Thoughts on Markets

Wednesday, January 13, 2010

The Metal Prices are Controlled for the Time Being

Praise the Lord that He is in control and working all things to His glory for the furtherance of His Kingdom and for the eventual good of His chosen people. Greetings to each in His Holy, Righteous, Name which is above all others: Jesus Christ.

Both silver and gold were slammed yesterday by the not for profit destroyers of our markets. Silver has rebounded rather strongly and gold has struggled higher as well. Silver is demonstrating a more volatile picture. We are still looking to add to our Silver Eagles or Maple Leafs.

From Bloomberg:

Federal Reserve Seeks to Protect U.S. Bailout Secrets

Jan. 11 (Bloomberg) -- The Federal Reserve asked a U.S. appeals court to block a ruling that for the first time would force the central bank to reveal secret identities of financial firms that might have collapsed without the largest government bailout in U.S. history.

The U.S. Court of Appeals in Manhattan will decide whether the Fed must release records of the unprecedented $2 trillion U.S. loan program launched after the 2008 collapse of Lehman Brothers Holdings Inc. In August, a federal judge ordered that the information be released, responding to a request by Bloomberg LP, the parent of Bloomberg News. Read it HERE.

We must support, pray, and hope that Ron Paul is able to get through, at minimum an audit of the Federal Reserve. Then let's look toward its end.

From Bloomberg through Business Week:

Americans Oppose Initiatives Limiting 401(k) Choices, ICI Says

By Jeff Plungis

Jan. 8 (Bloomberg) -- U.S. investors oppose federal initiatives that would force them to give up control over their 401(k) accounts, the Investment Company Institute said.

Seven in 10 U.S. households object to the idea of the government requiring retirees to convert part of their savings into annuities guaranteeing a steady payment for life, according to an institute-funded report today.

“Households’ views on policy changes revealed a preference to preserve retirement account features and flexibility,” the institute, which represents the mutual-fund industry, said in the report." Read it HERE.

Big Brother getting more intrusive in our lives. Let's protest such an invasion.


Crisis Threatens to Curb Central Banks

Politicians are taking bolder actions to influence monetary policy, signaling that the global financial crisis may end up reining in the independence of many central banks.

In the past week, a policy standoff prompted Argentina's president to fire the country's central-bank chief -- who was reinstated the next day by a court order. In South Korea, the government sent a political official to a central-bank policy meeting for the first time in a decade. Officials at central banks including the Federal Reserve say they worry that similar political challenges are heading their way. Read it HERE.

I, and believe you also, do not trust the politicians to get it right. In fact, they are likely to do worse than the banks, if such is possible.

An article from Reuters about which Ed Steer of Daily Gold and Silver Report says, "It appears that "a new law may give billions of dollars to bankrupt financial companies that will never make another loan. Instead of allowing lenders to keep credit flowing, these subsidies could mainly help hedge funds that buy distressed debt and equity." This is absolutely preposterous! If you don't believe it, read the story yourself."

Liquidating firms claim billions in U.S. stimulus

By Tom Hals

WILMINGTON, Del., Jan 11 (Reuters) - The U.S. government has provided more than $1 trillion of support to financial companies in a bid to keep credit flowing to the U.S. economy.

But a new law may give billions of dollars to bankrupt financial companies that will never make another loan. Instead of allowing lenders to keep credit flowing, these subsidies could mainly help hedge funds that buy distressed debt and equity. Read it HERE.

From YouTube on ObamaCare secret negotiations: Listen HERE. It is a travesty.


Walter E. Williams:

Global Warming is a Religion

Manmade global warming, for many, is an Earth-worshipping religion. The essential feature of any religion is that its pronouncements are to be accepted on the basis of faith as opposed to hard evidence. Questioning those pronouncements makes one a sinner. No one denies that the Earth's temperature changes. Millions of years ago, much of our planet was covered by ice, at some places up to a mile thick, a period some scientists call "Snowball Earth." Today, the Earth is not covered by a mile of ice; a safe conclusion is that there must have been a bit of global warming. I don't know the cause of that warming, but I'd wager everything I own that it was not caused by coal-fired electric generation plants, incandescent light bulbs and SUVs tooling up and down the highways. Read it HERE.

My favorite Constitutional Economist has nailed it for us once again.


A mining portfolio that may just have weathered last year's storm

Barry Sergeant reviews a 27-member global resources stock portfolio, assembled 365 days ago.

Author: Barry Sergeant
Posted: Tuesday , 12 Jan 2010


Compilation of a global resources stock portfolio a year ago seemed, most of the time, like an insanity waltz in the ballroom of a deserted seaside hotel in the middle of a bad winter, when even the rats have gone into hibernation. It was two months ahead of the turn in global stock markets, and still dangerously close to the demise of Wall Street investment bank Lehman Bros., which had declared bankruptcy on 15 September 2008. Read it HERE.

Our portfolios did and I hope your portfolios did as well. Think precious metals and mining stocks against the paper monopoly monies of the world.


Another year of high metal prices ahead - RMG

Respected Swedish research organization, Raw Materials Group, is predicting rising metal prices in the year ahead although there could be a price correction in the first half of the year.

Author: Raw Materials Group
Posted: Tuesday , 12 Jan 2010


In its annual full-year forecast for 2010, the Raw Materials Group (RMG) expects metal prices to have bottomed out and 2010 to be another year with high metal prices. A falling market has been replaced by a market with physical demand and likely strong speculation over prices. Entirely in line with last year's RMG forecast, all metals except gold fell during 2009 compared with 2008. RMG believes that the metal price bottom for this period of economic downturn was passed early in 2009 and for 2010 RMG forecasts another year of volatile metal prices with a mean price below the current day level for most metals. Read it HERE.

Miners from Scottrade:
Currencies from
Some quotes: FVITF 2.6344; BYDDF 8.45; Gold up 0.10 to 1127.50; Silver up 0.14 to 18.39; DOW up 17 to 10643.

Best to each, Doug


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