Thoughts on Markets

Wednesday, June 30, 2010

Time to shut down the US Federal Reserve? U.N. says Scrap the Dollar as the Sole Reserve Currency.

The following graphs are of miners and two stocks of interest to me: 

First is the gold bugs index HUI: In this graph, we are seeing technical indications of a breakout. The big question is whether it is up or down. Long term, I believe we will see the prices of the miners skyrocket. In the short term, there is a question; however, the higher lows are encouraging.





















GBG is a wild eyed speculation, and would be a buyer below current price levels. I am a risk taker, and to some extent a gambler in the mining stock market. However, when I see the potential after experiencing the run up in 1979-1980, I am willing to take the risk. That is for me, but I do  not know about your portfolios or peace of mind.
























Fortuna is one of the favorites in my portfolios. This is apparently a solid silver miner with good potential as the price of silver climbs. It is a core holding in my portfolios. The direction for the time being appears to be down, but that can change in an instant. Around and below 1.80, it is a buy for me.





















From Telegraph.co.uk:

Time to shut down the US Federal Reserve?

Like a mad aunt, the Fed is slowly losing its marbles.
Kartik Athreya, senior economist for the Richmond Fed, has written a paper condemning economic bloggers as chronically stupid and a threat to public order. HERE.

From Reuters.com:

Scrap dollar as sole reserve currency: U.N. report

(Reuters) - A new United Nations report released on Tuesday calls for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.

But several European officials attending a high-level meeting of the U.N.   
Economic and Social Council countered by saying that the market, not politicians, would determine what currencies countries would keep on hand for reserves.


"The dollar has proved not to be a stable store of value, which is a requisite for a stable reserve currency," the U.N. World Economic and Social Survey 2010 said.


The report says that developing countries have been hit by the U.S. dollar's loss of value in recent years. HERE.

From Kitco.com:

A.M. Kitco Metals Roundup: Comex Gold Hovers Near Unchanged as Stock Markets Stabilize

Comex gold futures prices are trading near steady Wednesday morning, as U.S. stock indexes have rebounded modestly from strong selling pressure seen Tuesday. The rebound in the stock markets in the U.S. and Europe is taking away some safe-haven buying allure from the gold market. August Comex gold last traded up $0.40 an ounce at $1,242.80. Spot gold was last quoted up $2.30 at $1,243.50.
The Euro currency is trading firmer Wednesday after the European Central Bank allotted less funding in a refinancing tender to European banks than the markets had expected, which is a sign those banks' financing needs may not be as bad as expected. The stock market sell off Tuesday was due in part to worries about the ECB refinancing tender not going well.
The U.S. dollar index is seeing modest losses early Wednesday, while crude oil prices are trading firmer. The specter of commodity price deflation has put a damper on buying interest in gold this week. U.S. Treasury securities yields dropping to record or near-record lows does raise the specter of commodity price deflation. HERE.

From TownHall.com:

Walter E. Williams
Where Best To Be Poor
Imagine you are an unborn spirit whom God has condemned to a life of poverty but has permitted to choose the nation in which to live. I'm betting that most any such condemned unborn spirit would choose the United States. Why? What has historically been defined as poverty, nationally or internationally, no longer exists in the U.S. Let's look at it.
According to the U.S. Department of Health and Human Services, the 2009 poverty guideline was $22,000 for an urban four-person family. In 2009, having income less than that, 15 percent or 40 million Americans were classified as poor, but there's something unique about those "poor" people not seen anywhere else in the world. Robert Rector, researcher at the Heritage Foundation, presents data collected from several government sources in a report titled "How Poor Are America's Poor? Examining the 'Plague' of Poverty in America" (8/27/2007): HERE.

From Kitco.com:

An audio visit with Rick Rule HERE.

Some Prices: FVITF 1.96; BYDDF 7.43 (Nearing a good buying range for me); SSG 17.81; TLT 101.30; TBT 35.83; DOW off 1.13 to 9669+; Gold up 5.90 to 1247.60; Silver up 0.19 to 18.70 (A bit lower and I will be adding some Silver Eagles or Maple Leafs)



Miners from Scottrade.com:










Keep your eyes upon King Jesus and His word: the Law Word of God.

Best, Doug 



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