Thoughts on Markets

Monday, October 18, 2010

Gold and Silver are down a bit, but miners are holding. - FVITF - SILA - BULM

The metals are down some today. They have both recovered a good bit from the overnight bashing they took simultaneously. Here are the graphs of gold and silver. 
I find it interesting in examining the folly of banks and governments. Japan's very poor example of handling their financial fiasco for the last few decades is the plan that is being used in the West now. This, too, will have the same results. At the very best, the action simply is postponing the inevitable. 

What is needed is a stable currency (fully backed by gold and silver) to replace the FIAT paper "money." Gold and silver have stood the test of time. However, the problem as governments and banks see it is that with the unbacked paper currency, they are in control. They have exclusive rights to counterfeit dollars or other currencies and the people become slaves to their whims. Thus, the hate the true money which God's people and most people of the world used in Biblical times.

God hates unequal weights and "money" which is misrepresented as real money. Ever wonder why our coins are clad with silver or gold colored metals which appear to be silver or gold? That was to deceive the population into believing they were real money. Of course, most know that is not true not, but the ruse worked for a while. More people are beginning to recognize the fraud of paper money. We should pray that King Jesus will take the world back to true money and sound Biblical economics.


Can gold, silver, oil et al tolerate fast depreciating dollar?
Julian Phillips examines the likely impact of rapid dollar devaluation due to more Quantitative Easing on the gold silver and oil sectors. Of course, they can, but we would rather see a slowly crumbling dollar. HERE.


Gold softens as dollar rebounds
The yellow metal fell almost 1% on Monday after signals that the US Fed is considering a much-anticipated easing move, boosted the dollar. We may see some buying opportunities today. HERE.


Gold a sure bet amidst the current global currency crisis
The technical manner of gold's break through $1000 this time last year suggests an upside target of between $1350 and $1400 an ounce. I would dare to suggest that gold will get to 1500 this year. There will be bounces along the way, but the dollar will resume its downward spiral very soon and gold will break to more new highs. HERE.


Gaming the Next Gold Correction
Gold has had a good run lately, and that begs the question, "When is the next correction and should I try to sell and buy back around it?" It's pretty easy to know when a correction is nearing. HERE.


Has Gold's Corrective Phase Begun?
A growing number of countries see a weaker exchange rate as a way to lift their economies. They want to export their way out of trouble. This war is over the ability to export to other nations and about keeping your own citizens employed during a period of an extended slowdown in global demand. HERE. If the easing and currency wars continue, there will be only a slight correction and we may already be experiencing that now.


Why Gold Could Be the Safest Investment Out There
A look at the past 177 years of the gold price reveals that unexpected write-offs are non-events—gold could be the safest investment out there. Gold and silver go back the 5000-7000 years in the Garden of Eden and is real money which has been in use for many centuries. HERE.


Monday's Analytical Charts for Gold, Silver and Platinum and Palladium

18 October 2010, 09:24 a.m.
By Jim Wyckoff
Of Kitco News Check the article HERE.

Miners from

 Currencies from

Some Prices: FVITF 3.27; SILA 1.02; BULM 1.12; TLT 100.92 (Bonds are up a bit); DOW up 45.66 to 11107; SPX  up 3.03 to 1179.11; Gold off 1.20 to 1367.70; Silver off 0.09 to 24.24.

Best to each, Doug
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