Thoughts on Markets

Tuesday, February 22, 2011

Unrest w/bloody put down - Gold & Silver Reaching for new Highs - DOW & SPX down

I rest in the fact that King Jesus has the whole world in His hands, and that nothing can separate His people from the love of God which is in Christ Jesus.

Gold (about 1406) and silver (33.91) streaked toward new highs over the week end in light trading. This morning, they are losing some ground. At this point in writing the blog Gold is down 4 at 1402.20, and Silver is off 0.68 to 33.33. These are still pushing new high levels, and the miners are responding. More on this as we move on.

There was a severe earthquake in New Zealand over the the week end. There were at least 65 persons killed. Our prayers must go out to the folks there. The news has put downward pressure on their currency and that of Australia.

Town Hall:
Dr. Richard Brake
George Washington and the Need for Enlightened Citizenship
“Promote then as an object of primary importance, institutions for the general diffusion of knowledge. In proportion as the structure of a government gives force to public opinion, it is essential that public opinion should be enlightened.”-President George Washington, Farewell Address
Yesterday was President’s Day, which unfortunately has become less about celebrating our country’s greatest statesmen and more about selling cars, furniture, and other big-ticket items. However, today is the actual anniversary of George Washington’s birthday (born February 22, 1732), and with some of the commercial buzz dying down from Monday’s mega-sales, perhaps this is the better day to really reflect upon the meaning and significance of the father of our country’s indispensable public career. Without the providential provision by God of George Washington, we may not have a nation. He truly in the father, under God, of our nation. The establishment of his birthday was for the purpose of recalling the providential care of our fore fathers by the Sovereign God of all through George Washington. HERE.



Town Hall:
Thomas Sowell
Reckless Spending
Nothing more clearly illustrates the utter irresponsibility of Barack Obama than his advocacy of "high-speed rail." The man is not stupid. He knows how to use words that will sound wonderful to people who do not bother to stop and think.
High-speed rail may be feasible in parts of Europe or Japan, where the population density is much higher than in the United States. But, without enough people packed into a given space, there will never be enough riders to repay the high cost of building and maintaining a high-speed rail system.
Nothing more clearly illustrates the utter irresponsibility of Barack Obama than his advocacy of "high-speed rail." The man is not stupid. He knows how to use words that will sound wonderful to people who do not bother to stop and think.
High-speed rail may be feasible in parts of Europe or Japan, where the population density is much higher than in the United States. But, without enough people packed into a given space, there will never be enough riders to repay the high cost of building and maintaining a high-speed rail system.
Nothing more clearly illustrates the utter irresponsibility of Barack Obama than his advocacy of "high-speed rail." The man is not stupid. He knows how to use words that will sound wonderful to people who do not bother to stop and think. Of course Congress lives in the fantasy world, too. HERE.
Mine Web: 
Gold's safe haven appeal surges once more
With tensions in the Middle East and North Africa rising and concerns about loose money in the west continuing, investors are looking once more to gold as a means to protect their wealth. Once again, we are treated to perception as the driving force in most markets. HERE.

Mine Web:
Gold eases on rising dollar 
After six days of gains and, despite continued concerns about the Middle East which boosted its safe haven appeal, gold slipped in trade on Tuesday. HERE.
Mine Web:
Fractal analysis suggests silver to reach $52 - $56 by May - June this year
A technical analysis view that shows gold could reach up to $1860, or perhaps higher, silver poised to top $50 and the HUI Index in the mid 900s all by the middle of the current year. With moves like that of the weekend, this seems to be entirely possible. On the other hand many perceive the dollar as a safe haven regardless of the obvious need for the U.S. to have a cheaper dollar to "pay" interest on its vast debt. A stronger dollar, not likely long term, but very possible short term could hold the metals at bay. HERE.
KitCo News:

Market Nugget: Barclays: China's Influence In Physical Gold Market Is Increasing
22 February 2011, 09:33 a.m.
Rising Chinese demand should remain a significant influence for gold, say analysts with Barclays Capital. While political turmoil in the Middle East is the market’s immediate focus, Barclays also notes that flows from Hong Kong to mainland China more than doubled in 2010 to 118.904 metric tons, according to the Hong Kong Census and Statistics Department. Additionally, Barclays cites a Reuters report in which a Chinese senior industrial official says the country’s gold imports in the first 10 months of 2010 increased nearly six-fold to 209.72 tons. Also, reports suggest China is considering increasing gold reserves and the World Gold Council has launched the first gold gift investment product in the country. “China is set to increase its influence over the physical gold market in years to come,” Barclays concludes.There are several nuggets HERE.






















NY Times:
 Blood Runs Through the Streets of Bahrain
As a reporter, you sometimes become numbed to sadness. But it is heartbreaking to be in modern, moderate Bahrain right now and watch as a critical American ally uses tanks, troops, guns and clubs to crush a peaceful democracy movement and then lie about it. The unrest spreads. HERE.
The Telegraph: 
Libya protests: 140 'massacred' as Gaddafi sends in snipers to crush dissent 
Women and children leapt from bridges to their deaths as they tried to escape a ruthless crackdown by Libyan forces loyal to Colonel Muammar Gaddafi. There is a video, as well.  HERE.
Miners from Scottrade:

Currencies from KitCo:











Some Prices: FVITF 5.1268 (Now ask is 5.10 bid is 5.07); BULM 1.02; OLVRF 1.3087; HHWW 0.88 (Still looks like hype driven to me); REMX 24.426; DOW off 62 to 12329+; SPX off 10.45 to 1332.56; Gold off 4.20 to 1402.10; Silver off 0.95 to 32.96. Both metals remain in good territory. Silver still holding near 33.
Best to each, Doug

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