Thoughts on Markets

Friday, March 05, 2010

Precious Metals Headed Higher - Unemployment too High

Be sure to listen to the McAlvany interview listed below. It is very important! You can go to it, turn up your volume, minimize it and listen while you continue your computer activities. It is worth the effort.

Gold and silver are trading at a higher level. I suggest that you will see higher prices and perhaps a new high this year. Yes, in 2010! The miners will be very profitable at the higher levels. I am holding virtually all of my miners and looking for opportunities to add more to my portfolios. Gold at 1500 this year is certainly not out of question. The bullion banks seem to be buyers of gold not sellers. Thus, we may see less intervention in the precious metal markets. Remember, they have been playing with paper metals rather than physical metals.


This is one of the strongest miners in my portfolios. It is holding very well during corrections. It appears to be moving higher. I believe you should look at this, weigh it for your portfolios, but be very careful by buying in very small bites as or if the price continues upward. Consider and make your own decisions based upon your risk tolerance and present investment portfolio. My way, may not suit yours. Study and make your own decisions.

From CNBC.com:

Health Insurers Asked to Explain Steep Rate Hikes

By: Reuters

The Obama administration stepped up pressure on health insurance companies Thursday, calling on some of the top U.S. companies to be more public in explaining "jaw-dropping" rate increases to consumers. Read it HERE.

From McAlvany.com: Hear this valuable, insightful interview HERE.

Miners from Scottrade.com:

Currencies from Kitco.com:
Some prices: BYDDF 8.20; FVITF 2.4339; XDSL 0.0245; SNWT 0.11; DOW up 69 to 10513; Gold up 4 to 1136.50; Silver up 0.20 to 17.33.

I believe that we will see this very difficult general market much lower this year and precious metals much higher. Therefore, like Richard Russell, I like some cash, precious (metals bullion coins), and mining stocks. The precious metals are to preserve wealth while the miners are for profit as the metals increase in price.

We have so much true inflation (Worldwide increases in amount of unbacked currency in circulation) that it is creeping into prices of products as the purchasing power of this paper currencies decreases. The inflation is not as obvious to us, but certainly we see a creeping upward of prices in most of the things we buy.

Unemployment remains a major problem with our economy and I do not expect this to improve in the near future. We need a vast decrease in government employment and an great increase in private sector employment. In spite of what the government is telling us, the is the major problem with our economy and until it improves, we will not see the recovery that is sought.

Be thankful that all is being controlled by our Sovereign King Jesus who is working all things together for the eventual good of His people.

Best, Doug

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