Friday, December 15, 2006

SILVER & GOLD PRICES are Beginning to Look a Little Tired

SILVER & GOLD PRICES are beginning to look a little tired. We don't have very many trading days left until Christmas, so I expect we will see lower prices between now and then. Expect all markets to go dead around 20 - 21 December as traders pull out for the holiday. Tough timing that, because all you silver & gold investors ought to be watching the market like starving children watching a baker's window. If metals drop, it will be sharp and short, and give you very little chance to buy. Keep your eyes peeled!

A break of 1363 (17 day moving average) in silver would signal lower prices coming immediately.

The GOLD/SILVER RATIO continues to drop, but if metals drop lower, that ratio will make its first upward correction of this move, probably to 48.

Today the Dow Jones Industrial Average broke out to a new high, and is targetting roughly 12,640. This breakout shouldn't have taken y'all by surprise since I've been hinting at it for quite a while, and it shouldn't have filled you with "irrational exuberance," either. This breakout does NOT (repeat, not) change my outlook for stocks. This is a trap for bulls, so don't get caught in it. Rather, you ought to be turning high stock prices to your own advantage by swapping stocks for silver and gold.

The DOW IN GOLD DOLLARS broke down from its uptrend, and now has turned back up, to touchback before dropping lower, I suppose (until contradicted). Both the trendline and the 50 day moving average stand about G$410 (19.83 troy ounces). The DIGS is suggesting here that gold is about to gain value against stocks, but that issue is hanging in the balance, waiting on the next few days' action. Remember & ponder that gold can gain value against stocks" also while stocks are rising, if gold rises faster.

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.