Thoughts on Markets

Friday, October 28, 2011

Gresham's Law - Dollar Mixed - Euro holding on - Gold & Silver remain at nice levels -School district pays for Muslim for Mecca trip - Ron Paul interviewed by FOX News - Portugal debt problems - Sprott on Silver - Hathaway on Gold & Miners


Today we have the general market marginally down to even, silver up marginally, and gold slightly down. Note the discussion on gold vs. miners, below. This may help you to make your own decisions which I always urge. This blog only presents my market activities and thoughts which may or may not be advantageous for you and may well not fit with your portfolios. 

I have been re-reading much of the Bible searching for more insight into money and finances. It is always exciting to discover how often purchases were made using real money: gold and silver by weight. Throughout the Centuries people have relied upon real money for preservation of wealth. Both of these metals, gold in particular, have become acting more as money in place of the paper trash "money" which is widely used throughout the world.

Always remember Sir Thomas Gresham's Law, "Bad money drives out good money." Actually, while he was Secretary of the Exchequer in Great Britain under Henry VIII, he made this observation and it was developed into a observable law by economists over time.

How many pre-1965 U.S. silver coins do you find in circulation today? They are virtually all gone. I haven't seen one in circulation for over three decades while they were quite common in the 1960s and into the 1970s. They are held by knowledgeable investors and many have been melted to recover the 90% silver content.

God warns His people against the use of unequal weights. His warning is equally applicable to governments. "Sandwich" coins and paper currencies are a violation of God's Law. He will not long endure such fraud by men or governments. King Jesus will balance the books in the end of His patience.

Vision to America:

School District Must Pay Muslim Teacher for Trip to Mecca
With unemployment mired above nine percent and new jobless claims hovering at 400,000 a week, the Obama administration needed a victory, and at last it has one. The Justice Department has forced a Middle American school district to pay a Muslim teacher $75,000 and implement a sensitivity training course throughout the district, after administrators refused to allow the new hire to take three weeks off for a trip to Mecca in 2008. HERE.

Run Ron Paul Fox News Interview:

Ron Paul in the Center Seat: FOX News Special Report 
Ron Paul is grilled from all sides but things turns out well as Ron is given ample time to discuss the logic and reasoning for his answer to each question. HERE.

The Telegraph:

Europe's rescue euphoria threatened as Portugal enters 'Grecian vortex'
Monetary contraction in Portugal has intensified at an alarming pace and is mimicking the pattern seen in Greece before its economy spiralled out of control, raising concerns that the EU summit deal may soon washed over by fast-moving events. HERE.

St Joseph USA:

Risk Management 101 - Why Wall Street Needs To Wake Up & Tell Its Clients To Own Physical Gold
Would you agree that the world's financial system is in desperate trouble due to irresponsible debts?
If you have been paying attention whatsoever to global markets over the last couple of years, it is likely you agree. After all, if there was an easy solution to the global debt crisis don't you think it would have been tried by a host of governments by now? HERE.

Financial Sense:

Sprott on silver: An attractive time to buy Video HERE.

Mine Web:

Gold still set for big week despite early weakness
Spot gold retreated from a one-month high of $1,751.99 oz to $1,736.69 oz on Friday, down 0.4% from the previous close, but is still on course for a gain of around 6% from a week earlier. HERE.

Gold price to continue to rise through this year and next - but beware H2 2013
Research shows that over the next 12 - 15 months fundamentals, sentiment and an optimistic market for gold will continue to support gold prices, but the second half of 2013 remains a concern in this respect. HERE.

Here is the StockCharts graph on gold as of yesterday

Your gold investment portfolio - gold shares or gold funds?
Julian Phillips comes down strongly on the side of managing your own gold stock portfolio rather than relying on a fund manager to do it for you. I have always said that you are the one most interested in the success of your investments and have urged you to study and Make your own decisions. HERE.

Tocqueville's Hathaway bullish on gold and gold stocks
The end of 2011 is a golden opportunity to participate in an anticipated upside for mining equities, says John Hathaway, senior managing director of Tocqueville Asset Management. Gold Report interview. HERE.

The creditors always pay - sit on your gold as currencies become worthless
However this current economic crisis is resolved, guess who'll be footing the bill as currencies decline in value and ultimately become worth nothing. Gold may be the answer. HERE.

Miners from Scottrade: The miners are holding rather well even as gold is slightly down today. Silver is up a bit. Look at the price of FSM now. I am not really interested in selling any more, but the price is tempting. In the back of my mind is the fact that both gold and silver are up very strongly compared to earlier this month. It may be time for another rest; However, gold is staying above 1740.
Currencies from KitCo:
Some Prices: DOW up 4.77 to 12213.40; S&P down 0.77 to 1283.82; NASDQ down 3.16 to 2735.42 (All quiet in the General Market today); Gold down 1.10 to 1744.60, and Silver up 0.06 to 35.15 (Both metals are hanging on to most of their gains).

Best to each, Doug


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