Tuesday, December 05, 2006

Silver Price Needs to Hold 1325 and Gold Price 637.5

SILVER & GOLD PRICES both backed off today. Obviously a lot of people get nosebleeds around 650 gold & 1400 silver, so they conclude it's too high and sell it. Might as well try to hoe out Bermuda grass with a teaspoon, because these metals are rising. This only means that the eventual breakout will be the more fierce for having been held back. All the 650 & 1400 sellers will be exhausted so there will be no opposition to hold them back. The silver price needs to hold above 1325 and gold above 637.50.

The Dow today rose nearly to its all-time high, and is threatening to break through 12,350. If it does, it could easily add another 350 points, but I still don't want to own it. Swap stocks for silver and gold, now, while the market is handing you a soft ball opportunity & before stocks tank, and they will sometime early next year.
Dow in Gold Dollars rose slightly today, but remains in a downtrend. Stocks present no threat to gold there.

US DOLLAR INDEX flat today. I don't see how it can help falling to 80.50, but won't necessarily do that all at a single fall. Will rally slightly, lift head & look around, before sinking again.

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.