Thoughts on Markets

Thursday, November 03, 2011

Silver Lagging Gold a bit - Gold Strong - Miners Up - Dollar Down - Rare Earths Becoming More Challeging as China gobbles them up

Historically back to creation by our God, the world has seen gold and silver as valuable. It has been used as real money since the need for a medium of exchange began to replace the barter economy. Our biblical patriarchs used gold and silver by weight and then as coins of fixed weight of the metals for all commerce. 

While the war on gold still continues, more investors are beginning to see these precious metals as a store of wealth in place of the unbacked paper frauds we today call "money." More folks are beginning to climb on. Hence, the demand pushes the prices back up after each round of profit taking or capping. 

Comparing gold and silver, we find that silver is again lagging behind gold. Therefore, I believe that silver will catch up with gold in the not too distant future. Perhaps, by year end. 


We must always remember that true security rests with King Jesus for His people. We cannot depend upon our wealth, strength, health, or any other resource to provide total security. Even though we do all we can using our resources and strength, nothing except the saving work of Jesus Christ on the cross and the power of the Holy Spirit can provide eternal security. Praise the Triune God for His providential care.


Seeking Alpha: 

VIX ETFs Come Back To Life
 Exchange traded funds that track CBOE Volatility Index futures have rallied this week on renewed fears of a disorderly Greek default.
The VIX shot higher by 16% on Tuesday as markets were surprised by Greece’s leader calling for a referendum on the latest bailout. The move raises uncertainty over whether the financially troubled country will remain in the European Union.
Wall Street’s “fear index” has spiked after falling below 25, “generally considered the dividing line between a worried market and a not-so-worried market,” reports WSJ.com’s MarketBeat. HERE.

MoneyMorning:

One Man's Mission: Building the World's Safest Bank
One Canadian entrepreneur may well be forging an innovative path to changing the global banking landscape - for the better. And in the process he may build the world's safest bank.

Eric Sprott, the billionaire resource investment guru, is buying 51% of Ontario currency trader Continental Currency Exchange Corp., with the aim of making it into a financial institution that, refreshingly, will not make loans.

That's not a misprint. This is an interesting endeavor. Read it HERE.

Stratfor:

Anonymous vs. Zetas Amid Mexico's Cartel Violence
The online activist collective Anonymous posted a message on the Internet on Oct. 31 saying it would continue its campaign against Mexican criminal cartels and their government supporters despite the risks.
The message urged inexperienced activists, who might not be practicing proper online security measures, to abstain from participating. It also urged individuals associated with Anonymous in Mexico not to conduct physical pamphlet drops, participate in protests, wear or purchase Guy Fawkes masks, or use Guy Fawkes imagery in their Internet or physical-world activities. Guy Fawkes was a British Roman Catholic conspirator involved in a plot to bomb the British Parliament on Nov. 5, 1605. The British celebrate the plot’s failure as Guy Fawkes Day each Nov. 5. In modern times, the day has come to have special meaning for anarchists. Since 2006, the style of the Guy Fawkes mask used in the movie “V for Vendetta” has become something of an anarchist icon in the United Kingdom and elsewhere. HERE.

InvestorPostcards:

Global manufacturing PMI tanks!
Posted by Prieur du Plessis under Economy This is a world wide recap of the statistics. I listened to get the jest. There are several other articles of interest for your viewing. The Pod Cast is HERE

MineWeb:

The questions resource investors should be asking - Michael Berry
Dr. Michael Berry looks at the impact of the EU crisis on the gold market and the types of questions that investors should ask before making decisions. A Gold Report Interview. HERE.

Town Hall:
Cal  Thomas
Cal Thomas
Herman Cain's Gauntlet

When it comes to sex, the media apply different standards to Republicans and Democrats. This is a recap of past escapades and points to the different standards. HERE.

 What's Wrong with 'Tolerance'?
Robert MorrisonRobert Morrison

First Things journal published an article recently titled “The Islamic Case for Religious Liberty.” It was written by a Muslim scholar from the University of Melbourne in Australia. Abdullah Saeed’s article is an eloquent expression of the need for greater openness within Islam. He concedes that the strong case he makes for religious liberty is not observed in Muslim majority countries today.
Prof. Saeed is right about that. Freedom House, the respected U.S.-based organization that monitors the status of freedom throughout the world, shows only one country in the entire Mideast that is “free.” That tiny sliver of land is called Israel. Not one Muslim majority country in the Mideast or North Africa is listed as free.
We who live in freedom have a right to ask pointed questions about the broad swaths of “not free” regions. Of the 192 nations “represented” in the UN General Assembly, most are not free. If the PLO is given a voting membership in the UN, it will join dozens of other dictatorial regimes whose votes outweigh the free states’ delegates who vote there. Extreme tolerance gives us politically correct multiculturalism, pluralistic religion, non-profiling when searching for terrorists, and other questionable concepts and actions. HERE.

Resource Investor:

Rare Earths, No Easy Substitutes 
Hard Assets Rare Earths Investment Conference 2011 Online Preview   
Published 11/2/2011

Light, strong rare earth elements (REEs) revolutionized the digital era and changed the face of our everyday lives. Even as shortages loom and companies scramble to find low-cost solutions, these critical materials cannot be easily replaced, nor can opportunities in this sector be dismissed. In this special for The Critical Metals Report, Gold Stock Trades Editor Jeb Handwerger calls attention to mainstream media's shortcomings in its REE sector coverage and profiles one company already making headlines. HERE.


Kit Co News:

Jim Wyckoff







 

03 November 2011, 10:44 a.m.
By Jim Wyckoff
Of Kitco News 
Gold Extends Early Gains on ECB Rate Cut, More Safe-Haven Demand  We should be seeing more movement toward precious metals for this reason >> conservation of wealth in the face of depreciating unbacked paper. HERE


Miners from Scottrade:


Currencies from KitCo:
Metal Prices: Gold up 19.30 to 1756.70 and Silver down 0.14 to 34.13. Both holding well in spite of capping or profit taking.

Best to each, Doug






















































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