Thoughts on Markets

Friday, March 04, 2011

Brazilian Real - Marc Faber - Silver > $35 - Gold Up - Miners - Currencies

Are you ready for the Gold Rush? It may be starting. This could be another false start, but the excitement is building. All is in the hands of the Lord of All. We sheep of His pasture must wait and see, but at the same time know that He cares for us moment by moment. Praise King Jesus daily and follow Him using the written word of God under the guidance of the Holy Spirit. 

Town Hall: 
Public Employee Unions
Walter E. Williams:

With all of the union strife in Wisconsin, Indiana and New Jersey, and indications of more to come, it might be time to shed a bit of light on unions as an economic unit.
First, let's get one important matter out of the way. I value freedom of association, and non-association, even in ways that are not always popular and often deemed despicable. I support a person's right to be a member or not be a member of a labor union. From my view, the only controversy regarding unions is what should they be permitted and not permitted to do. I live in a "Right to Work State" and am glad of it. This is a commentary worthy of study. HERE 

The Daily Pfennig (
"Chris told you about Brazil's rate hike yesterday. I have to say. see I told you! I told you long ago, that the Brazil's interest rates would continue to move higher to combat their inflation, no matter what the Gov't did, or said about all of it. OH! Brazil grew 7.5%  in 2010, their fastest pace in 25 years! So, no wonder interest rates continue to go higher! There was a 7% increase in domestic spending, so the economy is being driven by consumers and not the Gov't, which is always a "good thing" in my book! OH! And the Brazilian real? It continues to kick tail and take names later, folks." The Real has been a great performer.
Mine Web:
Panama's president asks lawmakers to repeal mining law reform
The law, which allows foreign government investment in mines within the country is crucial to companies that are hoping to receive project investment from state-owned firms from other counties. Now there is a good suggest that should be followed by our legislatures. Let's encourage, not discourage businesses in the "free" U.S.A. Like Churchill said long ago, "Set the people free and let them act." or words to that effect. He knew how to encourage people to grow the economy without the current government controls. By the way, have you noticed the increase in economic freedom in Singapore, China, and Brazil while ours has been consistently limited in violation of our Constitution.  HERE.
Mine Web:
MASSIVE gold demand continues to break records in China
Latest reports out of China put consumer gold demand in the first 2 months of the current year at a phenomenal 200 tonnes - and buying momentum is still. China has a growing middle class of consumers, and, unlike Americans, the Chinese know the real value of gold and the freedom it ensures. Would that the Americans in general would pick up on this. HERE.

Market Watch:
What is gold telling us?
Commentary: Gold’s gains may have meaning beyond the market
Gold closed $1437.70 on Wednesday, using the CME April contract as the measure, up $28.40 so far this week and breaking through significant technical barriers.
Over the weekend, Australia’s The Privateer had growled: “Just as it has since early November 2010, the area between $1,400 and $1,425 is proving a firm ‘ceiling’ for gold.”
The Gartman Letter was more direct on Tuesday: “Someone … or something … has kept a virtual lid on the gold market at or near $1,414-$1,416 for the past many months and has certainly been at work for the past two weeks making certain that gold does not push upward through that level.” We may be nearer the 3rd phase than most believe. And we will not have to "Go North to Alaska" for it, just hold on to our miners and metals and wait. HERE.

Mine Web:
Gold firms but investors cautious ahead of US payroll data
Prices of the yellow metal rose in Europe on Friday, recovering some of the previous sessions losses but the move was muted as investors wait for key US Payroll data. If this is correct, we are once again treated to perception rather than fact. All should know that the Federal payroll data is the most manipulated and inaccurate piece of the economic reports. It is so full of smoke and mirrors, that it is worthless. Nevertheless, it always has a significant impact upon the markets. HERE.

Mine Web:
Gold still a risk trade; silver just too hot - HSBC
According to HSBC's head of absolute return, the financial and geopolitical backdrop has not deteriorated enough for gold to show off its safe haven credentials. Both are wealth preservers in the midst of the paper currency flood we have seen in the last three years. HERE.

Mine Web:
Marc Faber reckons gold and silver important in portfolio
Strong fundamentals favor gold and silver long term-not just because of money printing by central banks, but also because demand from markets like China is increasing at an extraordinary rate. HERE.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF  5.75; BULM 1.79; SENY 1.08; OLVRF 1.8621; BYDDF 4.42; DOW off 12+ to 12246.55; SPX off 2.72 to 1328.25; Gold up 11.90 to 1427.20; Silver up 0.91 to 35.14. Both metals are up very strongly with Silver leading the way >>> Sprinting above 35. Now we know that we should have bought more. I am holding what I have and looking to buy more miners and metals with any drop in prices. I am certain that there are many on the sidelines waiting to jump in on dips.

Best to each, Doug



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