Mikelohe2's Blog

the beginning of change

mikelohe2 — Wed, 03 Mar 2010 15:01:21 +0000

This morning the US $ index is lower by $.33 and the price of Crude Oil is higher by $.57 @ $80.25/barrel. Amid a weaker US $ index and firmer Euro currency, Gold futures are trading steady to higher and Silver was over the $17/oz level after being in the $16/oz range for most of Feb.

Silver for 2010

mikelohe2 — Tue, 22 Dec 2009 21:29:28 +0000

Demand for Silver in 2010 with the emergence of key new markets will help boost prices higher. Traditional industrial end-users of Silver, such as the global electronics industry have begun to replenish severely depleted inventories. It may take 6 months or more to fully rebuild the inventories to normal levels. Byers in the industrial sector have few options other than paying the prevailing price. The key drivers for 2010 will be demand for Silver-Zinc batteries in smart automobiles and for an array of portable electric devicies.

Gold & Silver correct

mikelohe2 — Tue, 08 Dec 2009 21:08:54 +0000

The possibility that the Federal Reserve could, but probability not, raise interest rates sooner than expected would support a higher US $ and put pressure on Gold and Silver prices. Ben Bernanke says inflation should stay subdued, so the US $ strengthened against the euro and other major currencies causing the Gold price to be under pressure. The question now is do we have a correction in Gold and Silver prices and a buying opportunity or the start of a bearish trend.

Gold & Silver prices higher

mikelohe2 — Tue, 01 Dec 2009 21:16:36 +0000

The US $ index is weaker and the concern over Iran’s nuclear program have Gold over $1200/oz. and Silver up over 3% for the day. The prices are still on the uptick because central banks in China, Russia and India have become net buyers rather than net sellers. At 3:45pm est the US $ index is lower by $.43 and the price of Crude Oil is higher by $.84 @ $78.12/barrel. Gold is @ $1196.20/oz(bid) +$17.30 or +1.47%, Silver is @ $19.06/oz(bid) +$.59 or +3.19% and Platinum is @ $1479/oz(bid) +$26 or +1.79%.

Silver in demand

mikelohe2 — Fri, 20 Nov 2009 20:53:32 +0000

To the average investor Silver is far more affordable than Gold. Sales of Silver eagles from the US Mint have soared to 25 million 1-oz. coins in 2009 from 19.6 million in 2008. The iShares Silver Trust has 5.4 billion in assets and continues to grow in popularity as the white metal soars in price. The history shows that it usually has taken 16 oz.s of Silver to buy 1 oz. of Gold, but currently it takes over 60 oz.s. If history holds true, Silver has the bigger upside. Silver also has a growing industrial use as longer term silver-zinc batteries replace lithium-ion batteries in electric cars.

Strong CPI

mikelohe2 — Wed, 18 Nov 2009 21:05:12 +0000

A stronger than expected CPI stirred inflation worries causing a weakening of the US $ and stronger buying of Gold and Silver. The US $ index is lower by $.22 and the price of Crude Oil is higher by $.46 @ $79.60/barrel. At 3:50pm est Gold is @ $1144.30/oz(bid) +$3.70 or +.32%, Silver is @ $18.56/oz(bid) +$.14 or +.76% and Platinum is @ $1441/oz(bid) – $16 or – 1.10%.

World Debt

mikelohe2 — Thu, 12 Nov 2009 21:06:16 +0000

Major countries in the world economy have major debt problems. They include the U.S., Japan, Britain, Germany, China and France. The worst budget balance of the deficit countries is in Britain, where the foreast budget deficit for 2009 is a staggering 14.5% of GDP. The Bank of England has been more irresponsible in its financing mechanisms than the US Federal Reserve, leaving interest rates above zero, but funding 1/3 of the public spending through direct money creation. Britain has 2 additional problems. Its economy is distinctly in bad shape with growth negative in the 3rd quarter of 2009. Also, Britain’s house prices are still grossly inflated, possibly even double in London. While we have not experienced a debt deflaut by a major economy since the 1930s great depression, that such deflauts are currently conceivable indicates both the severity of the current downturn and the wrong-headedness of the policies taken to address them. A major sovereign debt deflaul of this kind will cause the seizure of global capital markets, prolonging the downturn for a decade or more. We better hope fiscal responsibity hits London along with Washington and Tokyo.

per the U.S. Fed.

mikelohe2 — Thu, 05 Nov 2009 20:45:51 +0000

Wedesday the Federal Reserve upgraded its economic outlook, but voted to keep short-term interest rates unchanged near zero and signaled it has no intention of raising rates in the coming months despite robust third quarter growth of 3.5%. The expansion possibly was fueled by the government incentives, so expect growth to retreat to about 2% through 2010 and the unemployment rate, now at 9.8% to peak above 10% by the first quarter. The first rate increase could be more than a year away. Economists worry a Fed initiative to buy nearly $1.75 trillion in government securities to simulate weak credit markets will eventually spark rampart inflation, but the Fed did say it will moderate its purchases and will keep rates low for a longer period than anticipated.

Gold at new all-time high

mikelohe2 — Tue, 03 Nov 2009 20:49:27 +0000

Upbeat economic reports from China and Europe have put pressure on the US $ lifting the appeal of precious metals (Gold & Silver). India’s buying power has taken the Gold price to an all-time high of $1,087/oz. as investors shrugged off the higher US $. Silver is up stronger by $.77/oz. At 3:25pm est Gold is @ $1084.50/oz(bid) + $24.90 or +2.35%, Silver is @ $17.22/oz(bid) + $.77 or +4.68% and Platinum is @ $1355/oz(bid) + $20 or +1.50%.

Positive on the economy

mikelohe2 — Fri, 30 Oct 2009 20:31:04 +0000

For the third quarter the government’s first estimate of US gross domestic product showed the economy expanding at an annual rate of 3.5%, topping forecasts and suggesting it’s emerging from the worst recession in 70 years. The quarter of growth was the first after more than a year of contraction in GDP. Christina Romer, who chairs the president’s Council of Economic Advisers relates that after six consecutive quarters in retreat, business in the third quarter increased spending on new computers and software at an annual rate of 1.1%. That marked an about-face from the first quarter’s annualized 36.4% plunge. Indications that business spending is starting to revive are vital to future growth because there is no political support for the government to prop up the economy. Romer believes there is little danger of renewed recession next year. The wet blanket on the economy is gasoline prices going higher at a time when unemployment is at a 26 year high. Clearly the high oil/gasoline prices can shut down the economy.