Friday, December 22, 2006

Buy Everything if Silver Hits 1210

We may have seen the lows for the SILVER and GOLD PRICE yesterday. If not, expect them to show up next week. I would buy everything I was going to buy if silver hits 1210, and buy both silver and gold at that level. The holiday will not necessarily leave silver & gold sleepy next week, so keep your eyes peeled.

The numbers (so the proverb goes) tell the tale. Don't argue with the tape. The numbers at the end of a week tell a tale, too, but this particular Friday we have to remember a grain of salt, since so many traders pull out of the market for the holiday season.

STOCKS took thumps on the face again today, and closed down 102 points for the week, having now given up all the ground they gained when they broke out over 12,350 resistance. This same back and forth will probably carry into January, perhaps beyond, burning up investor's buying power until it's all gone, then resumes its downward career. Note that the Dow in Gold Dollars dropped from last Friday's close at the top of the resistance range. A subscriber pointed out to me today that the Dow is not as representative as the Wilshire 5000 index, which includes not 30 but nearly 5000 stocks. Good point, so I converted the Wilshire 5000 from paper to silver and gold. Even though the Wilshire (like the Dow) is lately making new highs, its performance against silver & gold is even more dismal than the Dow's. The lesson? Swap stocks for silver and gold. It's the right thing to do.

Watch the GOLD/SILVER RATIO for a jump to 52. If that happens, swap any remaining gold for silver.

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.