Wednesday, February 28, 2007

This is Not Any Time to be Putting Off Buying Silver & Gold

If SILVER & GOLD PRICES can hold onto their reaction lows of yesterday (662 & 1414.5), we may have seen the the worst of the correction already. In any event, I don't expect to see them drop below 1380 & 650. This correction could last several weeks, or, if panic sets in, it might be completed instantly. This is not any time to be putting off buying silver & gold.

The Nice Government Men (NGM) on the Plunge Protection Team must have gotten busy today protecting capitalism. I mean, that's what capitalism is all about, isn't it -- protecting the capitalists?

Helicopter Ben Bernanke was certainly busy, exercising one of the only TWO weapons in his entire bogus Central Bank arsenal: blarney. (The other is inflation.) When the sheep grow tired of being fleeced and threaten to run out of the pasture, the shepherd soothes them with blarney. The blarney always assures the sheep that everything is all right & things will be just fine, and the sheep find the shepherd's voice most comforting (they don't know he is a carnivore).

Anyway, y'all aren't sheep, so y'all know better to believe anything any government official says. Somebody once told me a fool proof method to tell how a US Attorney is lying -- his lips are moving. Same holds true for all government & central bank officials.

What you have actually seen in stocks is the end of the rally that began at the bottom in October 2002. Now, it will take a while for a market as huge as that for stocks to roll over, but roll it will. Before it resumes its downtrend, it will probably make another peak, perhaps as high as the last one. Then it will drop like a stainless-steel anvil out of a 747 jumbo jet. If ever y'all listened to me, listen now: swap stocks for silver & gold.

Let me paint this picture for y'all with the DOW IN GOLD DOLLARS. Today the DiG$ stands at G$379.72 (18.37 oz), below its 17 day moving average at G$391.08, below its 50 DMA at G$403.98, & below its 200 DMA at G4390.62. All the MA-s except the 200 are headed down. Know what that means? In all gigantic likelihood, the Dow is gonna drop like a lightning-struck buzzard against gold. (I'm feeling particularly metaphor rich today.) Stocks aren't doing too too well against silver, either.

The US Dollar index turned up slightly today, but nothing meaningful. Direction still firmly down. Silver and gold show big drops according to their closes today, but as I pointed out to y'all yestere'en, they fell off in the aftermarket. If we compare yesterday's 662 and 14.145 later aftermarket prices to today's aftermarket, silver and gold actually rose today. (As my friend Barry P. says, Closes mean nothing because the market never stops. I disagree, but here's a case where he's right.)

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.