Thoughts on Markets

Friday, June 04, 2010

No Free Markets - Gold - Silver - Coins - Cash - Stocks

Are the boyz still at it? Seems as though they are still stirring the bucket.

From Ed Steer's Gold and Silver Daily Report:  "In my opinion, it was another day of managed market... the dollar, gold and silver... and, in case you missed it, the Dow was headed down towards 10,000 again yesterday and got 'saved' at 12:30 p.m... which was the top for the dollar and the bottom in the precious metals.  Another coincidence?  Not bloody likely!  There are no markets anymore... only interventions."

From The Daily Pfennig:

"I'm reading a special piece in the FT from the other day, and the point that needs to be made about commodities is that, although we had the HUGE sell off of commodities in 2008 (financial meltdown), the fall back in prices never went below pre-boom levels... Which means... The Bull Market for Commodities is still "on"!

Well... Gold sure got caught in the crosswinds yesterday of a thought that a rebound in Global stocks will curb investor demand...

I say... Sure go ahead and sell your Gold and buy stocks, that just gives me and everyone else that see the writing on the wall for stocks, a chance to buy Gold at cheaper prices! Thanks!

I love it when Gold dips because the dips are selling it!

And as far as stocks go? I don't know about globally, but here in the U.S. where the largest stock market resides, there are some people that I think everyone should listen to when it comes to stocks... Famous people like Richard Russell, one of the finest minds around. Mr. Russell has told his readers to get out of stocks NOW! If I were you, I would listen to Mr. Russell before I listen to Warren Buffett, who believes stocks here in the U.S. are ready to take off! (according to a story on Bloomberg) Doug says, "Amen!"


SA gold coin output jumps 50 percent to 25-year high

Production of South Africa's Krugerrand gold coins soared by 50 percent in a week as the euro zone debt crisis drove up investor demand, said Rand Refinery, the world's largest gold refiner.

Production of the world's most popular gold coin rose to 30 000 ounces a week, and the Rand Refinery said it would maintain this level of output until the end of July and could extend production at this rate should demand remain strong. Read it HERE.


Examining virtual nationalisation
Resources companies in Australia have placed tens of thousands of jobs on hold.
Author: Barry Sergeant
Posted:  Thursday , 03 Jun 2010
Nationalisation, typically government seizing private sector assets, has a long - and often disastrous - history, as seen in post-Colonial Africa. It seems that modern liberal democracies would never go that far, but old themes can be reinvented, and varied, as appears to the case in Australia's expressed wish to extract huge additional taxes from resources companies. Read it HERE.


AEP to keep 10 units off line most of the year

COLUMBUS, Ohio (AP) -- American Electric Power Inc., one of the nation's biggest power generators, says 10 of its smaller, coal-fired generating units will remain off line for much of the year because of lower demand for electricity.

It is one of several steps the company is taking to cut costs. Read it HERE.

Big recovery going on and this testifies to it. NOT! Manufacturing power not required, so where is the recovery.


Germans are Voting with Their Pocketbook

June 3, 2010 – Icelanders voted in a referendum to address their debt problem.  Germans have a problem too, but they are voting with their pocketbook.  They are dumping the euro and buying physical gold, the demand for which is soaring in Germany.

The problem Germans face is a broken promise.  Despite all the rhetoric and assurances that it would be a prudent and wise monetary authority, the European Central Bank is not managing the euro in the judicious way the Bundesbank managed the Deutschemark.  Most importantly, in stark contrast to the steadfast independence from government influence that marked Bundesbank decisions, it is now clear that the ECB is controlled by EU politicians. Read it HERE.


Gold set for further record breaking in Q3
Speakers at a precious metals conference in London maintain that continued sovereign risk fears and concerns about the euro are likely to boost prices
Author: Jan Harvey (Reuters)
Posted:  Thursday , 03 Jun 2010
LONDON (Reuters) - 
Gold is set for record highs this year amid sovereign risk fears, loose monetary policy and concerns over the outlook for the euro, speakers at a precious metals conference led by ETF Securities said on Thursday.

Platinum and palladium are also seen recovering after their recent sharp price correction, although questions remain over the stability of investment holdings of the precious metals. Read it HERE.


What Is Bond Market Signaling?

One of the strongest inflation/deflation indicators is the bond market. When inflation is expected to be high yields tend to go up and when the market expects deflation/disinflation yields tend to be low. So what are the markets telling us right now? See the interesting graphs and read it HERE


How Oil Breaks Down in Water
Nature has its own chemical processes to minimize oil's impact in seawater—can human dispersant efforts measure up? Read it HERE.


I have been buying some more Fortuna (FVITF). The graph does not look very promising, but the price action has been fairly good. It bounces back above $2.00 every time it goes below. Study the situation and make your own decisions, I just report what I am doing which may not be right for you.
Some prices: FVITF 1.8705; BYDDF 8.33; EXGMF 2.653; BULM 0.726; Gold off 3.10 to 1204.70 (Still above 1200); Silver off 0.39 to 17.55 (Not very strong); DOW off 153 to 10101 (So far, I bad day in the general market.)

Remember the Lord's Day is upon us again. Do not neglect corporate worship which is necessary for sound Christian growth. Going it alone is not the way King Jesus wants it and commands us to do. We need the corporate fellowship around the preached word of God and the two sacraments. The grace dispensed from this to believers provides wisdom, understanding, desire to follow Christ, and the power to do so. 

Best to each, Doug


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