Interest rates are still key, as they affect the bond market, the mortgage market, and the housing market; which in turn affects many peripheral markets such as lumber, copper, furniture, and appliances to name but a few.

Interest rates had been on the rise but began to drop back this week. That is good news for all those that own mortgages - although we did see that mortgages still went up, not down. Hopefully the lesser rates will filter down to the mortgage markets - if the bankers want to play nice, which is a very cold altar to place one's faith in.

The US dollar looks like it could play the lead part in Night of the Living Dead. The counter trend rally is just about over - if it isn't already. Look for the Euro to strengthen.

The Yen is the Yen - the cheapest currency in the world. It is the Yen that is adding to much of the excessive liquidity in the world, as it facilitates the Yen Carry Trade, where money (yen) is borrowed short (at almost zero percent interest rates) to loan or extend long at much higher rates.

The interest rate in Japan is 0.25%, while in the US it is 5.25%. That's a difference or spread of 5%. It's like they're giving the stuff away for free. It is indeed a Brave New World, and a strange one at that. All compliments of the New World Order. Thanks guys - just remember: what goes around, comes around.

Commodities when viewed by the CCI Index using equally weighted goods, show a picture that is far from as dire as the CRB indicates. Might there be one market for us and another for those in the know? Nah - hell this is America: the home of the free and the brave.

Oil has rallied back but it appears to just be a counter trend rally in a continually declining market. This is true for the short term. For the long term we are quite bullish on both oil and natural gas.

Gold and silver are doing just fine. They are correcting and backing and filling as they should. We expect them to continue long into the future.

One caveat that we did not like hearing was the talk of the IMF selling gold. We do not expect it to have a huge impact on prices - but we just don't like it, as it doesn't make sense or cents. We do not have time here to explain.

We are looking for the gold stocks to be on their last minor wave correction/consolidation before Columbia gets ready for take off. If you get the chance - look up the etymology of the word Columbia, it's fascinating stuff. Very occult. Hmm.

We would expect any further pullback to find support around the 135 area on the XAU. $606 - $612 are to be watched on the gold chart to provide support. The HUI 320-310 area provides support. If more then the end wave of a pullback occurs, the charts show what to expect. It's a bull market until it isn't. As of now it is.

Invitation
Stop by our website and check out the complete market wrap, which covers most major markets. There is also a lot of information on gold and silver, not only from an investment point of view, but from its position as being the mandated monetary system of our Constitution - Silver and Gold Coins as in Honest Weights and Measures.There is also a live bulletin board where you can discuss the markets from people around the world and many other resources too numerous to list. Drop by and check it out. Good luck. Good trading. Good health. And that's a wrap.

Douglas V. Gnazzo
Honest Money Gold & Silver Report

Douglas V. Gnazzo is the retired CEO of New England Renovation LLC, a historical restoration contractor that specialized in the restoration of older buildings and vintage historic landmarks. Mr. Gnazzo writes for numerous websites, and his work appears both here and abroad. Just recently, he was honored by being chosen as a Foundation Scholar for the Foundation of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly, Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

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