Thoughts on Markets

Wednesday, April 06, 2011

A Closer look at DRD Gold and Gold & Silver Metals. Dollar lower & Commodity currencies higher

Gold is moving to the front on much of the popular media. The third phase must be quite near. Remember gold is mentioned at the time of creation. God reported in Gen 2:11, 12  "The name of the first is Pison: that is it which compasseth the whole land of Havilah, where there is gold;  and the gold of that land is good: there is bdellium and the onyx stone."

Most important is the fact that the bible reports that gold and silver were used as money by weight from the earliest times. This is their historical use for many centuries. It is now becoming more evident that folks today are seeing these as real money which should replace the unbacked depreciating paper currencies. As more folks pile on the band wagon, we will see the third phase come to fruition. When, in my mind, is the real question. It is not if.

Mine Web:
Gold rally pulls key Tokyo gold futures to 28 year highs
Driven by a rally to new highs on Tuesday, the Tokyo Commodity Exchange's key gold futures contract for February 2012 delivery rose as high as as 4,001 yen per gram. Gold news is everywhere since yesterday's news high. HERE.

Mine Web:
Gold rallies to second consecutive record high
The yellow metal traded as high as $1,459.40 per ounce in morning trade in Europe while silver hit a new 31-year record as investors searched for safe-haven assets. HERE.

Mine Web:
Gold's upward trend to continue throughout 2011 - Nicholas Brooks
ETF Securities head of Research and Investment strategy says the key risk to the gold flows this year would be a substantial and sustained rise in global interest rates but this, he says is unlikely. He sees gold growing in importance as a monetary metal. Read and hear the Pod Cast HERE.

A.M. Kitco Metals Roundup: Comex Gold Trades at New High; Bulls Now Eye $1,500.00 an Ounce
06 April 2011, 08:27 a.m.
Comex gold futures are trading modestly higher Wednesday morning and have set another new all-time record high of $1,462.10 an ounce, basis the active June futures contract. Comex silver futures hit another fresh 31-year high overnight as prices close in on $40.00 an ounce. The precious metals are seeing strong investment demand coming from several fronts, and there are no early clues to suggest gold or silver prices are close to topping out. Comex June gold last traded up $6.90 an ounce at $1,459.40. Spot gold last traded up $0.80 at $1,458.00.
The fact that gold has scored a new all-time high and silver is at a three decade high is garnering more general media attention to those metals, which in turn is attracting more investment demand to them. Don't be surprised to see bigger daily price moves in gold and silver--both on the upside and on the downside, in the near term. Gold market bulls are now targeting psychological resistance at $1,500.00 an ounce as their next upside price objective, while silver bulls are close to pushing prices above major psychological resistance at $40.00 an ounce. Interesting news HERE.

Mine Web:
Currency status to further boost gold as it breaks new records
A new record for gold above $1,456 an ounce was helped along by continued concerns about sovereign debt, concerns that are likely to continue to help the yellow metal. HERE.
By Jim Wyckoff
Mine Web:
DRDGold expects march quarter gold production to decline
The South African gold miner said Wednesday it expects gold production to come in 3% lower in the March quarter than for the previous period while costs are expected to rise 6%. This is one of my core holdings and it has moved up quite well; however, this could put a damper on upward prices. At this point, I am holding, but neither buying nor selling.  HERE.
Town Hall: Walter E. Williams
Walter E. Williams
Diversity Perversity
The terms affirmative action, equal representation, preferential treatment and quotas just don't sell well. The intellectual elite and their media, government and corporate enthusiasts have come up with diversity, a seemingly benign term that's a cover for racially discriminatory policy. They call for college campuses, corporate offices and government agencies to "look like America."

Part of looking like America means if blacks are 13 percent of the population, they should be 13 percent of college students and professors, corporate managers and government employees. Behind this vision of justice is the silly notion that but for the fact of discrimination, we'd be distributed equally by race across incomes, education, occupations and other outcomes. There is absolutely no evidence that statistical proportionality is the norm anywhere on Earth; however, much of our thinking, laws and public policy is based upon proportionality being the norm. Let's look at some racial differences whilst thinking about their causes and possible remedies. HERE.

Here is a closer look at Gold and Silver using StockCharts graphs:

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF 5.5385; OLVRF 1.7267; SENY 0.77; BYDDF 3.77; REMX 27.49; DOW 12418 up 26+; SPX up almost 3 to 1335.63; Gold up 4.60 to 1460.90; Silver 39.65 up 0.37.

Best to each, Doug


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