Thoughts on Markets

Saturday, June 26, 2010

Buying Opportunity - Gold Miners - Precious Metals ETFs - Bill O'Reilly

The precious metals are acting quite strongly now. We could be nearing the third phase, as I believe we are certainly in the second phase now. Even the general media is joining in the gold and silver news reporting. Therefore, ever more people are awakening to the wealth preservation of the precious metals. Investment quality large diamonds are in great demand in the Orient. However, for most of us, the dollar cost of such are out of reach. 

There are some great audio listens referenced in this issue of the blog. Be sure to check them out.

We are also beginning to see the positive response of the miners. Below is the Gold Bugs Index which has a very strong technical graph.

Along with the Gold Bugs index, below, see the ETF for the smaller miners which is almost as strong. For my own portfolios, I prefer this ETF to that of the larger miners (GDX). However, everyone should consider all the information he can gather and make his own decisions. I also prefer the ETFs to the miners mutual funds. There are many good mutual funds covering the miners which should be checked, as well.

As the news spreads, more folks will be climbing on board driving the prices higher. Eventually, the greatly expanded flood of unbacked paper currencies will result in price inflation and the gold rush will be on for sure. Do not forget to check out silver as the "poor man's gold." It takes less dollars to purchase the Silver Eagles and Canadian Maple Leafs which are widely recognized. 


Check out these graphs on Gold, Silver, and Platinum HERE.

From Ed Steer's Daily Gold and Silver Report:

"There was action reported in both GLD and SLV yesterday.  GLD reported taking in another 97,806 ounces of gold.  But the SLV reported that 1,028,559 ounces of silver were withdrawn from their holdings.  SLV's inventories have declined by 2.6 million ounces since May 28th... and GLD has increased their holdings by 2.5 million ounces during that same period.

If you think that something is not quite right about all this... you would be right about that."

I am beginning to have more concern about these two ETFs. One should wonder if they are holding sufficient gold and or silver to maintain the advertised backing of the shares. How could SLV be reducing the amount of silver when the demand for silver is so intense? Think about this. I really prefer for my own portfolios the Central Fund of Canada (CEF) which is into both silver and gold. Also, it is located in Canada which has a stronger currency and economy than ours.

Listen to the

Ted Butler on The Metals Market
Saturday, June 26, 2010

Turn up your volume and get it HERE. This is very important. Remember, you can minimize Window Media and continue to work while you listen. The comments on silver are very interesting.


Gold investment opportunities abound

Market offers many choices, but costs and risks vary

TOKYO (MarketWatch) -- Gold is mighty expensive these days but there are many ways to buy and invest in the precious metal, some of which don't require as much money as you might think.
"Cash shouldn't be an obstacle to buying gold," said Edmond Bugos, director of mining finance at Strategic Metals Research & Capital.
Investors already know about opportunities in the futures and options markets, exchange-traded funds and metals shares, which can be considered high risk and require quite a bit of money to start.
Read it HERE.


States of Crisis for 46 Governments Facing Greek-Style Deficits

Californians don’t see much evidence that the worst economic contraction since the Great Depression is coming to an end.
Unemployment was 12.4 percent in May, 2.7 percentage points higher than the national rate. Lawmakers gridlocked over how to close a $19 billion budget gap are weighing the termination of the main welfare program for 1.3 million poor families or borrowing more than $9 billion in the bond market. California, tied with Illinois for the lowest credit rating of any state, is diverting a rising portion of tax revenue to service debt, Bloomberg Markets magazine reports in its August issue. Read it HERE.


Israelis prepping for Iran attack?

JERUSALEM, June 24 (UPI) -- Israeli air force helicopters landed at a Saudi Arabian airport to offload equipment meant to target a regional state, Iranian media claims.
Iran's semiofficial Fars News Agency said Israeli aircraft landed at a Saudi airport last week. The report said Riyadh canceled several flights to accommodate the Israelis, describing the incident as "suspicious military activity." HERE.

Listen to the

HERE is James Turk on present market for silver and gold


Gold rises toward $1,260/oz on economic uncertainty

NEW YORK: Gold prices rose to within $10 of their all-time high on Friday as investors sought refuge from financial market uncertainty and currency depreciation ahead of a closely watched G20 meeting.

Friday's gains lifted the metal within striking distance of the record high $1,264.90 set Monday on euphoria related to China's vow to relax the yuan, but the rally was short-lived and bullion snapped a four-week winning streak. Markets were watching the cost of protecting Greek government debt against default, which rose to a record high on Friday. Investors were also piling into gold due to a global equity market slump. HERE.


Three U.S. Banks Collapse as Bond Street Holdings Acquires Another Lender

Regulators closed banks in Florida, Georgia and New Mexico, awarding a third financial institution to Bond Street Holdings LLC, an investment firm that first bought banks in January.
Bond Street’s Premier American Bank purchased Englewood, Florida-based Peninsula Bank, according to a statement on the Federal Deposit Insurance Corp.’s website. Yesterday’s three failures cost the agency’s deposit-insurance fund $284.6 million. HERE.


O'Reilly: Obama Could Face Impeachment If He Pardons Illegals

By: Chris Wessling
Fox News' Bill O'Reilly is warning that if President Barack Obama ever bypasses Congress and uses his pardon power to make millions of illegal aliens citizens, he could face serious calls for his impeachment.

“If President Obama were to sign an executive order giving illegal aliens amnesty, his career would be over and an impeachment movement would explode,” O'Reilly said Friday night on his “Talking Points” segment during his top-rated Fox show.

At the same time, O'Reilly said he did not believe reports that the Obama administration would grant such a blanket amnesty.

Fox News, however, reported this week: “The Obama administration has been holding behind-the-scenes talks to determine whether the Department of Homeland Security can unilaterally grant legal status on a mass basis to illegal immigrants, a former Bush administration official who spoke with at least three people involved in those talks told” HERE.

One of the first steps in responding to the warnings of our Sovereign God is for each of us to find a sound Christian Church where each can hear presentations of the whole counsel of God and participate in the sacraments. One must attend corporate worship services on a regular basis as demanded by God. 

King Jesus is bringing all types of judgments upon us as a nation. He is warning and calling us to repentance of our evil ways, to pray for forgiveness, and to turn back to Him. All of us as individuals, families, and churches must do this or we are lost. We either live as His brothers and sisters or we die and are dead even though we may walk about. 

No one is exempt from this requirement. Let us join in corporate worship tomorrow and fellowship with other Christians. After all, this is our true family with which we will fellowship for eternity.

I am seriously considering accumulating more mining stock next week. One of our buying opportunities is very close to us now in my opinion.

Best to each, Doug 

Best to each, Doug








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