Thoughts on Markets

Thursday, October 13, 2011

China's exports are down - Baby Boomers Retiring - Gold & Silver Oferring Buy Opts - Hecla Mining - Dollar up - Miners Oferring Lower Prices

"Be still and know that I am God." This quote from Scripture tells us to rest in Him. He has made us and not we ourselves. We can trust in Him, because He is trust worthy and cares for His people. We must learn to cast all of our worries upon King Jesus Christ and rest assured in His love. That is the way of life that is most pleasing while we give Him the glory and work to further more to move into His Kingdom. Praise Him daily!

China reported the lowest export level in 7 months. While the president and his minions seem to blame China "manipulation" of the Renminbi for all of our woes, many will jump on the bashing of China and rejoicing in what they perceive as the collapse of the China "miracle." China is here to stay and stay as a major player in international finance and trade. Don't believe any of this China will remain strong and will grow in the future. 

A different perspective on Baby Boomers:
You will enjoy viewing this HERE.


Investing in gold, silver, copper, nickel and alternative energy for fun and profit - Ross Beaty
In this interview with The Gold Report legendary mining entrepreneur, Ross Beaty, explains his love of metals and alternative energy and what he is doing to position himself regardless of where the markets go. HERE.

Market morning: Perception differences between gold and gold stocks

This morning's gold and silver markets have been flat to weaker as the metals consolidate around current levels. I have written about this before. The physical metals in hand are for disasters and safety of wealth that you possess. The miners are for increasing value during the gold rush when they will be sold to pay off all debt or make dollar purchases of bargain investments. The ETFs and gold trusts are very liquid and could be used for trading along the way or for use as are the miners. HERE.

Schizophrenic gold - caught between safe haven and commodity
UBS strategist Edel Tully says although she is still bullish on the gold price it is becoming more and more difficult to predict price movements as the yellow metal is caught between two stools. A third could be the fact that gold is acting or becoming more like a currency. HERE.

Seeking Alpha:

Hecla Secures Credit Line, But Still Not Attractive As A Stock
The big news for Hecla Mining (HL) is the recent announcement of a $100 million revolving credit agreement. Hecla CEO Phillip Baker Jr. described the credit line in the following context: This is one of my core holdings, but has not been performing as I would like recently. HERE.

Here is Hecla from StockCharts:


Growing Concern Over the NYPD's Counterterrorism Methods
In response to the 9/11 attacks, the New York Police Department (NYPD) established its own Counter-Terrorism Bureau and revamped its Intelligence Division. Since that time, its methods have gone largely unchallenged and have been generally popular with New Yorkers, who expect the department to take measures to prevent future attacks.
Preventing terrorist attacks requires a much different operational model than arresting individuals responsible for such attacks, and the NYPD has served as a leader in developing new, proactive approaches to police counterterrorism. However, it has been more than 10 years since the 9/11 attacks, and the NYPD is now facing growing concern over its counterterrorism activities. There is always an uneasy equilibrium between security and civil rights, and while the balance tilted toward security in the immediate aftermath of 9/11, it now appears to be shifting back.
This shift provides an opportunity to examine the NYPD’s activities, the pressure being brought against the department and the type of official oversight that might be imposed. Stratfor is a dependable resource for world wide political and economic news. This is a good read. HERE

Economic Policy Journal:

Jim Rogers: Bernanke Is Lying to Us
Jim Rogers tells it like it is.
In the EPJ Daily Alert, I have been pounding away at the fact that no new QE is required, that the money supply (M2) is exploding. Rogers correctly points to this money growth in the clip below. Read and see the video HERE.


Gold Is Not an Investment
By James Turk
With gold appreciating against nine of the world’s major currencies, one could easily conclude that gold has been an attractive "investment", but appearances can deceive. Gold does not generate cash flow, so it cannot be an investment. An ounce of gold purchases the same amount of crude oil as it did 10 years ago. When viewed this way, gold is not an investment, because it would not have increased your wealth over these periods. Rather, gold would simply have preserved your purchasing power. HERE.

Miners from Scottrade:

Currencies from KitCo:
Some Prices: DOW down 94.89 to 11423.98; S&P down 11.67 to 1195.19; NASDAQ down 7.67 to 2597.10; Gold off 16.80 to 1657.70; silver off 0.91 to 31.67. Both metals are attractive at these prices, but that is really for you to decide.

Best to each, Doug


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