Thoughts on Markets

Tuesday, July 05, 2011

America's Businesses war and export of inflation - HL - FVITF - Gold - Silver - Barter Economy - God is calling American Christians to repentance.

Good morning Folks,

We have returned from a trip to Tennessee, Alabama, and points in between. It is always amazing to see how one looks forward to going on vacations. Then the amazement continues as he looks forward to returning home. The Lord knew our minds and provided such wonderful gifts as this one example, thereof. It is good to be back with the family and the church!

Usually, when we travel, it is difficult to keep up with the blog and the markets. The last two weeks were no exception. Also, I have found that the market seems to take strange swings while I am away from it. Friday was no different, as gold and silver were both down a good bit and the general market was really sprinting  along with both the DOW and Tranportations benefiting from a great day. ON the vacation, I did add a few shares Hecla Mining (HL), but nothing significant. 

The markets seem to be in the doldrums for the summer season. Friday was a big day in the general market and terrible for the metals. Today seems to be the reverse of that scenario. The market continues to play games with us though it appears to be in a bull market. 

The economy drags on like John Mauldin calls it a "Muddle Through Market." Thus far, he is right on. My vote is still cast on a Stagflation with maybe a some more deflation in the near future preceding the price inflation with stagnant wages.

The Lord remains in control and I am convinced that we stand under His judgment as a nation. He is calling the Christians to repentance and turning back to Him. How will each of us and our churches act. It is up to us. Let us continue to pray that He will be patient with our apostasy.

Kitco News:
Market Nuggets: CME Group June Metals Volume Rises Year-On-Year
Read Market Nuggets HERE.

Peter Schiff
Imagine a day when you go to buy a quart of milk, ask the price, and the cashier says, "that'll be a tenth ounce silver." As the US dollar's decline accelerates, several efforts around the country are trying to make this vision a reality.

Historically, paying for items in silver or gold was actually quite common. We happen to live in an unusual time and place where generations have grown up trading exclusively in paper. While my parents still used dimes made of silver, we have now gone several decades with no precious metals in any of our official coinage. But this system of money by government fiat is unsustainable. The whole posting is a good read. Check it out HERE.

Let's look at our precious metals: Gold is still strong long term, but has hit a sandy spot in the road this summer and may stay near there until the fall. However, it is looking a bit better this morning. To resume the upward move, it must go above the 50 Day MA and remain there for some time.

Silver is showing a similar pattern, but with a lot more volatility. I believe that silver will out perform gold as the metals move upward, because of the volatility. 

Miners from Scottrade:
Currencies from Kitco:
Some prices: DOW off 6.58 to 12676.56; S&P off 1.96 to 1337.09; NASDAQ up 0.18 to 2816.16; Gold up 12.08 to 1509.40, Silver up 0.70 to 34.85 ( both metals were higher a bit earlier.)

By the way, Richard Maybury in his Early Warning Report continues to recommend portfolios concentrating on defense (war) and debasement of unbacked paper currencies. This track with others who believe that Americas businesses are war and exporting inflation.
Best to each, Doug


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