Thoughts on Markets

Wednesday, March 02, 2011

Silver & Gold Jumping - FVITF - BULM - DROOY - Miners - Currencies - All pointing toward INFLATION

Praise the Lord for He has made us and not we. We are the sheep of His pasture. Praise King Jesus daily.

Mine Web:
Middle East unrest come to gold market's rescue - VM Group
With no one yet able to predict the outcome of the developments in the Middle East and North Africa, safe haven buying and a wait-and-see attitude likely to prevail. This is an interesting podcast. HERE.

China Daily:
Malls witnessing gold rushas (sic) shoppers fear inflation
Jewelers at shopping malls across the capital are witnessing a gold rush as residents spooked by inflation fears look to protect their money.
Statistics from Beijing Caibai, the city's largest jewelry store, show sales of gold and other jewelry have totaled about 4 billion yuan so far this year, a 70-percent increase year-on-year.
Wang Chunli, general manager, told METRO that hundreds of customers are lining up outside every day to buy gold accessories, such as necklaces and rings. To cope with demand, the store has even introduced a string-weave service, she said, adding: "We've also arranged experienced staff to be on duty and increased the number of security guards." Maybe we will see similar reaction of the public here. Most are oblivious to the value of the precious metals in the face of depreciating dollars in America. The recent gold and silver news will spread and whet many an appetite. HERE.

King World News: 
Rick Rule- Upside blow out in gold, Destabilization in Silver
When asked about gold Rule remarked, “In terms of gold it is no longer a contrarian buy, it’s no longer a lonely trade.  But in the first instance we need to remember that all of world demand is denominated in US dollars and if the denominator is declining, the numerator only needs to hold even to rise in price. 

So the baseline move in the gold price is accounted for by the deterioration in the US dollar.  On top of that we have continued currency crises in Europe, widespread and serious political instability in the Middle-East and North Africa and surprisingly strong physical demand from India and China. 

This environment is creating what we spoke about last time which is fear demand.  This could be the prelude to an upside blowout.” This is quite an insightful interview which is worth a good read. HERE.

The news, to me, is that both silver and gold are sprinting. I may have sold FVITF a bit early, but that is yesterday's decision and we locked in some profit and gained more cash for flexibility today and forward. We will have to wait and see if the boyz are going to jump in. There was a remarkable uncoupling between the miners and the DOW. Today it is not obvious, but this may show up later in the day.  It may be a matter, not if, but when. It is important to remember that they have the deep pockets which enable them to manipulate the markets as they want.

Silver: An Important History
An interesting video news report with graphs. HERE.

Here is a look at our EverReady Bunny - Fortuna:

How about this BULM. I sold most of mine a while back, but it certainly is looking good now. It appeared to me to be hype driven, but this may not be the case. It is spiking now.
 Here is a look at DRD Gold (DROOY):

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF  5.81; BULM  1.72; OLVRF 1.8423; HHWW 1.8428; SENY 1.00; DOW up 35 to 12092.+; SPX up 5.75 to 1312.05; Gold up 3.30 to 1436.50; Silver up 0.10 to 34.79.

Best to each, Doug


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