Gold - Silver - Dollar - Lies - Rhetoric

There are two spots, marked by red arrows, which could be action by the boyz, but I do not know for certain. Silver, currently at 16.39 means that the Silver Eagles are available at about 18.49 and that is a tempting price. Could it go lower? Certainly! Will it? I don't know for the time being. By the way SLV (the silver trust) added some 4,275,780 ounces of silver as reported by Ed Steer's Gold & Silver Daily. That's a bunch and the highest in six months.
Looking at gold, we see a similar pattern. Not really normal or is it?
Gold is locked into a very strong long term bull market. Of course, it is true money while the FIAT unbacked paper currencies of the world, referred to as "money," really are nothing but empty promises. Thus, gold and silver with centuries of recognition as money will replace all of them. From the Gold graph below, we are seeing signs of another upward move. Notice, too, that gold remains above the 50 Day Moving Average which is another good sign not noted on the graph.
From InterFax.com:

Finance Ministry could sell 25 tonnes of gold, possibly on domestic market

MOSCOW. Oct 29 (Interfax) - The Russian Finance Ministry has not shelved plans to sell gold from the State Precious Metals and GemstonesRepository (Gokhran) and could sell approximately 25 tonnes of the metal, possibly on the domestic market, a ministry official told Interfax. Read it HERE.

The Russians cannot make up their mind on this. However, they could just be playing with the market. Others do, why not the Russians, too?

From 321Gold.com:

It's time to end World War II

Hugo Salinas Price
Oct 29, 2009

The shooting, the bombing and the killing of World War II stopped in August of 1945, and the War was formally over.

The United States and Britain knew the War was won, in 1944.

At that time, a Conference was called among the 44 Allied Powers, to determine the nature of the world's monetary and financial system after the fighting was over. It was held at Bretton Woods, New Hampshire, USA, in July of 1944.

As a result of the Conference, a set of Agreements were signed.

The most important of all the agreements was the one that established that gold should be the money to be used to settle all trade deficits between nations, but in lieu of gold, dollars could be used to settle these deficits; at the option of all Central Banks, these banks could demand gold from the United States Treasury at a redemption rate of $35 dollars for each ounce demanded.

Thus, the United States could pay for its trade deficits either in gold or in dollars. No other nation was allowed to pay for its trade deficits in its own currency; for all other nations, settlement of trade deficits had to be done with gold or with dollars previously acquired in the course of trade with the U.S. or with other nations who had dollars. In other words, dollars - and only dollars - were as good as gold.

General de Gaulle (President of France, 1959 - 1969) has been quoted as saying that this was "an exorbitant privilege". And so it was, a privilege of the victor in World War II.

Under the rules of war, a country at war may loot and plunder its enemy, if it can do so. Booty has always been a great incentive to get soldiers to fight, and World War II was no exception. When a war is over the looting and plunder stops and nations renew commercial relations, exchanging their goods in peaceful international trade.

In forcing on the Bretton Woods Agreements the acceptance of the dollar as a means of settling international debts, along with gold, the US established the will of a victorious power to continue to loot and plunder the whole world. Read the article HERE.

What an interesting perspective! It is true that we have bought from the rest of the world with a fraudulent currency which we were supposed to protect. Instead, we devalued the currency since 1971. Thus, it is becoming worthless day by day.

From Reuters.com:

Gold rises on economic optimism

Thu Oct 29, 2009

By Frank Tang and Jan Harvey

NEW YORK/LONDON (Reuters) - Gold rose toward $1,050 an ounce on Thursday, gaining 2 percent after data showing optimistic U.S. economic growth knocked the dollar and sent Wall Street into a rally mode.

Other precious metals rose sharply in gold's wake, with silver climbing more than 3 percent, platinum nearly 2 percent and palladium nearly 3 percent.

Gold has recently climbed in tandem with rising equities, driven by economic optimism. Historically, the metal moves in opposite direction to stocks because of bullion's appeal as a safe haven in terms of crises. Read it HERE.

I don't believe that gold increased in price due to economic optimism. It is still a store of value which is better than any unbacked piece of paper that governments force use as "money." People are beginning to recognize this. As more climb on board, we will have a last minute gold rush.

From TownHall.com:

Dismantling America: Part II

by Thomas Sowell

Many years ago, at a certain academic institution, there was an experimental program that the faculty had to vote on as to whether or not it should be made permanent.

I rose at the faculty meeting to say that I knew practically nothing about whether the program was good or bad, and that the information that had been supplied to us was too vague for us to have any basis for voting, one way or the other. My suggestion was that we get more concrete information before having a vote.

The director of that program rose immediately and responded indignantly and sarcastically to what I had just said-- and the faculty gave him a standing ovation.

After the faculty meeting was over, I told a colleague that I was stunned and baffled by the faculty's fierce response to my simply saying that we needed more information before voting.

"Tom, you don't understand," he said. "Those people need to believe in that man. They have invested so much hope and trust in him that they cannot let you stir up any doubts." Read it HERE.

This article and the following one discuss some of the problems with the current administration. If you bought into the pre-election rhetoric and lies, and voted for the current president, shame on you. You are now reaping the "benefits" of the leader you selected.

From TownHall.com:

The Public Option Is Not an Option

by David Limbaugh

Can you imagine the brazenness of President Barack Obama and his cohorts in going so far as to ridicule opponents of Obamacare for rightly pointing out that its ultimate goal is single-payer socialized medicine?

These people are propaganda virtuosos of the highest order. You might expect grand artists of deception just to silently dismiss such claims from critics or, at most, to summarily deny them. But they go further and mock the critics, trying to reduce them to acutely paranoid, tinfoil-hat-wearing, black-helicopter-hallucinating Cuckoo's Nest inpatients. Read it HERE.

From MineWeb.com:

A quiet storm among gold diggers

Apply the basic metrics, and Gold Fields apparently ranks as the world's most undervalued big gold stock.

Author: Barry Sergeant
Posted: Thursday , 29 Oct 2009

JOHANNESBURG -

An ebullient Nick Holland, CEO of Gold Fields, glowed with confidence when asked about the possibility of a stock valuation re-rating, given the clear discount at which Gold Fields trades to its Tier I global gold stock peers. Speaking on Thursday during question time after presentation of the group's latest quarterly profits, Holland conducted a quick virtual world tour and pronounced that only Australia and Canada could be rated as more friendly to miners than South Africa. On a comparative basis, he put down the rest of Africa, South America, Russia ("No . . . "), and China ("tough").

And Holland would know: Gold Fields operates across the world. In South Africa, its Driefontein and Kloof mines rate as two of the greatest gold mines ever known; Beatrix continues to surprise, and South Deep continues to develop to full mine status, as owner of one of the world's biggest known gold deposits, boasting a monstrous mineral resource of 63.8m ounces (excluding an astonishing further 14.6m ounces at Uncle Harry's). Read it HERE.

From MineWeb.com:

MOVING INTO MONGOLIA

China Investment Corp to invest $700m in second Mongolian mining deal this week

The deal, with Hopu-backed Iron Mining, represents the Sovereign Wealth Fund's determination to move from financials into mining.

Author: Michael Flaherty and Farah Master (Reuters)
Posted: Thursday , 29 Oct 2009

HONG KONG, (Reuters) -

China Investment Corp (CIC), a near-$300 billion sovereign wealth fund, plans to invest $700 million in Hopu-backed Iron Mining International Ltd, a source told Reuters on Thursday.

The investment would be the Chinese fund's second involvement this week in a Mongolian mining deal as it shifts its investment strategy to natural resources from financial institutions.

CIC's [CIC.UL] investment in Iron Mining follows a $500 million deal with SouthGobi Energy Resources (SGQ.V) earlier this week.

The fund's investments in Mongolian mining companies come after a recent change in Mongolian mining laws that have paved the way for foreign investment. Iron Mining International, part-owned by private equity firm Hopu and Singapore state investor Temasek [TEM.UL], plans to list shares in Hong Kong late this year or early next year, hoping to raise up to $1 billion. Read it HERE.

From MineWeb.com:

Sovereign wealth funds to focus on commodities, emerging markets in 2010

While financial stocks will take a back seat

Author: Saeed Azhar and Neil Chatterjee (Reuters)
Posted: Thursday , 29 Oct 2009

SINGAPORE (Reuters) -

Sovereign wealth funds will focus their buying on natural resources and emerging markets in 2010, after picking commodities over financials for most of their $94 billion investments this year, a senior Barclays banker said.

Sovereign funds, managing as estimated $3 trillion (1.8 trillion pounds) in assets, had their fingers burnt in their bold investments in Western banks such as Citigroup and UBS during the early phase of the global crisis.

The funds are returning to markets cautiously after portfolio losses last year forced them to rethink their strategy and risk management, said Gay Huey Evans, vice chairman for investment banking and investment management at Barclays.

"People are going back into the market, but they are going back quietly, gently, thoughtfully, not with a bang," Evans, Barclays' leading banker for state funds, told Reuters on Wednesday. Read it HERE.

China and others see the long term value of commodities and are scooping them up using dollars which are becoming worthless.

From Bloomberg.com:

Obama Bridge to Lasting Economic Expansion Risks Going Nowhere

Oct. 30 (Bloomberg) -- President Barack Obama and Federal Reserve Chairman Ben S. Bernanke built a bridge they anticipate will lead to a lasting U.S. economic recovery. It may end up being a bridge to nowhere they want to be.

The economy grew in the third quarter for the first time in more than a year, propelled by emergency programs to boost buying of cars and homes, according to Commerce Department figures released yesterday. Policy makers are betting those temporary measures will pave the way to a self-sustaining expansion as companies hire and consumers increase spending. Read it HERE.

From The DailyPfennig.com:

Chuck had this as one of his parting shots - "And then there was this... U.S. Treasury Sec. Tim Geithner, announced yesterday that he wants the power to not only tell a corporation that they are closed for business, but to also have the power to shrink Corporations that are not having problems! He will be the "death panel" that Barney Frank talked about a couple of months ago for non-financial institutions... Shake me, Wake me, when's it's over... Maybe I'm having a bad dream, folks..."

The lies and false rhetoric designed to deceive are rampant from this administration. Concentrate upon their actions which speak so loudly, we can barely hear their words.

From Ed Steer's Gold & Silver Daily: "Keynesian economics... and socialist central planning... have trapped the Western economies into a slow death. - Wayne N. Krautkramer"

Here are the miners from Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

BULM is 0.71; BYDDF 9.15; CYRS 0.29; AMNP 0.82; DOW -88to 9874; Gold 1038.30, and silver 16.32.

Folks, I put in orders to buy BYDDF @ 9.01. The price may not get there, but I thought it worth a try to get a few more shares.

The book of Proverbs has much wisdom for us even in investing. Here are a few verses: 10:4 "Poor is he who works with a negligent hand, but the hand of the diligent makes rich."; 11:25 "The generous man will be prosperous, and he who waters will himself be watered."; 12:11 "He who tills his land will have plenty of bread, but he who pursues vain things lacks sense."; 13:22 "A good man leaves an inheritance to his children's children, and the wealth fo the sinner is stored up for the righteous."

The Christian must have a long term perspective, because He knows that God is sovereignly working all things for His glory and for the eventual good of His people. King Jesus wants us not to be in a hurry, but to be sure to prepare our children and future generations to carry on His kingdom work. We must prepare them spiritually and financially.

Particularly, in precious metals investing, we are looking to the future failure of unbacked paper currencies. That would be the ultimate, but in the mean time, they are being depreciated daily.

Best to each, Doug

Correction Bottomed? - Copper - Gold

Southern Copper Corp looks like it may be turning upward rather strongly. We must be patient and see what happens here.



Both silver and gold seem to be coming out of an oversold position and are moving up strongly today.


The miners are responding in kind with similar moves. However, the GDX is showing some weakness as the price is still below the 50 Day Moving Average. The RSI is turning upward. Negatively, we had very strong volume yesterday as the price moved downward.
I bought AMNP at 0.82 today as another speculative miner. Of course, it promptly dropped to 0.81, but that is often the way my purchases go at first.
From MineWeb.com:

Investment to drive gold price to $2,000-$3,000 or more but only over a few years.

Jeff Nichols sets out his views on gold and the gold price in a presentation in Hong Kong.

Author: Lawrence Williams
Posted: Wednesday , 28 Oct 2009

LONDON -

Gold guru Jeff Nichols, in his latest presentation to a Far Eastern audience at the Gold Outlook Asia conference in Hong Kong last Thursday, made some very pertinent points regarding gold and the U.S. and global economy - the two being very much interlinked.

Some of his particular comments were as follows:

• The root cause of the current world economic crisis has been decades of easy money, low interest rates, a persistently expansionary monetary and fiscal policy by the U.S. -- aided and abetted by China and the other major Asian exporting countries.
• These same policies are now responsible for the bull market in gold -- a bull market that will likely to carry the metal into the $2,000 to $3,000 range or even higher over the next few years, but not immediately.
• The U.S. economy is showing signs of life only because of massive injections of liquidity from the Fed and unprecedented fiscal stimulus from by the U.S. Treasury along with a temporary period of inventory restocking.
• There remains a significant risk of a "double-dip" recession with further contraction and a second down-leg in U.S. equity prices yet to come.
• In lieu of paying down America's huge debts, we can expect currency debasement and higher rates of inflation to reduce the real value of its debts at home and abroad. And, with higher inflation and a depreciating dollar, gold will likely continue its spectacular rise.
• Read the article HERE.

From MineWeb.com:

Chinese visit signals thaw in relations with Australia

The mood was boosted by a glowing editorial in one of China's most popular newspapers

Author: Michael Perry (Reuters)
Posted: Thursday , 29 Oct 2009

SYDNEY (Reuters) -

The arrival of China's Vice Premier Li Keqiang in Sydney on Thursday and a glowing editorial in one of China's most popular newspapers this week seem to seal the end of diplomatic tensions between Canberra and Beijing.

Relations plummeted in June over a failed bid by China's state-owned metals firm Chinalco for a $19.5 billion stake in Anglo-Australian Rio Tinto and the arrest in China of an Australian executive with Rio over corporate espionage charges.

China canceled a high-level diplomatic visit to Australia and its media accused Australia of interfering in China's affairs when Australia granted a visa to an exiled ethnic Uighur leader.

But China's Ambassador to Australia, Zhang Junsai, said both countries had come to a consensus that they must manage their differences and that Li's visit to Australia reflected the long-term importance of Australia-China ties. Read it HERE.

China is courting Australia again. Of course, China wants more interest in the natural resources of Australia, so..........

From MineWeb.com:

AFRICAN EXPANSION TRAIL

China's appetite for African minerals unabated - Report

According to the superpower direct investment into Africa by China rose 78%

Posted: Wednesday , 28 Oct 2009

BEIJING (Reuters) -

The global financial crisis has failed to dampen Chinese investment in Africa, a leading state-run newspaper said on Wednesday.

Premier Wen Jiabao heads to Egypt next month for the second China-Africa summit, as China's appetite for raw materials drives African growth.

China portrays itself as a steadfast friend of Africa and has pumped billions of dollars into the continent, especially over the last few years, often by what it calls "no-strings" loans or aid.

In the first half of this year China's direct investment in Africa, excluding in the financial sector, shot up 78.6 percent year-on-year to $875 million, the People's Daily said, citing an unnamed Commerce Ministry official. Read it HERE.

From The Daily Pfennig: Chuck Butler reported that Norway joined Australia in raising rates 25 points yesterday. He looked at GMAC going back to the government bail out trough and coined the phrase Government in "too deep to fail" replacing the old "too big to fail." Atta Boy, Chuck!

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

Here are the currencies from Kitco.com:

BULM Last 0.75; BYDDF 10.13; AMNP 0.83; Gold 1041.40; Silver 16.59; DOW +106 to 9670. The correction may or may not be over, but the metals and the DOW are putting in a good showing today after a miserable one yesterday.

In times of flux, it is wonderful to live in the love and care of the Sovereign God of all. We can relax and know without a doubt that He is in control. King Jesus rules over all and is bringing all to His feet as He works His will to the eventual good of His people. Let us praise Him daily for His providential care.

Best to each, Doug

Dollar - Gold - Silver - Mining Companies

US Dollar making a strong showing, but I think it is not for long. Technically very strong and this is having a negative impact upon the precious metals. Remember that our governments at all levels are not looking for ways to lower spending, but continually seeking new funds (from loans or taxes). We need statesmen who do not buy votes with largess from the productive to the non-productive and are willing to bit the bullet of reducing spending at all levels even as we must learn to do. Get out of debt is the watch word of the wise.
I am not very effective with the bow and arrow, but I have tried to show the various interventions during the last two days. It has been significant. Also, it has been significant in the US Dollar, as well. Folks, there is no free market; only intervention. By the way, it seems that Russia will not be selling the gold as it was announced. This could be only a postponement, but we will have to wait and see. Richard Russell pointed out the intervention in the stock market near closing of the DOW yesterday which took the DOW from about +2 to +14 in the last few minutes. There is intervention and manipulation in every one of our markets today.
The similarity of action in silver is even more evident as it happens at virtually the same instant every day.

From TownHall.com:

Obama's Nobel Peace Prize
By Walter E. Williams

According to Alfred Nobel's will, the Peace Prize should be awarded to the person who: "during the preceding year, shall have done … the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses." According to the Norwegian Nobel Committee, appointed by the Norwegian Parliament, 2009 saw a record 205 nominations who competed against President Barack Obama for this year's Nobel Laureate. We don't know the names of other nominees who were passed over because Nobel Foundation statutes do not permit information about nominations, considerations or investigations relating to awarding the prize to be made public for at least 50 years after a prize has been awarded. Nominations from 1901 to 1955, however, have been released. Past nominees included Adolf Hitler, Joseph Stalin and Benito Mussolini. Since it takes only one qualified person to nominate someone, these nominations do not necessarily reflect the opinion of Nobel committee members. Read it HERE.

Of course, this is simply a means whereby the liberals award their kind without to the integrity of the award itself. It has become worthless. It has only the goal of patting the ego of the current socialist or communist.

From MineWeb.com:

ANTI-MICROBIALQUALITIES

Silver containing wound dressing launched into $15 billion global market

In yet another medical application for silver, Advanced Medical Solutions has launched a silver-containing wound dressing for the global woundcare market.

Author: Lawrence Williams
Posted: Tuesday , 27 Oct 2009

LONDON -

British specialist technology company, Advanced Medical Solutions (AMS), which supplies the $15 billion global woundcare market with advanced woundcare dressings and tissue adhesives for wound closure has announced a new silver-containing dressing. This has already been launched in the U.S. and is being introduced into the European and other international markets this month.

Systagenix Wound Management, the marketing and distribution partner for AMS's fibre-based silver alginate technology, has expanded its existing anti-microbial wound dressings offering with the introduction of AMS's SILVERCEL Non-Adherent Hydro-Alginate Dressing.

The company notes that silver is widely recognised as a safe and effective broad-spectrum anti-microbial agent for infection control. Read it HERE.

Colloidal silver has long been used by "health nuts" to stem infections. This has very often been a successful treatment. Now a company has gone forward with research to develop, perhaps, a better way of treatment.

From MineWeb.com:

GOVERNMENT INTERVENTION

Venezuelan government confiscates Gold Reserve's Brisas property

Shares drop 15% on the news

Posted: Tuesday , 27 Oct 2009

TORONTO (Reuters) -

Gold Reserve (GRZ.TO) said on Tuesday the Venezuelan government had seized control of its Brisas gold property, deepening a dispute between the miner and Hugo Chavez's government, and pulling the company's shares down 15%.

The Toronto-listed company's rights to much of the deposit were taken away by the government earlier this year, and Gold Reserve filed for international arbitration last week, seeking to recoup billions of dollars in damages.

It said government personnel arrived at Brisas on Monday to deliver notification of the government's takeover of the property and to take physical possession of it. Read it HERE.

Intervention and nationalization is not exclusive to our Federal Government. It seems to be moving internationally. Apparently, people ignore past failures of such. They always think that they can do a better job this time around. Each time in the past, it has met with failure. Here we go again!

From MineWeb.com:

China's appetite for African minerals unabated - Report

According to the superpower direct investment into Africa by China rose 78%

Posted: Wednesday , 28 Oct 2009

BEIJING (Reuters) -

The global financial crisis has failed to dampen Chinese investment in Africa, a leading state-run newspaper said on Wednesday.

Premier Wen Jiabao heads to Egypt next month for the second China-Africa summit, as China's appetite for raw materials drives African growth.

China portrays itself as a steadfast friend of Africa and has pumped billions of dollars into the continent, especially over the last few years, often by what it calls "no-strings" loans or aid.

In the first half of this year China's direct investment in Africa, excluding in the financial sector, shot up 78.6 percent year-on-year to $875 million, the People's Daily said, citing an unnamed Commerce Ministry official. Read it HERE.

China continues to buy the world. Ever think of a Chinese Empire to replace ours? There will be consequences.

From YouTube.com: See the speech by Lord Monckton on Obama about to sign away American sovereignty. (I may have sent this out before, but it is important.) See it HERE.

From IAmFacingForeclosure.com:

Will Option ARM Loans Still Implode?

October 26th, 2009

For the last year and one-half, there have been projections regarding the coming implosion of Option ARM loans. So far, it has yet to materialize on the scale that was projected. What happened to the implosion? When can it be expected? In order to answer these questions, an understanding of the mechanics of the Option ARM must first be acquired.
This is an interesting article explaining ARMs and warning of the danger facing many folks. Read it HERE.

From LewRockwell.com:

Zero Discount Value of Gold in the Total Banking System

The U.S. banking system has many banks with large amounts of bad loans on their books. How do these bad loans affect the value of the dollar and gold? Specifically, how do they affect the Zero Discount Value (ZDV) of gold?

This interesting and in depth article on the subject is worth a good read HERE.

Here are the miners from Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

BULM is 0.77; BYDDF 10.16; AMNP 0.87; CYRS 0.34; DOW -51 @9830. Gold is 1033.20 and silver 16.33. The Silver Eagles are looking more attractive each day.

The Daily Fennig reported that consumer confidence came in at 47.7 against an anticipated 53.5; another bailout being discussed for GMAC Financial; 10 Year Bonds yield moved down which punished those seeking the safety by lowering the value of bonds; and predicted that Norway would give a rate hike today.

Folks, it is important for us to stay focused upon the long term trend of the dollar against that of the precious metals. Remember, the dollar is going down and metals are going up. I hope to do some investigation on copper today. My cup has been too full.

The Lord is in absolute sovereign power over every thing for every time. He changes not as scripture reports, "He is the same yesterday, today, and forever." That gives great comfort to His people since they can rest with certainty in every word His has written through men. Unlike man's law, God's law is not forever changing. It changeth not! Praise the Lord daily for Him and His providence toward His people.

Best to each, Doug

US Dollar UP - Gold Down - King Jesus Reigns

The Story yesterday and today is found in the US Dollar and the precious metals. Yesterday, there was intervention as reported in the Gold and Silver Daily article, below. I missed it, because of the follow on selling by many investors. The intervention continued today as options have/are expiring. That always makes things interesting. The 1040 level for gold seems to be holding fairly well though the price has penetrated that level several times. The price keeps bouncing around 1040.
Silver has been well below 17 and remains there.
The pressure on the metals has spilled over into the miners. The GDX has turned rather nasty. The price moved below the 50 Day Moving Average. I have shown three support levels in black. There is rather strong support at just below 37, but I do not believe we will see the price down to that level. The RSI shows some hope of leveling and possibly turning positive, but the MACD is definitely negative. There was an increase in trading (selling) on the down move yesterday which is negative. By the way, I am not selling and have no trailing stops. I am trying to find a buying spot in this down move as both metals and mining stocks are moving toward an over sold condition.
The story is in the US Dollar. It moved upward strongly yesterday and has continued into today. Both the RSI and MACD are strongly positive. The index must move above the 50 Day Moving Average for this to continue. Lacking that, we will see the downward trend resuming. For the time being the move will continue upward.
From fmgr.com:

GOLD
by James Turk

October 25, 2009 – Gold’s ongoing consolidation in the $1045-to-$1060 area is very constructive to its ongoing bull market. However, end of months are always very tricky because of option expiry. The gold cartel writes a lot of calls in their market interventions aimed at capping the gold price. As a consequence, they often bomb gold at month-end so that as many of their calls as possible expire out of the money, thereby enabling the gold cartel to earn the entire premium.

Even though October expiry is not a big month (compared to November expiry, for example), it is normal to expect some selling pressure this coming week. In fact, the selling pressure to drop the gold price before option expiry has already started. Read it HERE.

Worth a thorough read.

From MineWeb.com:

Coming copper supply crunch supportive of strong prices - VM Group

In its latest analysis of metals supply and demand the VM Group, on behalf of BNP Paribas and Fortis Banks, takes a hard look at copper and its price prospects as the month's featured metal.

Author: Lawrence Williams
Posted: Tuesday , 27 Oct 2009

LONDON -

The BNP Paribas Fortis/VM Group Metals Monthly for October has just been published giving the Group's analysts' views of the short and longer term outlook for precious and base metals and price forecasts, as well as an update of hedge fund performance.

While there is relatively sparse detail on most of the specific metals covered, the latest report takes a particularly close look at the copper sector and concludes, primarily, that copper prices have been supported by continuing strong import figures from China, the key driver of the markets since the bottom dropped out of the metals sector a year ago.

China likes to surprise, say the analysts, and with unwrought copper and copper products imports increasing month-on-month in September, against consensus forecasts of decline, the copper rally received a welcome boost. While they feel that OECD demand recovery is still crucial for the copper price to continue its march, at least Chinese demand will likely cap declines as long as the speculative element in Chinese consumption remains under control. Read it HERE.

I am looking into Dr. Copper now. Hopefully, we can find some good investments in it for the near future. There is only so much time in a day and my cup is full.

From MineWeb.com:

Harmony Gold looks to tough times ahead

Despite a bullish long term view directors divided on short term gold price prospects

Author: Geoff Candy
Posted: Monday , 26 Oct 2009

GRONINGEN -

Despite the 2009-2010 financial year moving quickly to gold trading at over $1,000 per ounce and R2bn in cash on its balance sheet, Harmony gold remains cautious in its expectations.

The first major caveat to the group's "enviable position" is the rand price of gold which, as a result of the strong domestic currency, slumped from R320,000/kg to R231,000/kg in the last five months of the reporting period.

Which CEO, Graham Briggs explains, served both to undermine the operational gains made by the group during the year and also testing its cost control measures.

Nonetheless, he says, "Our operations have largely delivered a solid performance which is based on three pillars: We have a better understanding of our orebodies, a result of exploration drilling and development, and have reinterpreted our geology and developed credible geological models."

But, he adds, "overall operational underperformance in terms of throughput and grade resulted in Harmony being down marginally from the 1.6 million ounce production target for FY09."

The second concern raised by the group is the increasing pressure on its cost base. In FY2009, overall costs rose 9.8% of which labour, which represents, 55% of its cost base, grew 4.5% while electricity, which makes up 11% of costs, rose by 28%. And, it does not look like these costs are likely to come down. Read it HERE.

That is not the best news for HMY, but it remains a solid company. It is sensitive to the price of gold.

From MineWeb.com:

Overcapacity a problem but, not disaster for China

The six sectors targeted in the latest government drive to curb blind expansion which include steel, cement, flat glass, chemically processed coal account for just five percent of total fixed asset investment

Author: Alan Wheatley, (Reuters)
Posted: Tuesday , 27 Oct 2009

BEIJING (Reuters) -

At the start of the decade, perhaps only one family in three in Oufang village was growing citrus trees. They earned a good living until five years ago nearly all their neighbors piled in and started planting.

The result has been predictable.

"There are too many oranges here. Nobody wants them and we can't sell them," said one of the growers, Peng Xiaomin.

Peng, 27, who has posted an advertisement on a fruit website to try to sell his oranges, said the villagers were now just scraping by.

"The farmers have planted too many citrus trees," he said. "Development has just been too fast."

Oufang, in southern Jiangxi province, is a microcosm of China's economy: overcapacity blights an array of sectors, notably in heavy industries that are dominated by state-owned enterprises. Read it HERE.

China will come out of this financial mess in good shape, because it came into it will a surplus of dollars. There must be some pain from the mal-investment in manufacturing. However, we are seeing China moving to first in many areas; such as, automobile manufacturing. Our BYD will profit handsomely from this development.

From Ed Steer's Gold and Silver Daily:

I also note that the U.S. dollar began a rally at the precise moment that gold and silver were at their price zenith at the London p.m. fix. Coincidence??? Not bloody likely! It wasn't much of a rally, but it was enough for the purpose required. However, the usual N.Y. gold commentator remarked... "Although the brief dollar rally triggered gold's slide, there was real selling, as gold lost 7 Euros intraday."



This was typical bullion bank action at the usual times. Today is options expiry for the November contract... so, after yesterday's fireworks, I'm expecting more down-side action today. I knew that last week, and should have mentioned it, but didn't... as November is basically a nothing month for delivery in either metal. I thought it would pass without much fanfare, but I was wrong. Options expiry for December [23 November] should prove to be far more interesting... as December is a huge delivery month for both metals.

He is right on here. Yesterday, I sent out an email showing the difference between normal market action and obvious intervention which was overall correct. However, yesterday the intervention started a land slide joined by many almost completely hiding the bullion banks manipulation of both metal prices and the dollar. I will try to be more attuned to such action in the future.

From the Telegraph.co.uk:

Gold gives a precious insight into economy

What a strange and fascinating commodity gold is – a store of value that is no one's liability, which cannot be printed or debauched by governments but which, with no income stream, has no objective value. A simultaneous hedge against both deflationary slump and inflationary spiral, it is little wonder gold should be the investment of choice for the Armageddon crowd. Read it HERE.

From FGMR.com:

A True Picture of the US Dollar

by James Turk

October 25, 2009 – Because people generally calculate the price of goods and services only in terms of the national currency of the country where they live, it is not easy for them to recognize what is happening to the value of the currency. To truly understand what is happening to the currency, they also need to calculate prices in terms of gold, which today is one of the world’s most misunderstood asset classes. For this reason, gold’s traditional and rightful role in finance and commerce is not fully appreciated, with the result that gold is undervalued. Read it HERE.

James Turk always includes great graphs and charts with each article. There is a lot of insight presented in every article. They are always worth a thorough reading.

The following two tidbits are from the Daily Pfennig this morning: "

OK... Dr. Marc Faber was in the news last night, as he was giving an interview on Bloomberg TV... This is Dr. Faber's words folks...

"The dollar will become worthless when people eventually realize the fiscal situation in the U.S. is a disaster. It will go to a value of zero eventually, but not right now. Looking at Mr. Obama's administration, it should already be there." He went on to say...

"In my opinion, about 50% of tax revenues will be used just to cover interest payments on the government debt. That's unsustainable. Then you'll really be forced to print money. The best investments right now are foreign currencies, commodities, and equities." And then when asked about Fed Chairman, Big Ben Bernanke, Dr. Faber said, "He's a money printer. He's nothing else."

Whew! That's taking the whole shootin' match of the Gov't and the cartel, I mean the Fed, to the woodshed, eh?" AND

"Hmmm... And then there was this... PIMCO's Bill Gross, who is known as the "bond king" admitted that he "has some concern on owning Treasuries"... If Bill Gross has some concern folks, shouldn't we? I recently did about a 20 minute video for our friends over at the Sovereign Society on the Treasury Bubble... Sure wish Bill Gross would have said something like this when I was putting that video together! Imagine what I could do with a statement like that when I'm doing a video on the Treasury Bubble!

OK, to recap... The dollar came back with vengeance yesterday, after some rumors on the street led people to believe that things in the U.S. won't be free and clear after all, which led to risk aversion... We've seen this risk aversion before, and each time it hasn't lasted too long... Dr. Marc Faber checks in with some comments on the dollar, and Bill Gross has some concern about owning Treasuries!"

My son, Doug must be right about the bonds. I have neglected this bit of advice and should not have. He is on the negative side and I am not in or out of anything to do with the treasuries.

Here are the miners from Scottrade's streaming quotes:
Here are the Kitco.com currencies:
BULM is 0.85; BYDDF 10.86; DOW is +73 @ about 9940; gold is 10.39.40 and silver 16.83. The silver eagles are about 18.93 which is low for about 5-6 weeks or so. Use caution about any buying. I am ready to jump on the silver Double Eagles, but am watching the price of silver closely.

We must be patience and trust that the Lord is working for the eventual good of His people. Investments in the precious metals try the patience and endurance of many. As we trust King Jesus and rely upon Him for His providential care and love, we know that we are safe. Precious metals are not our God. He is and we can depend totally upon Him. However, as Proverbs tells us "The horse is prepared for the day of battle, but victory (and safety) or of the Lord." Thus, we must not sit idly by, but obey and do our part. Then trusting in Him, we rely upon Him for the victory.

Best to each, Doug

DROOY is a Potential Buy Around 6.25

There was another intervention on Friday. Notice how quickly the second phase of intervention was reversed by the buying demand. The same was true with silver at almost exactly the same time. Some question if this is only normal market activity. Many of us believe it is not. However, it seems that today the price of gold and silver has not been capped in concert with the first capping of Friday. Perhaps, we escaped capping today. Oops! I just checked the Kitco.com graphs again and found that the boyz are still at it. Here is a later 24 Hour Spot Gold graph. They did cap gold again at the same time.
This is an interesting graph of the Gold Bugs Index from TheGoldandOilGuy.com. He is using the trend lines of the higher lows to base his assessment of the direction of the mining stocks. The green shows the four possibilities he is suggesting. He is somewhat bullish on the miners.
We can see a very similar price movement on the Miners GDX graph, below. The RSI is mildly positive, but the MACD is definitely down. Perhaps, it is down only in the short term of the next two to three weeks. I still see evidence for a strong upward move in gold and the mining stocks at the end of December. The one detractor may be some year end tax selling. However, I believe that will not be the case this year in mining stocks as those who have held on will have profit which most will be interested in realizing it next year.
Contract gold continues to trade in a narrow range. The support at 1040 and 1020 seems to be building. There is very strong support at just below 1000. However, I do not expect to see gold at 1000 again for some time. The long term trend is without a doubt upward.
From MineWeb.com:

Gold building support above $1020 as dollar continues to weaken

$1,100 could be just weeks away

Author: David Levenstein
Posted: Monday , 26 Oct 2009

JOHANNESBURG -

Despite gold breaking through a major all-time high resistance level of $1000 an ounce, and trading above this level for several weeks, investors still don't seem to notice what is going on. Perhaps they are in denial or maybe they see things differently and believe that the US dollar is going to stage a miraculous recovery which is going to send the price of gold tumbling. While we are all entitled to our own opinions, frankly I cannot see any bit of news that may suddenly appear that could have such a powerful effect on the value of the dollar. I agree that the US dollar maybe due for a small correction, but this is not going to reverse its downward trend.

On Friday, the dollar advanced for a fourth day versus the Japanese yen and gained on the British pound after it was reported that the re-sales of U.S. houses jumped 9.4% in September to a seasonally adjusted annual rate of 5.57 million, the highest in more than two years. And, even though the greenback rose for a third day versus the euro, it is still trading above 1.5000. The dollar index (DXY), a measure of the U.S. unit against a trade-weighted basket of currencies, rose to 75.396, up from 75.047. Read it HERE.

The Euro is spending a good bit more time at just above 1.50 and is likely to exceed this as the dollar continues to move downward. Over night the Swiss Franc touched par with the dollar.

From MineWeb.com:

Recovery doubts, asset bubbles and hopes for a slower recovery

Why a more gradual recovery would be better for everyone but could be boring for commodities

Author: Geoff Candy
Posted: Sunday , 25 Oct 2009

GRONINGEN -

On Tuesday, the MSCI All-Country World Index hit its highest level since September 2008.

Up as much as 75% from their pre-crisis lows, stocks, including all manner of miners, have been buoyed not only by a firming belief that the worst of this crisis is over but, also by a rash of economic and corporate earnings data.

And, on Wednesday, expectations were that the UK would put out numbers Friday showing it was on the mend. But that was not to be.

On Thursday, markets took a little bit of a hit after China announced slightly worse than expected GDP numbers - the Asian superpower grew at 8.9% in the third quarter as opposed to the 9.1% some analysts were expecting. Read it HERE.

China continues to grow as a middle class of consumers has been developing there. Some suggest that the reports from China are manipulated. Of course, we know beyond a shadow of doubt that no government would massage the figures in reports to present to the public what the powers that be believe them to have. Even if China's rate grew at only 1/2 of the 8.9% reported growth at 4.45% would still be the strongest on earth today. So much for China having severe economic problems. Remember, their stimuli are coming from on hand dollar instruments and not debt. That is a leg up in any one's language.

From CanadaFreePress.com:

Recession, Depression, What Michelle Worry?

First Lady requires more than twenty attendants

By the staff of thelastcrusade.org

Update: First Lady Now Requires 26 Servants
“The world is a dangerous place to live; not because of the people who are evil, but because of the people who don’t do anything about it”
—Albert Einstein

“In my own life, in my own small way, I have tried to give back to this country that has given me so much,” she said. “See, that’s why I left a job at a big law firm for a career in public service, “ Michelle Obama

No, Michele Obama does not get paid to serve as the First Lady and she doesn’t perform any official duties. But this hasn’t deterred her from hiring an unprecedented number of staffers to cater to her every whim and to satisfy her every request in the midst of the Great Recession. Just think Mary Lincoln was taken to task for purchasing china for the White House during the Civil War. And Mamie Eisenhower had to shell out the salary for her personal secretary. Read it HERE.

Why not? These arrogant folks believe they are above the rest of us and readily take advantage of every opportunity to exhibit it openly.

From MarketWatch.com:

Gold futures are little changed as U.S. dollar falls vs. rivals

FRANKFURT (MarketWatch) -- Gold futures traded little changed near $1,055 an ounce Monday, as the market looked for direction following gold's recent strong gains.

Gold for December delivery edged down 80 cents to $1,055.60 an ounce in electronic trading on Globex.

Earlier, the contract nudged to an intraday high of $1,058 an ounce.

Gold "for the moment looks set to hold ground in the $1,040-$1,065 area, as traders continue to track dollar movements and broad risk sentiment," said James Moore, analyst at TheBullionDesk.com, in a note to clients.

In the currency markets, the dollar fell to a fresh 14-month low against the euro. A Chinese central-bank researcher called for moving some of the country's massive foreign reserves into euro and yen holdings. Read it HERE.

Russia's impending sale of gold may have a little impact upon the markets as it is likely that China will scoop it up as soon as it is put up for sale, if it ever is.

Here are out miners from Scottrade.com streaming quotes:
Here are the Currencies from Kitco.com:
BULM last was .87 (nearing buying range); BYDDF 11.24 (still sprinting); DROOY seems to be a buy around 6.25; DOW +62 @ 10033.7.

Regardless of what we think, God is controlling the markets for His glory. Up or down is His decision and we must thank Him for His watch over us. He is always working for the eventual good of His people. He exercises providential care over us for which we must express our gratefulness to Him daily. I trust that you attended corporate worship of God yesterday in a sound church which preaches the whole word of God and administers the two sacraments and exercises discipline over it members. That is important Jesus Christ and we must not neglect the "gathering together of the saints as in the practice of some."

Best to each, Doug

Capping Gold - China Prospering - Worship on the Lord's Day

Once, again, the red arrow points toward a suspicious move of the price of gold. Then to the right we see the impact of increased demand. Can it be that 1065 is the cap in the mind of the Federal Reserve and the bullion banks? Time will tell. Also, we look for this cap to be forced higher yet by the demand and the devaluation of the dollar.
WOW! Isn't it interesting that the hammer seems to have fallen upon silver again at precisely the same time as it dealt a blow to gold. I wonder if the dollar miraculously moved higher at precisely the same time. Coincidence my foot!

Our miners ETF is not looking as good as some of the individual miners. The RSI seems to be turning up, but the MACD is looking very negative. The price is near the bottom of the trading range bracketed by the red trend lines. Remember to check the current prices at the end of this posting.
Our speculation, BULM has treated us well. It is, at present, near the top (0.95) of a very narrow trading range. The RSI is neutral, but the MACD is quite positive. Longer term as the price of gold advances, this should be a big winner. For me, it would be a buy at the lower side of the trading range with a small correction in the price of gold. Use extra caution in any purchases made. I always try to buy these type of speculations in small bites. Maybe in quantities of 500-1000 shares. Of course, you must consider the impact of commissions on stocks priced < $1. BYD Company has been an exciting purchase for us and it looks to be headed higher. Note that the RSI is about neutral, but the MACD is positive. The volume has been dropping off indicated by the red trend line at the bottom of the center section of the graph, but today's total volume is yet to be recorded and it is likely up. The over all higher highs are indicated by the red trend line. The black trend lines show the stair stepping of the price of the stock as it moves upward. Today's current price of 11.18 is a nice move above 11. I look for long term growth in this stock.
From FXStreet.com:

UPDATE: China 2008 Net Gold Imports 112 Tons - Minsheng Exec
Thu, Oct 22 2009, 10:20 GMT
By James Campbell

Of DOW JONES NEWSWIRES 

HONG KONG (Dow Jones)--China imported 112 metric tons of gold in 2008, an executive at China Minsheng Banking Corp. (600016.SH) said Thursday.

A rise in net imports was driven by 176% growth in investment demand for the yellow metal, which hit 68 tons, and 21% growth in jewelry demand to 326 tons, said Lila Lu, the Beijing-based head of precious metals at China Minsheng Bank. Read it HERE.

China continues to spend its dollar instruments for things of real long term value. Remember, too, that China has made it easy for and encouraged the people to buy gold. They are not the dummies we would like to believe. Rather, they are showing more wisdom than our fearless leaders and the masses of Americans. Our leaders should learn to get out of the way and give us a free market for prosperity. And Americans should begin to recognize that precious metals are better than dollars.

From MineWeb.com:

China sovereign wealth fund speeding up investment - mining a target

China's sovereign wealth fund CIC has been speeding up its investment programme spending as much each month this year as in the whole of 2008 - and mining and energy are important targets.

Author: Lawrence Williams
Posted: Friday , 23 Oct 2009

LONDON -

According to reports in the Chinese press, China's $200 billion sovereign wealth fund, China Investment Corporation (CIC) is stepping up its rate of investment in overseas companies and institutions to take advantage of what it perceives as longer term values resulting from the global financial crisis.

China's People's Daily reports CIC chairman Lou Jiwei as saying that the fund was circumspect in its investment in 2008 as markets plunged investing only $4.8 billion outside China that year, but this year it has been investing around as much each month overseas as it did in the whole of 2008 with the main targets including mining, energy and real estate.

While the principal purpose of the Fund is to create wealth for the country with its huge dollar surpluses there does also seem to be a dual approach in play, particularly with regard to the mining and energy sectors where an element of securing long term supplies for China's ever-growing industrial sector has to be an important factor.

According to official estimates, China's gold mine production reached 282 tons in 2008, making the country the biggest producer in the world.

But that hasn't been enough to meet rising demand in the country, which is increasingly looking to gold as a means to diversify its large foreign exchange reserves.

"Exploration investment has only picked in the past two years, so mine supply output growth will not keep pace with (rising) demand," Lu said at Gold Outlook 2009, a gathering of industry participants. Read it HERE.

It must be nice to have almost unlimited surplus funds on hand to continue to shop the world for value in place of ever worth less dollars.

From MineWeb.com:

Gold in for volatile time in runup to G20

Not enough bang for the buck - pressure on U.S. administration to support dollar could create volatility in gold markets.

Author: Lawrence Williams
Posted: Thursday , 22 Oct 2009

LONDON -

There is increasing global pressure on the U.S. Administration to do more than just pay lip service to a strong dollar policy. So far the ‘strong dollar policy' has actually been one of benign neglect with the U.S. letting the world's global currency drift downwards to the extent that much of the rest of the world is beginning to cry foul as exports are becoming uncompetitive against U.S. products, while in the U.S.A. itself the laissez-faire policy remains in place as long as the Fed sees inflation remains under control.

The worries about dollar weakness are already leading to some countries making moves to devalue their own currencies in the markets, and it seems likely that matters will be brought to a head at the G20 meeting due early next month in Scotland, with world leaders likely to gang up on President Obama to bring to an end the ‘strong dollar' policy which in reality has actually been a ‘weak dollar' policy. But, the U.S. seems more than happy to let the dollar drift downwards as a contributor to ending its own recession through creating a domestic business climate which will start putting people back into work as manufacturing drifts back from the developing world. Read it HERE.

Gold will continue its volatility as the intervention caps and hammers it from time to time masking the true value of gold in relation to the depreciated dollar.

From Bloomberg.com:

California’s Push for Electric Cars May Raise Costs for Power

Oct. 23 (Bloomberg) -- California’s push to lead U.S. sales of electric cars may result in higher power rates for consumers in the state, as a growing number of rechargeable vehicles forces utilities to pay for grid upgrades. Read it HERE.

The law of unexpected consequences of actions taken. Indeed, where is all the extra electric power to charge one's batteries. That is, the batteries of the electric cars.

From Bloomberg.com:

China May Add 11 Million Jobs as Recovery Gains Pace

By Bloomberg News

Oct. 23 (Bloomberg) -- China will probably create 2 million more jobs in urban areas this year than officials targeted, the government said, adding to evidence of an acceleration in economic growth.

Employment is “stable” and the nation will exceed the goal of 9 million additional urban jobs, Yin Chengji, a spokesman for the Human Resources and Social Security Ministry, said. Read it HERE.

Aren't there many predicting a great deflation in China? What do they have to say about such reports coming out of China. Of course, the Chinese government is busy, as is the U. S., at putting rose colored glasses on the statistics. However, China is still running on reserves from exports and not building a larger monster of debt as we are.

From Bloomberg.com:

Bank Compensation Curbs Thrust Fed, Treasury Into Boardrooms

By Craig Torres

Oct. 23 (Bloomberg) -- Compensation curbs announced yesterday by the Treasury Department and the Federal Reserve thrust the U.S. government into decisions about pay and performance traditionally reserved for corporate boards. Read it HERE.

Who said that our government was not communistic at heart? Of course, it is only socialist, but with ever more control over more businesses and into businesses, is this not a quantum leap into communistic ownership of all business?

From The Daily Pfennig - pfennig@everbank.com: "Here is a question which needs to be asked: Can the world grow without a robust US consumer? I believe the answer is yes! Growth in Asia and Europe can propel the world out of the global recession without the help of the US consumer; and I think that there is a very good chance that is what is going to happen. Chuck has compared the current state of the US to what happened in Japan after its stock and real estate markets crashed in 1990. Japan plunged into a 10 year period of stagnant growth while the rest of the global economy prospered. Many will question how the global economy can grow without the help of its largest contributor, but Japan was the second largest economy during the 90's, and the rest of the world barely skipped a beat during their malaise.

With the emergence of the consumer in both China and India, the global economy can and will continue to grow even if the US is stagnant. I read a report this morning which stated China will create over 11 million jobs this year, 2 million more than the government had earlier predicted. These new jobs will continue to increase the standard of living in China, and create 11 million 'new' consumers.

While the current administration may talk about reversing the stimulus and government spending as the rest of the world starts to recover, their actions won't match their talk. I believe we will see interest rates stay low in the US for an extended period of time. We will also probably see additional stimulus proposals as US unemployment continues to rise and US consumers continue to tighten their purse strings.

As the rest of the world continues to recover, and central banks begin to increase rates in order to fight rising inflation; the US dollar will continue its slide. A strong dollar just isn't in the interest of the US if we have any plan to try and pay down the tremendous debts and stimulate growth through increased exports. The dollar will fall victim to policies which will be designed to try and push the US economy up to keep pace with the global recovery occurring in Asia and Europe. Despite all of the rhetoric about a 'strong dollar policy', the administration is willing to sacrifice the dollar in order to keep the US from slipping further into recession.

I don't think this is the right course to take for the US, but I firmly believe this is what is going to happen. The future is too far off for politicians to worry about; they focus on the short two year election cycle. They will continue to leverage the future of America with borrow and spend policies designed to keep the US economy on life support until it magically recovers. Their policies will cause a dramatic fall in the value of the US$ which will eventually make our exports competitive and finally spur growth in the manufacturing sector. This drop in the value of the US$ will also enable us to pay down our debts to foreign holders with cheaper US dollars.

I am not suggesting that the US will slip into a 'great depression', but I believe we will see an extended period of stagnant growth. Certain well run companies (like EverBank) will still be able to make a good profit, and the falling dollar will create opportunities for companies with a strong international presence. As an investor, you should look to hedge your portfolio against the inevitable fall in the value of the US$ by investing in non-dollar assets such as our WorldCurrency and MetalSelect accounts."

And we thought the world was totally dependent upon us. In fact, for many decades we thought the whole world circulated around us. Thus, for us, the rest of the world was of no consequence. My how that has changed in the last few decades. We are dragging the world down as we squandered our wealth and stole products from the rest of the world using our "reserve currency status" by making purchases with dollar which we were deliberately depreciating. That is coming to an end. "When?" is the real question. Think about it!

From Reuters.com:

How much is too much government debt?

Thu Oct 22, 2009
WASHINGTON (Reuters) - When it comes to borrowing trillions of dollars, it helps to have a golden reputation, a steady income stream, and plenty of rich, trusting friends.

As the world's wealthiest nations pile on debt at a pace that in less developed countries would alarm investors they appear to have ample supplies of all three -- for now.

That helps explain why a $1.4 trillion U.S. budget deficit announced last week drew gasps from politicians but didn't rattle investors who remain willing to loan money to the U.S. government at low interest rates. Read it HERE.

The real question is "How much government is too much?" The less the government, the freer the people and then as government moves back within the Constitution, the needs for taxes will be much less spurring the economy to prosperity. Such a government would be interested more in protecting the life, liberty, and property of citizens as was intended.

Here are the miners using Scottrade's streaming quotes:

Here are the currencies from Kitco.com:

Gold is 1055.90 and silver 17.61 with both on down ticks (Another crazy Friday as traders adjust their holdings for the week end.) BULM Last was 0.95; BYDDF 11.12; HLAA (HL Jan 2010 $5 Calls) which I bought yesterday at 0.60 and 0.65 are now 0.60. The DOW is down 83+ @ 9997.

Once again we are approaching the Lord's Sabbath, a day God put aside as a day of worship, acts of mercy, fellowship with the saints, and rest. Let none of us neglect to join with fellow believers in corporate worship as is the practice of too many. We must obey and join with others to worship God. It is very important to hear the proclamation of God's word and to partake of the sacraments. It is equally important for each of us to be under the discipline of a sound church. If your church does not preach the whole council of God from His words in the Old and New Testaments without adding to nor taking away from any of them, then you must find a church that does. There are no perfect churches, because they are filled with men who are sinners like you and me, but many within are forgiven sinners who under the power of the Holy Spirit are growing in the likeness of Jesus Christ through a process which we call "sanctification." Join in the worship of King Jesus.

Best to each, Doug