Thoughts on Markets

Friday, April 01, 2011

Marc Faber - OLVRF - Gold & Silver Down - Miners down - Dollar depreciating

This is the day the Lord has made and we shall rejoice and be glad in it. He has provided this for us with all the opportunities and challenges we face. In King Jesus we have lasting joy and peace even during those times of challenge. After all, He brings everything we see in our lives for the good of His people. There is no reason not to rejoice! Praise Him daily!

Mine Web:
Gold, silver coins now officially legal tender in Utah
Utah's tax code says U.S. Mint issued gold and silver coins are currency, rather than assets taxable by the state. I wrote about the pending legislation before, but now it has been enacted and signed. It would be great if other states would follow suit. HERE.

Mine Web:
Top gold ETF posts biggest quarterly holding drop since inception
The SPDR Gold Trust has seen its holdings decline from 1,280 tonnes to 1,211 tonnes over the March quarter as investors seen shifting to other commodities, bonds and physical metal. This is likely to be negative for gold. Of course, I have always preferred CEF for my portfolios. HERE.

Mine Web:
Gold eases in European trade, investors wait for US payroll data
Gold prices slipped toward $1,430 an ounce in trade in Europe on Friday as traders awaited US payroll figures for March, in the hopes of further evidence of a recovery. While the perception is that this is a good measure of the recovery, one should remember all of the massaging that the USG does on the figures. Unemployment remains quite high. HERE

U.S. Payrolls Grew 216,000 in March; Unemployment at 8.8%
The U.S. economy added more jobs than forecast in March and the unemployment rate unexpectedly declined to a two-year low of 8.8 percent, a sign the labor- market recovery is gathering speed.
Payrolls increased by 216,000 workers last month after a revised 194,000 gain the prior month, the Labor Department said today in Washington. Economists projected a March gain of 190,000, according to the median estimate in a Bloomberg News survey. The jobless rate dropped from 8.9 percent in February, the fourth straight decrease. Wonder what the adjustment to this month will be next month. HERE.

Daily Pfennig ("OK. So, it's a Jobs Jamboree Friday. We get to see just how many jobs were created in March. No wait, that would only be if there were no hedonic adjustments to the jobs figures. Or if we actually counted, "real jobs that people wanted, and could afford to have to support their families". But, don't let those things get in the way of a Jobs Jamboree celebration today! Right now, the "experts" are forecasting an increase of jobs created of 190,000. That's all fine and dandy, but, as I explain each month that the Gov't figure heads wave the flags of an economic revival led by job creation. 190,000 new jobs doesn't come close to the what the economy needs to show each month, as jobs created, to have a growing, sustaining economy.
So. what do I look at, in the report, each month, to see if there's inflation stirring? Average Hourly Earnings, and Average Weekly Hours. I have to say that this is where you'll see wage inflation first. And it looks like wage inflation is remaining pretty low. 1.9%..."

Marc Faber Interview on Fed Policy, Investment Strategy
See the video HERE.

King World News:
With gold near all-time highs and silver approaching multi-decade highs, today King World News interviewed James Turk out of London.  When asked about silver specifically Turk stated, “We’re now at a record backwardation in silver in terms of length of time.  I think what we need to do is compare what is happening now to 2009 when silver was in backwardation the last time.  Over a period of just about two months silver rose 40% from approximately $10 to $14, and that rise in price eliminated the backwardation.” This article is a good read. HERE.
Let's take a look at one of the more speculative stocks in my portfolios. Below, is a graph on Olivut Resources Ltd. (OLVRF). This is a rather strong graph showing progress over the last few months. It may or may not be right for you. I do not recommend stocks, but simply show you what I hold and am doing. You must make your own decisions.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: FVITF  5.45; OLVRF 1.6956; SENY 0.805; BYDDF 3.81 (Still in my potential buying range,); DBA (Agriculture ETF which could become a buy for me as food shortages increase as a problem.); DOW up 66+ to 12405.86+; SPX  up 10.18 to 1336.01; Gold  off 7.80 to 1424; Silver off 0.19 to 37.48 (Both still holding fairly well.)

Best to each, Doug


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