Thoughts on Markets

Thursday, September 02, 2010

Gold - Silver - Gold Basin - Stagflation is well on the way.

It seems that the cap for the price of gold is being applied at a higher level. For several years now, the capping price has been allowed to go higher. The demand must be so great as to threaten the bullion banks shorts, but they seem to forced to let the price rise often.
















Silver is holding well, also.















Below is a graph of one of my newer core holdings. It has performed very well, not as well as Fortuna, but nicely in response to the gold price.





















From ResourceInvestor.com:

China, India & the Copper Bull
In this author’s opinion, China, and to a lesser extent India and other developing nations, are responsible for the largest and longest base metals bull market the world has ever experienced. Many fear the bull market for natural resources is over when in fact nothing could be further from the truth. This seems especially true, because of the supply/demand picture, regarding copper. HERE.


From Money.CNN.com:

Problem bank list climbs to 829
Read it HERE.


From Bloomberg.com:

Toyota, GM, Ford Sales Slump as Buyers Shun New Cars
Toyota Motor Corp., General Motors Co. and Ford Motor Co., the three largest sellers of autos in the U.S., reported bigger sales declines than analysts projected as the industry posted its worst August in 28 years. HERE.

From Gallop.com:

U.S. Consumers Pulling Back on Spending in August
 PRINCETON, NJ -- Americans' self-reported spending in stores, restaurants, gas stations, and online averaged $61 per day during the week ending Aug. 29. So far, August and back-to-school 2010 spending trends appear no better than those of August 2009. HERE.

From BusinessWeek.com:

IMF Gold Assets Fall 16.85 Tons as Russia Adds to its Holdings
Sept. 1 (Bloomberg) -- The International Monetary Fund’s gold reserves fell by 16.85 metric tons in July as Russia added 16.2 tons to its holdings, according to figures from the Washington-based lender.  HERE.

From GATA.org.

Fox News takes Kitco's Ron Paul gold audit story national
Read it HERE

From KingWorldNews.com:

James Turk - Big Money Buying Pullbacks In Gold & Silver
HERE.

From Kitco.com:

Thursday's Analytical Charts for Gold, Silver and Platinum and Palladium
This is the technical analysis with graphs and hints on uses technical indicators. It is always a worthwhile read. HERE.

Here are the miners from Scottrade.com:














Here are the currencies from Kitco.com:
 Some current prices: FVITF 2.68899; GBG 2.15; SILA 0.79; TLT 104.70; DOW up 5.49 to 10274; Gold up 5.20 to 1249.60; Silver up 0.19 to 19.54.

While price inflation is hidden due to the changes in the price of gasoline, I still see inflation in prices while shopping. There are not the "bargains" from 3 months to a year ago. There are a lot of dollars floating around the world, despite the fact that many have gone to reserves in the central banks, some are evidently finding their way into the market place. Consumer spending was slightly up in the latest report; however, the articles here show that back to school and auto sales were down. 

So, in my opinion, we are still headed for Stagflation with prices creeping upward with wages stagnant and unemployment remaining high. It is not a happy look at the economy. We must individually batten down the hatches by getting out of debt and reducing spending to weather the coming storm of higher taxes and increased government spending. As politicians always do, they will search for ways to increase taxes and control of citizens and continue to spend as if there will never be a day of reckoning. God always "balances the books" here and now with the wrath of His judgment or in eternity.

Let us pray that He will send us godly statesmen for the November elections. We are in dire need of them. However, the answer is for us as individuals, families, and churches to return to the Sovereign King Jesus. Without this He will destroy our nation which was founded primarily upon His principles and by His providence. 

Best to each, Doug

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