want to add to my mining stocks and precious metals.

Keep your focus on the Lord and serve Him. We have no choice but to do that and live or die in our trespasses and sins.

Best to each, Doug

Gold hit briefly above 1000 last week. God is in control.

I took a week off and the precious metals went wild. Seems that is what generally happens when I sneak away. It is hard for me to believe that the month of February is about gone. Just six days left.

Time is running very short for most to dig themselves out of debt. However, this must be the goal of each of us. As God's word says that the borrower is slave to the lender. We have lived on debt for such a long time that many folks do not know any other way to live. This is leading to many bankruptcies of families and businesses all over America. Debt free living provides a great degree of freedom.

We must learn to live beneath our means and put as much as possible in an emergency saving fund. This is essential for people to live debt free. It eliminates the necessity of debt for emergency needs.

Think about planting "victory" gardens to provide a portion of good food for the families. What a great project this is for young children. Get them into gardening rather than the mind numbing electronic games which consumes too much of their time without providing real Godly benefit. After all, we should as parents and grandparents be preparing them to work for the spread of the Kingdom of God over all the earth. God demands that we do this. However, most of us are too complacent to educate our children toward this goal. 'This should be the primary task of the parents, and it should begin at very early age. However, it is never too late to start.

Recognize that exposure to the vile language of modern movies, music, and even media ads numbs the mind to the language which should shock sensitive minds. It leads us to believe that this is normal. It is not in the eyes of the sovereign God of all. He abhors vile language and those who take His name in vain. He hates this and so should we. He hates ever type of sin and so should we.


Silver is holding fairly well at 14.30 now on a down tick.
Gold is at 985.90 on a down tick. Both of these prices are from current Asian trading.
On Friday, the miners were holding above both the 50 and 200 day moving averages. We should expect some kind of a correction after the metals sprinted ahead. Gold briefly shot up above 1000.

I am looking to add to my portfolio of DROOY, HMY, and VGZ possibly this week. I am waiting for an expected correction in the price of the metals which should be reflected in the miners. Using great caution, I will be as patient as I can. Of course, I may use some options on those miners which offer options.

Options tend to give more leverage, but have an expiration date. Thus, one must be careful when using options.

The general market looks to be the worst we have seen in years. It is the most dangerous market of recent times. If you are in it, you are losing dollar value almost daily. Many believe they have no stake in the market, but how about your 401k and IRA accounts? Are these in the general market though mutual funds or other managed accounts? Have you checked the value of these accounts recently and compared them on an annual basis? Even money market funds pay so little dividend and interest that the purchasing power is lost as the dollar devalues. Check it out for yourselves.

Here are Friday's closings: DJI 7365.67 Off 100.28; Nasdaq 1441.23 Off 1.59; S&P 500 770.05 Off 8.89, and Dow Transportations 2698.87 Off 9.43. This is not a good showing. I have been selling into any increases and have almost completely eliminated all my general stocks. I am still holding the mining stocks and bullion trusts.

From Bloomberg:

Obama Plans to Slash U.S. Budget Deficit by 2013

By Hans Nichols and Nadine Elsibai

Feb. 22 (Bloomberg) -- President Barack Obama plans to increase taxes on the wealthy and cut spending for the war in Iraq as part of a plan to slash the U.S. budget deficit to $533 billion by the end of his first term, according to an administration official.

Obama wants to reduce the deficit because he’s concerned that over time, federal borrowing will make it harder for the economy to grow and create jobs, said the official, speaking on the condition of anonymity. Read it HERE.

This reminds me of the promises of all politicians. They promise the impossible, because they believe it sounds good and will buy them some support, particular reelection. It is a bit early for running again. He's only been there a month. I really don't know what he is thinking if he intends to slash the deficit on the backs of the "rich." Who are these "rich?" The higher income bracket folks are those who pay significant amounts of the income taxes. Sounds more like a continuation of the tactic of dividing the population and playing one segment against the other. More divide and conquer tactics.

More from Bloomberg:

Asia Agrees on $120 Billion Currency Pool Amid Crisis

By Shamim Adam and Seyoon Kim

Feb. 23 (Bloomberg) -- Asian nations will form a $120 billion pool of foreign-exchange reserves that can be used by countries to defend their currencies in an expansion of efforts to battle fallout from the global financial crisis.

Finance ministers from Japan, China, South Korea and 10 Southeast Asian nations agreed to the fund at a summit yesterday in Phuket, Thailand. The amount is 50 percent more than was proposed last May, and a broadening of the current arrangement called the Chiang Mai Initiative that allows only bilateral currency swaps. No date was set for completion of the new pool. Read it HERE.

Asia is awakening to the need for an Asian common currency. This is not that, but it could be a forerunner to one. They are moving to defend themselves against the coming massive depreciation of the dollar.

More from Bloomberg:

American Budgets Have More to Spare for Cars, Home Than in 1955

By Bob Willis

Feb. 21 (Bloomberg) -- Even in the midst of what may become the worst recession in the postwar era, Americans still have the means to enjoy more luxuries than their parents or grandparents did a half-century ago -- for now.

Necessities like food and clothing take a much smaller share of household budgets, with plenty left over to pay for bigger homes, second or third cars and higher levels of education than families could afford back then. Read it HERE.

Americans have more to spare, because of the high level of debt and the fact that the dollar remains the reserve currency of the world. The latter advantage may be coming to an end in the not too distant future.

From Reuters:

U.S. seeking up to 40 percent stake in Citigroup: report

HONG KONG (Reuters) - The U.S. government may end up holding as much as 40 percent of Citigroup's common stock, the Wall Street Journal reported on its website, citing sources familiar with the plans.

But Citigroup executives hope the talks with U.S. federal officials will result in a stake closer to 25 percent, the Journal reported. Read it HERE.

The major difference between socialism and communism is that under the latter, the government owns more banks, businesses, and property. That is for the "good" of the masses. However, private ownership of property is a Godly necessity in a free market. We are moving more toward greater central control at the federal level, and are losing more freedom in the move.

Let us pray diligently that the Lord will spare us as a nation and return us to the God of our forefathers before it is too late for America.

Best to each, Doug

Folly of Man Causes Precious Metals to Climb

Our Father God has much to scorn these days with the futile antics of Washington and other governments around the globe. He must be rollicking about with glee at the folly of man.

In spite of the objection by the citizens and many who are actually in the know, Obama and Washington are about to do something, any thing, just something whither right or wrong. They are proposing the same poison which got us into the financial mess.

God's Word provides the way for governments, churches, and families to act for success. Man DOES NOT KNOW WHAT IS BEST. Our Creator does and we must follow His way. Even our Declaration of Independence and Constitution are much better laws which each elected official has sworn to uphold. Of course, each has given lip service to his oath. Actions speak so loudly, we cannot hear the words.

I would suggest that each of you study your Bible and then the Constitution of These United States of America. Then examine the actions of our government in light of these higher laws.



All of the precious metals are holding strong with gold moving upward very strongly. Gold is 947 and silver is 13.51. Platinum is back above 1000.

From Mine Web:

GOLD BULLION AND GOLD STOCKS

Gold: nothing succeeds like success

Listed gold (and silver) stocks continue to deliver price increases at an astounding pace, underpinned by continually robust gold bullion prices.

Author: Barry Sergeant
Posted: Thursday , 12 Feb 2009

CAPE TOWN -

Listed gold stocks continue to lead the attempted recovery in global stock markets, supported on Wednesday by a dollar gold bullion price that moved to seven-month highs, above USD 945 an ounce. Measured on an absolute basis, the market value of gold stocks listed around the world moved to well above USD 200bn, the highest level seen since October 2008, a month after erstwhile Wall Street investment bank Lehman Bros. filed for bankruptcy, triggering yet another stage of the most intense crisis in world credit and equity markets seen in decades. Read the article HERE.

More from Mine Web:

ETFS HOLD MORE GOLD THAN SWISS CENTRAL BANK

Surge in growth in gold ETF holdings has potential downside too

The phenomenal recent growth in gold ETF holdings is one of the factors behind the strength in the gold price, but it poses serious downside risks as well if sentiment changes. Meanwhile price movements are likely to remain volatile.

Author: Jeffrey Nichols
Posted: Thursday , 12 Feb 2009

NEW YORK -

Bullion held in depositories on behalf of gold exchange-traded funds investors is at record levels . . . and, in recent days, has been growing by leaps and bounds. Worldwide total gold ETF holdings now exceed 1325 tons (42.6 million ounces).

To put this number in perspective, ETFs now hold more gold than the Swiss central bank. Strikingly, gold held by ETFs now account for more than 40 percent of identifiable gold investment worldwide. Read the article HERE.

More from Mine Web:

SPDR ETF RISES TO NEW RECORD

Gold resumes upward path as US bank rescue plan disappoints

Holdings in the SPDR Gold Trust ETF rose 12.85 tonnes in a single day as investors expressed their disappointment in the latest US bank rescue plan with a flight to gold as a safe haven.

Author: Jan Harvey
Posted: Wednesday , 11 Feb 2009

LONDON (Reuters) -

Gold rose in Europe on Wednesday, reversing earlier losses, as disappointment with the U.S. bank rescue plan prompted investors to seek out assets such as bullion-backed exchange-traded funds as a haven from risk.

The United States on Tuesday rolled out a revamped bank rescue plan that may cost more than $2 trillion. Stocks slid by the most in two months after the plan was unveiled, while oil and currency markets reacted with scepticism and gold climbed more than 2 percent as investors sought safety. Read it HERE.

From World Net Daily:

MEDIA MATTERS
Senate support builds for 'Fairness Doctrine'
Harkin 'to squelch' 1st Amendment in favor of 'Chinese-style censorship'

---

Posted: February 11, 2009
11:30 pm Eastern

By Bob Unruh
© 2009 WorldNetDaily

Sen. Tom Harkin with Senate President Harry Reid

Sen. Tom Harkin, D-Iowa, has become the second U.S. senator in a week to endorse a return to the ideas behind the so-called "Fairness Doctrine," a plan that was abandoned under President Reagan in 1987 as unnecessary and unconstitutional.Read it HERE.

Folks, this legislation has nothing to do with fairness, it is designed to put a muzzle on conservative television and radio, mainly, the talk shows. It is unconstitutional! It is very dangerous legislation. Most of the major media has been captured by the socialist and this is another grab.

From Brass Check TV:

See the video HERE.

With this kind of double speak revealing great ignorance, it is no wonder that we are in the financial crisis of today. Even the "experts" are at a loss of wisdom, but expert in double speak. I often wonder if they are really as ignorant as it appears and this just a way of hiding the truth.

From Chuck Butler of The Daily Pfennig: "Yesterday's potential market moving data didn't materialize, as the Trade Deficit did not narrow as much as forecast, and last month's number was revised upward. For the record and for those of you keeping score at home, the Trade Deficit for December printed at $39.9 Billion, and November's Deficit was revised from $40.4 Billion to $41.6 Billion. Exports have fallen off the cliff as 1. Global demand is waning, and 2. the dollar is overvalued and too strong to allow U.S. exports to be competitive."

From The Telegraph UK:

European banks' toxic debts risk overwhelming EU governments

The toxic debts of European banks risk overwhelming a number of EU governments and may pose a “systemic” danger to the broader EU banking system, according a confidential memo prepared by the European Commission.

By Ambrose Evans-Pritchard and Bruno Waterfield

Last Updated: 6:34PM GMT 11 Feb 2009

“Estimates of total expected asset write-downs suggest that the budgetary costs of asset relief could be very large both in absolute terms and relative to GDP in member states,” said the document, prepared for a closed-door meeting of EU finance ministers.Read it HERE.

From Reuters UK:

Russia Sberbank gold sales jump during crisis

Wed Feb 11, 2009 4:17pm GMT

MOSCOW, Feb 11 (Reuters) - Russia's biggest lender, Sberbank saw retail precious metal accounts double in 2008 as people rushed to protect their savings in a time of financial and economic crisis, a bank official said on Wednesday.

Russians opened 170,000 new accounts which track the price of precious metals last year, taking the total number of such deposits at the state-controlled bank to around 300,000, said Vladimir Tarankov, the director of Sberbank's currency and non-trade operations department. Read it HERE.

From Town Hall:

Thursday, February 12, 2009

An Insufficiency of Fear

by George Will

WASHINGTON -- The president, convinced that the only thing America has to fear is an insufficiency of fear, has warned that "disaster" and "catastrophe" are the certain alternatives to swift passage of the stimulus legislation. One marvels at his certitude more than one envies his custody of this adventure. Read it HERE.

This is a tactic typical of the elite, particularly, the politicians. Create enough fear in the people and they will give up every vestige of freedom in hope that the state is a true messiah. The state is not the messiah, it is subject to the Sovereign God of all. There are three areas of government, as follows: family, church, and state. Each is ordained and ruled by God. Thus, each is called to operate under God's law. However, foolish man always thinks he can do better than God. Therefore, we have the financial and moral mess of today.

	From: Roy Beck, President, NumbersUSA
	Date: Wednesday 11FEB09 10 p.m. EST

IT'S FINAL -- Stimulus Jobs Have to be Shared with Illegal Aliens -- Banks Can Replace U.S. Workers

Isn't that great! Our politicians have sold us out again. Rather, they continue to sell out Americans in favor of illegal aliens. And our children, grandchildren and great grandchildren are expected to pay for such wonderful generosity, whether we like it or not. Remember a godly government will direct all its effort and spending toward the protection of the life, liberty and property of citizens, not aliens.

Best to each of you and yours, Doug

Metals Soar - More on States' Right - Medical Disaster

These are challenging and exciting times in all areas of life. There is constant change,because we are following man's way in FIAT currencies, outlandish spending, ridiculous bail outs, Keynesian Economics, absurd solutions to all problems, foolish remedies for every illness, and just life in general.

The world seems to have forgotten Who the Creator is. Most have most certainly forgotten Who the only Savior is. Therefore the masses look to the state as the messiah. It has become their idol. Ask yourself, how many times have government programs solved the problem they were conceived to address? How many times have our politicians told us the truth? They dare not, because their main goal in life is to be reelected. Were they to reveal the failures of government, they would be tarred and feathered on the way out of Washington, Austin, and other capitals.

Our nation must once again return to the God of all. King Jesus reigns supreme and governments and people live or die by His will. All must submit to Him and be obedient to His law in the Bible. We must study His word until it so fills our minds and hearts that we will not sin against Him. That is THE WAY, THE TRUTH, and THE LIFE. It is a life or death choice. There is no in between.


The precious metals and mining stocks have jumped upward today. Gold is 941.50 on an up tick.
Silver is in there, too. It is at 13.59 on an up tick.

Virtually all of the mining stocks are soaring. DROOY is $9.00; HMY $12.35, and VGZ is $2.46. The ETFS and Trusts are CEF $11.71; GLD $92.63, and SLV $13.426. The miners ETF (GDX) is 36.40. With all the hype on gold these days, one wonders if this is it or just another false start. I have put 5% trailing stops on some, not all of my mining stocks. My contrarian caution is still causing me to wonder. One of these days, the upward jump will be the beginning of the Gold Rush.

The DJI are up a measly 57.42 to 7946+. It is still below 8000. Yesterday was a trash market day. As always, "Buyer Beware!"

From Resource Investor:

Old News for Gold Bugs

By The Mogambo Guru
10 Feb 2009 at 04:21 PM GMT-05:00

It looks like the rush to buy gold is really getting started

---

02/09/09 Tampa Bay, Florida - It looks like the rush to buy gold is really getting started, as Julian D. W. Phillips of GoldForecaster.com reports that “the combined gold holdings of the World Gold Council gold Exchange Traded Funds and Barclays Gold Trust” has grown to “1079.83 tonnes, a growth of almost 70 tonnes in two weeks.”

And this is just part of the good news, as “There are many other gold bullion-holding funds in the developed world from Canada to Switzerland that are not included in this total. If they were the total would be approaching 1200+ tonnes. Clearly we are seeing a stampede of institutional fund management into gold at present!” Read it HERE.

More from Resource Investor:

Gold Futures Upside Potential

By VantagePoint Trading
09 Feb 2009 at 03:16 PM GMT-05:00

Trading advisory from VantagePoint Intermarket Analysis

---

Wesley Chapel, Florida, February 9, 2009 -- April Comex gold futures have been trending higher since the October 2008 low of $689.70 an ounce. The 3.5-month-old uptrend on the daily bar chart produced a 3.5-month high of $931.30 on January 30. A close above that price level would be another bullish upside technical clue to suggest a quick move to the October 2008 high of $938.20, basis April gold futures. Above that lies strong psychological resistance at $1,000.00 an ounce and then more strong chart resistance at the contract high of $1,005.30, scored in July of 2008.Read it HERE.

More from Resource Investor:

The Seasonality of Gold

By Craig Stanley
09 Feb 2009 at 10:14 AM GMT-05:00

The timing of offerings from precious metals firms coincides with a strong seasonal trend in the gold price – but one that is not statistically significant.

---

TORONTO — The slew of completed and proposed offerings from precious metals miners over the past few weeks has been nothing short of impressive. Consider the following: Read it HERE.

From Truthout:

States Push to Take Back National Guard

Wednesday 11 February 2009

by: Maya Schenwar, t r u t h o u t | Report

Dobbs." title="National Guard Sgt. 1st Class Michael Dobbs.">
National Guard Sgt. 1st Class Michael Dobbs. Some states are calling for a halt to National Guard deployments to Iraq. (Photo: Staff Sgt. Jon Soucy / US Army)

Going on its seventh year, the Iraq war has taken its toll on not only the US military, but also on the states's National Guard units, which were called up when Congress passed the 2002 Authorization to Use Military Force (AUMF) against Iraq. Now a growing state-level movement is working to keep the Guard at home. Read the article HERE.

This great news is being picked up from more sources. This should excite the heart of every patriotic America. States' rights are once again being sought. This is a praise the Lord!

From Bloomberg:

Ruin Your Health With the Obama Stimulus Plan:

Commentary by Betsy McCaughey

Feb. 9 (Bloomberg) -- Republican Senators are questioning whether President Barack Obama's stimulus bill contains the right mix of tax breaks and cash infusions to jump-start the economy.

Tragically, no one from either party is objecting to the health provisions slipped in without discussion. These provisions reflect the handiwork of Tom Daschle, until recently the nominee to head the Health and Human Services Department.

Senators should read these provisions and vote against them because they are dangerous to your health. (Page numbers refer to H.R. 1 EH, pdf version HERE).

The bill’s health rules will affect “every individual in the United States” (445, 454, 479). Your medical treatments will be tracked electronically by a federal system. Having electronic medical records at your fingertips, easily transferred to a hospital, is beneficial. It will help avoid duplicate tests and errors.

But the bill goes further. One new bureaucracy, the National Coordinator of Health Information Technology, will monitor treatments to make sure your doctor is doing what the federal government deems appropriate and cost effective. The goal is to reduce costs and “guide” your doctor’s decisions (442, 446). Read the article HERE.

Remember when Hilary tried this a few years back. The liberals never give up. One has to give them a heads up on persistence. However, this would be a disaster! This is rationed health care and limited by the pencil pushers, not your doctor. Your doctor would have to have permission for any expensive treatment before it can be administered. It is deceptive that it is being sneaked into the big bail out package. How's that for the transparency in government promised by our new president.

"What strange madness is this? Why would anyone think the economy will be made better off by squandering money now on projects that were deemed unworthy or unaffordable only a few months ago? The country got into trouble because people squandered too much money; now they think they will get out of trouble by letting the government squander money." - Bill Bonner, The Daily Reckoning, February 10, 2009

From Zero Hedge:

Tuesday, February 10, 2009

A Glance At The Upcoming Eastern European Cataclysm

Posted by Tyler Durden at 12:43 PM

As most eyes are glued to CNBC and the exploration of the huge financial problem at home, few follow just how bad the situation is at fledgling developing economies. With news of potential defaults out of Russia, Kazahstan devaluing its currency and begging for handouts, and Baltic states (Lithuania and Estonia) on the verge of downgrade, things in Eastern Europe are getting from bad to worse. This is most obvious when looking at the foreign currency exchange rates of countries in the region: since September 2008 the Ruble has lost 32%, the Polish Zloty 37%, the Hungarian Forint 29% and Ukraninian Hryvna 42%. Read the article HERE.

From The Independent UK:

'This is the worst recession for over 100 years'

Ed Balls, the PM's closest ally, warns that downturn is ferocious and says impact will last 15 years

By Nigel Morris, Deputy Political Editor, and Sean O'Grady, Economics Editor

Tuesday, 10 February 2009

Britain is facing its worst financial crisis for more than a century, surpassing even the Great Depression of the 1930s, one of Gordon Brown's most senior ministers and confidants has admitted. Read the article HERE.

The economic news from around the world is anything but good. We seem to be going from bad to worse day by day. The solutions tried and proposed seem to have little impact. They should be seen as the very plans which brought us to this situation in history. We are following the failed steps of Japan during their long battle with recession/depression. They are still not out of the woods.

We must keep our eyes firmly focused upon the Savior.

Best to each, Doug