Thoughts on Markets

Friday, February 18, 2011

Riots & Revolts Spread - Selling DROOY & HMY - Gold to 5 week high - Silver to highest since 1980

Folks, I am concerned that the food cost peaceful and violent revolts are spreading. Now, we are seeing revolts in Wisconsin due to the tightening of the government budget. This is but of small taste of what we have seen world wide of late. It is wise to beware of this and to plan how to avoid the consequences for your families. See the first article today as another warning. It can happen here. 

Yes, we are to rest in the care and provision of the Lord, but we are to do our part, as well without worry. He is in control. Proverbs 21:31 tells us, " The horse is prepared against the day of battle, but victory is of the Lord. " This is to be our guide in all of life, we prepare, plan, and execute our plans after committing them to the Lord. Then we work diligently and leave the results to the Lord. King Jesus is faithful and will care for His people regardless of the situation for their long range good.

As I mentioned yesterday, I was considering selling the South Africans DROOY and HMY. Well, I did, and was glad to sell DROOY, but may have sold HMY a bit early as it is above 11 today while I sold below 11 yesterday.

Times Colonist:
Man stabbed in robbery of $750,000 in silver bars
A man from Chilliwack says he is traumatized after he was punched, stabbed and tied up by home-invading thieves who made off with his life savings in silver bars.
The two thugs, wearing what he described as fake police uniforms, unloaded a vault and spirited away with $750,000 in silver the man had bought as an investment last year. Self defense of life, liberty, and property is a God-given right, if not a command. Each head of household is responsible to God for protection of his family and its wealth. Even though the anti gun lobby would have you think otherwise, even our founders expressed the right in Constitution Second Amendment. Beware and check credentials of even police who come to your door without a valid warrant. HERE.
King World News:
James Turk - Short Squeeze in Silver Could Be the Big One
We are at a new multi-decade high, silver is still in backwardation, Comex open interest has been expanding and perhaps most importantly, I refer to the insight Dan Norcini provided in the KNW Weekly Metals Wrap, namely that silver is trading above all of its important moving averages.

The most reliable principle in investing as well as trading is to follow the trend.  Commodity traders like to say, “The trend is your friend” and as simple as that statement sounds, it should be investors guiding light for following markets. HERE
Mine Web:
Emerging market central banks become large buyers of gold - WGC
The official sector was a net buyer of gold for the first time in 21 years in 2010 and, according to the World Gold Council, it is likely to remain so for a while yet. HERE.

Mine Web:
Now it's India's 2010 gold demand which beggars belief
Not to be left behind in the global gold demand sector India has comfortably outdone the exceptional gold demand seen from China in 2010. HERE.

Mine Web:
Gold hits five week high, silver highest since 1980
Silver rose to its strongest since 1980 and Gold hit five week highs on the back of growing unrest in the Middle East. The precious metals have really begun to shine this week. HERE.

 Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF 4.86; BULM 1.01 (I did sell all the BULM - some just below $1 and some just above); OLVRF 1.3309; HHWW 0.92 (Still have not bought this as it looks like hype driven to me.); REMX 25.1001 (Would like to buy this on a big correction in the broad market.); DOW up 17.56 to 12335.50; SPX up 0.24 to 1340.67; Gold 0.20 to 1384.90; Silver up 0.20 to 31.98. Both metals are pushing higher today. We still do not know if this is late second phase or very early third phase.

Best to each, Doug


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