Thoughts on Markets

Friday, July 16, 2010

AUY - S&P 500 - Wars Bring Centralization of Government - Inflation

Folks, Take a look at graph of the S&P 500. This is a very poor graph indicating that this index is deteriorating and will go much lower. All indicators, including the "death cross" of the 50 Day MA crossing through the 200 Day. There have been three recent toppings which ended in lower moves. Another seems to be forming at present. Thus, we should expect movement lower.


downward moves and of the payment of another dividend. I am interested in adding more of it to my portfolios at prices below 9.50. I like AUY and believe it to be oversold, due to the general market, miners, and gold 


$600 Sale? Get Ready for Tax Form

A blizzard of paperwork could be about to hit numismatics.

Passage by Congress of the national health care legislation has had an unintended consequence to the nation’s coin collectors, vest-pocket dealers who buy and sell coins, and larger dealers who are frequent buyers of coins that collectors periodically liquidate as they trade up their collections for better coins, or simply sell to take a small profit or loss.

What has happened is that effective Jan. 1, 2012, the whole system of giving and receiving Internal Revenue Service 1099 forms will be turned on its head and all persons (including corporations) who are in business will now have to give 1099 tax reporting forms for coins and other goods that they sell as well as buy. I have reported this before, but it deserves more emphasis as it should affect buying the rest of this year. Buy now, because later Big Brother will have to know. Read it HERE.


Goldman Sachs pushes gold hedging, predicting falling gold price beyond 2011

Goldman Sachs has raised its medium term gold price forecast to $1,355, but reckons prices will fall from 2011 and recommends producers sell gold forward.
Author: Lawrence Williams
Posted:  Thursday , 15 Jul 2010

Plus ça change.  Goldman Sachs is suggesting that mining companies sell gold forward again.  The logic behind this is that although the bank reckons the gold price will increase to $1,355 an ounce over the next 12 months - a tiny increase from its earlier prediction of $1,335 - beyond that it is looking for prices to stabilise and fall as the U.S. Fed tightens monetary policy and the recession is seen to be ending.
Of course the big gold banks, of which Goldman is probably the most successful, can do very well out of its clients hedging their gold forward whatever the fortunes of its clients in so doing.  It was notably the bank which reputedly advised Ashanti Goldfields to sell its gold forward at gold's low point back at the end of the 1990s - a policy which brought the gold miner to its knees leading to its takeover by AngloGold - another Goldman client.  Indeed commentators have suggested that Goldman made profits on every angle of the Ashanti hedging debacle, and on the sale of one of its clients to another. Talk about a vested interest in a recommendation. This is definitely a good (bad) example. Read it HERE.


Fed's volte face sends the dollar tumbling

Rarely before have a few coded words in the minutes of the US Federal Reserve caused such an upheaval in the global currency system, or such a sudden flight from the dollar. Interesting article HERE.


Higher education fund buys gold over economic worries

By R.G. RATCLIFFE and JEANNIE KEVERCopyright 2010 Houston Chronicle

Interesting grasp of the economic situation exhibited by an EDUCATION fund. That is amazing when almost every college and university teaches nothing but Keynesian Economics which has be discredited over and over again by result of its wide spread use. HERE


How the CFTC got power in financial regulation bill

WASHINGTON -- With the Senate poised to approve the most significant overhaul in financial regulations in decades, the Commodity Futures Trading Commission is emerging as a winner.
The legislation likely to pass the Senate on Thursday would make the relatively small agency -- it employs only 600 -- the top cop for the $300 trillion U.S. derivatives market. CFTC Chairman Gary Gensler tenaciously lobbied for the agency, which was fighting for its life not long ago, and successfully tapped the CFTC's congressional overseers for their support. Big Brother and the elite are always fighting for increased power. This is another example. HERE.


Inflating War

Central banking and militarism are intimately linked.

“One can say without exaggeration that inflation is an indispensable means of militarism,” Ludwig von Mises wrote. “Without it, the repercussions of war on welfare become obvious much more quickly and penetratingly; war weariness would set in much earlier.” This is a shocking, but vitally important read for you. Do not pass this by! HERE.

From Ed Steer's Gold and Silver Daily: "I believe that banking institutions are more dangerous to our liberties than standing armies.  If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property - until their children wake up homeless on the continent their fatherconquered. - Thomas Jefferson, 1802"

Miners from

Currencies from

 Some current prices: FVITF 1.90 (recent High about 2.03 and Low about 1.75 -- I would see it as a good buy in the 1.75 range); SSG 15.99; SDS 34.40; EXGMF 2.4017; TBT 35.61; DOW down 1.93 to 10165.03; Gold down 18.90 to 1189.50; Silver down 0.54 to 17.79. 

Folks, this looks to be another big down day, but the PPT may come in again at the last minute in an attempt to bring the DOW back up. One of these days, nothing they can do will help and the bottom will fall out completely. That would not be good for most, but it is time that the shake out would begin and finish so that the markets and economy can begin the process of rebuilding without an over abundance of debt and stimuli. Remember that our prosperity was based totally upon debt. Without the debt, we would not be in the present fix.

It is better to follow God's way in every area of life. Jesus's Law Book: our Bible gives God's rules for all of life. Our deviation from His Law-Word has led us astray. We must repent and return to Him or we are totally lost.  We have tried our own way for too long and are now reaping the just rewards therefor. We need to change to God's ways and not the abominable changes that Obama & Company have brought us. They have at best prolonged our financial agony with much more to come.

Best to each, Doug





Post a Comment

Links to this post:

Create a Link

<< Home