Thoughts on Markets

Monday, August 02, 2010

Surf's Up! I mean markets & metals are up!

All markets shining this morning.


Go long gold and gold stocks -is the Kondratieff winter with us?

Should a drastic fall in stock markets occur, as some economists predict, then gold may offer the best security with some seeing substantial appreciation against devaluing currencies.

This is certainly my approach to markets. The paper currencies only have value in relation to other paper currencies. Gold is primarily a monetary metal which sets it apart from the commodities. It is becoming more appreciated for this aspect as investors and banks accumulate gold. Read the article HERE.

Gold and silver the only good money in time of debt, denial and default

Jeff Nielsen, in a recent speech suggested that the massive debt and derivatives bubble will surely burst and leave the U.S. economy floundering with "good money" (gold and silver) the only salvation.This is a real possibility. Not salvation of the soul which is only available through the Lord Jesus Christ, but security in the time of unbacked paper currencies. In fact, it is a probability. The question is When? HERE.


Eastern buyers to support gold market in next 6 months

A survey across 24 countries representing 75% of global GDP found Asian investors likely to buy gold to a much greater extent than Europeans or Americans.

These are some of the wisest buyers in the world. They buy and hold for the long term. Read it HERE.


China's enormous appetite for mining assets

China's growth in investing in global mining assets has been little short of phenomenal with acquisition values rising one hundred-fold in five years

China is on the buy for mining assets of all types, including precious metals. This is placing a high demand on such assets. HERE.


Warning Signs Suggest Market Headed for Another Collapse

In early January 2008, I had a very troublesome conversation with my colleague at Matrix Analytix regarding a significant warning sign suggesting that a major crisis loomed on the horizon of the equity markets that year. The content of our conversation was focused on the implications of a massive one-year head & shoulders on the S&P 500 (SPY). The issue consistently pervaded my mind because if what the equity markets seemed to signal was true, we were probably headed for a major collapse. I remember asking him specifically, “Can this be for real? What are the implications of a head & shoulders of that magnitude completely unwinding?”  HERE.


All About MLP ETFs and ETNS

For those seeking to invest in something that provides a little income stream on the side, exchange traded funds (ETFs) now provide exposure to Master Limited Partnerships (MLPs). But wait…what are MLPs?
MLPs are partnerships. The general partner is responsible for running the partnership while individual investors are limited partners, according to Harry Domash’s Dividend Detective. Income is allocated among all partners, proportionate to the percentage of ownership. HERE.


Gold Prices Rise, Reversing Direction

Gold for October delivery was up $3.50 to $1,185.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Monday has traded as high as $1,192.60 and as low as $1,175.40. The U.S. dollar index was slipping 0.41% to $81.20 while the euro rallied to $1.31 vs. the dollar. The gold spot price was adding more than $4, according to Kitco's gold index. HERE.


Gold's medium-term fate hangs on how it behaves this week

ROD MYER August 3, 2010 
THESE are inspiring times for the gold bugs.
In late June, the yellow metal reached a record $US1258 an ounce as the world worried that the Greek debt crisis would spread to other European economies like Spain and Portugal. That high marked the apex of a long run-up that began in late 2008 when gold fell below $US700, and has yielded healthy profits for believers in the gold story. HERE.

Miners from

Currencies from

Some current prices: FVITF 2.08; GDXJ 26.90; TLT 99.17; TBT 36.52; SDS 31.34; DOW up 178.47 to 10644.61; SPX up 20.21 to 1121.81; Gold up 4.90 to 1185.60; Silver up0.46 to 18.43.

The markets are feeling their oats today. We are experiencing a strong upward move across the board except for Treasuries and the dollar. The Lord is truly moving in a mysterious way with the markets these days. For the time being it is up beat in spite of the poor economy and high unemployment. Of course, King Jesus knows what he is doing. 

We seem to be balancing between greed and fear with fear holding sway temporarily. This strong upward swing in the broad and metals markets could push more toward greed. Let us be cautious in any buying.

Best to each, Doug



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