Thoughts on Markets

Monday, May 02, 2011

Osama is Dead - Mining Stocks - Gold - Silver - Potential Buying Opportunities.

Well, I am back at the salt mine for another week. It looks as though I will have a buying opportunity early this week. Before the US markets open, the metals are down. Gold is 1552.50 down 13.20 and silver is 45.15 down 2.79. We will see what happens as the Lord unfolds the day before us.

The markets are starting slowing without a lot of interest. The dollar is not jumping and is near low. Euro is strong, as is the Swiss Franc. 

The Lord's judgment on America continues as He calls us to repentance. The old nation Israel refused to answer His call and was completely destroyed in 70 AD. Are we facing the same judgment? Let us not ignore His call, but answer it with humble confession, repentance, turn back to Him and His ways before it is too late. 

Mine Web with the big news today:
The bogey man is dead! Gold drops and recovers. Silver struggles.
The implications of Osama Bin Laden's death are filtering through to the markets and, after an initial dive, gold seems to be clawing its way back upwards. Silver is still finding it tough going though. Apparently, this is true even though it might be suspect. It has been widely reported. The dollar rallied a bit on the following news, but then sunk back. HERE.

Red Alert: Osama bin Laden Killed
The United States has killed al Qaeda leader Osama bin Laden and recovered his body, according to numerous media reports May 1 citing U.S. officials. U.S. President Barack Obama is scheduled to make an announcement on the subject. It is not clear precisely how bin Laden was killed or how his body was recovered, but the assertion that he is dead is significant.This, as always, is a good read. HERE.

Mine Web:
Top silver ETF suffers as metal loses its oomph!
Fall in top silver ETF holdings is indicative of perhaps a short term rerating in the gold:silver ratio in line with the feeling that silver may have risen too far too fast. That is dropping the silver miners and will probably give me a buying opportunity. HERE.

Mine Web:
Silver down sharply in thin Asian trade
Silver fell as much as 10% in thin trade in Asia on Monday. The move came on the back of news that speculators had scaled back bullish bets on the metal on Comex.Will have to check the opening prices of the stocks. The drop in price early last night such looked like capping to me. HERE.

Mine Web:
The dollar decline, gold price, phony stats and the wild ride ahead - Doug Casey
One upshot of QE money flooding the stock market will be further distortions, chaos and unpredictability, according to Doug Casey. Gold Report interview. HERE.

Kitco News:
A.M. Kitco Metals Roundup: Comex Gold Weaker, Silver Sharply Lower as Risk Premium Temporarily Recedes

02 May 2011, 08:45 a.m.
By Jim Wyckoff
Of Kitco News
Comex gold futures prices are trading lower Monday morning, after hitting another new all-time record high of $1,577.40, basis June futures, in overnight trading. Comex silver prices trading sharply lower but well up from the early Sunday evening lows that saw prices trading down around $6.00 an ounce. A steady U.S. dollar index and lower crude oil prices, along with the U.S. elimination of the world's number-one terrorist Osama Bin Laden, are all bearish factors for the precious metals markets Monday morning. Trading is lighter Monday as many Asian and European markets were closed for a holiday. June gold last traded down $3.50 at $1,553.00. Spot gold last traded down $13.70 an ounce at $1,552.50. July Comex silver last traded down $3.58 at $45.02 an ounce. HERE:

 Mine Web:
Gresham's Law, Gold and the Vietnamese Dong
Vietnam provides a great example of what happens when people actively shun their official currency...? . . . This is known as Gresham's Law, named after the sixteenth century financier Sir Thomas Gresham. In its most simple form, Gresham's Law is often stated as "bad money drives out good money", and it's no mere historical curiosity. Gresham's Law is alive and kicking today, nowhere more than in Vietnam. It always works this way in relatively free markets. That is why we have unbacked paper currencies which are Fiat and good by government decree. HERE.

Miners from Scottrade:

Currencies from KitCo:

Some Prices: DOW u 47 to 12856; S&P up 5 ro 1368.45 NASDAQ up 7.16 to 2881.19; Gold down 6.20 to 1559.50; Silver down 1.73 to 46.21; Note that FVITF is trading around 5.35 That is a good buying rang for me. I am considering putting more cash into PRPFX, also.

Best to each, Doug


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