Thoughts on Markets

Wednesday, June 23, 2010

Opportunity Of A Lifetime - Silver & Gold along with Miners

 Is silver now or soon to be the BUY of a LIFETIME? Jim Cook believes it is and I tend to agree. On any drops, I will be looking to buy FVITF, SLW, CDE, and other silver miners, as well as Silver Eagles and Maple Leafs. Watch for opportunities!


Best of Jim Cook
Opportunity Of A Lifetime
Last week I had to prepare a two page advertisement promoting silver for Forbes Magazine and U.S. News and World Report.  I also spent an hour on Howard Ruff’s conference call to his subscribers talking about silver.  It caused me to review all the bullish aspects of silver.  Consequently my enthusiasm for silver reached a new high.  As I said on the Ruff interview, I’ve committed my personal assets to silver because I believe this is an opportunity like no other.  I see it as a fortune builder.  I think silver offers a way to get filthy rich.

I’ve been studying finance, reading economics, investing in stock, drilling for oil, digging for gold, putting money in start-up companies, buying krugerrands or silver coins and running a business for most of my life.   My book on starting a business made it to the best seller list.  My novel predicted and described the economic crisis we are going through. Read it HERE.


Sky-high public debt, monetization fear to sustain record gold trading--BMO

As commodities ride the economic global recovery over a sometimes bumpy road, BMO's Bart Melek predicts precious metals will do very well for several years.

Dorothy Kosich
Wednesday , 23 Jun 2010
BMO Senior Commodities Analyst Bart Melek predicted Tuesday that gold will continue to trade near record levels into 2011.
He suggested "sky-high public debt" and fear of monetization are key reasons to buy gold.
Meanwhile, Melek also advised that copper, metallurgical coal and iron ore are top BMO research picks among the industrial commodities.
After a very strong performance last year, Melek projects that gold and other precious metals will do very well for the next several years.
"The key drivers for the precious metals group are investor concerns over the viability of the euro and fiat currencies broadly (the competitive currency devaluation concerns and revaluation of the RMB), an eventual move toward a higher inflation environment and massive western world fiscal imbalances, and improvements in jewellery/industrial demand as the world pulls out of recession." Read it HERE.


China currency moves positive for gold price

China's policy on yuan appreciation and its attitude towards gold has to be long term positive for at least maintaining a mild gold price appreciation.

Author:Lawrence Williams
Posted: Tuesday , 22 Jun 2010

China's weekend announcement that it would revert to its pre-crisis currency policy is mildly positive news for gold reckons specialist gold analyst, Jeff Nichols.Don't expect any big yuan appreciation any time soon. Instead, the yuan will be allowed to float higher at a very gradual moderated pace. As always the Chinese will try to remain in control!

For China's gold market, this means some small relief from the coming further substantial rise in the dollar-denominated world price of gold . . . and slightly higher gold demand growth from Chinese investors and jewellery consumers in the years ahead.

Nichols is just back from nearly three weeks in Beijing, Shanghai, Hong Kong, Singapore, Malaysia, and Vietnam where he met with gold dealers, brokers, bankers, analysts, and leading gold-industry officials. His take-home message is very positive for gold: Virtually everyone he asked expects gold consumption across the region - both jewellery and investment - to continue rising for years to come. I do not believe that the Chinese announcement was a forecast of a rapid move of the Renminbi. The Chinese act only when it is perceived to be to their advantage. The markets are interpreting the announcement in the wrong way. Read the article HERE.


Yesterday's Top Story: Merrill Lynch forecasts further upside for gold, silver prices for 2010-2012

Merrill Lynch upgrades gold and silver price forecasts, based on investor demand, central bank buying, and inflationary risks.
Author: Dorothy Kosich
Posted:  Tuesday , 22 Jun 2010
Merrill Lynch metals analysts maintain gold will hit a US$1,500 per ounce target by the end of next year as investor demand pushes gold prices higher.
In research published Monday, analysts Michael Widmer, Francisco Blanch, and Alex Tonks are predicting average gold price forecasts of US$1,200/oz this year, $1,350/oz in 2011, and $1,400/oz in 2012, up from $1110/oz, $1179/oz and $1109/oz. respectively.
"We also believe that silver has further upside and see prices averaging $18/oz, $20.25/oz and $21/oz in 2010, 2011 and 2012 respectively," they forecast.
"Our positive view on gold and silver prices is heavily influenced by the current macroeconomic environment and we believe that the following three developments will have a significant impact on these metals:
  • "Central banks have eased monetary policy reflected in sharp rises of money supply;
  • "Government debt has soared to make up for the private sector consumption short-fall;
  • "Potential GDP growth rates have come under pressure."
 WOW! Now even Merrill Lynch is jumping on the gold band wagon. Are we getting into the third phase blow off area? Could be! Read it HERE.


Gold to Be Best-Performing Asset for the Rest of the Year, UBS Poll Finds

Gold will be the best-performing asset for the rest of the year as investors seek to protect wealth from sovereign debt risks and economic turbulence, according to about 30 percent of respondents in a UBS AG survey.

The survey was conducted last week at a UBS seminar in Wolfsberg, Switzerland, of central bank reserve managers, multilateral institutions and sovereign wealth funds, the bank said in a report dated June 18. More than 25 percent said global equities would be the best performer, followed by U.S. Treasuries. Gold was the most popular response. Representatives of some 80 institutions attended. Read it HERE.


Iran bans two UN nuclear inspectors from country

Ali Akbar Salehi, head of Iran's Atomic Energy Organization, said the International Atomic Energy Agency, or IAEA, had been informed of the decision to ban the inspectors, whom he did not identify. Photo: REUTERS

Iran said the inspectors were banned because they disclosed to the media the contents of a "false" report on the country's disputed nuclear program before the UN nuclear watchdog reviewed it.
Ali Akbar Salehi, head of Iran's Atomic Energy Organization, said the International Atomic Energy Agency, or IAEA, had been informed of the decision to ban the inspectors, whom he did not identify.  Read it HERE.


Commentary: Talking Turkey

ISTANBUL, Turkey, June 22 (UPI) -- Geopolitical tectonic plates began grinding menacingly five years ago when Turkey embarked on negotiations for membership in the European Union but it didn't long for Ankara to conclude that EU was play acting.
There was little appetite for adding 70 million Turkish Muslims (80 million by the end of a projected 10-year negotiation) to the EU's 20 million Muslims (Pakistani Brits, North African French, Turkish Germans). Church attendance in Europe is in steep decline while thousands of mosques are filled to overflowing. Things are stirring up in the Mid-East. Check it out HERE.

Miners from

Currencies from

As the news on precious metals becomes more frequent, we will see more folks buying into the metals. This could well be the early prelude to the third phase when the precious metals will escalate into the stratosphere of prices, such as never before seen. It could well be the opportunity of a lifetime.

I believe that the judgment of God is falling upon all nations and that we are likely to see a demise of unbacked paper currencies which is a violation of God's law forbidding unequal weights and fraud. The paper currencies are monopolies under government and bank control which are used to rob the citizens.

A good government works to protect the life, liberty, and property of citizens, not to deprive them of property and liberty. We must all pray and ask God for forgiveness as individuals, families, and churches have turned from His word. We are living more and more secular lives and must return to a Christian world and life perspective which is lived out on a daily basis. Without this, America is doomed to fall from the weight of corruption and immorality within. 

Some current prices: FVITF 2.04 (It is a buy for me below 2.00); BYDDF 7.95 ( Approaching a buy range for me); SSG 16.32 (ultrashort ETF on semiconductors) I have been buying calls on this in the 1.85-2.00 range and then selling them in 2.25+ range.; TBT 37.33; TLT 99.34; DOW off 40.43 to 10253; Gold down 10.70 to 1227.90; Silver down 0.39 to 18.41.

Best to each, Doug





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