Thoughts on Markets

Saturday, August 28, 2010

Review of the Dollar, Gold, Silver, Fortuna, Great BAsin, DRD Gold, & Harmony


Commercial Property Owners Choose to Default 
Like homeowners walking away from mortgaged houses that plummeted in value, some of the largest commercial-property owners are defaulting on debts and surrendering buildings worth less than their loans. What recovery? Read it HERE.


Is It an Elite Depression?
Economy Caught in Depression, Not Recession ... Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday. Writing in his daily briefing to investors, Rosenberg said the Great Depression also had its high points, with a series of positive GDP reports and sharp stock market gains. But then as now, those signs of recovery were unsustainable and only provided a false sense of stability, said Rosenberg. Rosenberg calls current economic conditions "a depression, and not just some garden-variety recession," and notes that any good news both during the initial 1929-33 recession and the one that began in 2008 triggered "euphoric response." – CNBC 

Read it HERE.

A look at the fading dollar. It seems to be doomed, but when is the only question. There is a growing international distrust of the dollar. When it builds to a crescendo, it will be replaced. Then it will cost us in America a loss of at least 50% of its purchasing power.

In contrast to the dollar, look at gold and silver which are both in a bull market.

Silver, though joining gold in a bull market, must play catch up. Last week was a good example of how silver can climb on the band wagon. It must remain over 19 to be on its way again. There are still a great number of shorts in the commodity markets held by 4 big bullion banks which play in the market and hurt the little players.

Now, let's examine some of my core holdings. First, the good news. Here's is my EverReady Battery that just keeps going with a few bumps along the way.

Now for another one that has been strong. Great Basin Gold has been a winner for me since I bought it a short time ago.

Now some bad news. DRD Gold has been in a sandy rut for a while. One of my readers asked about it this week. Here is my take on it and I may be selling some. However, it would be selling and bleeding all over the street at this time. I should be buying when there is a bloody street. You decide for yourself. This is a bad graph.

Here is Harmony in contrast to DRD Gold. Harmony is also a South African which  has been plagued with accidents, etc. However, it is doing better.

I am running out of space. Hopefully, I will review Hecla Mining on Monday. This is another of my core holdings. Please, make you own decisions. What is right for me is not always correct for you.

Tomorrow is the Lord Day's and He expects His people to join in corporate worship. Find a sound church, join and participate in sound teaching, the sacraments, and discipline. Best to each, Doug


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