Thoughts on Markets

Monday, September 20, 2010

Gold & Silver reaching Higher - DOW Strongly Up - Miners Higher

Folks,

We are warned in James 4:13, 14. "Come now, you who  say 'Today or tomorrow we will go to such and such a city, spend a year there, buy and sell, and make a profit'; whereas you do not know what will happen tomorrow. . . ."

The future is in the hands of our Sovereign King Jesus who loves His people and is working through His church to bring all nations under His foot. But we are also encouraged when James tells us in Chapter 1 verses 5 & 6: "If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him. But let him ask in faith, with no doubting, for he who doubts is like a wave of the sea driven and tossed by the wind."

Then we search the Scriptures daily for answers. That is the way with faith in our King.

From Kitco.com:

A.M. Kitco Metals Roundup: Comex Gold Higher, Pokes to Another Record High Amid Weaker U.S. Dollar; FOMC Awaited

20 September 2010, 8:02 a.m.
By Jim Wyckoff
Of Kitco News

Comex gold futures prices are trading modestly higher Monday morning and scored another new all-time record high overnight as a weaker U.S. dollar is inviting fresh buying interest in the yellow metal. Traders are awaiting Tuesday afternoon's results of the Federal Reserve's FOMC meeting. December Comex gold last traded up $3.80 an ounce at $1,281.30. Spot gold was last quoted up $4.80 at $1,280.00. HERE.

Below are the StockCharts.com graphs of GLD and SLV. These are graphs which show the relative current prices of gold and silver.  Also, note the 24 Hour Kitco.com graphs of gold and silver. Both are strong with silver showing a better percentage performance than gold. There appears to be a very high demand for both metals which is reflected in the current prices of the miners, below. I had expected a correction last Friday or during this week, but it may not happen. I am searching for a buying opportunity to add miners to my portfolios. There is a lot of uncertainty in the markets, but it is surprising that there have been no corrections in the metals since this last strong rally.








From Kitco.com:

Market Nuggets: Morgan Stanley Sees Gold Remaining ‘Well Supported’ 20 September 2010, 9:00 a.m.
By Allen Sykora
Of Kitco News Brief Comments HERE.

From Kitco.com:

Gold Market To Watch Comex Options Expiration, Fed Meeting
17 September 2010, 2:22 p.m.
By Debbie Carlson
Of Kitco News
Chicago -- (Kitco News) Strong gains in precious metals across the board could portend further strength next week, but market watchers are cautious for the inevitable pullback that comes when new price levels are breached.

Spot gold set an all-time high Friday of $1,284 an ounce, while silver poked through to $21 an ounce, its highest since March 2008. Platinum and palladium also advance, with platinum rising to its highest levels since May and palladium since April.

Although the trend is higher for precious metals in general, analysts have pointed out, particularly for gold, the metal often pulls back to correct before attempting to revisit the high. That did not happen with gold on Friday, which is unusual, said George Gero, vice president, RBC Capital Markets Global Futures. HERE.

From LewRockwell.com:

The Money Governmental Money-Vacuum
by Richard Daughty
The drunker I get, the more it seems to me that you slave away at your stupid job every day of your stupid life, hating every moment of it, reviling all the idiotic people you deal with every hellish day, but you bravely and heroically put up with the aggravation, tedium and ennui because you desperately need the money. The Mogambo Guru. HERE.

Miners from Scottrade.com:



Currencies from Kitco.com:



Some Current Prices: FVITF 3.29 (holding strongly to upper prices); SIlA 0.88 (continues to move upward); DIA 107.01 ( Showing some life); TBT off a bit to 33.66 (Treasuries must be a bit stronger today); DOW up 110.40 to 10718; SPX up 12.12 to 1137;Gold 1282.70 up 7.70 toward another new high; Silver up 0.14 to 20.91 pushing toward 21.00 again after hitting it last night. 


My plan is, if/when we get a correction in metals, I will be buying in small bites averaging down. Averaging down is likely by many as trying to catch a falling knife, but with the volatility in the metals, and given the apparent high demand, this seems a prudent way to acquire more miners. I retain always in the back of my mind, that one of these times will be the Gold Rush, and I do not want to be "priced" out of that market. Thus, I will be averaging down. You must always decide your comfort zone in any market. I cannot know this and; therefore, say make up your own mind. I simply report my plans and trading, not yours. That is your business.


Best to each, Doug

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