Thoughts on Markets

Friday, March 11, 2011

Impotent Christian Churches - Close look @ FVITF - Miners - Gold - Silver - Buying Opportunities???

Yesterday was a nasty market day. There was very little, if any spared from the sell off. Today is more subdued. The big news which may portend more of the same is the PIMCO article from Reuters yesterday. This is BIG NEWS which will be bad for the dollar. Remember, as the dollar goes, so goes the U.S.

Chuck Baldwin points out a very good observation about the impotent Christian churches of America. It is HERE for your reading. The article reminds me of a similar one in the Wall Street Journal near the end of the 1960s or early 1970s which asked a question similar to this, "With the vast number of professing Christians in the U.S., why is there little evidence of their impact in our nation?"

The question should shock our churches. We have lost our mission of taking dominion of all of the world and the institutions of man. The gospel no longer seems to be presented from the pulpits as a trumpet call for repentance and return the only way of life serving King Jesus. My prayer is that we return to the God of our fathers and see His way in all of the activities of the each day He gives us. 

We must say and mean, as Paul tells us, "For me to live is Christ!" Our dedicated goal must be, "To glorify God and enjoy Him forever." This is necessary for us to live and not be walking dead.


Mine Web:
Warning signs - could be bad for gold and silver short term but good long term
Gold, silver and other commodities have been falling sharply, along with the stock markets creating warning signs for investors as global uncertainties persist. All markets were in crash mode yesterday. Since this is Friday and traders want to be on the best side of the market for the weekend, it will be interesting to see what happens today. We are experiencing a very difficult world financial fog which is very hard to decipher. At times it is best to just sit and watch, doing nothing but observing. Perhaps, this is the time. Read it HERE.

Mine Web:
Gold defies weak oil prices to rise
While still on track for its biggest weekly decline since late January, the yellow metal got a boost from a major earthquake that struck the north coast of Japan and continuing doubts about stability in the Middle East. There is much unrest around the world and with "natural" disasters comes even further complications. Short term we could see more downside in the precious metals which may well be another buying opportunity. Gold continues to bounce back some even under downward pressure. Long term, we will look back on these days as wonderful, often missed, buying opportunities. If I were without exposure to the precious metals, I would be buying as much as possible. Read HERE.

Mine Web:
ETP investors flood back to gold, energy
As a result of the unrest seen in the Middle East and North Africa, investors in exchange traded commodity products invested heavily in energy and, many moved back to gold. Financial and other challenges around the world should push people to precious metals. Thus, it is suggested that is the case. HERE.

Mine Web:
Where does the gold:silver ratio go from here?
Historically the gold:silver ratio has been at around 16, but in the last half century has only fallen to that level once - over a weekend. What are the chances of it getting there again? Historical ratios are technical indicators which are often useful among others, but may not be as accurate of many other indicators. None are perfect. Only God really knows the future. HERE.




Reuters:
PIMCO Total Return dumps U.S. government-related debt
The world's largest bond fund has gone ultra bearish on the United States, dumping all of its U.S. government-related debt holdings.
The move by Bill Gross's $236.9 billion PIMCO Total Return fund completed last month comes in the wake of a vicious Treasury market sell-off and just days after he questioned who will buy Treasuries once the Federal Reserve halts its latest round of bond purchases in June.
Gross, who also helps oversee a $1.1 trillion investment portfolio as PIMCO's co-chief investment officer, has repeatedly warned against U.S. deficit spending and its inflationary impact, which undermine the value of government debt and push up yields as investors demand more compensation for risk. This is big news which points toward world wide sovereign funds holding U.S. are likely to follow suit. Think of China! Rumors abound that China is doing the same. Thus, our dollar and dollar instruments are facing more challenges and lower purchasing power. This equals price inflation. We are sitting ducks for such action. HERE.


Miners from Scottrade:


Take a look at FVITF. It was below 5.00 for a brief time this morning. I have orders in at about 4.90, but none executed yet. It may be in for a rebound here, but we will have to wait and see what unfolds before us. 


Currencies from KitCo:


Some Prices: FVITF  5.13; OLVRF 1.6495; SENY 1.00; BULM 1.40; HHWW 1.03; TBT down 0.32 (20+ year Treasuries down a bit, see PIMCO article, above); DOW off 15+ to 11969.51SPX up 0.96 to 1296.07; Gold up 4.50 to 1415.40; Silver off 0.38 to 34.90. I am considering more Silver Eagles.

Best to each, Doug

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