Thursday, March 08, 2007

A Short Correction back to 645 for Gold and 1280 for Silver

Some people may have been pleased with today's SILVER and GOLD trading, but I wasn't one of them. Sure, both closed higher, but not much. Both look logy & tired & draggy. Tomorrow would be a good time -- when all the New York traders are closing out profitable positions for the week & thinking about the suburban martini waiting for them -- for metals to stumble. After what they've suffered in the last 10 days, they still want to find firm footing. A short correction back to 645 for gold and 1280 or 1250 for silver would provide that.

By the way, premiums are rising on US 90% silver coin, which hints at dealers becoming more reluctant to turn loose of them. That implies good things -- higher prices -- lie in silver's future.

The US DOLLAR INDEX today climbed back above 84. We are impressed. Might reach 50 day moving average at 84.5 before it resumes dropping like your car keys out of a bass boat to the bottom of the lake.

STOCKS challenged Dow 12,300 today -- and failed. Perhaps tomorrow. This rise toward the last high & rollover downward will take a while. Meanwhile the DOW IN GOLD DOLLARS has turned down again, having touched back to the 200 DMA about G$390. The DOW IN SILVER OUNCES has behaved much the same, except it didn't even reach its 200 DMA before it turned down again. What message does all this send? 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"

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.