Thursday, December 21, 2006

SILVER and GOLD PRICES Will See Their Lows Tomorrow or Early Next Week

Today's weaker closes, especially silver's, lead me to expect follow through. My friend BL brought to my attention today the convergence of a 62% correction & the 200 day moving average at 1207 in silver. That sounds like a very good number to me. I believe SILVER and GOLD PRICES will see their lows tomorrow or early next week. Do not postpone buying.

Gold/Silver ratio has almost reached 50:1. the 200 day moving average is about 52, and the ratio often touches back to that 200 DMA. If you want to swap gold for silver, do it at 51.50 or better.

The US DOLLAR (poor thing!) is rallying its strength & taking deep breaths for another run at 84.30. Will it make it? I don't know -- it's pretty wheezy.

STOCKS are showing the effects of the season. Traders like to close out positions before holidays. Thinking about stocks, I'm still looking for a high between 12,650 and 13,000. The Dow is beginning to look very toppy. Next year will be the Year That Broke The Bulls. Don't be one of them: swap stocks now for silver and 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"
http://The-Moneychanger.com

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.