Thoughts on Markets

Tuesday, July 19, 2011

Trust in King Jesus, not men - Fortuna (FVITF) - Gold hanging at 1600 - Silver at 40 - Look for higher prices soon

The markets seem to be playing tricks on us. I believe that both gold and silver will be much higher by year end. However, it will be a Texas Two Step action. Two steps up and one back. The one back which we are now experiencing is the time that tries men who are not dedicated to the long run. There is a temptation to sell out and then look for a time to buy back in at a lower price. BUT, too often one finds himself locked out as the price recovers and moves higher. Therefore, I just hang tough and weather each of the storms. This has paid off better for me most of the time.

There are times to do nothing, times to buy, and times to sell. Scripture tells us there are times for most things such as birth, growth, death, laughing, playing, planting, harvesting. We are also warned not to presume on the future, but to trust in the Lord for His providential care and love. His people rest in His promises and not the ideas of man. Even the best and most knowledgeable men have minds damaged by sin; therefore, it is wise to study the perfect word of God and apply it to all of life. We must develop and further our growth in Christ to mature in our Christian World and Life View of everything. We rest in King Jesus.

The Daily Pfennig: Chuck Butler reported that the net purchases of U. S. debts (Auction) came in at $25.6 Billion and was forecast to be $40 Billion. This is bad news and indicates that foreigners are beginning or continuing to slack off on lending to us. China, in particular, seems to be slowing its addition to reserves in the form of dollars.


Chuck Norris
Chuck Norris 
Showdown at Washington's OK Corral
The OK Corral in Tombstone, Ariz., was where Doc Holliday and Wyatt, Virgil and Morgan Earp fought the Clantons and McLaurys on Oct. 26, 1881. At the end of that 30-second showdown, Virgil and Morgan Earp were wounded, and three cowboys were dead.
President Barack Obama and House Republicans' showdown over the debt and deficit quickly is turning into Washington's OK Corral. And politicians on each side are trying to convince you which are Tombstone law enforcement (the good guys) and who the rogue cowboys (the bad guys) are. I still believe that all the rhetoric and political posturing will be settled with compromises including a minor increased spending cut promised over 10 or 20 years. Thus, they will once again kick the can further down the street beyond the next election. HERE.

Thomas Sowell
Thomas Sowell  
Good Things
Life has many good things. The problem is that most of these good things can be gotten only by sacrificing other good things. We all recognize this in our daily lives. It is only in politics that this simple, common sense fact is routinely ignored.
In politics, there are not simply good things but some special Good Things -- with a capital G and capital T -- which are considered always better to have more of. HERE.

Gold producers offering excellent value - Analysts
Analysts at Dundee Wealth, RBCCM and Blue Phoenix believe that recent underperformance in the gold equity sector while gold prices have continued to rise significantly has resulted in a valuation imbalance. True, the miners have been lagging the increase in the precious and all metals. HERE.

Silver and coal top commodities H1; strong outlook for gold in H2 - Frank Holmes
A review of commodity performance over the first half of the current year shows silver and gold star performers, while gold is picked as likely to be strong in H2. This is interesting. HERE.

The impact of the U.S. debt ceiling debate as gold pushes through $1600
The game of brinkmanship with the country's finances being played by U.S. politicians is likely to end in a higher debt ceiling that can only further increase the chances of inflation. Washington for decades has increased spending to buy votes and subsidize individuals and preferred businesses. That this will not continue is out of the question. It will continue until the empire collapses. This has decimated the dollar and lowered its purchasing power time after time. Many believe that it is essential to have a depreciated dollar as the only way to have even the slightest opportunity of paying or even servicing debt. HERE.

Can one really be bullish on copper with gold rallying?
While it seems incongruous that both copper and gold can outperform at the same time, given the current global macro-economic situation such a scenario doesn't seem entirely out of the question. HERE.

Gold still fantastic long-term investment despite manipulation - Badiali

Inflation remains a key argument in favour of continued higher gold prices and for Matt Badiali, trailing stops are a good way to lock in value. A Gold Report interview. HERE.

A.M. Kitco Metals Roundup: Comex Gold Backs Off Slightly on Profit Taking After Hitting Another New High Overnight
Comex gold and silver futures prices are trading modestly lower Tuesday morning on some mild profit-taking pressure after recent solid gains. August gold futures did hit another fresh all-time record high of $1,610.70 in overnight trading. The precious metals markets remain well-supported from a fundamental perspective, and the technical postures of gold and silver have also recently turned more near-term bullish. August gold last traded down $1.20 at $1,601.20 an ounce. Spot gold last traded down $4.80 an ounce at $1,600.75. December Comex silver last traded down $0.291 at $40.075 an ounce. HERE.

 Miners from Scottrade:

Currencies from KitCo:
Some Prices: DOW up 132.98 to 12617: S&P up 13.82 to 1319.22; NASDAQ up 47.08 to 281203; Gold off 4.70 to 1600.60; Silver off 0.30 to 40.25.

Best to each, Doug


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