Thursday, March 22, 2007

$18-$24 Silver Price and $900 Gold Price is Possible by End-June

GOLD & SILVER PRICES are worrying their way to their break-down points that began this correction. Gold needs to clear 667, then 685 (closing basis) to prove its rally has begun again. Silver is facing 1350, 1380, and 1425. Looking at the charts and other indicators, metals strike me as ready to rise.

Next week silver and gold prices will be tackling the old highs -- 1500 and 720 -- or at least the approach to the old highs. Still appears that 1800 - 2400 silver is possible by end-June, and $900 gold.

Speaking of gold, for more than a year premiums have been dropping on numismatic coins, especially the US $20 gold pieces in circulated grades (VF, XF, AU). Now the lower grades are trading -- believe it or not -- at the same price as Krugerrands! At that price I would certainly buy them. Remember that US$20s do not contain a whole ounce of gold, but only 0.9675. To figure out the price per ounce, divide the coin price by 0.9675. We have a few $20 Liberty type on hand, but on a first come, first served basis.

The rally in stocks probably has a ways to run, & may even challenge the old high. A warning sign, however, is the Dow's volume drying up on the present rise. Bad juju. If you still own stocks, this is quite literally the "last train out." Get rid of them. Swap stocks for silver and gold.

The Dow in Gold Dollars days ago dropped below the 200 day moving average, but hasn't yet fallen away from it. That should happen shortly, and the fall in front of us will be tremendous.

The US DOLLAR INDEX crept -- crept -- back over 83, but not by much. The long term chart looks terrible. Later this year it may break that last low (80.36) and 35 year old resistance at 77- 80. However, the dollar has set itself up for a countertrend rally, but don't expect much.

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.