12-Oct 20-Oct Change % change
Silver, cents/oz. 1129.5 1189 59.50 5.3%
Gold, dollars/oz. 576.30 593.00 16.70 2.9%
Gold/silver ratio 51.02 49.87 -1.15 -2.3%
Silver/gold ratio 0.01960 0.02005 0.00045 2.3%
Dow in Gold Dollars (DiG$) $ 428.13 $ 418.40 $ (9.73) -2.3%
Dow in gold ounces 20.71 20.24 -0.471 -2.3%
Dow in Silver Ounces 1,056.72 1,009.45 -47.265 -4.5%
Dow Industrials 11,935.61 12,002.37 66.760 0.6%
S&P500 1,359.62 1,368.60 8.98 0.7%
US dollar index 87.96 86.28 -1.68 -1.9%
Platinum 1,057.60 1,078.60 21.00 2.0%
Palladium 307.90 327.70 19.80 6.4%
Here's a riddle for the week, for all those know-it-alls who live in the world of theory rather than the real world: If silver and gold prices are supposed to move opposite to stocks, how come both metals and stocks rose this week? How come for much of the past year that the dollar and gold rose at the same time? Can you explain that? Can you tell me when the hind will calf? Right. My point is that humility goeth before success, and a constant willingness to check the facts & your premises. And sometimes, things that look good are in fact rotten, while things that look rotten are good.
Take stocks, for example. The Dow hit a new all-time high this week, crossing over 12,000. But obviously it has hit a wall. Now that's to be expected at such a monumental mark, but why aren't the other indices hitting new highs? Because also the Dow looks good, things are rotten for stocks, and this rally will play itself out in the first quarter of next year.
Meanwhile, SILVER AND GOLD PRICES look rotten, right? Well, until you look closer. Last week I guessed that they had bottomed and broken through long standing barriers at 1120 and 576. Today both metals dropped, but only after having challenged 1200 and 600 this week and cleared resistance at 1185 and 588. If they don't break out on this move, they will dip down once more and then break out.
Whichever occurs, you had better get busy buying gold and silver if you want to get on board this rocket.
As further proof, look at the DOW IN GOLD DOLLARS. Don't you find it intriguing, doesn't it pique your interest, that while the Dow reaches historic highs, it can't reach G$425 (20.56 oz) resistance against gold? No, it lost nearly G$10 (1/2 ounce) against gold.
Another reason why you should sell stocks and buy silver & gold. The US Dollar appeared to have broken out to the upside, then gave up everything this week and may have shot its hopes in the head today. If it cannot break through 87.30, then much lower prices await the buck.
A friend sent me a footnote to my diatribe & denunciation of IRAs & 401(k)s & such-like forced investment schemes that give you little choice to invest as you want. Into IRAs you can put Central Fund of Canada (CEF-NYSE) that owns a big pile of metal, 50% gold & 50% silver, outside the US. You can also buy the gold ETF, GLD, or silver ETF, SLV. And in some 401(k) & company investment plans you can buy precious metals mutual funds, or bear mutual funds that profit when stocks drop. You can also put physical precious metals into IRAs through Sterling Trust, (800) 955-3434, or American Church Trust, (800) 228-8825, using us or any other metals dealer as your broker. These means will help you sell stocks and buy silver & gold, even if you're trapped in an IRA, 401(k), or company plan.
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.