The Silver Price has bettered its 2 January high at 1315, & stands above all its moving averages. Between here and 1520 stands only the 1406 high from last December. This rally could unroll faster, much faster than anyone expects.
The Gold Price 4 December 2006 high was 645.20, exactly where it closed today. Above this stands the 650 mark, important in the minds & wavering emotions of the market but not much technically. Then comes gold's July '06 high at 666.60. After that it's another trip to the May high at 720.
I have to interpret today's trading as very strong. Tomorrow should bring out the counterattack by the shorts, but this is the second attempt at these levels and so stands a good chance at overcoming.
The GOLD/SILVER ratio dropped slightly today, a comforting confirmation.
The assumption is against the US DOLLAR INDEX unless it can reverse and climb over 85. After climbing over the critical 85 mark yesterday, today's close
looked really weak. But on a longer term chart it doesn't look quite so bad. After all, it remains above its 200 DMA -- the dollar's only positive, other than the power to manipulate billions of created-out-of-the-air dollars in trading by Nice Government Men and the co-operation of NGM from foreign central banks.
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.