Thoughts on Markets

Wednesday, September 21, 2011

All are waiting for the FMOC report this afternoon - Gold & Silver Holding Well - Miners could be a great buy - Currencies - GLD

The general markets, in fact, all markets are in some sort of indecisive condition. Probably due the FMOC TWO day meeting. However, there is a great deal of fear among investors, as well. We are seeing a good bit of volatility with wide swings in many market areas. The boyz have once again whacked the precious metals, but seemed to have left them alone during most of yesterday. The intervention and the world financial crisis are making the markets hazy at best. It is difficult to plan for the future with the paper currencies being revealed for what they are. 

More folks are seeing these as bogus "money," and are therefore, fleeing them in favor of gold and silver which are still enjoying high demand. This is particularly true of the physical metals. Each time they are slammed down, they struggle, but move up again. Gold is just below 1800 and silver is above 40 for which we should be pleased. Gold needs to hold at about 1800 and form strong support at that level. If these levels hold, the metals could be on their merry way to a higher plateau. 

The mines are lagging behind the metals, and as long as they do this, we have potential buying opportunities. There should come a time in the not too distant future for the miners to begin to flex their leverage and move up much faster than the metals. When? That is the big unknown, but how far can we be from that?

The general economic situation in the world seems to be somewhere in between recession/depression and deflation. We know that the Federal Reserve is vitally concerned about that as is Obama. Neither seem to have long range answers to this world wide fiasco. They simply want to pour more dollars into the furnace, but ignore the fact that this is the underlying cause of the fiasco.

I am convinced that God, as He did with Israel in early biblical times. He is an awesome, fearful God who expects His people to be obedient and worship Him in the manner He prescribes. When His people, family, churches, and nations turn from His and do their own thing. He is very patient, but then begins to bring problems on them in an effort to call them to repentance. He is calling America today, but we are failing to heed this call. His long suffering with us will not last forever. Remember, He destroyed His people Israel in 70 AD using the Roman Army. Will He not do the same to us without our repentance?


Thomas Sowell
Thomas Sowell 
Unsound Bites
The so-called "debates" among Republican presidential aspirants are classic examples of the media spreading misunderstanding instead of enlightenment. The ancient admonition, "With all you're getting, get understanding" has been replaced in the media by, "With all you're getting, get sound bites -- and, if possible, 'gotcha' sound bites."
After all the media hype over Governor Rick Perry's having called Social Security "a Ponzi scheme," viewers are no more informed than before as to what specifically is a Ponzi scheme, what are the objections to such schemes, and whether those same objections apply to Social Security. HERE.

Walter E. Williams
Walter E. Williams
Gov. Perry's Right About Social Security
During the recent GOP presidential debate, Texas Gov. Rick Perry said that Social Security is a "monstrous lie" and a "Ponzi scheme." More and more people are coming to see that Social Security is a Ponzi scheme, but is it a lie, as well? Let's look at it.
Here's what the 1936 government pamphlet on Social Security said: "After the first 3 years -- that is to say, beginning in 1940 -- you will pay, and your employer will pay, 1.5 cents for each dollar you earn, up to $3,000 a year. ... Beginning in 1943, you will pay 2 cents, and so will your employer, for every dollar you earn for the next 3 years. ... And finally, beginning in 1949, twelve years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year." Here's Congress' lying promise: "That is the most you will ever pay."
Another lie in the Social Security pamphlet is: "Beginning November 24, 1936, the United States government will set up a Social Security account for you. ...This is true! Social Security was full of lies from the git go and there is no "account for you." In fact, the Trust Fund has been robbed to support much government spending. I just thought of this. The many abortions which have happened in the U.S. is actually depleting the "ever increasing" work force to pay for benefits for us oldies now.  HERE.


Undervalued stocks and a dearth of bears at this year's Denver Gold Forum - Tim Wood
The Denver Gold Group's Executive Director, Tim Wood takes us through some of the major talking points at this year's forum and looks at why there are no bears in sight. Hear the Pod Cast HERE.

Miners bullish on silver; see price above $50/oz
Silver prices have more than doubled to roughly $40/oz in the past 12 months, and most executives expect prices to strongly rise within the year due to a worsening economic landscape. HERE.

Here is the Stockcharts Silver Graph:

Back to MineWeb:

Swiss right-wing party wants legal ban on SNB gold sales
The right-wing Swiss People's Party has put forward a proposal, dubbed "Save our Swiss Gold", aimed at preventing the country's central bank from selling its gold reserves. In the past, gold sales have generally cost the banks as they sold at lower than true market prices. Would this happen again? "Save our gold." That is a good slogan for all of us.  HERE.

Gold to rise beyond $2,000/oz in 2012 - LBMA poll
In an anonymous poll at the conclusion of the LBMA's annual conference on Tuesday, gold investors and analysts reckon bullion will rise to $2,019 an ounce by November 2012. I don't see any real reason for that price not to be achieved by the end of 2011. I could be wrong on this. After all I have been wrong many times in the past, but I am planning on 2,000 gold going into the new year. HERE.

Gold steady ahead of US Fed policy decision
The metal held steady above $1,800 an ounce on Wednesday ahead of the outcome of the Federal Reserve policy meeting at which the U.S. central bank is expected to unveil plans to revive its economy. HERE.

Uncommon Wisdom:
Going for the Gold!
Kevin Kerr | September 21, 2011. Beware of the risk in options. Of course, you limit your risk through options to the exact amount of your cash investment in them. Find the video HERE


Sept. 19, 2011, 11:54 a.m. EDT
Gold inclusion as Tier 1 asset would be huge: LBMA

MONTREAL -(MarketWatch)- The London Bullion Market Association is supporting the gold sector's push to have bullion included by the Basel Committee on Banking Supervision in its recommendations of high quality liquid assets commercial banks should hold, which, if successful, will be one of the most significant events for the industry in recent years, the LBMA chairman said Monday. Gold might officially be recognized as true money. HERE.


As gold price suppression grows more brazen, maybe Asia will defeat it
The speaker following me, George Clooney, will be able to tell you what it's like to be handsome, talented, rich, and famous. I could tell you what it's like not to be. But instead the conference has asked me to talk about gold, which at least might make you rich, or help you preserve some of whatever you've got.
This opportunity is full of risk, because the gold market long has been manipulated by Western central banks to restrain the gold price. The Western central banks are slowly losing control of the market but they are not giving up easily.
Why do Western central banks manipulate the gold market? Check this out! HERE.

Miners from Scottrade:

Currencies from KitCo:
Some Prices: DOW off 48.82 to 11358.71; S&P of 6.13 to 1195.95; NASDAQ up 0.07 to 2590; Gold off 5.60 to 1799.20; Silver up 0.65 to 40.39. Both metals holding well at present.

Best to each, Doug


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