Wednesday, January 03, 2007

Gold and Silver Price Weakness could last 3 - 10 Days

Yesterday I was feeling a bit queasy about the first real trading day of the year today, so I wrote about the SILVER PRICE and GOLD PRICE, "For both metals possibly one more downleg lies in the future," and that's what we saw today. Silver held up well, stopping once again above 1250, and number that is beginning to look like the Rock of Gibraltar (can't be cracked). Tomorrow, though, will bring the tough attack.

The gold price performed about the same as the silver price, falling only to the next support at 626. I'm certain the shorts will try to crack both metals again tomorrow, & we'll see then what sort of strength they have, but most importantly, whether they will make new lows for this correction, lower than the ones we've already seen at 1235.80 and 614. Weakness could last 3 - 10 days.

For you sideliners who have been hesitating to buy, go after it now. Don't wait for the perfect price. Remember the proverb: Bulls get rich, and bears get rich, but pigs get slaughtered.

Of the US DOLLAR INDEX yesterday I wrote, "It is probably about ready to rally for one more leg up say, as far as 84 or 84.22 before it makes its return trip to the old low at 80.50." Well, speak of the devil and up he pops. The buck closed today at 83.95, up a sweltering 70 basis points and enough to send the shorts running to puke in their wastebaskets. The dollar's little surge didn't cause silver & gold to stumble, but contributed to the size of the stumble & illustrates what mentality was running the market today.

STOCKS today behaved confused, bewildered. A few more than half the indices rose tiny amounts (Dow up 11.37) while the rest dropped small amounts. Market doesn't know which way to jump. Not a good sign. As long as stocks remain high, y'all are missing the Main Chance for the next decade if you don't swap your stocks 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"

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.