Thoughts on Markets

Wednesday, August 04, 2010

China is Grabbing Gold - Do you wonder why? - Gold is on the rise!

Gold appears headed for capping and the silver capping seems to have begun already. They just cannot allow the metals to go to market prices. The fraud of unbacked paper currencies would then be too obvious. Some day, it will get away from them. Note, particularly the articles on China and gold, below. 


Gold heading for a parabolic rise - John Embry

"If gold is not between $1,500 and $2,000 in the next 18 months, I'm dead wrong."
Read and listen HERE.


Indians tune into gold

Young Indians are casting out old traditions and beliefs about inauspicious times and buying gold; using a slump in price ahead of the festival season as a good enough excuse for bargain hunting
Read it HERE.


China announces plans to further develop domestic gold market

The People's Bank of China said, Tuesday it will allow more banks to export and import gold and will, among other things, actively develop more yuan-denominated gold derivatives
Read it HERE.


The gold market is shifting eastwards?

The latest move from China to further loosen its controls on the gold market is yet another indicator that the centre of gravity for gold demand is moving east.
Read it HERE.


Beware the Dragon's gold teeth

China is putting itself in a position where dominance of the gold market, of which it is capable, could lead to it exerting global financial hegemony.
Read it HERE.


Three ETFs to Invest Like Marc Faber: TBT, SGOL, MOO

With markets trending sideways for months and no end to the recent volatility in sight, many have turned to some of the world’s most famous contrarian investors for guidance in these puzzling times. One of the most popular of these investors is Marc Faber, a Swiss fund manager and the author of the popular Gloom Boom & Doom Report and one of the most famous contrarians in the world today. Faber gained immense fame and respect for advising his clients to pull out of U.S. equities one week before the 1987 crash which saw the Dow plummet by close to 23% in what is now known as “Black Monday” and has more recently predicted the most recent financial crisis and its aftermath. Unfortunately, the perma-bear has forecast more doom in our immediate future, urging investors to play it safe and consider the long-term. “The prime consideration should always be capital preservation and avoiding large losses,” says Faber. Read it HERE.


Gold Miners ETF Redemptions Rise

Traders and money managers are looking for — and finding — new places to deploy their capital. Evidence of that can be seen in an upsurge in the creation of bond and equity sector exchange-traded fund shares.
More instructive, however, is tracing where that capital came from. Yesterday, a big chunk — some $48 million worth — came from redemptions of the Market Vectors Gold Mining Index ETF (GDX).Not that that's anything new. Money's been flowing out of the fund for six weeks. Read it HERE and view the graph.

The Miners from

 The currencies from

 Some current prices: FVITF 2.0862; DIA 106.53; TBT 36.38; SDS 31.31; TLT 99.27; DOW up 10 to 10646.83; SPX up 1.51 to 1122.20; Gold 1199.80 up 14.20; Silver 18.48 up 0.11.

After Monday's whopping day at the markets, Tuesday was subdued as it looks like today will be. Unless gold is capped, it will burst through 1200 again today. Silver is running well, also. The gold/silver ratio is still anemic at 64.92 while the historical average is about 16.

The Lord rules while all nations and peoples are being incrementally brought under His feet. At the end of time when His Kingdom rules the world as the church (His body) completes its dominion task of subduing the world for Him. Then He will come in judgment and will reward those whose names are written in the Lamb's Book of Life and cast the goats (unbelievers) into the pit forever. Praise Him daily for His grace and care of His people.

Best to each, Doug



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