Thoughts on Markets

Tuesday, April 19, 2011

A look at OLVRF - Gold - Silver - Currencies - Miners - General Markets

Yesterday was a dull down time for most of the market. Strange that SP downgraded the US debt and both bonds and dollar went up. As fragile as the US Dollar is, the perception from many is that it is the place to be for security. The miners are not surging as are the metals. Silver and gold were smacked down by profit taking or capping, but surged to new record for gold and new 31 year record for silver. This indicated that the demand remains strong for our metals. The Silver Eagles are in very short supply and the premium on them has increased considerably. Perhaps, the junk silver dimes, quarters, and dollars would be better buys if you are so inclined.

We must never put our trust in man, governments, or even gold and silver. The only one trust worthy is King Jesus who rules in justice and truth. He is the way, the truth and the life. There is no substitute which can take His place, except in the wisdom of man which God calls folly and looks down from Heaven in derision at the folly of man. Then there comes a time when God gives them over to there own wisdom and devices as it says in the first chapter of Romans. Let us turn back to Him before He does dismiss us to our own feeble wisdom. 

The Telegraph:
US warned over debts, as S&P cuts outlook to 'negative'
America's ability to tackle its deficit has been given a strong vote of no confidence, after leading rating agency Standard & Poor's said the chances are rising that the country will lose its prized AAA status. HERE.


Town Hall:
Bull About Bullying
Thomas Sowell:

There is a lot of talk from many people about bullying in school. The problem is that it is all talk.
There is no sign that anybody is going to do anything that is likely to reduce bullying. Parents should bring 
children up in the nurture and admonition of the Lord. The only way to do that is to become involved
in a true church, of which there are few, and to begin home schooling from a bible based education.
HERE.
Town Hall:
Holy Week, Holy Shariah? (Part 1)
Chuck Norris:

 

As most Americans have done since our republic's inception, millions of us across the
country this Holy Week will commemorate the crucifixion and resurrection of Jesus Christ. But 
what concerns me in America is not only the growing disdain for Christian sentiment but also the
increasing spread of Shariah.  The acceptance of sects under the guise of freedom of religion was
never in the minds of our founders. It was more a type of tolerance without the Federal Government establishing a specific religion. We now have the Federal Government establishing Humanism as the religion for America and at the same time it is pushing Christianity out. HERE .

Mine Web:
Gold pushes towards $1500 as global markets decline
It was only dollar strength that prevented gold from bursting through the $1500 an ounce level yesterday and any return to dollar weakness should see this next major psychological barrier breached. HERE.
Mine Web:
State Tax Commission punts mining taxation issues back to Nevada Legislature The Nevada Tax Commission voted to update the state's net proceeds of mines regulations and mining tax deductions only after the Legislature has addressed mining taxation policy through legislation. Why would any miner or, for that matter, any business want to stay in the U.S. with ever higher taxation and greater regulation? We have run most businesses out by these actions, but we never seem to learn from history. Perhaps, we are ignoring it for the most part. HERE.
Mine Web:
Gold and currencies: an historical perspective 
Gold was money long before currencies came into the fray but a look at how the world moved from a gold standard to the current situation provides some useful food for thought. It is good to review the basics from time to time. HERE.
Bloomberg:
Gold-Shortage Threat Drives Texas Schools Hoarding 664,000 Ounces at HSBC
Dallas hedge-fund manager J. Kyle Bass helped advise the University of Texas Investment Management Co. on taking delivery of 6,643 gold bars, worth $991.7 million yesterday, that are stored in a bank warehouse in New York.
Bass, who made $500 million with 2006 bets on a U.S. subprime-mortgage market collapse, said managers of the endowment, known as UTIMCO, sought board approval to convert its gold investments into bullion this year. A board member, Bass, 41, said he was asked to help with that process.At least there are some sharp folks in Texas education system. HERE.

Here is an update on OLVRF: one of my recent core holding. It has been a steady climber.

Miners from Scottrade:
Currencies from KitCo:

Some Prices: FVITF 6.1601; OLVRF 1.8619; BYDDF 3.62; TBT 36.42 (LT Bonds up bit); DOW up 42+ to 12242.23; SPX up 4 to 1308.82 (Both of these have been down and are due for a bounce.); Gold down 3.80 to 1492.10; Silver down 0.20 to 43.18. Both still holding at highest levels.
Best to each, Doug

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