Thursday, November 16, 2006

Silver Price Close over 1325 and Gold Price Close Over 640 Would Confirm a Breakout

SILVER AND GOLD PRICES won't get weak, and won't get strong. Reminds me of the man who had killed his parents and then threw himself on the mercy of the court because he was an orphan. From here a metals breakout would be confirmed by silver closing over 1325 & gold closing above 640 at the same time. Today gold fought off a decline to 615 and silver to 1246, and both shook off the attack and rose to close above the support areas. More times this happens, greater the likelihood they will break, make another low, then bound up. I'm torn between two minds, but lean a bit toward lower prices. Certainly, until metals have to reach those higher closes before I can say they've turned up. However, this stalemate shouldn't last long. Even if we get lower prices first, a rally lieth not far distant in the future.

US Dollar rose 2 basis points today, a meaningless fluctuation. Right now balance lies on the downside. Dollar needs a close above 87.30 to turn up.

Market speak with fork├ęd tongue -- or out of both sides of its mouth. The DOW made good today its breakout over 12,200 by adding another 33.7 points. Dow Industrials Average is going higher, solo, unaccompanied by the Dow Transports, a significant non-confirmation. Many will be the unsuspecting investor bereft of his funds before this ends. Use high stock prices as an opportunity to swap stocks for silver & gold.

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.