Wednesday, September 27, 2006

Gold and Silver Prices Expected To Rally From Here

As it had threatened so long, today the SILVER PRICE broke out and ran 17.8 cents to close at 1139.50. The high was 1146. The 50 Day Moving Average stands about 1175, and there's also tough resistance at 1185, so this rally is likely to slow down there. A 62% correction of the fall from the last high to the last low would be 1220. If silver closed over 1306 it would mean that it is taking off, the correction is over, and the next upleg has begun.

The GOLD PRICE can't work up as much enthusiasm as silver, and remains below its 200 DMA (now 593.97). That's all right. It will probably climb over that tomorrow and race toward 620 where it's likely to hit the wall and stop. I've been expecting that both metals would rally from here, then fall back to test the previous lows. I still expect to see that, but we've got the whole rally in front of us still.

Oh, how glad I am I don't trade STOCKS. I looked at that chart today and low & behold! There appeared unto me a shape like a rocket's nose cone, verily, a bearish rising wedge that resolveth to the downside. There's about a 1000 point fall in the cards, judging from the height of that bearish wedge. Whooo! Look out below. Time to swap stocks for silver & gold. (One of these days you'll tell your grandchildren, Yes, kids, back then there was this nut who kept telling us to swap stocks for silver and gold, but we just laughed at him, and, well, that's why we're living here in the poor house today.)

I'm just tired of watching the US DOLLAR, trading up and down like a yoyo between 85 and 86. Y'all wake me up when something

By the way, did I forget to mention that the DOW IN GOLD DOLLARS hasn't been able to reach G$415 again, and that it falleth back toward the 200 DMA from whence it came? Bad juju for stocks, that in the midst of such gold weakness they can't make tracks against gold.

THE GOLD SILVER RATIO fell a little. I hope we will see one more spike up so we can make a few last swaps out of gold into silver, but that should be around 55:1.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $1,250.00; silver's primary is up targeting 16:1 gold/silver ratio or $78.13; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.