Thoughts on Markets

Friday, September 17, 2010

Metals Presently Correcting - Buying Opportunity?? - Consider Carefully & Remember Buyer Beware

All of the news is better when we remember that our God is working all things for His glory and for the eventual good of all of His people. We will live and bask in His love even as we are tested and plagued from time to time. Others are without hope and we must pray often to praise King Jesus. 


Congressmen Weiner and Waxman Set Gold Hearing
Just as the government is trying to prevent people from investing in anything other than T-Bills by raising taxes on taxable interest and dividends to confiscatory levels, it's also trying to prevent you from parking your wealth in assets, like gold, that compete with the paper dollars issued by the Federal Reserve and the Treasury. A press release from Rep. Anthony Weiner, Democrat of New York, not yet (as of this instant) posted on Mr. Weiner's Web site, announces that a September 23 hearing of the Subcommittee on Commerce, Trade, and Consumer Protection (a subcommittee of Rep. Henry Waxman's Commerce Committee) will focus on "legislation that would regulate gold-selling companies, an industry who's [sic] relentless advertising is now staple of cable television." This is just more of the War on Gold by the government and the Fed. They want to keep their monopoly of fraud in paper currency. HERE.


Gold at new record again, silver closes on 30 year high
The surge in precious metals prices continued overnight and this morning with gold making ever-new all-time highs and silver at around the best levels for thirty years. The move have been consistently upward without any correction which is over due. During the gold rush this is typical, but I do not believe we are there yet. Therefore, we are due a correction today or next week if there is to be one. HERE.


Gold's journey to its $1,277.75/oz record
As the yellow metal continues to hover close to its latest all time highs it is perhaps worth going back to look at the significant milestones that have propelled gold to its latest record

The boyz may have returned or this could be come profit taking. Will the demand turn it back up immediately or not. That is the immediate question. However, I may see a buying opportunity for my portfolios. You watch and decide for yourselves.

New information on BYD Company from

Chinese car maker, BYD, acquires 18% of Zhabuye Lithium
BYD, which is 10% owned by Warren Buffet's Berkshire Hathaway takes stake in company that owns the 20-year exclusive mining rights for China's biggest lithium mine. This is a sound move, because of the industry that BYDDF has been in from the beginning. HERE.


Gold at all time high, can it move higher?

Gold continued to hit new all time highs this week, reaching $1,282.75/oz on Friday morning. Weak economic data from the U.S. and a falling dollar helped gold to reach new highs as investors flocked to safe haven assets. Data showed that in August, U.S. industrial output slowed and New York business conditions worsened to their lowest point in over a year. FX markets were volatile this week, with the dollar falling to a 15 year low against the Japanese Yen. The Central bank of Japan decided to intervene in the currency markets on Wednesday, selling an estimated 2 trillion Yen, or USD 23 billion. HERE.


US-China clash over yuan escalates, risking superpower stand-off 
US Treasury Secretary Tim Geithner has issued his harshest attack to date on China’s currency policy, the latest move in an escalating superpower clash across the gamut of commercial and strategic relations.Think Trade Wars! Why should we blame the Chinese for our mishandling of the dollar? Each nation must work for its own interest, but we seem to have forgotten that as we have stuck our nose into too many other nations business as we continue on the empire binge. This is a dangerous game we are playing to our detriment. HERE.


Wonder Why Market Just Surged? One Word - POMO  HERE.

Gold is at new record highs in European trading and silver is attempting a move towards $21.  In an interview with King World News from Spain, James Turk stated, While gold is moving higher, I am really focused on the $21 level in silver...”  James has three and a half decades of experience in both gold and silver so he truly is a veteran of these markets.  The following are his thoughts on where we are... This is a good read. HERE.

I, too, favor silver and hope that this capping and sell-off will provide opportunity for me to add to both Fortuna and Hecla. I plan to buy in small bites as the prices drop, if they do. 

Miners from

Currencies from

Some Current Prices: FVITF 3.20; SILA 0.89; TBT 33.57; BYDDF 6.85; DOW off 14.80 to 10580; SPX off 1.13 to 1123.53; Gold off 1.40 to 1274.10; Silver off 0.12 to 20.68.

Best to each, Doug


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