Gold Touched Above $1,000 early - Romans Ch. 1 Warning

Note that the miners are holding pretty well with the exception of DROOY and HMY. They have not been trashed, as has the dollar, with the lower prices of the metal. Here are the miners compliments of Scottrade.com's streaming quotes.


Our precious metals moved higher early in the day. Gold was as high as 1,004, but has moved back down to 996.10 and is on an up tick. I still expect both gold and silver to hit a cyclical low in the next 10-14 days and then move to a cyclical high about the end of December. If that comes to fruition, one will have adequate opportunity to buy in and make a profit by the end of the year.
Silver hit almost 16.50 before dropping off. It is now 16.20 on an up tick. Some volatility, eh?

From TownHall.com:

Is Disagreement with Obama Racism?

by Walter E. Williams

Former president Jimmy Carter said, "I think an overwhelming portion of the intensely demonstrated animosity toward President Barack Obama is based on the fact that he is a black man." That's from a man who earlier referred to Obama as "This black boy" on the Jim Lehrer "News Hour." New York Times social critic Maureen Dowd said, in reference to Rep. Joe Wilson's shouting "Liar" during Obama's address on health care before the joint session of Congress, "Some people just can't believe a black man is president and will never accept it." Washington Post's Howard Kurtz said he "began to suspect that race was a factor for at least some critics when I heard them shouting about 'the Constitution' and 'taking our country back.'" Kurtz asked whether the massive tea parties and other public protests reflect a "distinct discomfort with the country's first black president." House Ways and Means Committee Chairman Charlie Rangel, Rep. Eddie Bernice Johnson, New York Gov. David Paterson, MSNBC's Chris Matthews, and other leftists claim that racism is behind criticism of President Obama. Read it HERE.

The liberals always seem more anxious to play the race card and readily accuse others of doing it. There once was a saying about the pot calling the kettle black. Don't have any idea why that came to mind.

From Barron's:

Signs of a Short-Term Dollar Bounce

Some strength against the Canadian and British currencies suggests a rebound may be coming for the greenback. Read it HERE.

From New York Times:

Out From India’s Alleys, Gold Loans Gain Respect

By VIKAS BAJAJ

Published: September 28, 2009

KOCHI, India — Indians own more gold than the citizens of any other country. They use the glittering metal as ornaments to flaunt family wealth, as a source of retirement savings and as insurance against calamities.

But lately, gold has become something else: collateral, and the basis of one of the country’s fastest-growing businesses, gold loans. Read it HERE.

From NYMag.com:

The Dow Zero Insurgency

The nothing-can-be-believed chaos of the financial crisis created a golden opportunity for a blog run by a mysterious ex-hedge-funder with a dodgy past and conspiracy theories to burn.

Last spring, in a far corner of the Internet, an unknown blogger began to piece together a conspiracy theory: The investment bank Goldman Sachs was using sophisticated, high-speed computers to siphon hundreds of millions of dollars in illegitimate trading profits from the New York Stock Exchange, invisibly undercutting the market and sidestepping the regulatory reach of the Securities and Exchange Commission.

Only a few loyal readers paid attention to the blog called Zero Hedge, a no-frills site full of arcane analysis decipherable only by finance professionals. But when a former Goldman Sachs computer programmer was arrested for allegedly stealing software codes used for the firm’s electronic trading arm, and a federal prosecutor was quoted saying the codes could be used to “manipulate markets in unfair ways,” the once-obscure blog ignited a chain reaction. While on a golf outing, an editor at the New York Times learned from a friend who worked on Wall Street that the Zero Hedge allegation was the talk of the industry, and an assignment ensued. On July 24, the Times published a front-page article on so-called high-frequency trading and its potential abuses, which in turn prompted Chuck Schumer, a member of the Senate Finance Committee, to draft a letter to the SEC that same day. Twelve days later, the SEC signaled that it was considering a ban on the very computerized trading that Zero Hedge had attacked. Read the whole article HERE.

Romans 1:17ff: "For it (the gospel of Christ) the righteousness of God is revealed from faith to faith; as it is written, 'The just shall live by faith.'For the wrath of God is revealed from heaven against all ungodliness and unrighteousness of men, who suppress the truth in unrighteousness. because 'what may be known of God is manifest in them, for God has shown it to them. For since the creation of the world His invisible attributes are clearly seen, being understood by the things that are made, even His eternal power and Godhead, so that they are without excuse. because, although they knew God, they did not glorify Him as God, nor were thankful, but became futile in their thoughts, and their foolish hearts were darkened. Professing to be wise, they became fools, and changed the glory of the incorruptable God into an image made like corruptible man - and birds and four-footed animals and creeping things.

Therefore God also gave them up to uncleanness to the lusts of their own hearts, to dishonor their bodies among themselves, who exchanged the truth of God for the lie, and worshiped and served the creature rather than the Creator, who is blessed forever, Amen.

For this reason God gave them up to vile passions. For even their women exchanged the natural use for what is against nature. Likewise also the men, leaving the natural use of the woman burned in their lust for one another, men with men committing what is shameful, and receiving in themselves the penalty of their error which was due."

Are we not seeing this as the wrath of God in judgment upon America today? How can this not cause each of us to weep for America and to repent before the Sovereign God of all, before America is wiped from the face of the earth under the wrath and judgment of the righteous God.

Best to each, Doug

Looking for a Low in Metals Soon - Rest in King Jesus

All seems to be lining up for a low in precious metals this week or next. Remember that the Fed Reserve + Bullion Banks have a obscene number of shorts on silver and gold. These they will want to cover at lower prices. As we observed last week, they are still active in the markets. However, it has not been so obvious this week. Of course, there was more saber rattling about sales of gold by IMF and banks, and that is part of the game. I believe that China is willing to purchase any that comes on the market for sale at the right price.

Both silver and gold have been punished a bit today. Silver is now 16.13 on a down tick.

Gold is 991.30 on an up tick. It was hit hard and spiked down at the middle of London and the opening in NY.

The GLD (current proxy for gold) is showing a dismal graph presently. Notice the double top (Red Arrows). The prices are in line in regard to the 50 and 200 day moving averages.

HMY is not looking good in the graph, either. And notice that the 50 and 200 day moving averages are reversed. Not a good sign. I am looking for more down side on HMY.

DROOY has taken a turn for the dark side, as well. Triple top and a recent reverse of the 50 and 200 day moving averages. This portends for more on the downside.

Even BYD is not looking too good at present. However, the fundamentals are very strong for BYD Co. I am holding and looking to buy more if we see it below $8. May even start buying as it approaches $8. This is a longer term hold.
The DOW is down some 41+ to 9747.87. Not too good a showing here, either. Yesterday up today down. Talk about volatility. We are being treated to it on a daily basis. There seems to be a good deal of propping up of the general market by intervention. That may account for some of the volatility.

I am interested in buying more American Silver Eagles, but am waiting for silver to go below $16. Possibly down to 15. There is a 2.10 to 2.50 premium on each coin over the value of the silver content. However, I believe we will be able to get a big bang for our bucks in silver soon.

We rest in the assurance that our Sovereign King Jesus is in absolute control and is moving all in accordance with His will. His will and timing is always the best for us in the long run. Thus, we have the confidence to have peace in the midst of the storms we see Him bring into our lives. We should develop the habit of thanking Him for each one. Each is for His glory and our benefit.

After all, the chief end of man is to "Glorify God and enjoy Him forever." Of course, we glorify God be being obedient to Him as we live our lives on a daily basis. Praise Him and always be grateful.

Best to each, Doug

Silver & Gold Holding - Buying Opportunity Soon

Silver is holding around 16 at present. It was below that over the week end. I am planning to buy US Silver Eagles if silver goes below 16.

Gold is back above 990, but was lower over the weekend. It will surprise me, pleasantly, if gold does not hit a low for now during the next two weeks, possibly as early as Thursday or Friday. If that happens, I will be adding to the mining stocks portfolios, as I expect a high near the end of December. We will have to watch our precious metals closely for buying opportunities soon.
BYD Co looks very toppy. The RSI and MACD have turned bearish. The stock price is in a strong upward trough, but has moved a bit toward the lower trend line of the trough. Any excursion into the less than $8 range could signal a move near the 50 day moving average. I do not expect it to break through that average, so I would see about 7.50 to 7.75 the low of this correction. A good buying range for me would be just < $8. This stock long term has a long way to go. It is in the correct industry and ahead of the time. From GATA:

Yikes! On CNBC: 'When you own gold, you're fighting every central bank' Submitted by cpowell on Sun, 2009-09-27 14:26.

10:23a ET Sunday, September 27, 2009

Dear Friend of GATA and Gold:

On Friday CNBC broadcast a remarkable six-minute interview with Jim Rickards, director of market intelligence for McLean, Virginia-based consulting firm Omnis (HERE).

Rickards was asked to analyze an essay published in Friday's Wall Street Journal by Fed Governor Kevin M. Warsh (yes, the Fed governor who this month acknowledged to GATA that the Fed is concealing records of its gold swap arrangements with foreign banks). That essay can be found HERE.

Read the GATA article HERE. See the important CNBC interview with Jim Rickards HERE.

From GATA:

Zero Hedge: The CIA chimes in on gold control

Submitted by cpowell on Sun, 2009-09-27 05:59.

1:52a ET Sunday, September 27, 2009

Dear Friend of GATA and Gold:

Yesterday Zero Hedge posted another U.S. government document from 1968 detailing the government's desperate interest in suppressing the gold price as a matter of rigging the international currency markets in favor of the dollar. This document is a declassified memorandum from the files of the Central Intelligence Agency. From reading some gold market analysts, we're supposed to think that the U.S. government interest in supporting the dollar by rigging the gold market somehow evaporated some time after 1968. Zero Hedge's posting about the CIA memo is headlined "The CIA Chimes In On Gold Control" and you can find it HERE:

From Ed Steer's Gold and Silver Daily:

From Telegraph.co.uk:

No reform, just a cosmetic patch for a discredited, flawed regime

'The ultimate result of shielding men from the effects of folly,' said the Victorian philosopher Herbert Spencer, 'is to fill the world with fools'.

These words sprang to mind as I watched last week's G20 Pittsburgh summit.

The world's leading nations have agreed "tough new regulations" to prevent another global financial crisis, declared Barack Obama, as the two-day meeting drew to a close. The G20 has "taken bold and concerted action to forge a new framework for strong, sustainable and balanced growth".

Obama's oratory was typically impressive. The trouble is, it wasn't true. No specific rules on banks' capital reserves were announced at this summit. No leverage caps were agreed. Nothing "bold" was done to lessen systemic dangers or overhaul the global regulatory regime.

Pittsburgh produced nothing more than the usual photo calls and drab theatre. The lack of questioning of the status quo was spectacular. The world needs to learn from what we've just been through and implement financial reform, so cutting the chances of a repeat performance.

What our "leaders" produced instead was a rhetorical patch for the existing flawed regime. Worse still, they did everything possible to protect the financial vested interests – above all, the big investment banks – from the damage caused by their deeply irresponsible use of derivatives and debt, while preserving the system that allowed such excess. Read it HERE.

From ProactiveInvestors.co.uk:

Gold Holds $990 Support as Investors Re-Evaluate Macro Picture

The overnight session in Asia saw Gold futures continue to trade lower. Since trading below $990 to reach an intraday low of $987 at around 8:30 (BST), gold has slowly began to recovery as the morning progressed in London. The overnight weakness largely reflects the relative performance of the US Dollar. The ICE Dollar Index steadily rose in the small hours of Monday morning to reach almost 77.5.

Approaching midday in London, the December Comex Gold contract was changing hands at around $991.
Over the weekend a number of issues have dominated the gold debate, with several commentators discussing the long term potential of a gold market which has risen over 4% in September. Read it HERE.

From MineWeb.com:

GOLD UPDATE

Typically bearish signals fail to dampen Gold's appeal

Despite the recent correction in gold, helped by things like IMF gold sales, growing crude inventories and lower US jobless claims, the upward trend remains intact

Author: David Levenstein
Posted: Monday , 28 Sep 2009

JOHANNESBURG -

Despite a series of news statements that are typically bearish for gold, the price of the yellow metal has shown relative strength. The first bit of bearish news which came out on Friday, September 21 was the announcement made by the International Monetary Fund (IMF) to sell 403 tons of gold. The IMF said in a statement the sales would be in a volume strictly limited to 403.3 tons, with these sales to be conducted under modalities that safeguard against disruption of the gold market. Reacting to the IMF decision, gold fell below $1000 an ounce for the first time in days. Read it HERE.

From MineWeb.com:

New Central Bank Gold Agreement went live on Sunday

But will anything really change?

Author: Rhona O'Connell
Posted: Friday , 25 Sep 2009

LONDON -

The third Central Bank Gold Agreement (CBGA3) goes live on Sunday 27^th September, with the same signatories as those to the second Agreement. These countries, listed below, plus the European Central Bank, have agreed to cap their combined annual sale at 400 tonnes per annum, down from the 500 tpa limit of CBGA2 and back to the original level imposed by CBGA1 in September 1999. The statement, released early in August, reads as follows:-

•1. Gold remains an important element of global monetary reserves.

•2. The gold sales already decided and to be decided by the undersigned institutions will be achieved through a concerted programme of sales over a period of five years, starting on
27 September 2009, immediately after the end of the previous agreement. Annual sales will not exceed 400 tonnes and total sales over this period will not exceed 2,000 tonnes. Read it HERE.

Folks, Our main emphasis must remain on the fact that the dollar is going to continue downward in purchasing power and in relative strength against other paper currencies. With the IMF issuing SDRs and the world of China, Russia, etc. rattling sabers about the failure of the dollar as the world reserve currency, it is inevitable that the dollar will continue to decline. The powers that be are hoping that it will be a gradual decline, but were the dollar to lose its reserve status, the decline could be precipitous. That would be a shock to all of us as price inflation would follow in spades. It would lead to an extreme stagflation and an end to our prosperity which was brought on through debt. Our debt instruments would no longer be marketable internationally.

We must continue to remind ourselves that our King Jesus is working all things in accordance with His will and that He loves His people and will work all things for their eventual good. It is up to us to give Him the praise, the glory, and the honor which is due to Him. We must follow His law to avoid chaos as individuals, families, churches, communities, states, and federal government. Thus, there must be national repentance and a return to Him or our nation providentially created by Him will no longer exist.

I believe that God has more to do with America and that we will eventually heed His call to repentance. His judgment we are currently experiencing is that call. Heed it and America will be restored. Ignore it and He will continue to pour His wrath upon us until we either turn back to Him or He destroys us and gives the banner of truth: His word to another nation to be the light of the world and the salt of the earth. That is what happened to the Israel of old and may happen to us. I rest securely and comfortably in Him.

Here are the miners compliments of Scottrade streaming quotes:

Gold is 993.50 and silver 16.12 with both on up ticks. The DOW is up 122+.

Best to each, Doug

Boyz At Work Yesterday & Today - Interposition

The graph, below, is from Ed Steer's Gold & Silver Daily this morning. He points out clearly the action of the boyz as the intervention continues. It is interesting that the rise in the dollar is almost precisely at the same time as the drop yesterday in the price of our precious metals. This is flagrant intervention in our face by the Fed Reserve and its bullion bank proxies.

The above dollar graph is from yesterday, but the timing is clearly indicated by yesterday's red traces on the graphs for gold and silver. Note that today's green traces have a similar, but not as exaggerated volatility.

Thus, the metals are artificially down again. We must learn to hold tight while this manipulation continues. From all indications, we may see a low in the metals before the middle of October. I would expect to see a low by October 13th. It could come as early as the first seven days of October. This should provide further buying opportunity in preparation for the next run up to beyond 1030 which we could see as early as the near the end of December based on some cyclical projections. However, as I take some precautions, such as, selling and trailing stops, I will not sell all. Too often, I have done so in the past and then been on the side lines as the prices jumped day after day. BYDDF is giving us a buying opportunity again today with last trade at 8.67. BULM last trade was 0.69. Both are holding to most of the recent gains very well. The DOW is up about 15 to 9721 and change. We may see a an up Friday here. Time will tell. In the meantime, hold tightly to most of the mining stocks for the gold rush which is coming. Don't be left on the side lines wishing you had not sold all. Been there and done that with little joy. Of course, our true joy comes from the Lord of all, King Jesus. Chuck Butler in the Daily Pfennig pointed out this morning that the G-8 has given way to the G-20 to admit the BRIC. These "emerging" nations have vast populations and a vast holding of US Treasury dollar securities. Thus, they are a growing financial power in the world. The G-20 gives them a say and more influence which they have earned. At the same time, this lessens the prestige and power of America and our dollar. This will have a positive impact upon the price of precious metals in dollars.

From Ed Steer's Gold & Silver Daily: "The other thing that was going on in the silver world yesterday, that was below everyone's radar screen, involved the huge short position that the SLV ETF managers currently have. As I mentioned on several occasions, Ted Butler felt the SLV ETF was owed about 30 million ounces. When the bullion banks were covering their short positions on the Comex, the SLV managers were [at the same time] covering their short positions in SLV shares... because they couldn't get the metal, they're forced to short their own shares. If the price correction is deep enough [courtesy of JPMorgan, the biggest silver short on the planet, who just happens to be the custodian of all the silver in the SLV], then the fund can cover its short position and not have to deliver a single ounce of metal into the fund... which they don't have [and can't get] without driving the price to the moon. Ain't this grand???"

The shorts hanging over our precious metals are a risk to us, as the writers of these shorts are anxious to manipulate the price of silver lower to cover the shorts. At some time, maybe not too far away, they might have to cover their liabilities. This can't be done without obscene upward price movement like has never before been seen. Silver could be the very big winner. Think CDE, HL, SLW, PAAS, and SSRI. By the way, I am not a seller of HL. I did get stopped out on a few shares, but am looking to replace even those few and add to the portfolios.

The Constitution of these United States places the states in between the citizens of the states and the Federal Government. By the way, do not forget that the Constitution put limitations upon the powers of the Federal Government, and specifically left all other powers to the citizens and the states in the 10th Amendment. Thus, the states were to interposition themselves to protect the life, liberty, and property of the citizens from violation by the Federalies. There is a movement which has been joined by about 30 states which have enacted 10th Amendment resolutions in an attempt to regain their inter positioning authority under the 10th. This is a baby step in the correct direction. Pray that other states will step forward and that the juggernaut of the current trend will be stopped before all of our Constitution is lost. Our forefathers developed the republican form of government based upon biblical principles and, though not perfect, it was one of the best Constitution ever written by men. We must pray that God will raise up statesmen working to restore our Constitution before it is too late. We, today, stand under the judgment of God, through which God is calling us to national repentance. This is critically important. Repentance must begin with the individual spread to the family, to the church, to the local communities, to the states, and then to the federal level. It must be a bottom up revival. Pray to this end!

Here are our miners from Scottrade streaming quotes:

Gold is 990.20 and silver 16.14.

Best to each, Doug

Gold Below 1,000 - Correction is Due - Take Precautions, but Hang Tough

Gold is off 11+ to 997, Silver -0.35 to 16.30. The DOW is off 29 to 9716.58. It has been lower. We have a buying opportunity with BYDDF at 8.85 or so. I recommend some selling of a portion of the other mining stocks, but not all. You might want to consider some trailing stops. We have to hang tough on these corrections, but a few precautions are wise.

More on the Fed's confession from The Daily Pfennig today:"

And then there was this... The Federal Reserve System has disclosed to the Gold Anti-Trust Action Committee Inc. (GATA) that it has gold swap arrangements with foreign banks that it does not want the public to know about. WOW! This is a BIG DEAL folks, as the Fed as recently as 2001 (Big Al Greenspan) denied that these swap arrangements existed...

GATA believes that this letter suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

So guess what I think regarding the Fed now? That Ron Paul's bill to audit the Fed needs to get on a roll! Remember, it comes before a committee tomorrow, I believe, where it will be decided to forward the bill on or kill it... So, call your representative and tell them you believe they should back Ron Paul's bill to audit the Fed! I've got a bag full of names to call these guys at the cartel, I mean Fed... But, those are verbally used only... Nothing in writing... Hey! This is a family safe letter!

WOW! This IS an opportunity for Ron Paul's bill to audit the Fed to be heard. Let's flood the Congress with calls, emails, and snail mails in support of Ron Paul. The Fed has never been audited and seldom even questioned deeply on all of its mistakes and games it has played through the decades. Here is an opening for us.

Getting this out in a hurry. Best to each, Doug

Fed Admits Manipulation - BYDDF a Big Winner

Here is a big winner on the way higher. Our Chinese battery and auto manufacturer (BYDDF) is a strong winner. We may have to add to portfolios at these higher prices before it continues its climb. I am thankful for such blessings and praise the Lord daily for His results!
Well, even after the Federal Reserve admits to manipulating gold prices, we see the results of continuing action by the boyz. How long O Lord? David asked this of the Lord. He knew who was actually in control when the chips were down. Note that the pattern for silver is very similar to that of gold. Obvious intervention. Nevertheless, gold presently at 1008.10 is still clinging to support at 1,000. Upward movement will depend upon breaking 1030.

Silver and gold are tracing similar curves on the graphs. Silver is 16.73 and has reluctantly pierced the 17 support level.
From TownHall.com:

Lying Propaganda

by Walter E. Williams
Michael Moore's new film, "Capitalism: A Love Story" will be released next month. I've neither seen nor read reviews of the film, except for a short piece in the London Telegraph (9/6/09) titled "Michael Moore film calls capitalism evil." Aware of Michael Moore's previous films, I know that it will be at best a misleading story about capitalism. So let's do some defensive mental preparation, not about the film but what is and what is not capitalism.

Capitalism is an economic system characterized by private ownership and control over the means of production. The distribution of goods and services and their prices are mainly determined by competition in a free market. Under such a system the primary job of government is to protect private property, enforce contracts and ensure rule of law. (Color Added) Read it HERE.

Do not let the media deceive you on the definition of Capitalism with the lies of the government and Keynesian Economist. The capitalistic free market of classical Economics has long been run out of America. America is at best a centralized socialistic form of government and at its worst is rapidly becoming ever more communistic with centralized ownership of vast portions of the economy. The present chaos comes from this trend as we have turned our backs on the Biblical capitalistic free market and the God of Scripture.

From TownHall.com:

Choosing The Right College

by Thomas Sowell

There is so much for high school seniors and their parents to know about colleges that they not only need to get a lot of information but also need to make sure it is the right kind of information.

A number of college guides have useful information but, unfortunately, the best-known and most pretentious of these guides -- "America's Best Colleges"-- is grossly misleading. . . . .

Would we not consider it absurd if someone collected statistics on people and then used those statistics to rank individuals according to who would make the "best" wife or husband? Yet that is the approach "America's Best Colleges" is based on. Read it HERE.

The general best is not always the best for the individual. Sowell is correct on this.

Big news from the Gold Anti-Trust Action Committee (GATA):

Fed admits hiding gold swap arrangements
Submitted by cpowell on Wed, 2009-09-23 02:55.

11p Tuesday, September 22, 2009

Dear Friend of GATA and Gold:

The Federal Reserve System has disclosed to GATA that it has gold swap arrangements with foreign banks that it does not want the public to know about.

The disclosure contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very much involved in the surreptitious international central bank manipulation of the gold price particularly and the currency markets generally.

The Fed's disclosure came this week in a letter to GATA's Washington-area lawyer, William J. Olson of Vienna, Virginia (HERE), denying GATA's administrative appeal of a freedom-of-information request to the Fed for information about gold swaps, transactions in which monetary gold is temporarily exchanged between central banks or between central banks and bullion banks. (See the International Monetary Fund's treatise on gold swaps HERE .

The letter, dated September 17 and written by Federal Reserve Board member Kevin M. Warsh (see HERE), formerly a member of the President's Working Group on Financial Markets, detailed the Fed's position that the gold swap records sought by GATA are exempt from disclosure under the U.S. Freedom of Information Act.

Warsh wrote in part: "In connection with your appeal, I have confirmed that the information withheld under Exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of Exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you." Read the entire article HERE.

Folks, this is an admission by the Federal Reserve that they have been actively engaged in manipulating the price of gold. We have known that something was amiss and that the likely suspect was the Federal Reserve. Perhaps, this will signal an end to this type of intervention into what should have been a free market. This intervention has robbed many investors of great wealth over the years. It is an absolute shame that our central bank and government are acting contrary to the best interest of citizens. On the other hand, what can one expect from a pagan government which is intent upon removing every reference to the Sovereign God who controls all. Thus, His judgment is falling upon America in spades. Thanks to the efforts of GATA and others, this admission by the Federal Reserve is in the open. Pass this to all your contacts. This is big news.

From SilverSeek.com:
Silver Investigation Update
By: Theodore Butler

Statement of

Commissioner Bart Chilton

Regarding the

CFTC Investigation of Silver Markets

September 21, 2009

It has now been one year since the Commodity Futures Trading Commission initiated its investigation of the silver markets. In that time, it has invested over 2,318 staff hours in this investigation, 32 individual interviews have been conducted, and approximately 40,000 documents have been reviewed. We have worked with our colleague regulators in the United States and in other nations. In addition, the agency has taken the extra step of engaging an eminent outside expert to assist in its analytical review of this matter. In sum, we’ve put an incredible amount of energy and resources into this effort.

While there are some who I’m sure wish these things could be accomplished faster, let me assure them that we are far from over in our aggressive investigation of this market. Our Division of Enforcement is leaving no stone unturned to ensure that, if there is any illegal activity going in silver, we will find it and we will prosecute it to the fullest extent of our authority under the law. The entire report is worth a read HERE.

The investigation into silver manipulation continues. It reminds me of the old saying, "Where there is smoke....." Since there has been a formal admission about the manipulation of gold, is there any doubt that the same is happening in silver? I say, there is no doubt. Perhaps, there is now a better opportunity for disclosure. Remember how Obama campaigned on a more open government. How much openness have we seen? That's right: NONE unless it is forced.

I have not yet opted for trailing stops, but am keeping the option open. We will have to watch the price of precious metals and see which way they are about to move today. Here are the miners from Scottrade's Streaming Quotes:
Most are off a bit, but there are no drastic drops. For that we are thankful to the Lord! Gold is 1,007.10 and silver 16.72 with both on down ticks. The DOW is 9805 off 23.

est to each, Doug

Gold May Be Overbought - Considering Trailing Stops

Many writers are bad mouthing gold at present. The deflation vs inflation debate continues. Folks, there is some price inflation in most of the products we presently buy and use. However, it is muted from time to time by lower prices at the pumps. Harking back to the true definition of inflation, we remember that inflation is "An unwarranted expansion of the amount of unbacked currency in circulation." This is the historical definition and one that I stick with in Biblical Austrian Economics.

Back to gold: Let's look at the graph for the precious metal, below. The RSI (Top Section red circle) turned upward today as it has in most of the past times as the price of gold continued upward. The MACD (Lower Section red circle) made a downward bend and then is showing a slight upward bend. That hesitation is cause for a bit of concern.

Looking at the candlestick graph in the center section, gold must best 1030 (upper red line) to move upward. It tried when it briefly intraday went above 1020, but has failed so far. A correction to recent resistance at about 980 is a potential correction level (lower red line).

Looking back to around the first of September, we can see that gold has sprinted from around 950 to 1016.70 (NOW). That is a substantial rise in a short period of time. We could be due for a correction. The trading thus far tonight is indicated by the small purple rectangle to the right of the candlestick for today's trading (closed at 3 pm this afternoon).

So, what is so important that this special late evening posting was necessary. I am considering some trailing stops on some of my mining stocks. I do not want to put trailing stops on all, because the stops could be hit on sudden short drops in price followed by continuing upward moves. Therefore, it is well to use stops of at least 10% to allow for some drops. These could well be necessary in anticipation of a potential big correction. I wanted to alert each of you to consider your risk tolerance and if trailing stops would let you sleep well at night, have at it. Protect yourself.

When and if I decide to put in stops, I will let you know as soon as possible. Also, I added a few thousand more shares of BULM today. At that time, I did notify you that planned to do it, and then told you that I did it. My offers were hit so suddenly, that I had almost no time to let you know. However, I did try via email.

By the way, most brokers will not allow Trailing Stops on pink sheet stocks. So you will have to watch them yourselves.

I will try to up date the blog earlier tomorrow, particularly if the situation recommends action.

Good night and have pleasant dreams. You are likely to read this early in the morning.

Best to each, Doug

Dollar Dipping - Gold & Silver Holding - A Jealous God

Both silver and gold are strong in the environment of the ever weakening dollar. The Euro hit about 1.48 over night and is strong this morning. Gold hit almost 1020 overnight and is now 1015.60 while silver is a strong 17.17. The metals a basking the sinking sun of the dollar.




From Reuters.com:

RPT-UPDATE 1-China weighs purchase of IMF gold -report

Mon Sep 21, 2009

* China could consider IMF's sale of 403 tonnes of gold

* China looking to diversify, has 1,054 tonnes already

* Market value of IMF sale around $13 billion (Adds comments of central bank officials, paragraphs 7- 15)

BEIJING, Sept 21 (Reuters) - China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed.

"China will consider buying if the price is right and the return is relatively high," MNI quoted one of the government sources as saying.

Gold XAU=, which had dipped just below $1,000 an ounce, rebounded to $1,003.45 after the report. That would put the market value of the 403.3 tonnes on offer from the IMF at close to $13 billion. Read it HERE.

This is likely to be the case if the central banks (Fed Reserve, and others) agree to let China buy the gold. Why is it that the Chinese are showing far superior economic action than the progressive western nations?

From Telegraph.co.uk:

HSBC bids farewell to dollar supremacy

The sun is setting on the US dollar as the ultra-loose monetary policy of the US Federal Reserve forces China and the vibrant economies of the emerging world to forge a new global currency order, according to a new report by HSBC.

"The dollar looks awfully like sterling after the First World War," said David Bloom, the bank's currency chief.

"The whole picture of risk-reward for emerging market currencies has changed. It is not so much that they have risen to our standards, it is that we have fallen to theirs. It used to be that sovereign risk was mainly an emerging market issue but the events of the last year have shown that this is no longer the case. Look at the UK – debt is racing up to 100pc of GDP," he said. Read it HERE.

Folks, items like this in the news are warnings about the viability of the our dollar. In case you do not know HSBC in no small bank, it is a major international player. The dollar is living on shaky ground which is crumbling beneath it. The dollar is being trashed, not by the world, but by the care takers in the Federal Reserve and White House. It is being sacrificed on the alter of government spending and empire building. However, it is now being seen for what it is by the world. It will be interesting to see, if we are allowed to, how much of the week's auction will have to be covered by the Fed. Examine the Kitco.com Exchange Rates Chart to see that the dollar is down this morning against all currencies reported. Note that the Euro has hit almost 1.48.

Before you invest in SLV, it would be wise to consider what Ted Butler has to say in his June commentary which may be found HERE. It is estimated that SLV is owed a substantial number of tons of silver which is yet to be delivered. Ted explains the issue and the stealth action allegedly taken by SLV.

Below is the Scottrade Streaming quotes of our mining stocks which are all in the green with the nice recovery of precious metals.

As in the days of the Old Testament, God blew, as He said through Hagai, upon the crops of Israel, because they had not followed His orders to rebuild the temple, God is blowing upon the prior success of America, because we have not honored Him. In fact, we have gone through a process of removing from history books, much media, and plaques on national monuments all reference to God and His providence. We have erected another god in the federal government which many see as a messiah. The bible would proclaim this god a false god. It is a god with ears and is faint of hearing of the people. It is a god with eyes which are dim at seeing truth. It is a god with lips which continually lie and deceive by design. God does not share His sovereignty and honor with any. He crushes all enemies in His timing. Let us turn back to the God through whom this nation was given freedom, founded, and sustained for a long time. Let's do it now through national repentance before God destroys America: The City Once Set on a Hill that it might be the Light of God to the world.

Gold is now 1015.20 and silver 17.16.

Best to each, Doug

Gold Lower - Buying? - Dollar Higher - God Sovereign

The dollar is a bit higher today and gold is down. Gold is presently at 999.20 desperately attempting to recover the $1,000 level. It has been reluctant to give it up.

Silver is fight to get back to 17.00, but keeps getting sold along the way. Silver is 16.68. It is still early in the day's trading.

From Business Spectator:

Gold drops near 1-wk low as US dollar rises

By Humeyra Pamuk of Reuters

LONDON - Gold dropped below $US1,000 an ounce, its lowest in almost a week, as the dollar rose broadly and investors took a breather ahead of this week's US Federal Reserve and G20 meeting.

Analysts said selling pressure from the physical market has also weighed on bullion which climbed to $US1,023.85 an ounce last week, its highest since March 2008, but failed to match its record high of $US1,030.80 an ounce.

Spot gold was at $US1,000.15 an ounce by 1125 GMT, versus $US1,006.15 an ounce late in New York on Friday. The precious metal has gained as much as 16 percent this year. Read it HERE.

The dollar is still in a definite long term downward trend. But as gold sales news hits the markets, the precious metals generally suffer. There is little reason for the dollar to bounce upward except that prices very seldom continue or never continue without a change of direction as they get an upward spurt or hit a sandy spot.

From MineWeb.com:

WILL HELP POOR NATIONS WEATHER CRISIS

IMF will sell up to 403.3 tonnes of gold - could begin next week

The International Monetary Fund said it will sell one-eighth of the agency's gold reserves-without disrupting the gold market - beginning at the end of this month.

Author: Dorothy Kosich
Posted: Monday , 21 Sep 2009

RENO, NV -

The IMF Executive Board has approved the sale of one-eighth of the agency's gold reserves, up to 403.3 metric tons, with the sales to be conducted under safeguards against disruption of the gold market.

The gold sales are a critical element of a package of measures approved in April 2008 aimed at setting the IMF's finances on a sound long-term financial footing. An endowment will be created with the profits from the gold sales.

The gold sales profits are also aimed at increasing the fund's resources for lending to low-income countries, a policy approved in July of this year. The IMF hopes to increase its concessional lending by up to $17 billion through 2014, including up to $8 billion over the next two years. The agency also approved zero interest payments on outstanding concessional loans through the end of 2011 for all low-income members. Read it HERE.

I always wonder about the humanitarian gifts from time to time. The old wise tale that "It is better to teach a man to fish than to give him a fish," always comes to mind.

From MineWeb.com:

Reuters

China weighs purchase of IMF gold -report

09.21.09,

* Market value of IMF sale around $13 billion (Adds comments of central bank officials, paragraphs 7- 15)

BEIJING, Sept 21 (Reuters) - China is considering buying gold being offered for sale by the International Monetary Fund, Market News International said on Monday, citing two unnamed government sources, but the report could not immediately be confirmed.

China will consider buying if the price is right and the return is relatively high," MNI quoted one of the government sources as saying.

Gold, which had dipped just below $1,000 an ounce, rebounded to $1,003.45 after the report. That would put the market value of the 403.3 tonnes on offer from the IMF at close to $13 billion. Read it HERE.

China seems to be lead by practical wisdom in its quest for more gold. China is very likely to buy whatever the IMF offers. Remember China is in the midst of a program of encouraging citizens to buy gold. That is wise. Most other nations discourage the practice.

From MineWeb.com:

SCOTIAMOCATTA METAL MATTERS

Gold's big picture bullish; good upside silver potential

After some gold ETF redemptions, ETF holdings have started to climb again, which ScotiaMocatta considers a "potentially bullish development."

Author: Dorothy Kosich
Posted: Monday , 21 Sep 2009

RENO, NV -

"The big picture remains bullish for gold," ScotiaMocatta advises, "and if equities start to correct more safe haven buying might return."

ScotiaMocatta also suggests, "Silver's rebound is looking robust and with prices continuing to outperform gold, there is likely to be good upside potential."

Meanwhile, gold ETF holdings are starting to rise again, suggesting redemptions have run their course, which ScotiaMocatta calls "a potentially bullish development." Read it HERE.

There is little doubt that the bull trend in precious metals is still strong. There will be dips along the way, but the direction is onward and upward. We must hang tough during the times of set backs and I will be looking for buying opportunities.

God has given us brains and has created us in His image. This means that we have a responsibility to act in accordance with His word. His word speaks to every aspect of life. The Bible has the answers to all of men's activities and life. Through the Bible we gain a world and life view that is pleasing to King Jesus.

It applies to investing many times. Proverbs tells us to look carefully over our flocks. It also says that we are to be diligent in our occupation. These are but two examples. After all, our flocks may be investments. We should carefully and diligently follow our investments. As we study and learn more, we can be more attuned to markets.

We must be diligent in our efforts, commit the plans to the Lord, and praise Him for the results. We do our part, but the results are His. Praise Him daily.

Gold is now 997.40 and silver is 16.64.

Best, Doug

Gold Above $1,020 - Trailing Stops

Folks, Silver sprinted to above $17.30. It is now $17.32.

Gold has spurted to over $1,020 over night (early this am). Here is the Kitco.com graph. Gold is now $1,018.70.
The question for us is, "Will they hold at this level without a correction?" God knows the answer to this, and we do not. Thus, if you have some doubts about holding these levels, I suggest some trailing stops. However, I would suggest that you use at least 10% stops or even higher. You may give up a bit of profit, but at least you will be protecting against short drops down followed by resumption of the rising price. We are too often stopped out on small drops of short duration.

Here are our miners:


Remember that God is in control. However, He gives us brains and warns us in Proverbs to be diligent in management of our flocks. I believe this applies to our investments, as well. Thus, watch them carefully.

Best to each, Doug

China, India, Russia, & Banks Buy Gold - God is Sovereign

Folks, It looks as though gold is on an upward sprint. China, India, Russia, and now even banks are buying gold. Is this the beginning of the third phase where gold will take giant steps up to higher prices? If it will stay above $1,000, this could well be the start of the masses making it a gold rush.

The dollar strengthened a bit today, but that did not impact adversely on the price of gold. Has the demand become so strong as to overcome the action of the boyz containment of the price? It does not seem probable, but it is possible.

If we get a correction, I will be buying as if there is never to be another opportunity.

This is a very strong bull chart for gold.

Look at the jump in price after NY Close which continues into the Asian trading tonight. Of course, remember that night trading is very light and any amount of buying can have a big impact on price. Gold is now 1009.40 on an up tick.
Silver is making a very strong showing, as well. Silver is now 17.07 on an up tick. The strong move is clear on this graph as it was on the gold graph.
This from Bloomberg.com:

Gold Futures Advance on Inflation-Hedge Demand; Silver Gains

By Halia Pavliva and Nicholas Larkin

Sept. 15 (Bloomberg) -- Gold rose, closing above $1,000 an ounce for the third straight session, as commodities climbed on demand for a hedge against inflation. Silver also gained.

Federal Reserve Chairman Ben S. Bernanke said the worst U.S. recession since the 1930s has probably ended, while warning that growth may not be strong enough to reduce unemployment quickly. The Fed has kept its benchmark lending rate as low as zero since December. It authorized $1.45 trillion in purchases of mortgage-backed securities and other housing debt this year. Read the article HERE.

I do not believe the lies coming from the White House and the Federal Reserve about the recession being over. That is, unless they are saying that the recession is over and we are in a depression. The unemployment pictures is dismal and consumers are struggling with creeping inflation which is coming upon us before the wasted dollars come into the markets and create much more significant inflation. This is just around the corner and much closer than most would believe.

There is much enthusiasm about the "new bull market." However, I believe we are still in a rally within the long term bear market.

We had best learn to live beneath our means to put some aside for the unknown future we face. Any recovery will not restore the affluence we had before and should the dollar be replaced as the reserve currency of the world, our living standard will be much lower than many expect.

We must learn to depend upon the Sovereign God of all for life, liberty, and all necessities of life. Since He counts the hairs of our head and sees every Sparrow fall, He can certainly care for all His people. Let us develop and follow a world and life view with Jesus Christ at the center of all. He is our Creator and He is the One who sustains us moment by moment. Let us learn to fear Him sufficiently to follow His Law-Word throughout our lives. It is either Him or chaos.

Best to each, Doug