Gold vs. Ind. Metals

Silver has been out performing gold as of late. The following chart compares the performance of silver to gold.

Gold/Silver

Silver Continuous Weekly

Silver is far above its 50 dma. A series of higher lows has been put in place. All the indicators are putting upwards. Now it needs to break through its downtrend line.

Gold Stocks

The HUI Index closed the week at 301.79 (continuous contract) down $1.58 or –0.52%. During the week the index rallied over 308, which was the highest level in 4 wks. Its low for the week was above the 300 accept for one day.

The index can be seen eating away at the large supply of overhead resistance. It is making progress slow but steady. A lot of technical damage was done during the recent correction, and it will not be corrected overnight. One more test of the June lows may yet wait.

Below is a chart of the HUI Index. Higher lows have been put in place. Next it needs to break above resistance between 310-313. After that it needs to clear its 50 dma at 314.08.

All of the indicators have plenty of room to expand before getting close to overbought levels.

HUI Gold Bugs Index

GLD/HUI

The above chart shows GLD out performing the HUI Index from September to October. Since then the HUI has been out performing GLD. This is considered a positive for the metal’s complex in general, as it is usually best when the gold stocks lead the metal higher.

Closing Comments

The Dow has set records making all time new highs. For the year, however, the Dow is up 12% for the year, which is a good return. However, there are many gold and silver stocks that return that in a week’s time. We prefer all things precious.

Both oil and commodities appear to be putting in a bottom. We do not agree with the crowd that says the bull market is over in oil and commodities, and that a bear market is beginning. Only time will tell which view is correct. Hindsight is not foresight.

The world is afloat in debt. Debt is what the bankers want you to believe in, as they are whom you borrow the money from, and pay the interest to – for money they create out of nothing and do not even have. It is a scam and a vile and vicious thing. It is evil incarnate.

Before all is said and done the word derivatives will be a household term. The only thing strong enough to correct these evils is Honest Money of Gold and Silver Coin according to the Constitution of the United States of America.

Election time is coming. If you want real change – change that can truly make things better, look for a candidate that speaks about Honest Money. Demand from your representatives that they represent what you want.

Demand from them that you want them to follow the Constitution that states nothing but gold and silver coin is to be legal tender. Our government is not even following the dictates of our Constitution, and we wonder why there are so many problems? 

In closing we would like to mention two related topics. The first is the recent nuclear test by North Korea.

U.S. Secretary of State Condoleezza Rice visited Beijing last week meeting with Chinese Foreign Minister Li Zhaoxing regarding North Korea’s recent nuclear weapons test.

The United Nations Security Council unanimously passed Resolution 1718, ordering North Korea to halt any further nuclear tests. Both the U.S. and China stress the importance that North Korea return to six-nation talks on ending its atomic weapons program. The six nations are: the U.S., China, Russia, Japan and the two Koreas. 

The Security Council resolution also ordered inspections of North Korean ships and land transports that might be carrying nuclear weapons or any type of materials used in the production and or use of nuclear weapons.

Kim Jong-Il of North Korea, whom many consider to be a loose cannon playing without a full deck, is sending mixed signals. A South Korean newspaper reported he apologized to China for the nuclear test and said he would resume talks.

On the other hand he has also referred to the UN imposed sanctions as a declaration of war. North Korea's Deputy Director General of Ministry for Foreign Affairs, Ri Gun, told ABC News to expect further nuclear tests. 

We do not think that the nuclear test was a good thing. We do not think that a leader like Kim Jong-Il of North Korea who appears to be less than stable, should be playing with nuclear weapons as toys.

We think that diplomacy is needed to solve the problem – not politics, not cowboy antics stooping to Kim Jong-Il’s level – but diplomacy as done in the classic way of the diplomats of old.

In stark contrast to a diplomatic approach we do not appreciate the comments of US Assistant Secretary of State Christopher Hill when he said - and we quote: “North Korea can either have a future or they can have those weapons. They can’t have both.”

That is a statement from someone shooting from the hip – from someone looking for a fight – from someone aiming to prove he is the toughest kid on the block.

That is not the way diplomacy works. That is the way of the bully – of the warmonger who prefers to unleash the dogs of war – than the doves of peace. War should be the choice of last resort – not the first. Vote accordingly. Get rid of the dogs of war and their handlers.

The second related topic is the recent signing of the Military Commission Act of 2006. You can read the act here: Search Results - THOMAS (Library of Congress). I have tried posting it to my website but after about 10 minutes it repeatedly just disappears for some unknown reason.

Some say it is a good thing. Some say it is a bad thing. Read it for yourself and decide for yourself. Vote accordingly. This is not an insignificant peace of legislation. It may be the defining peace of legislation for decades – if not centuries to come. The future of the world hangs in the balance.

Here is what Keith Olbermann said about the Military Commissions Act:

Olbermann Addresses the Military Commissions Act. Truth is indeed stranger than fiction. 08:46

The above is the precious metals sector of our complete market wrap, which covers all of the major markets and then some. To read the full report visit our website linked below. Besides the full market wrap report there are numerous articles about gold and silver and other investments. Included is a live gold stock portfolio of all buy and sells executed.

The emphasis of the site is actually on Honest Money – the hard currency monetary system of gold and silver coin as mandated in the Constitution of the United States. There are vast numbers of articles on the monetary aspect and issues of gold and silver.

There are also numerous videos and audios concerning related subjects that affect not only one’s investments, but also one’s way of life, especially that which we will leave to our children.

A live bulletin board is offered where one can discuss these issues with investors from around the world. Come visit our web site and check out all the info. You will not be disappointed.

Come visit our new website: Honest Money Gold & Silver Report
And read the Open Letter to Congress

COMING SOON: A REQUEST FOR AN AUDIT OF US GOLD RESERVES

Honest Money Gold & Silver Report

-- Posted Tuesday, 24 October 2006 | Digg This Article