Tuesday, March 06, 2007

Gold and Silver May Have Put In Their Bottom Yesterday

Now here's a thorny call for the SILVER PRICE and GOLD PRICE. They just might have put in their bottom yesterday, but today's closes, strong as they were, don't really break out above any significant levels. However, with gold climbing above 640 again, and silver knocking at the door of 1300, it certainly has a better than 50% shot of closing higher tomorrow. A failure tomorrow would of course say that both metals are going lower. Meanwhile, cover any shorts. Silver & gold could rally as fast as they fell, although I expect a gentle up movement the rest of this correction.

Buying silver & gold here could turn out to be a fabulous choice, or a lousy one.

STOCKS (as represented by the Dow) rallied along all day, with ne'er a hiccup. Looks like the Plunge Protection Team's invisible hand. Tomorrow it runs into resistance at 12,250. I expect the rally to continue.

The DOW IN GOLD DOLLARS went nowhere today, unable to climb & pull away from the 200 day moving average. Expect more downside. Your last warning has sounded. The gates are closing. Swap stocks for silver & gold.

The US DOLLAR INDEX remains ambiguous as ever, above 84 but just barely, down 10 basis points on the day. Sorry, it's just not saying anything I can hear, except, "Lack-luster . . . Lack-luster . . . Squawk! Lack-luster."

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.