Economics 101 - Miners holding well!

Inflation 101: Inflation is an increase in the amount of unbacked currency in circulation resulting in a increase in prices (price inflation). The world would have us believe that price inflation is inflation. Have you ever wondered why they would do this? If price inflation is the culprit, then consumers can be blamed for spending too much, workers can be blamed for demanding higher salaries, and businesses can be blamed for charging too much. All this confusion and false finger pointing is directed away from the cause of inflation. Think about it from the perspective of the correct historical definition. Who can increase the supply of unbacked paper currency? Only the fractional banking systems and the governments. The currency can also be inflated by easy credit and low interest rates. They never accept the blame for anything, so always point the finger at the citizens. Reminds me of Adam pointing the finger at Eve, and Eve pointing the finger at Satan. We never want to accept the blame for errors or sin.

Since President Nixon removed the last link between the dollar and gold on August 15, 1971, we have had wave after wave of inflation. Until about 1980, gold and silver were the beneficiaries of the inflation as gold went pushed 900 per ounce and residential housing prices went up a good deal due to fancy, cheap financing. In the mid 1980s the foreclosures on houses were up to several thousand a month in Bexar County Texas as many were walking away from houses as the inflated prices began to burst. More recently, we had the excess paper dollars chasing the Dot Com businesses, then residential houses, and now commodities. These were all inflationary generated bubbles which eventually burst. With each burst, citizens lost value, but the "solution" by central banks and governments is always, more inflation.

They operate under Keynesian Economic theory and seem to never learn. Thus, today, the banks and governments are flooding the world with paper currencies which are worth less each day. I suggest that this time the result will be different. First, it is world wide. Second, the dollar has been the reserve currency of the world since WWII, and it has dropped so far in purchasing power that China and Russia are pushing for a new world reserve currency. Thus, the dollar seems destined to lose its advantage of being the reserve currency of the world. Third, for America, we have abandoned our manufacturing industry to the other nations of the world. This time it is vastly different for us if for no other reason. No nation has long existed as a managed economy.

The free market, capitalistic system is far superior. Even the early settlers in America found that out through terrible experience. Under the charter for Jamestown, all produce was to be communal property and distributed to each as each had need. Those who were industrious learned that there were many freeloaders who sat back and enjoyed the labor of the industrious. The colony almost starved to death. Many did die, because there was less and less produce. The system was changed and each family was allotted their own land for raising food. The food supply increased some 10 fold almost immediately and the colony was saved. The same situation was demonstrated in the USSR until each family was allowed to have a garden of their own and the nation was saved from starvation. History has revealed the superiority of the free market, capitalistic system time and time again. But governments tend to give capitalism a bad name and always jump in to regulate, tax, and intervene into the market place and the lives of citizens to the ruination of the nation.

Yes, this time it is different as America is moving rapidly toward total socialism or communism. Perhaps, it will be fascism. It is playing out in this direction at present unless the Lord intervenes to raise up statesmen to replace the self-serving politicians of the day.

Let's look at the markets today. Look at the "free market" action! NOT! That is flagrant intervention by the boyz of the bullion banks at the opening of the NY market to our detriment.

There was some earlier action over night in the silver trading.
To some extent the intervention has spilled over into the miners. We should be thankful that the miners are remaining comfortably above the 50 day moving average which seems to be a resistance line which may not be crossed any time soon.
Here are some of our miners: AUY 9.14; DROOY 7.95; HL 2.82; HMY 10.73; SLW 8.55, and VGZ 1.75. Gold is 935.10 down 2.20 and silver is 13.90 up 0.06.

Rest in the fact that God is in control and working all things for the eventual good of His people. Let's pray that He will raise up statesmen in time to save our nation which was founded amidst a people who respected the word of God. And by many who served King Jesus.

Best to each, Doug

Short Term Look at Our Miners

Gold opened down in early NY Global and moved up a bit as Sidney opened. It is early to define a direction. We will have to see what happens when Hong Kong opens shortly.


Here is a one month look at our miners. Notice the similarity among the graph. All except DROOY and AUY have begun to establish an up trend trough. Only DROOY and AUY seem to be locking into a trading range. I have attempted to present with the black lines a trading range of sorts for each. I believe that if the prices go near the lower black line of the trading ranges, this is a good buying opportunity if you have the cash and the risk tolerance to jump in. If you do decide to act an buy some of the miners, it is not a bad idea to protect yourself will trailing stops in event you have little opportunity to watch the market activity on a consistent basis. The red trend lines show higher lows and outline upward troughs on some.


I sold some shares of HMY on Friday as the price hit my 3% trailing stop. That provides some additional cash for repurchase if the opportunity presents itself.
The purple line on HL shows short term resistance. A break above this line would be positive for HL.


We must always remind ourselves that we are not dealing with free markets, but only playing against intervention by very deep pocket manipulators. Therefore, it is wise to attempt to follow the prices they establish by buying or selling and try to establish trading ranges that hold for a while.

Gold, in early over night trading in Asia is 937.80 on a down tick and silver is 13.99 on a down tick.

I trust that each of you in obedience to King Jesus joined in corporate worship of this King. If you did not, do not expect the blessings that He gives His people who obey His commands. We must also read and meditate upon His word to know how to live a life of obedience. His words are the only rules for living a Godly life which is centered upon the Lord Jesus Christ. There is no other way to peace and great blessing!

Best to each, Doug

Metals Up Strongly - Da Boyz Taking A Breather?

Gold is up this morning, but is being hammered down. The interesting thing about this is that there is enough buying to hold it in place and even give it up ticks with each blow of the hammer. The boyz have the clout (deep pockets) enough to slam it down, but they seem to be holding back a bit for the time being.

The miners are well into positive territory. This could be a hint of what is to come. Maybe they know something which is hidden from us. There are a series of higher lows indicated by the red trend line over the last 3-4 days which is bullish. The break out above the downward trough was significant. Here are some of the current prices >> AUY 9.42; DROOY 7.85; HL 2.94; HMY 10.97; SLW 8.96, and VGZ 1.82. I still have a 3% trailing stop sell on a portion of my HMY.
Once again, the graph of silver is similar to that of gold. Gold is now 941.40 and silver 14.13 with both on up ticks. The boyz may be taking a breather. It is Friday though, so anything can happen as traders prepare for the weekend.

A great quote reported in Casey's Daily Resource Plus: "The free market punishes irresponsibility. Government rewards it. - Harry Browne"

Harry was always a hard money, free market person. He saw early on that governments hate the free market, so they jump in to regulate and tax it to pieces. Perhaps, they fear freedom loving citizens. Early in our foundation, we were free. We had a small, non-intervening government which was founded on the basis of John Calvin's expressed Christian principles of government. Most of our citizens have forgotten this fact.

From USAGold.com:
June 25, 2009
Dragon's Hoard
In one fell swoop, China profoundly alters gold market synergy

An interesting read HERE. The article outlines three strategies that China is using in relation to gold.

From Reuters.com:

Wary of U.S. debt, China shifts gears on investment

Tue May 19, 2009

"BEIJING (Reuters) - China has engineered a subtle yet significant shift in the investment of its foreign exchange reserves, a sign of how it is willing to act on concerns about financing an explosion of U.S. debt." Read it HERE.

China along with many other countries is moving away from long term debt to shorter term issuances. This shift is gaining steam. The Treasury will have a hard time selling longer term debt. There is an increasing shift away from U.S. debt instruments across the board.

From The Washington Post:

Not Paying the Mortgage, Yet Stuck With the Keys

Foreclosure Backlog Imperils Recovery

It seems that banks are too busy to proceed with foreclosures, so the home owners are in limbo. Read the article HERE. Though the Post is liberal, it has included a valid article worth a quick read.

As we gear up for the Fourth of July, let us praise God that through His providence and grace, He provided us a George Washington. This earthly father of our nation was used by God to give us a nation. There is no doubt that our independence was granted by the providence of God. He is the God who blessed us. Yet we are daily turning our backs upon Him. It is little wonder that He is judging us for our disobedience as our churches have failed to call us to repentance and walking with our God.

Best to each, Doug

The Miners Are Up!

Let's take a look at some of our miners today. Here is Vista Gold (VGZ). Note that VGZ has made a strong breakout move to above the upper limit of the downward trough. It has yet to cross over the 5o day moving average, but seems to be making a strong move. It has moved up to 1.79 as of the last trade. The high was 1.96. Remember that we are in the early stages of the market for today, and that tomorrow is Friday when strange things often happen.

Next, let's take a look at Hecla Mining (HL). This is a particularly strong performance. Hecla, too, has broken out above the upper trough line. But, additionally, it is approaching the 50 day moving average. Were it to cross this, that would be technically very strong. Note, also, that the 50 day moving average crossed above the 200 moving average where indicated by the arrow head. HL last was 2.80 which is the high for the day.
Harmony Gold has also penetrated the upper trough line for the second time in a few days. It is above the 50 day moving average. The last was 10.92 and the high for the day 10.93. I have a 3% trailing sell in for some of my shares.
The Gold Miners ETF (GDX) is has a graph similar to that of HMY, but lacks the earlier cross over the upper trend line by HMY. GDX has moved above the 50 day moving average, too. GDX last trade was at 39.15 which is the high for the day.
Over shadowing the precious metals is the high level of shorts by the bullion banks. However, it seems that they may be putting in place additional shorts. Thus, we must beware of the fact that they may be positioning themselves to drop the precious metals again to allow them to cover their shorts and defraud us again. Remember we have only intervention and not a free market in precious metals.

The Daily Pfennig, today, reported: 1- That Obama had approved an increase in Special Drawing Rights by the IMF. This is what the BRIC nations wanted when they met recently. China has been pushing for this all through this month. 2- The IMF is increasing 10X the amount of SDRs available.

The result of this action could well be that China will convert dollars to these SDRs. That would be a major step in replacing the dollar with another reserve currency. This would be particularly bad news for the dollar purchasing power.

Gold is up to 938.60 and silver to 14.01. The DOW is up about 60.

I am going to close this now, because I wanted to alert you to the important moves in our miners and my initiation of trading, once again. This is a report of my action which may or may not be the correct thing for you to do. Study these graphs and other sources, then carefully make your own decisions.

Remember that our God is in control and He is working His will in everything to His glory and for the good of His people. We can rest comfortably in this.

Best to each, Doug

Precious Metals Up - July 4th Almost Here

While gold is up today, it looks like the boyz may be hammering it again shortly after NY opening. Believe me, they have a huge short position in both silver and gold and when they desire, they will act to slam the prices down to cover their shorts. Until they cover all shorts and do not replace them, we are at their manipulative mercy. Gold is currently 965.50 on an up tick.

GLD, the proxy for gold, has broken above the upper trough line which is technically bullish for the short term. As it gaped down two days ago without covering the gap, it has now gaped upward. Will it cover the gaps now? Historically, it should, but remember this is not a free market.
Our miners' graph is almost identical to that of GLD. However, we do not see the gaps here. But the graph gives us today's price above the upper tough line for positive technical indication. Here are some of the miners >> AUY 9.15; HL 2.73; HMY 10.56; SLW 8.62, and VGZ 1.74. All are strongly up today. As some show profit above my cost, I made unload a small portion of my holding, but not all of any particular miner. All of these are in reasonable buying range, but I would only buy if I had none are very few in my portfolio. But, as always, BUYER BEWARE, and make your own decisions.
Silver's graph is similar to that of gold. Silver is at 14.03 on an up tick. By the way, if gold was a buy at 950+ and silver at 15+, both should be a screaming buy now.

From MineWeb.com:

Choppy times ahead for gold in near term - BMO's Melek

While gold may be vulnerable to a near-term pullback, BMO's Bart Melek believes there are long-term motivations to hold the precious metal.

Author: Dorothy Kosich
Posted: Wednesday , 24 Jun 2009 Read it HERE.

Yes, we will have choppy times in precious metals, because of the intervention. However, the dollar got hit pretty badly over night. The Euro went back up over 1.40.

From MineWeb.com:

"Green shoots or late frost? Precious and base metals prices in a spin

Much depends on whether the recent markets strength is sustainable or the downturn following the pessimistic World Bank report continues."

Author: Lawrence Williams
Posted: Tuesday , 23 Jun 2009 Read it HERE.

Where's the beef, Oops, where are the green shoots? I hope some of you can see them if they exist. Perhaps, that is just more rhetoric to deceive, Oops, to encourage the citizens.

The next Real Estate Market shoe set to fall from FT.com:

"Worries over systemic risk in CMBS sector

By Aline van Duyn

Published: June 22 2009 20:20 | Last updated: June 22 2009 20:20

Even as conditions in many parts of the credit markets have improved, a big question mark hangs over one large part of the market that is still dysfunctional: the market for securities backed by commercial mortgages." Article available HERE.

Commercial real estate is joining the air letting from the housing market. There are more vacant spaces in strip malls. There are many businesses closing their doors. Unemployment is well above 10% if the truth were known.

From Walter E Williams from TownHall.com:

Vicious Academic Liberals

by Walter E. Williams

Ward Connerly, former University of California Regent, has an article, "Study, Study, Study -- A Bad Career Move" in the June 2, 2009 edition of Minding the Campus (www.mindingthecampus.com) that should raise any decent American's level of disgust for what's routinely practiced at most of our universities. Mr. Connerly tells of a conversation he had with a high-ranking UC administrator about a proposal that the administrator was developing to increase campus diversity. Read it HERE.

Diversity, not qualifications is the by-word in academia. This continues. Walt is discussing this from other perspectives.

More on Real Estate from Market-Ticker.Denninger.net:

"More OptionARM Falsehoods"

Read it HERE.

The ARM are coming due to be adjusted. Remember, too, that there are many homes financed with balloon notes which are coming due. We are yet to be out of the woods on residential real estate.

From Doug Hornig of Casey's Research: "The past seventy-five years have seen the growth of government from a relatively small entity charged with defending the borders, adjudicating disputes and delivering the mail; to a bloated nightmare creature whose tentacles reach into every corner of our existence." - Doug Hornig, Casey Research

Thomas Sowell in TownHall.com:

"Another "Good Thing"

by Thomas Sowell

Even if the "stimulus" package doesn't seem to be doing much to stimulate the economy, it is certainly stimulating many potential recipients of government money to start lining up at the trough. All you need is something that sounds like a "good thing" and the ability to sell the idea."

Read it HERE.

I bet you knew that there would be corruption in the bail outs. Thomas speaks to some of this. Government programs are simply too easy to rip off. There are always those ready to be fed at the government trough regardless of the goal of the providers.

We must always remember that we are totally dependent upon the Providence and Grace of God. Praise Him daily for His care of His people. The fourth of July is just around the corner of time.

We must praise God for His providential granting of freedom from King George through the provision of visionary individuals, among which was the earthly Father of These United States of America, George Washington. We should be in urgent prayer that the Lord will raise just such another man to turn us back to Jesus Christ.

Best to each, Doug

Long Term Precious Metals Trends in Graphs

The emphasis of the world's central banks, under Keynesian Economic Theory, are flooding the world with unbacked paper currencies. This will result in inflation which they and their governments prefer to depression. The flood is not working, but will eventually. In fact, the flood is so great that the whole FIAT system could collapse.

Here in America with over 11 Trillion national debt, soon to exceed 14 Trillion, there is no way for America to pay this debt except with greatly depreciated dollars. Taxation to the extent necessary to pay it would result in more than peaceful tea parties. Of course there is always the possibility that we will cancel the debt to the world and kill the dollar completely. It will be interesting to watch the Treasury auction, I believe it is this week, to see if there are any buyers other than the Federal Reserve. The foreigners are beginning to back away from our auctions.

The boyz are still at it. See the comment from Ed Steer below. Both silver and gold are at prices that I did not think we would see again, but there is virtually no limit to what the manipulators can do since they have very deep pockets. We must become more adept at playing the game with them, not against them. Theirs is the trend.
Gold has been pushed below its 50 day moving average. On the graph, below, see the left shoulder red line, head black line, and right should black line. Also, I have added a down trend channel outlined in red. Yesterday, the last price was at about the middle of the channel. The price of gold is now 918.50 off 4+.
The 5 year graph of gold puts it in a better perspective. The bull trend is still intact with higher lows long term. However, we are trading in a range with high near 1000 and low just above 700. For this year, the range has been just below 1000 to about 850++.

On the 24 hour silver, similar to the gold, we see the activity of the boyz rather clearly. This is not free market activity. Thus, we do not a free market, only intervention which punishes all but those in control.

From Ed Steer of Casey's Daily Resource Plus today: "Yesterday, the bullion banks managed to get both gold and silver to both close below their respective 50-day moving averages. I doubt that is a coincidence. Ted Butler feels that we are about halfway through the liquidation process, but 'da boyz' still have lots of firepower left to take both metals down considerably lower than they are now...as they are totally in control of the precious metals market at the moment."

Thus, we are at the mercy of or lack thereof "da boyz." These bullion banks, backed by the Federal Reserve and the Federal Government are in control. As this has become much more obvious in the recent manipulation of the precious metals, I have decided to engage in cautious trading of the mining stocks, again. I always have the concern that any significant rise in the price may be a prelude to the eventual gold rush. I have seen time and time again that I have sold too early in rallies even though they were not the final gold rush. However, I now believe it prudent to get back into trading and I will be selling a small portion of mining stocks when the prices push to profit levels. Also, I will be buying as price begin to rise. I will try to inform you about each of my sales and purchases. We may have to be very patient and wait for escalation of the mid east wars or other economic disasters before the prices will rise. I do not long to have such disasters, but know that such would move the prices of the metals.

From MineWeb.com:

Gold stocks can add returns with no extra volatility

The judicious use of gold stocks as part of an investment portfolio can add to returns without significantly adding to risk.

Author: Frank Holmes
Posted: Tuesday , 23 Jun 2009
SAN ANTONIO, (U.S. Global Investors) Read it HERE.

From IMF:

"IMF says dollar adjustment might be needed"

Read the short & concise report HERE.

The idea is that the dollar must be lower to encourage exports. Hidden is, of course, the inertia of restarting defunct manufacturing capability which has been largely exported. Why was it exported? Because of excessive government regulation, taxation, and unions, it was too expensive to manufacture here.

From MineWeb.com:

"Gold slips to $920 as dollar pares its losses

The gold price slipped to below $920 on a stronger dollar, but with the global economy still seen as very weak its safe haven position is seen as remaining intact."

Read it HERE.

That is very interesting, but must be taken with a liberal helping of salt. About two weeks ago gold was pushing toward 1000 at about 990 when the dollar was at about 79.5. The "stronger" dollar is now at only 80.5 which is about 1% increase while gold fell from the 990 to 920 for a drop of about 7%. The precious metals are not directly coupled with the dollar. Neither are the mining stocks directly coupled with the general stock market.

From Ron Paul:

"International Bailout Brings Us Closer to Economic Collapse

Last week Congress passed the war supplemental appropriations bill. In an affront to all those who thought they voted for a peace candidate, the current president will be sending another $106 billion we don’t have to continue the bloodshed in Afghanistan and Iraq, without a hint of a plan to bring our troops home." Read it HERE.

Ron Paul is the one man in Congress who has consistently pushed for hard money against the FIAT paper currencies of the world. I trust that none of you believe that politics can be separated from finances, economics, and even life. Politics shapes all aspects of our temporal lives. It impacts significantly; therefore, it is important for us to understand the political environment as it exists, and more important to interpret its impact through the wisdom of God's word. The bible is the standard light for illumination of all thought. Facts must be interpreted under this light.

From the Guardian.co.uk:

"Goldman to make record bonus payout

Surviving banks accused of undermining stability" Read the article HERE.

These geniuses certainly deserve the bonuses. After all, they were instrumental in bringing down the world economies and then were among the first and foremost beneficiaries of the massive bail outs. Of course, the bail outs were designed, not to heal the economies, but to save the banking and financial industries. Then to save inefficient auto manufacturers and foolish insurance businesses. Never were the bail outs for the slaves, oops, I mean citizens.

While the non-faithful unbeliever is afraid to go outside lest the lion devour him, the Christian is bold as a lion knowing that His Savior is in control. We must heed this proverb and hold to a long term view. Each of us is preparing a spiritual heritage for our descendants and a financial heritage to help finance their continuance of the kingdom work of bringing all into the realization that King Jesus rules in all the affairs of men.

Best to each, Doug

Good Governments are Small and Dedicated to Protecting the Life, Liberty, and Property of Citizens.

"Let every soul be subject to the higher powers. For there is no power but of God. Whosoever therefore resisteth the power, resisteth the ordinance of God, and they that resist shall receive to themselves damnation. For rulers are not a terror to good works, but to the evil. wilt thou then not be afraid of the power? Do that which is good and thou shalt have praise of the same; for he is the minister of God to thee for good. But if thou do that which is evil, be afraid; for he beareth the sword in vain; for he is the minister of God, a revenger to execute wrath upon him that doeth evil." (Romans 13:1-4)

No government exists, but that ordained by God, Himself. It was ordained by Him to punish evil upon the citizens of the nation. If government is to punish evil, that gives it the specific mission of protecting the life, liberty, and property of citizens for all types of evil: domestic and foreign. This is in concert with the responsibility spelled out in our constitution: "provide for the general welfare." A government which limits itself to these functions is small and has limited powers over the citizens. The citizens live in peace and have a great deal of liberty to act as they see fit under God. Their freedom is limited only to the extent that they do not commit evil to another citizen.

When a government misinterprets it responsibility and begins to regulate and intervene into the market place and to protect the citizens from themselves, it has overstepped its God-given responsibilities and vastly reduced the freedom of the citizens. Another impact is that it becomes much larger and more expensive as it builds ever more officials to regulate and watch the citizens.

Our government is moving more and more toward benevolence to the world while neglecting the concerns of the American citizens. At these times a government loses sight of which citizens it is to protect. It very often begins to feel that it is the protector of the world to the neglect of it own citizens.

Recent trends in the legislation regarding illegal aliens and now approval by the Congress for selling 400+ tons of gold by the IMF to aid third world countries are testimony to the global trend of our government. We simply cannot afford to pay for every desire of every person in the world. This is not our responsibility as a nation. Perhaps, as individuals and churches, we can provide and often do voluntarily help out others. However, this is voluntary and not forced by the coercive power of government.

It seems that our leadership is attempting to build another Tower of Babel. The Lord God did not tolerate the first one and will not tolerate this one. A one world government is bound to fail, because it is always an attempt to make the government a missiah to the world. It is not and can never be regardless of how well intentioned. That is, given that it is well intentioned and not just another power grab.

Now for more news on our precious metals. Both gold and silver have been slammed downward again to new lows not seen for months. Gold is currently 919.90 and silver 13.79 with both on down ticks.
GLD, our proxy for gold has dropped below its 50 day moving average which means it is likely to go even lower. However, it did gap down today and the normal movement is to fill in the gap, so we could see some upward movement before too long.
Even our miners have dropped below the 50 day moving average which is not good news unless you are in a position and of the mind to purchase or add to your portfolio of miners. The prices of some follow >> DROOY 7.89; HL 2.40; HMY 10.23; SLW 8.16, AND VGZ 1.59. These are great prices and I will likely be adding some more to my portfolio, but I will be buying in smaller quantities and very cautiously. I believe we will see some more downward movement. The boyz have very deep pockets and can move the prices almost as low as they want to cover their short contracts. Thus, we have no free markets only manipulation. The DOW is being pounded to the tune of off about 178. So much for the bear rally.
Here is the nasty silver graph. Doesn't it make you ill to see how these markets are manipulated and played by the bullion banks backed by the Federal Reserve and the Federal Government. This is not normal market activity.
Folks, it is looking more and more as if we are moving into an inflationary period. We should hope that it is not hyper-inflation as that is devastating to all concerned. Eventually, the paper currencies flooding the earth must result in inflation.

Our national public and private debt is totally out of control. There is no way that it can ever be paid without the proliferation of unbacked paper beyond our imagination. The only other alternative is for the U. S. to renege on the debt and unilaterally cancel what we owe. That is in direct violation of God's Law warning "That the wicked borroweth and payeth not again." I believe that we will run the printing presses forward until they over heat and explode. Perhaps, that is the goal: a total collapse of the FIAT dollar.

By the way, there is optimism on the part of the government in the weeks auction of a large amount in Treasuries. It is very likely that the Fed. Reserve will have to be there with many computer clicks to buy those Treasuries not purchased in the broad auction. Our foreign lenders have expressed and will not be offering to lend as much as in the past. WE may be approaching the time when they will shun the auctions, all together.

While things on the financial front, do not seem to be to our liking, we must rest firmly in the peace and security of our loving Heavenly Father who is in control and moving all things toward the eventual good of His people.

Best to each, Doug

Silver Creamed in Asia Tonight - Gold Plodding Along

Here it is evident that silver has been hammered in Asian trading. Thus, we should expect that HL and SLW will be in buying range tomorrow as NY trading opens. The boyz have been busy again in the light trading in Asia. They certainly took advantage of this opportunity to slam silver down. I believe that silver is their real target. The shorts on silver are quite large, thus, they are interested in bringing the price down for their advantage and do not care if it penalizes the smaller investors.

Gold is continuing to plod along with not much range in price nor in volume. We may see the miners in buying range tomorrow in NY. We will have to check early to see if this is a real buying opportunity. I have committed a good bit of my reserve cash and will be looking to take some profit on the next upward move if it is strong enough. I do not believe that I will engage in very active trading, because I am always concerned about selling during an increase and then feel locked out as prices move farther upward. It has happened many times before. However, when trading, it will only be with the stocks and options, not the metals.

This was another wonderful Lord's Day and a celebration for fathers and families. It is a time for reflecting upon the providence of God which has provided opportunities for fathers to sheppard their families in the way of the Lord. It is a time when fathers should be the spiritual leaders of their families encouraging them to carry on the kingdom work that fathers and grandfathers have begun.

It is important that young men lead that they are likely to be fathers in the future and that they must begin to diligently study the word of God to recognize the responsibility of being a father and leading their families in the way of the Lord. Even very young children must be on the path of committing a great amount of scripture to memory and diligently studying scripture that they will be equipped for the task that lies ahead of them.

Young girls and women must learn to be good help meets for the husbands that God will bring to them in His time. Being a helper to a God given husband is a holy calling for women, and they, too, must study scripture to learn how to perform this Godly, honorable task. While the feminists of today would teach them otherwise, there is no higher calling than that of being a wife and mother.

I trust that each of you joined in corporate worship today in accordance with God's word. This is an important part of the Christian life which is too often neglected today as America has moved away from our Christian heritage. Our once great nation was founded under the strong influence of Calvinist Christians. Due to this, the providence of God was poured out on these United States over and over again. Without this providence, we would have never have grown into one of the most blessed nations the world has ever seen. We still enjoy many of these blessings, but they have become dimmed as we have turned our backs upon the Sovereign God of all.

King Jesus reigns supreme and to ignore this is death. But to live in His love and serve His is the only way of life.

Best to each, Doug

Christians Hold a Long Term View of History

See the comment below by Ed Steer about the game the bullion banks, Fed Reserve, & Fed Government are playing with precious metals. The cap on the price of gold is amazing. The price of gold and silver would sky rocket were the markets free. The buying from "coke machines" in Europe is testimony to the fact that citizens are beginning to see the need for protection from the counterfeit money of governments around the world. Gold has been made very cheap by the latest intervention.
Gold is still bouncing off the 50 day moving average which is encouraging. We must continue to hold to a long term view of precious metals markets. After all, Christians have a multi-generational view and pass this from generation to generation as we walk in concert with our God.
Like gold the miners continue to bounce off the 50 day moving average. Here are some that I follow very closely >> DROOY 8.27; HL 2.59; HMY 10.77; SLW 8.64, and VGZ 1.67. These are all in good buying range for me. If you do not hold these, I suggest you look at them. These are great prices, but you must make your own decisions.
Silver may be the primary target for the manipulation, but silver is looking up a bit today.
Below, is the graph of the DOW. Note that the prices are below the 200 day moving average, but above the 50 day average. That shows a good deal of weakness. The 50 day average was moving upward, but has yet to cross above the 200 day. The purple line seems to be at a resistance level for the time being. Were the DOW to go below 8500 again, that would signal a much lower move. It seems that we are still in a bear rally with the longer term trend bearish.

More on the confiscated bearer bonds from the Daily Pfennig.com: "OK... It looks as though the story I told you about the other day, as a potential hoax, but wondered why the media wasn't covering it, regarding the $130 Billion in bearer bonds confiscated from two Japanese men at the Swiss, Italian border, turns out to be a non-event after all... The bonds, which at first were reported to be "real", are now being called fakes / counterfeit... So... So much for the secret war financing under the cover a dark knight stuff, eh?"

Another false rumor. In a way, I am pleased that the bonds were fake. This time, it was not a stealth action by our benevolent government of change.

Government intervention into the market place from the DailyPfennig.com: "I never said that! I said I didn't think having the Gov't involved in the regulatory matters in the markets was a good thing... I mean, we now have a Gov't that can... Sell you a car, maintain that car, finance that car, and provide you insurance on that car... It's all just beginning..."(Emphasis added)

Amazing that such can be the case in "the land of the free and home of the brave." Causes one to wonder if America really is that any more. Such is the case when man make the law as they please without a anchor in the word of God. How long, O' Lord? How long will men continue to ignore the constant unchanging Law-Word of the Supreme Ruler of all?

From MineWeb.com:

Top 100 global mining stocks - two tier market developing?

Mining stocks have been battered for a fortnight, but Chinese mining stocks have powered on and up, and now comprise nearly a quarter of the world's top 100 miners, by value.

Author: Barry Sergeant
Posted: Friday , 19 Jun 2009

JOHANNESBURG -

Since 3 June 2009, intra-day aberrations aside, overall prices for global mining stocks have sustained an overall downward battering, but in the detail, Chinese miners have continued to power upwards. Dollar metal prices have been having a tough time of it over the past fortnight, indicating that it could be that different sets of sentiment, and perhaps even fundamentals, apply to economic enterprises in China, the epicenter of global economic growth, and the rest of the world.

It may be that the significant power drives demonstrated by the prices of dozens of Chinese mining stocks have taken back seat, on "front pages", to the 5 June announcement by transnational mining group Rio Tinto that it was abandoning a near-USD 20bn deal with smaller rival Chinalco, opting instead for a rights issue to raise the equivalent of USD 15.2bn, and agreeing a USD 116bn joint venture with BHP Billiton over the two companies' West Australian iron ore assets. Read it HERE.

From MineWeb.com:

Silver stocks take a trashing

London-listed Mexican miner Fresnillo has seen its market value pull back by USD 2bn in the past fortnight, as selling hits silver bullion, and sentiment sours towards one of the hottest pockets in global resources.

Author: Barry Sergeant
Posted: Thursday , 18 Jun 2009

JOHANNESBURG -

London-listed Mexican miner Fresnillo's market value advanced from USD 1.1bn during the darkest hours of November 2008 to a peak of USD 8.7bn in the very early days of June 2009. Since then, there has been some kind of a trashing.

Fresnillo's market value has declined by nearly a quarter in just weeks, from a 12-month high, yielding a contraction of USD 2.1bn in market value. The sense of contagion has spread across the listed primary silver sector, in sympathy with a silver price that has declined from around USD 16/oz early this month to test, and break, USD 14/oz.

Typical headlines around on Wednesday included the likes of silver in a "one month trough" below USD 14/oz, on a weaker dollar and slacker investment demand. Sister metal gold bullion has also seen price declines over the past few weeks, but silver bullion and listed primary silver producers are classically behaving in a "beta" fashion, overshooting gold counterparts (in either direction). Read it HERE.

From theAustralianNews.com.au:

How deflation could make Japan a cashless society

WITH recovery elusive, a population doddering into old age and perhaps a decade of deflation in prospect, Japan may start mulling the most radical monetary policy of all - the abolition of cash.

Unorthodox, untried and, said one Bank of Tokyo Mitsubishi strategist, “in the realms of economic science fiction”, the recommendation has nevertheless begun floating around Tokyo's corridors of power and economists have described Japan as particularly suitable as a testing ground.

The search for more unconventional economic policies continues, despite the recent surge in the Nikkei 225 index. The market may be reflecting soaring Chinese investment, rising consumer confidence and other cheerful data but economists see few long-term beacons of hope for Japan. Read it HERE.

From Ed Steer at Casey's Daily Resource Plus: "As I sit in front of my computer in the wee hours of Thursday morning, I must admit that I'm nervous. I can see every reason in the world why both gold ands silver should be moving much higher in price...but I can also see the '3 or less' U.S. bullion banks [backed by the Fed and the U.S. Treasury] ready to pound the hell out their respective prices. Will they use this IMF gold story as a club for that purpose? Who knows. But the story came out yesterday and had virtually no impact. Maybe 'da boyz' are saving it for today...or Monday. But as I've said before...sometimes I find myself looking for black bears in dark rooms that aren't there. Is this one of those times? We'll find out soon enough."

From Bloomberg.com:

Simon Halabi’s Companies Default on $1.9 Billion Debt

By Chris Bourke

June 19 (Bloomberg) -- Billionaire investor Simon Halabi’s real estate companies defaulted on 1.15 billion pounds ($1.9 billion) of bonds backed by nine London office buildings as the recession cut the value of the properties by about 50 percent.

The properties, including JPMorgan Chase & Co.’s offices at 125 London Wall and 60 Victoria Embankment, are now worth less than the value of the loans that back them, loan manager Hatfield Philips International Ltd. said in a statement today.

The buildings were valued at 929 million pounds as of June 8, down from 1.83 billion pounds in October 2006, Hatfield Philips said. Halabi’s companies borrowed against the buildings in 2006. The debt, which was packaged into bonds, expires in October. It’s the U.K.’s largest mortgage bond issue maturing this year, according to Bloomberg data. Read it HERE.

They and we are still not out of the woods from this financial fiasco. All of the stimulus of unbacked currency cannot bail us out. This is demonstrating to one and all that an economy based upon debt has no solid base upon which to build. It is a prescription for disaster. There is more to come.

Gold is trading at 934.10 up 1.80 and silver 14.27 up 0.08.

We must not put our trust in men. Only God deserves our trust. It is our responsibility to obey the convenantal God. It is our responsibility to diligently study His word to know how to recognize the glory that is His alone. We must dedicate our lives to honor Him, and thus, to enjoy Him forever. There truly is eternal life ahead of each of us. However, our perspective on the Sovereign God has everything to do with whether we will live with Him forever or endure the lake of fire. Both opportunities are real. Think about it!

Best, Doug

I am buying again!

Gold was showing a definite head and shoulders top as indicated on the following graph by the red horizontal lines. This is a negative technical signal. However, for the past two days, we can see some improvement. Perhaps, gold is breaking out now. It could trade in a rather narrow range for a time as it consolidates for another run at the recent highs. Currently, gold is 939.50 on an up tick. This is intraday, but well above the 50 day moving average.

Meanwhile the US Dollar has posted a double top as indicated, below, by the horizontal purple line. That, too, is a negative technical indicator. The BRIC nations have made agreements to trade with each other in their respective currencies which moves them farther from the dollar. That, too, is very negative for the dollar. These are small steps away, but they are AWAY from the dollar. Of course, the big competitor for the dollar is the EURO. Both the dollar and the Euro have been chasing each other for some time now. Longer term the dollar is way down and the Euro is way up.The race goes on. I believe we are in the time during which the dollar is being slowly dumped across the globe. Were this to escalate, the dollar would drop like a punchtured baloon.

Here are our miners, most of which are in buying ranges >> DROOY 8.29; HL 2.55; HMY 10.52; SLW 8.66, and VGZ 1.82. I bought HL @ 2.56 & VGZ @ 1.76. That is great for me. You should consider small purchases if you decide to buy now. Remember prices can go lower, but some day, maybe soon, they will jump upward again.

Pray about your decision, commit them to the Lord, act upon them, and trust Him for the results.

Best to each, Doug

Metals & Miners holding above 50 day moving averages

Here is the graph on gold with a very clear head and shoulders trace. This is negative for gold, but gold has failed to break below the 50 day moving average though it has been close to it for three days. During the NY market today, gold was up, so we may have reached the end of this correction.

Looking at the 24 hour gold trace, we see gold moving higher over night. This is sending a good message, but it could be slammed down again as it has been in Asian trading this week.
The miners are staying above the 50 day moving average even though they closed down a bit today. All of our mining stocks are in buying range. However, as I said before, if you decide to buy, purchase smaller quantities and use caution. We might see lower prices in the near term, but these prices are very inviting. You make your decision based upon your portfolio, available cash, and risk tolerance.
The gold bugs were intraday slightly below the 50day moving average, but recovered to close above the average. They seem to be holding well at current level. Tomorrow and Friday will be interesting. Stocks options close on Friday which could be an exciting day in trading.
Silver is up slightly over night. Silver seems to be the metal which is in the cross hairs of the bullion banks. It may be their primary target. Silver may be our better performer in the near future.
Over 939 and silver at 14.37 with both on an up tick. Both metals are perking up a bit in Asian trading for which we should be thankful. Perhaps, we are at or very near the bottom of this correction. We will have to follow the market to see if we are facing a consolidation at near these levels before another assault on the recent highs. If this pans our, we will have more opportunity for careful buying.

In the meantime, rest in the Lord and be certain of His Sovereignty in this as in every other area of our lives. He continually watches over His people and tests them from time to time to encourage their growth in a Christian world and life view. Through the process we call "sanctification," He grows His people into the likeness of Jesus Christ and calls us to bring the light of the gospel to the fallen world in which we live. Thus, we are to reflect His love to others with which we are brought into contact.

Best to each, Doug