Thoughts on Markets

Thursday, September 30, 2010

Gold - Silver - Dollar - FVITF - HL - Miners - Currencies

I am earnestly praying and studying Scripture for answers to all of life, including financial planning. The answers are always accurate when they come from the Lord through His word under the guidance of the Holy Spirit. These are confusing times in markets, but I am certain the He controls the future, and therefore, knows all the answers. They are no where else. Seek the Lord Jesus Christ where He may be found -- The Bible.

Both gold and silver are moving ever higher without a correction. Historically, at some point a bull market asset begins to move consistently upward and onward over time. This is the time when it takes patience and, possibly, courage to continue to buy. The final blow off stage comes with very strong jumps in price: e.g. gold will grow by 50-100+ daily leaps. We are yet to get there. However, I am beginning to wonder if I should buy the miners now bite by bite. Averaging up is more comfortable than averaging down. Think about it, and make your own decisions. I will continue to let you know what I plan to do and am doing from time to time. Remember, always remember "BUYER BEWARE!"

Here are the Kitco.com 3 day graphs of gold and silver upon which I have added the new higher trend levels. This is very interesting and clearly shows no correction.

From The Daily Pfennig (DailyPfennig@EverBank.com):
"And what a month it has been for the currencies and not so much for the dollar! Leading the pack for the month of September, we have... Drum roll please... Swedish krona +10.57% Aussie dollar + 8.72% Euro + 7.88% Norway + 7.87% Danish krone + 7.80%

All of the 16 "major currencies" put in positive performances VS the dollar in September, making this a September to remember!" See the, above StockCharts.com graph of the US Dollar Index which shows the fall of the dollar.

Miners from Scottrade.com:

Currencies from Kitco.com:
Here is Fortuna (FVITF) from StockCharts.com: I would like to add more of this, but am cautious at present.

Here is Hecla Mining from StockCharts.com: This is another potential addition to my portfolios, but again, I am very cautious. In fact, I may be too cautious as I weigh the risk.

Some current Prices: FVITF 3.1294; SILA 0.83; TLT 105.18; GDXJ 33.26; Gold down 9 to 1300.90; Silver 21.62 off 0.28 (was 22+ for a while); DOW off 2.69 to 10835
;  SPX up 0.35 to 1145+.

Best to each, Doug

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