Thoughts on Markets

Tuesday, February 02, 2010

Silver and Gold Moving Up Again

Both gold and silver have resumed their upward trend. The dollar must be lower, as it was yesterday. The boyz are standing aside for the time being. We will have to watch and see.



From Ed Steer's Gold and Silver Daily: "It's going to be interesting to see if this rally in both gold and silver has any legs. Both metals were oversold... but not to the extremes I would like to have seen. I'm somewhat concerned that this rally may roll over in the days and weeks ahead. But what I'm really watching is to see if JPMorgan et al are going to short this rally. You must understand, dear reader, that if the bullion banks... specifically the '8 or less' traders... were not there to go short against all longs, there is nobody... not a single trader left in the Commercial category of the Commitment of Traders... that is prepared to go short silver [and gold] at current prices... and the prices would explode instantly. That's why the bullion banks are there... as the shorts of last resort. The moment they withdraw from the market... or begin to cover their short positions... will be an event talked [and written] about for centuries to come."

From FOGOA:

Living in a Powder Keg and Giving Off Sparks

This is an interesting blog which you should scan HERE.

From Guardian.co.uk:
Angela Merkel ready to buy stolen Swiss data on alleged tax evaders

The German chancellor, signalled her government's readiness today to purchase stolen secret Swiss bank account data on 1,500 alleged tax evaders from an informant.

The informant, who used to work at the Swiss arm of the British bank, HSBC, has offered to sell the data to the government for €2.5m (£2.2m) Experts say the information, which is contained on a CD, could reap up to €200m (£174.60m) in tax revenue. Read the article HERE.

From Google.com:

Swiss warn UBS bank could collapse

Read it HERE.

From Monday Morning.com:

Warning: This is Not Another Wall Street Conspiracy Theory, These are the Facts

Just last week, the House Committee on Oversight and Government Reform held a hearing on the U.S. Federal Reserve's decision to directly pay billions of dollars to banks as part of its scheme to bail out insurance giant American International Group Inc. (NYSE: AIG).

According to committee Chairman Dennis Kucinich, D-Ohio, the testimony that congressmen heard just didn't "pass the smell test."

What really stinks about the whole mess is not only the cover-up of what really happened and why, but the inability of anybody in Congress to actually do their homework and be able to frame pointed questions and get to the truth. Read the article HERE.

From Telegraph.co.uk:

Should Germany bail out Club Med or leave the euro altogether?

The spike in yields on 10-year Greek bonds to 400 basis points above German Bunds has been shockingly swift – a warning to Britain, too, that markets can suddenly strike any country that takes creditors for granted.

We can argue over whether Greece, Portugal, or Spain are at risk of being forced out of the euro. But there is another nagging question: whether events will cause Germany and its satellites to withdraw, bequeathing the legal carcass of EMU to the Club Med bloc. The German dilemma is spelled out in the article HERE.

From MineWeb.com:

Obama's proposed $3.8 trillion budget could spell trouble for coal, US domestic mining

Proponents of solar, geothermal and wind energy may be jumping for joy as the Obama Administration emphasizes development of a clean energy economy at the expense of fossil fuels and domestic mining.

Author: Dorothy Kosich
Posted: Tuesday , 02 Feb 2010

RENO, NV -

President Obama's proposed $3.834 trillion budget, which was made public Monday, is not guaranteed to elicit shouts of joy from the U.S. mining industry.

A number of natural resource programs, including oil, gas, coal and hardrock mining, will get less money in the Obama Administration, while a few programs are being eliminated.

For the second time, the Obama Administration has asked to end $36.5 billion in oil and gas subsidies. The President also proposes eliminating federal tax credits for coal exploration, which the National Mining Association said will increase taxes for the industry as well as threaten mining jobs. Read it HERE.

From MineWeb.com:

Gold, silver ETFs see major outflows in January

Analysts say sustained outflows from gold ETFs could occur if attitudes toward the yellow metal sour

Author: Jan Harvey (Reuters)
Posted: Monday , 01 Feb 2010

LONDON (Reuters) - -

The world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust (GLD), said its holdings fell 21.7 tonnes or 1.9 percent in January, against a rise of 63.36 tonnes or 8.1 percent in the same month of 2009.

Data showed the trust, which issues securities backed by physical stocks of gold, held 1,111.922 tonnes of bullion on Friday, the last trading day of January, against 1,133.622 tonnes on Dec. 31. Read the article HERE.

Uncommon Wisdom asks, "Is it time to buy gold?" His answer is "NO!" See the short video HERE.

I do not agree with the video, but it is good to hear opposing views from time to time to help you evaluate them in your own mind.

Here are the miners from Scottrade.com at opening:
Here are the currencies from Kitco.com:
Some prices: FVITF 2.46; BYDDF 7.80; DOW up 9 to 10195.03; Gold up 4.20 to 1109.80; Silver up 0.02 to 16.69 (Both metals on an up tick).

The Lord is giving us an encouraging start for the day. We must praise Him daily for each every thing that happens. He is working all for the eventual good of His people.

Best to each, Doug

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