Thursday, January 18, 2007

Gold Must Close Above 625 and Silver Above 1250

What was good about today's SILVER & GOLD PRICE action? Gold did not sink beneath 625 nor silver beneath 1250. What was bad about it? Neither metal rose. Tomorrow they must hold 622 & 1250, or I was wrong to conclude the correction was over. If they break those levels on closes, then they will undergo one more downside leg.

Meanwhile, the clock is ticking away. This is the time to buy silver and gold. Why will become obvious later in the year.

Glance at STOCKS once again. Today's down high reached 12, 612 against yesterdays 12,614, failed again, and closed lower. The 5-day chart shows a plain double top. Breakdown comes when it drops below 12,540 & 12,490. Only air beneath. It is headed down -- whether this is the big one or not. Remains possible that this is the last correction with one more leg up.

DOW IN GOLD DOLLARS rose slightly, but without meaning. Best course? Aktien um Silber & Gold vertauschen! (I thought I'd say it in German just to change things up.) Swap stocks for silver & gold.

The US DOLLAR INDEX remains under 85. Will recover enough to reach 86, but go farther? Juberous, as my grandmother used to say. That's Southern Hill dialect for "dubious."

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.