Monday, January 29, 2007

Silver Price Needs to Close Above 1318 and the Gold Price Above 633.30 or We'll Get a Little Correction

How many really filthy rich people do you know? Right. Not many. Now, how many people do you know who got rich trading stocks or commodities? Right, even fewer.

Which makes my point: it's not easy to read markets. It's not easy to discipline yourself to follow a sound strategy. If it were, all of us would be eating chicken every day & drinking Ripple all day, we'd be so rich.

So it oughtn't surprise anyone that a bull market takes such twists and devious leaps & bounds that the bull shakes nearly everybody off & cheats them of their easy ride.

Which brings me to today's SILVER & GOLD markets. They broke out last week. Clean through the downtrend lines, clean through resistance areas. Yes, they need to close above the really big resistance at 650 & 1406, but they've cleared all the steps in between. Gold has even closed above its December high. Today they backpedal, feeling around for their breakout point, & look weak.

Very well could be. Very well could get a selling panic, silver taking a terrible break of a dollar or more and gold $40. Still, I'm not worried, because I am utterly confident that both metals are in a primary bull market. I know that even if prices dip tomorrow, higher prices in the long run will surely bail me out.

As I said, it's not easy to read markets & discipline yourself, otherwise . . .

The SILVER PRICE needs to close above 1318 to remain in this uptrend, the GOLD PRICE above 633.30 or we'll get a little correction.

STOCK indices were mixed today, up piddling few points, down piddling few. Doesn't tell us much, but other indicators continue to weaken. Right now I expect one more little surge to push to a final top, then weeks and weeks of rolling over before a big break.A close below the November low about 12,075 would prove me wrong and imply the breakdown had begun.

Somebody asked me why I write every day, "Swap stocks for silver & gold." The answer is, because y'all don't get it. Not easily, anyway.

After a 20 year bull market in stocks, & the unremitting barrage of propaganda poured into your eyes & ears daily by government, Wall Street, banks, newspapers, magazines, and other leeches greedy for your money (no matter how small your mite), how will you believe a small voice like mine unless I repeat myself? The realities y'all believe (I know because they're what y'all act on) are an eternal dollar & eternal stock market bull. Well, truth is the daughter of time, so we'll see. In the meantime, swap stocks for silver & gold.

Go visit my friend Catherine Fitt's website at That's an audio seminar Catherine normally sells called "Where Would Jesus Bank?" Go, download it free, and listen to it at your leisure, when you can ponder what she says like fine wine.

What I like about Catherine is that the world is full and overfull of people who can tell you everything that's wrong with the world -- but most of them won't lift a finger to make it right. Catherine is teaching people how to extricate themselves from the toils of the economic Tapeworm that infests us all.

Y'all judge for yourselves. Go, visit Catherine's site and listen to "Where Would Jesus Bank?" To underscore her point, let me share with you the proprietary Moneychanger Banking System Reserve Indicator. I've been keeping it since 1998, to measure the real reserve ratio in the banking system, & how much money they can create. Last I checked, for every dollar you deposit in the bank, the banking system could create $162. That's not a joke. You leave $5000 in your checking account, and they can create roughly $813,000 in loans to destroy your wealth & your way of life,to ensnare your neighbour in their toils.

Believe me, it's worth listening to what Catherine has to say.

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.