Thoughts on Markets

Monday, June 13, 2011

Gold & Silver Down - Approaching Potential buying range - Summer Doldrums - Carefully search for bargains.

Man does not live on bread alone, but on every word that proceeds from the mouth of God. This must be our strong belief. The word of God provides man with truthful insight into every activity of life and death. So fill your heart with it that you will not sin against King Jesus. So fill your heart and mine with this wonderful world that you will honor Him, work for His glory and the spread of His kingdom, and enjoy Him forever. He is the source of all truth and joy. Praise Him daily for His providence and love. 

Zerohedge:
Exclusive: The Fed's $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went
Courtesy of the recently declassified [1]Fed discount window documents, we now know that the biggest beneficiaries of the Fed's generosity during the peak of the credit crisis were foreign banks, among which Belgium's Dexia was the most troubled [2], and thus most lent to, bank. Having been thus exposed, many speculated that going forward the US central bank would primarily focus its "rescue" efforts on US banks, not US-based (or local branches) of foreign (read European) banks: after all that's what the ECB is for, while the Fed's role is to stimulate US employment and to keep US inflation modest. And furthermore, should the ECB need to bail out its banks, it could simply do what the Fed does, and monetize debt, thus boosting its assets, while concurrently expanding its excess reserves thus generating fungible capital which would go to European banks. Bet you thought the Federal Reserve was for the US. According to the author, not so. They bailed out foreign banks according to this report. Read it and see what you believe.  HERE.

Mine Web:
The logical irresponsibility behind Bernanke's cheap money policy
With the machinations of the U.S. Fed such a key driver of gold and silver prices we look at the logic behind its cheap money policy and ask the question - Does Ben Bernanke want us to trust him? Maybe not. This is an interesting read. HERE.

Mine Web:
Summer pullback seen for gold but bullish for rest of year-UBS
UBS Investment Research has suggested the gold price may pullback over the summer months, but any dips well supported and has raised its three-month gold forecast to $1,600/oz. I am not selling either miners or metals, as I am in for the long haul. Higher metal prices and lower valued dollar seem, to me, to be the way the future will go. Of course, it appears as though there will be a pull back for much of the summer. HERE.

Mine Web:
Real gold price: What you see may not be what you get
The factors affecting the true price of gold for the investor and why Exchange Traded Funds (ETFs) have been proving so popular in the sector.
BENONI (GoldForecaster.com)  - 
Each morning you turn to your favorite gold investment website to see the current gold price. What you see is the correct price, but in the currency of your choosing. There are two prices, the buy and sell price. You assume these prices allow the dealer to make an income from the difference. You assume that these prices are an accurate reflection of supply and demand.
But are these prices accurate? The answer is far from easy. HERE.

Mine Web:
Gold and silver rises so far a ‘drop in the bucket' - Wiegand
As the global economy remains in turmoil, Trader Tracks Editor Roger Wiegand thinks gold and silver have much further to rise while global economic turmoil is far from over. Interview with The Gold Report. In the long run, the reason for this is unbacked paper currencies which can be through debt, computers, and printing increased in amount with unlimited ease. The price of the metals will continue to rise over time as the amount of currencies in circulation explodes. Many such currencies are likely to go to zero value. HERE.

Miners from Scottrade:

Currencies from KitCo:


Prices: DOW up 26.57 to 11979.69; S&P up 3 to 1273.30; NASDAQ up 2.92 to 2646.47
; Gold down 6.80 to 1525.30; Silver down 0.76 to 35.49.

Best to each, Doug

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