Thoughts on Markets

Monday, June 06, 2011

South African Golds - DROOY & HMY - Gold & Silver Up Against All Currencies - Rest in the care of King Jesus

Folks, I am an optimist, because I know that my Redeemer lives and that nothing can separate me from His love and providential care. That gives me courage to face the future regardless of what lies ahead. In these blog postings, I am showing you what investment decisions I make and am trying to encourage you to study the Word of God and seek the Holy Spirit's advice on every aspect of life. He has all the answers and I trust that you are among the people of God.
It was wonderful to join in corporate worship and to share fellowship with God's people on the first day of this week and every week. Seldom an I forced to forgo this wonderful experience. As God's people join in fellowship, we have a great sharing of the Word of God and the opportunity to share experiences to which King Jesus exposes us for our growth. The love and concern that believers share is second to none. What joy and challenge it brings to each of us.

Personal Liberty:
A Greater Depression
June 6, 2011 by Bob Livingston

“We’re on the verge of a great, great depression. The (Federal Reserve) knows it.” So said Peter Yastrow, market strategist for Yastrow Origer on CNBC Wednesday.
Yastrow’s point: Money managers can’t find an investment they feel is a safe haven for their investors. That’s because the Federal Reserve’s Ponzi scheme has been exposed for the fraud it is.
The debate in Washington, D.C., is about raising the debt ceiling. Should they, or shouldn’t they? Are we facing a much greater depression? With the unemployment actually growing, one must wonder. How can there be any strong recovery without employment growing very strongly? HERE.

The following three articles are raising a caution concerning the South African Miners. This will have to be of concern to some of my core holdings, and I will be reviewing them for possible sales in the near future.

Mine Web:
Depth and death for South Africa's gold mines
South Africa's gold industry has a target of zero harm at its mines but, at the astonishing depths to which their miners go to extract gold, such a goal is very hard to achieve. It is amazing how deep the miners go to get the gold, etc. HERE.

Mine Web:
The risks facing SA gold miners abroad
South Africa's big gold miners are increasingly looking offshore for new ounces as grades at home fall and political concerns remain but, the move out of the country has its own share of risks. HERE.

DRD Gold is one of my core holdings which has performed well in the past, but seems to be suffering a great deal now. I may go ahead and sell out of this one.

Harmony Mining has been a generally strong performer as the price of gold has escalated. It is presenting a much stronger picture than DRD Gold, so I am planning to hold on HMY.

Mine Web:
Pricing gold in a deflationary environment
Gold as a store of value rather than looking for growth is taking the lead once again as the global economy continues to falter and deflation becomes a real possibility. My instinct still point toward stagflation , particularly, after whatever QE III will be called kicks in. Then we will continue the current stagflation with rising prices and steady or falling wages which will fail to keep up with price inflation. HERE.. 

Mine Web:
Invest in gold stocks with ‘extraordinary management' to make hay this summer - Ballanger
Many resource market investors greet the approach of summer with the adage: "Sell in May and go away." Michael Ballanger says he is taking the opposite tack. Gold Report interview. I'm not too sure that this will be a good concept this year. I am looking for another buying opportunity, though. HERE.

Mine Web:
Blanchard reckons gold's seasonality may not drop prices this year
Major coin and precious metals dealer Blanchard's analysts think flight to quality in light of current economics will keep gold near record highs through the normal summer doldrum period. Their is too much uncertainty and threat in the world this summer, so gold may be the preferred holding as demand is currently strong. HERE.

While the war continues against gold and silver, both are showing strength at present. It is the time of the year when both gold and silver join into the summer doldrums. But not today!
Miners from Scottrade:

Currencies from Kit Co: Look at the Swiss Franc, because it is higher yet and still preferred by many who are seeking safety for their wealth.

Some early prices: DOW off 47.11 to 12105.70; S&P off 7.29 to 1292.6.; NASDAQ off 8.37 to 2724.49; Gold up 9.20 to 1551.60; Silver up 0.88 to 37.17.

Best to each, Doug


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