Saturday, December 30, 2006

Caledonia Mining Chart (CALVF)

Sterling Mining Falling Wedge

I recently posted some charts on Caledonia Mining (CALVF) with a bullish falling wedge. Well, it did not break out, but it did go lower.....

What will happen with SRLM? I am looking for a breakout higher again.

Thursday, December 28, 2006

Time To Tame The U.S. Mint

This is absolutely sickening. It is definitaley time to question why the U.S. Mint exists, and what is it's law making authority? Since when does the U.S. Mint declare law upon the citizens of the United States of America?

Are you now a criminal for melting down or shipping pennies and nickels out of the U.S.? Who's money is it anyway?

By David Bond, Editor

The Silver Valley Mining Journal

Time To Tame The U.S. Mint

Wallace, Idaho – It's really quite past time to tame the United States Mint. First the SOBs went for Bernard Von Nothaus's jugular by unilaterally declaring the silver Liberty dollars illegal for tender. And now, they propose to tell us exactly what we can and cannot do with our pennies and nickels.
Here is what the Mint said in its 14th December press release:
“Washington, D.C. -- The United States Mint has implemented regulations to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. The United States Mint is soliciting public comment on the interim rule, which is being published in the Federal Register.
“Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The United States Mint also has received a steady flow of inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them.(Read the rest of the story here)

More of the Same In 2007

December 25, 2006

Author: Ron Paul

Today we celebrate the birth of Jesus Christ, the Prince of Peace. In Iraq, however, war rages on with no end in sight.
The midterm congressional elections are over, and the Iraq Study Group report is complete. Many Americans are unhappy about the war and want a change in policy. But what we are going to get from both parties in Washington is more of the same-- much more-- when it comes to Iraq.
President Bush not only wants to stay the course, he wants to increase the number of troops in Iraq. The “new approach” is simply escalation, with no timetable and still no definition of victory.
In fact, the president promised last week that, “They can’t run us out of the Middle East,” and that we will not retreat from Iraq. Worse, he asserted that America will, “Stay in the fight for a long period of time.” According to the President, we must increase the size of our Army and Marine Corps to provide the bodies to make this possible.
In other words, our troops will stay in Iraq indefinitely. Remember, we are building several huge, permanent military bases there, along with the biggest embassy in the world to serve as the command post for our occupation. The embassy compound alone will cost more than one billion dollars. (Read the rest of this story here)

Are you ready to feel sick? Then read this.....

When I read this, it makes me feel sick. You should feel it too. Unless of course, you like the Treasury department telling you what you can and can't do with YOUR money!! Who do these people think they are anyway?

December 14, 2006

United States Mint Moves to Limit Exportation & Melting of Coins

Interim Rule Goes Into Effect Immediately

WASHINGTON — The United States Mint has implemented regulations to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. The United States Mint is soliciting public comment on the interim rule, which is being published in the Federal Register.

Prevailing prices of copper, nickel and zinc have caused the production costs of pennies and nickels to significantly exceed their respective face values. The United States Mint also has received a steady flow of inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them.

"We are taking this action because the Nation needs its coinage for commerce," said Director Ed Moy. "We don't want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer. Replacing these coins would be an enormous cost to taxpayers." (Read the rest of the story here)

Tuesday, December 26, 2006

I'm a SILVER bull

I really like silver as an investment or just as a protector of wealth. Silver is extremely rare. From what I can acertain, above ground silver in refined,available form is more rare than above ground gold in refined, available form.

Will silver ever be as valuable as gold? That would be pretty amazing. Could it happen? It could, but don't count on it.

The silver market seems to be much more illiquid than the gold market. Jim Sinclair, the smartest, tell it as it is trader who likes to empower the people with knowledge, thinks gold is going much higher. He thinks silver is a game. He is probably right because he is about most things gold, silver, dollar and oil.

I really don't consider silver a game, but rather a store of value just like gold, only one that has been pissed on for quite a long time.

One that is out of the mainstreem conciounsness. One that most people seem to shun or find strange.

That is my kind of investment. Silver was less than $5.00 per ounce not very long ago. It is over $12.00 right now.

I like silver, I like gold. I think silver has farther to go on the upside than gold, but gold has a long way to go.

Stinky fiat currency is in abbundance in the U.S.A. and globally. The U.S. Dollar stinks and gold is the pillar of historical monetary significance.

Silver has been the "poor man's" gold for a long time. I think a portion of your precious metal investments should be in both of these historical monetary metals.

Saturday, December 23, 2006

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

Tuesday, December 19, 2006

Silver Gets Hammered

Silver took an awful beating over the last several days as can be seen in the chart depicted here. This is not normal market behavior, but rather a good way of confusing the majority of people to hide the fact that our money masters (the Federal Reserve) are printing up gigantic amounts of money causing the value of the US dollar to drop precipitously. The money men are quite powerful as they have the lawful ability to create money out of thin air and then sell large quantities of items they don't own. For example, they can sell large amounts of paper silver over a very short period of time thus creating a stampede out of the lustrous metal. This is the type of action you are seeing in this silver chart.

Inflation at the wholesale level surged by the largest amount in more than three decades in November

Inflation is really heating up. Although the inflation numbers are definitely not being reported accurately, sometimes they have to let a little reality through. If the government is reporting the largest single month increase of inflation at the wholesale level since 1974, it makes me wonder what the increase really is! Even with inflation screaming in our faces, you might never know it with the way gold and silver prices have been acting recently.

Wholesale prices surge; Housing rebounds


WASHINGTON - Inflation at the wholesale level surged by the largest amount in more than three decades in November, reflecting higher prices for gasoline and a host of other items.

Producer Price Index, which measures inflation pressures before they reach the consumer, was up 2 percent last month, the biggest advance since a similar increase in November 1974, the Labor Department reported Tuesday. (Read the rest of the story here)

Tuesday, December 12, 2006

VIX and Volatility

The VIX is a measure of market volatility. Recently, the VIX broke out of a falling wedge to the upside and then fell back promptly. It looks to me like the VIX is ready to head higher and that could mean the stock market is ready to head lower. Although, with todays crazy manipulated markets, you just never know what is going to happen.

Caledonia Mining Update

CALVF broke below $0.10 breifly and is hanging around at $0.10 today. It has not broken free from the falling wedge and we have not seen a positive crossover on MACD. It looks like this pattern must be resolved in the relatively near future. I'm thinking it will be breaking out higher. I own shares of CALVF.

Thursday, December 7, 2006

Why is the dollar losing value?

The dollar is losing value because of the federal reserve, the treasury department and our irresponsible government that keeps growing and growing and growing. Kind of like the energizer bunny. It just keeps on growing and spending.

That is why it is always funny to hear the likes of big Ben Bernanke saying that they are vigilant in the fight against inflation. They are the ones responsible for inflation and in fact, without our governments reckless spending which promotes inflation, our government wouldn't even need the Federal Reserve to print up all that money for them to borrow.

Read Ron Paul's article below because he sums it up nicely. In fact, Ron Paul is one of the only responsible individuals left in our government today. He speaks the truth but few care to listen.

December 4, 2006

Author: Ron Paul

The financial press reported last week that the value of the U.S. dollar plummeted to a 14-year low against the British pound, and weakened against the Euro and Yen. Many financial analysts predict continued rough times for the dollar in 2007, given reduced expectations for economic growth at home and less enthusiasm among foreign central banks for holding U.S. debt.

This decline in the value of the dollar is simple to explain. The dollar loses value as the direct result of the Federal Reserve and U.S. Treasury increasing the money supply. Inflation, as the late Milton Friedman explained, is always a monetary phenomenon. The federal government consistently wants to spend more than it can tax and borrow, so Congress turns to the Fed for help in covering the difference. The result is more dollars, both real and electronic-- which means the value of every existing dollar goes down. (Read the rest of the story here)

Monday, December 4, 2006

Caledonia Mining Continues Lower

Caledonia mining is a penny stock that I own. At this time on the weekly chart it continues to plod lower into what I think is a bullish falling wedge. I am looking for CALVF to break out to the upside on the weekly chart by closing above the current downtrend line.

Take a look at this long term chart below. You can see that two times Caledonia stock has taken off to incredible heights in a relatively short period of time. Is another blast off just around the corner? With gold and base metals heading higher this would seem to be the perfect time for CALVF to soar.

Or, will it continue to underperform as it has for a long time? Caledonia has a whole lot of shares outstanding.

Thursday, November 30, 2006

A look at SLV and SILVER Then and Now

When we last looked at these two charts one or the other had to be wrong. Which way did you guess?

Wednesday, November 29, 2006

Can You Say Flip-Flop ?

Editor: Isn't this the same guy that just told us gold is going down because the economy is cooling? This is some great reporting isn't it?

Gold, Little Changed, May Gain as Investors Bet Against Dollar
By Pham-Duy Nguyen
Nov. 29 (Bloomberg) -- Gold, little changed in New York, may gain after a report showed sales of new homes in the U.S. fell in October, reducing chances the Federal Reserve will raise rates anytime soon.
Higher interest rates make holding gold less attractive. The Fed has held rates at 5.25 percent since June, helping to send the dollar 9.4 percent lower against the euro this year. Gold is still up 24 percent. (read the rest of the story here....)
Is volatility about to rise?

Me thinks so....
Another Caledonia Mining Chart...

Bullish falling wedge?

Tuesday, November 28, 2006

Editor: What a bunch of crap. I think the wealthy people will be shifting more of their assets into gold and silver to protect their wealth. How about the massive investment demand from ETF's and private investors. For example, GLD has amassed more than 400 tons of gold since its inception. Why is it that Bloomberg seems to see things backwards most of the time?

Gold Drops on Speculation Slowing U.S. Economy May Cut Demand
By Pham-Duy Nguyen
Nov. 28 (Bloomberg) -- Gold prices in New York dropped from an 11-week high on speculation a slowing U.S. economy will reduce demand for the precious metal.
Jewelry demand accounted for 73 percent of purchases last year, according to the producer-funded World Gold Council. Orders for U.S.-made durable goods declined last month by the most since July 2000, a signal that companies are curbing spending.
``The durables are going to put a clamp on gold and other metals,'' said Ron Goodis, retail trading director at Equidex Brokerage Group Inc. in Closter, New Jersey. ``Wealthy people who spend a lot of money on jewelry are going to pull back.'' (read the rest of the story here)

Monday, November 27, 2006

Thursday, November 23, 2006

Wednesday, November 22, 2006

A look at Caledonia Mining Corp.

CALVF.OB looks like it may be setting up for a breakout. It seems to have fairly strong support around $0.10 and has been known to rise rapidly once it breaks out.

I'm looking for a break out above the downtrend line on heavy volume. (Disclaimer: I own shares of CALVF)

Tuesday, November 21, 2006

Feeling Bullish On The Stock Market?

So the stock market continues to head higher. Take a look at this great chart of the VIX. Get ready for some volatility!

Wednesday, November 15, 2006

Optimism Rules

Alot of people I talk to lately are highly optimistic about the state of the U.S. Economy. This does not make them an optimist or me a pessimist. I am highly optimistic about the oportunities presenting themselves in precious metals, base metals and the global economy.

With all of the U.S. Economic optimism, it makes me wonder about the following headline from Reuters:

"NEW YORK, Nov 15 (Reuters) - The yield spread between 10-year and two-year Treasury notes briefly widened to 20 basis points on Wednesday, marking the deepest inversion since December 2000. (Read entire article here)
Two Different Views

When you compare these point and figure charts of SLV(the silver ETF) and Silver you can see that they clearly don't agree.

So, is silver ready to break out or break down? You be the judge.

Wednesday, November 8, 2006

What time is it?

Well, since today is November 15th, 2006, that means it might be time to load up on gold, silver and precious metals shares.

After consolidating for quite a while and then breaking out of a downward wedge, it seems that gold and silver may be setting up for a run quite a bit higher.

It also might be time to look at the pitiful condition of the U.S. Dollar fundamentals and make sure you are prepared for what is heading our way over the next several years.