Thoughts on Markets

Thursday, February 17, 2011

Gold & Silver Up Strongly - DOW & SPX up - HMY & DROOY Sell Candidates?

Praise the Lord for another day and work to enjoy Him and walk in His ways. That is abundant life today and eternal life with King Jesus when you go home to Him. All other ways are death which begins today and will be everlasting in the fires of Hell. 

Mine Web:
Gold up four days in a row
In its strongest run since September, the precious metal got a lift in London trading from a softer dollar and concerns around unrest in the Middle East. Is this a pernicious move to create buying before an extension of the correction? I do not know, but would urge caution at this time. As you will see, below, I am considering selling some miners. HERE.

Mine Web:
GLD gold holdings hit 9-month low
The world's largest gold ETF - SPDR Gold Trust (GLD) - has seen its gold holdings fall to the lowest in nine months. Do the managers of such funds have knowledge to which we are not privileged? Could be! HERE. It may be time to hold off any buying of the metals. HERE.

China gold demand growing at "explosive" pace: ICBC
ICBC (1398.HK)(601398.SS), the world's largest bank by market value, sold about 7 tonnes of physical gold in January this year, nearly half the 15 tonnes of bullion sold in the whole of 2010, said Zhou Ming, deputy head of the bank's precious metals department on Wednesday.
"We are seeing explosive demand for gold. As Chinese get wealthy, they look to diversify their investments and gold stands out as a good hedge against inflation," Zhou told Reuters. This is a very strong plus for gold demand which is in stark contrast to those above. The Chinese chasing after gold in a big way as their wages increase. They have true knowledge of the value of precious metals which most Americans lack. HERE.

Let's turn for a short time from the precious metals to the growing unrest in the world. France 24 International News:
Rising food prices push millions into poverty
World Bank President Robert Zoellick has warned that global food prices have reached “dangerous levels” and pushed an estimated 44 million people into poverty over the past year, an effect he says could contribute to political instability. Remember that food has no place in the Federal Government's assessment of price inflation in the form of the Consumer Price Index, but it is a major part of our living expense. HERE.

The Telegraph:
Oil rises to $104 a barrel amid Middle East tensions 
The price of oil held at two-and-a-half year highs amid fresh concerns that tensions in the Middle East could disrupt oil flows in the region.Energy, also, is ignored by the government's CPI. Do you think that maybe they do not want to acknowledge the inflation that is upon us? HERE.

Here are two of my core stocks which are failing to perform as well as I expected. I plan to be selling both soon. Would like to get as much as I can out of them.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVIRF 4.63; BULM 1.04; OLVRF 1.2709; HHWW 0.91; REMX 25.46: Gold up 8.10 to 1383.70

Silver up 0.46 to 31.14

Best to each, Doug


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