Thoughts on Markets

Friday, February 25, 2011

Permanent Portfolio Fund (PRPFX) - Gold - Silver - Miners - Currencies

"This is the day the Lord has made, we shall rejoice and be glad in it." Always thank King Jesus for another day that He gives you. Remember that your days are numbered and no man escapes temporal death. The hereafter will either be with the Lord or with Satan Which would you prefer. I know in whom I have believed and know that He is capable of keeping for himself that which I have entrusted to Him by His power. 
Wisconsin Assembly Passes Bill Curbing Collective Bargaining
Wisconsin’s Assembly passed Governor Scott Walker’s limits on the collective-bargaining power of government workers’ unions, ending a debate that began Feb. 22, while Senate Democrats remained out of state to block the bill.  There are three things which have severely limited business profit during recent years: (1) Taxation, (2) Regulation (particularly, environmental wackos), and (3) union demands. All three drastically increase the cost and risk of doing business in the U.S. These considerations have run many businesses out of the U.S. into more business friendly environments. Read it HERE.

Pirelli to Invest 300 Million Euros in China as Car Sales Surg
Pirelli & C SpA, Europe’s third- largest tiremaker, will invest about 300 million euros ($415 million) in China over the next three years to tap rising demand in the world’s biggest vehicle market.
The company will double capacity at its factory in Jining, Shandong province, to 10 million tires a year within the next two years, Chairman Marco Tronchetti Provera said in an interview with Bloomberg TV in the Chinese city yesterday. China moves ahead in automobiles while our auto industry continues to suffer. HERE.

Distressed Homes Sold at 28% Discount Last Year With `Bloated' U.S. Supply
Homes in the foreclosure process sold at an average 28 percent discount last year and may continue to drive down U.S. housing prices as the supply of distressed properties grows, according to RealtyTrac Inc.
A total of 831,574 homes that sold in 2010 had received notices of default, auction or repossession, the Irvine, California-based data seller said today in a statement. Isn't it nice that the economy here is booming as reported? NOT! There remains a serious overhang of the housing market, and do not forget  the high unemployment. HERE.

King World News:
Much Higher Gold Prices Because of Move in Oil
With oil above $100 and gold near all-time highs, King World News interviewed Rick Rule, Founder of Global Resources, now part of the $8 billion Sprott Asset Management.  When asked about the move in oil, Rule remarked, “The markets are too tight to take any shocks.  I think this move in oil was inevitable, because the balance between supply and demand was too tight.  There is a whole bunch of oil production controlled by national oil companies and many of those countries have diverted too much of that cash to domestic spending, without leaving capital to fund their existing infrastructure to allow for continued high production levels.” Interesting interview. HERE.

Silver and gold have been playing leap frog. One jumps up and then the other. Both are regaining after being whacked by the Boyz or profit taking or a bit of both. The Canadian mint reported a severe lack of silver supplies. Let' look at the graphs which show a severe whacking at about the same time.

 Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF 4.88; SENY 1.06; OLVRF 1.7043; HHWW 1.10; REMX 24.5899; DOW up60+ 12131.17 (That is a good move after days of losses); SPX up 11+ to 1317.51; Gold up 5.20 to 1407.60 and Silver up 0.83 to 32.94 (Struggling back toward 33 and then on to 34 maybe).

Before signing off today, I want to show you a graph on the Permanent Portfolio Mutual Fund (PRPFX). Buy the way, you may be able to invest in mutual funds through your broker without or with very minor charges. This one is worthy of consideration as a means of holding and preserving dollars. Recommended by Richard Russell. Check out the fund HERE.

Best to each: Doug



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