The Gold Price Will Now Run for 720 and Probably Overshoot. Ditto Silver for 1500

How do the closes we saw today in silver at gold prices -- nearly even with yesterday's prices -- differ from the "double close" I noted a few days ago I take as sign of a turnaround? Context, mostly. When a market is fighting its way up or down, with days that show big bursts of movement, and then the market clears some barrier (as gold did 667 and silver 1406) to run hard for a new high, it's normal that it will give up a little the next day and catch its breath. Or even drop back almost to the breakout point, and then resume its move.But when a market is ambling and shambling, moving mostly sideways without much strong action, a double close often marks a turnaround.

SILVER and GOLD PRICES remain in good shape. The rally has unfolded much as I expected. Gold will now run for 720, and probably overshoot. Ditto silver for 1500.

Somebody asked me today if it wasn't too high to buy? As Jesse Livermore observed, quoting an old market proverb, "Prices are never so high they can't go higher, or so low they can't go lower." This is exactly the time -- an upside breakout -- that you do want to buy a market.

The DOW IN GOLD DOLLARS broke yesterday below its 200 DMA (today G$390.01 or 18.87 oz) and closed yet lower today at G$385.99 (18.67 oz). What signifieth that? It confirmeth that the DiG$ has reached the extent of its long upward correction, and headed back down in a new downtrend that will take it below the last low of roughly G$330 (15.96 oz).

STOCKS continue to grind back and forth, relentlessly higher with relentless disappointment. Another 30 days or so to the top, at most. Still time for y'all to swap stocks for silver & 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"
http://The-Moneychanger.com

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.