Thoughts on Markets

Thursday, April 07, 2011

Gold & Silver in Record Territory - A look at Hecla - Fortuna on the move

"In the beginning God created the heaven and the earth."  (Gen. 1:1) This is where our planet and all life began. It was made from nothing by the Sovereign Creator God of all. We know this is true, because it was written by the Creator. Only He was around to prove it. Man attempts to ignore this to his doom. Accept and live. That is the choice for man. Yet, man wants to ignore and disbelieve this. Thus, he rejects the God who made him. Praise King Jesus for His creation and His sustaining us. We should praise Him moment by moment in thanksgiving for His abundant care of each of us.

Mine Web:
Will gold price go down if interest rates rise?
Julian Phillips examines the likely impact of interest rates rises on the various principal economies and the likely effects on the gold price. The article discusses interest rates rising in various types of economies. It is interesting. HERE.

Mine Web:
If the world around us collapses, gold may be our only saving grace
In an increasingly worrying world there are numerous factors that could bring stock markets crashing back to earth, but gold has stood the test of time as a wealth insurance policy. In many ways the report is accurate; however, I will be depending more on the true grace which comes from King Jesus, alone. HERE.

Mine Web:
Under-covered gold and silver stocks, royalty companies offer opportunities
Investment analyst Ima Casanova describes several situations on little-covered gold and silver companies, including the unique field of royalty companies. Gold Report interview. The interviewee has a vested interest in royalty companies. However, such companies very often have more stable prices than actual miners. This is a good education on such companies. HERE.

KitCo News:
Legislation Repealing Controversial Form 1099 Rules Passed By Senate, Headed To White House
06 April 2011, 07:49 a.m.
By Allen Sykora
Both chambers of the U.S. Congress have approved legislation to eliminate controversial new Form 1099 tax-reporting requirements that coin dealers and other business organizations had complained was too onerous.
The measure is on its way to the desk of President Obama after Senate passage by an 87-12 vote Tuesday. A number of news reports suggested that the White House is expected to sign the bill into law. What a blessing this will be when signed by the President. The IRS was requiring dealers to report on Form 1099 all transactions by people involving $600 or more of gold. That was a burden on dealers and an invasion of privacy of citizens. HERE.

King World Blog:
Marc Faber - Mr. Bernanke is a Murderer of the Middle Class
Today King World News interviewed Barron’s roundtable member Dr. Marc Faber.  When asked to compare the 70‘s cycle to the current one Faber responded, “Well I think we have had in the 70’s rapidly escalating commodity prices, and in some cases they went up much more than what we’ve seen so far in the last ten years.  Of course the financial position of the US is much worse than what we had in the 70’s.  In the 70’s, total credit as a percent of the economy was just at 140%, we’re now at 379% and we have the unfunded liabilities which we didn’t have at that time.  So I would say the financial position of the US has continuously worsened over the last 30 years.” HERE.

Lew Rockwell:
Use the Dollar or Else
Look up the phrase "a unique form of domestic terrorism" on a search engine and you will turn up a story about a man whom the US government is trying to cage from now until the time of his death.
And his crime? His unique form of terrorism? He minted silver and copper coins and sold them. In other words, he did what innumerable entrepreneurs from the beginning of time have done. He attempted to provide consumers with a store of value. No one was forced to buy. He met a market demand, and that’s it. This is an interesting read. The premise is that a nation confident of its "money" has no need to force people to use it. On the other hand, a nation which uses questionable "money" must use force or people will not use it. Consider our dollar which has value only by the acquiescence of people to use it and the coercive power to force its use as a FIAT currency. HERE


The Telegraph:
Gold: 40 years of turmoil 
Gold prices hit a new high of $1,462.93 an ounce on Wednesday, setting a record for a second-consecutive day on inflation fears and a falling US dollar. Here, we look at the key moments in gold trading over the past 40 years. A good historical read. Most do not understand gold, and this will give a grand over view to bring most up to speed. HERE.

Casey Research:
The Casey Report’s David Galland: Major Policy Shift Ahead
Editor’s Note: David Galland, Casey Research partner and managing editor of The Casey Report, sees a major shift in Federal Reserve policy ahead and has advice on how to invest accordingly. Time is short, so we’ve asked David to share his thoughts with us. Ed Steer's Gold and Silver Daily reported on this article, "Today's last reading item is not gold-related...but it's your big read of the day, so I left it right to the end." This is interesting and a very important read. What he says about the end of QEII and the potential of a new QEIII later is what I believe will happen, but he pain from the end of QEII will be felt for a while. Not that I support the QEs, realize that the world is dependent on QEs for the time being. HERE.

Let's take a look at another of my core holdings: Hecla Mining. One of these days we will see the miners beginning to lead the physical metals in price rises. Most are still strong.

Miners from Scottrade:

Currencies from KitCo:


Some Prices: FVITF 6.02 (Nice move.); OLVRF 1.75; SENY 0.76 (Fading ??); BTDDF 3.97 (Moving upward again.); TBT 38.64 (Bonds down a bit.); DOW off 21 to 12405.52; SPX off 0.24 to 1335.31; Gold up 3.30 to 1462.40; Silver up 0.06 to 39.57. Metals still holding and moving up bit by bit. 

Best to each, Doug

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