Thoughts on Markets

Wednesday, February 10, 2010

Gold and Silver are trying our patience.

Silver seems to have been hit quite strongly. Gold is suffering, as well. Both are down today, but are still in a long term bull trend.





From MineWeb.com:

Despite recent setback gold fundamentals suggests $1,500 price this year

Specialist precious metals analyst, Jeff Nichols, reckons that gold's fundamentals remain very strong and although there may be further short term falls in price, we can expect $1,500 gold or more before the end of the current year.

Author: Lawrence Williams
Posted: Wednesday , 10 Feb 2010

LONDON -

Gold guru Jeff Nichols remains confident that the yellow metal will return to a rising path and still predicts a price of $1,500 or higher before the end of the current year and that it will move higher still in the years ahead. Nichols has remained bullish on gold through its recent trials and tribulations, and his analyses carry some weight, although he is pretty much in the gold bug camp, at least for the time being. Read it HERE.

Optimistic? I don't know. It is not beyond the realm of possibility. As Richard Russell has said to prepare for what lies ahead hold cash, gold, and mining stocks. That is my plan, too. We hold cash for deflation to service debt if you have any, gold to preserve wealth during any type economic situation, and mining stocks for appreciation as the paper currencies lose their value.

From MineWeb.com:

Gold prices to consolidate as physical markets come back in - Jessica Cross

Speaking on the Mineweb Gold Weekly Podcast, the CEO of the VM Group maintains that while dollar strength could continue, physical buying could provide a stable base around current price levels.

Author: Geoff Candy
Posted: Wednesday , 10 Feb 2010

GRONINGEN -

Continued strength in the dollar, at least in the short term, is likely to put further pressure on US dollar gold prices but, support from physical markets should help put a base under the fall and help prices consolidate around current levels.

This is the view of VM Group CEO, Jessica Cross who was speaking on the Mineweb Gold Weekly Podcast.

Cross says, the important thing to focus on now, with gold prices where they are is how the various sectors begin to respond to the change. Read it HERE.

From Bloomberg.com:

Jumbo Mortgage ‘Serious Delinquencies’ Rise to 9.6%

By Jody Shenn

Feb. 8 (Bloomberg) -- U.S. prime jumbo mortgages at least 60 days late backing securities reached 9.6 percent in January from 9.2 percent in December, the 32nd straight increase for “serious delinquencies,” according to Fitch Ratings.

“The trend line for delinquencies indicates the 10 percent level could be reached as early as next month,”Vincent Barberio, a Fitch managing director in New York, said today in a statement. The rate almost tripled in 2009, Fitch said. Read it HERE.

The bursting housing bubble still haunts us with more to come.

From Bloomberg.com:

No Job Growth for Small Business Spurs Recovery Doubt

Feb. 8 (Bloomberg) -- Small businesses are becoming the Achilles heel of the U.S. recovery by limiting growth and job creation. Read it HERE.

Unemployment is the problem that really plagues us now. It can only be realistically solved by a return to free markets with much less government intervention.

Miners from Scottrade.com:

Currencies from Kitco.com:

Prices from today: FVITF 2.1121; AENY 4.96; FVITF 2.1121; KENS 0.0195; DOW off 80 to 9978.98; Gold 10.62.90 off 14.70; Silver 15.13 off 0.32.

Best to each, Doug

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