Wednesday, April 11, 2007

Gold and Silver Rally Remains Intact

'Twasn't a good day for silver & gold. They just didn't do much. Gold rose 30 whole cents, after making an attack on 680 and failing, then falling to 674.
Obviously a lot of folks are willing to short here near the last high (686.50).

Early in the day SILVER rose to 1399, but failed like gold. It quickly bottomed at 1368, and spent the rest of a quiet day around 1380. Clearly, shorts are
waiting at 1400.

No, I didn't particularly like today, but can't say that I see anything wrong. Volume remains good. Other indicators are a little high but could go much
higher without straining. Rally remains intact.

I'm sorry that we didn't have enough of those small Mexican coins yesterday, but they ran out quickly. I felt bad about it and dug around to see if I could find some more small coins. I turned up a couple of interesting things.

First, I found 100 German 20 marks, all minted before 1915 by imperial Germany. They'll likely have Wilhelm I or II on one side, and the imperial German eagle on the reverse. They contain 0.2304 troy ounce of fine gold just 0.005 oz. less than the British sovereign's 0.2354 troy ounce, and are about the size of a US quarter. I can sell them for US$162.85 each (4.6% over the gold value), minimum 5 coins, postage not included.

Next I found 65 one-tenth Krugerrands (0.1000 troy ounce fine gold). I can sell these at US$70.85 each, a 4.9% over gold value, minimum 10 coins, postage not included. All of these are sold on a first-come, first-served basis because I can't re-order at these prices. I won't be offering specials like this regularly. They just happened to turn up & I thought y'all might like them. Please mention when you place your order.

You begin to think the US DOLLAR INDEX is just being contrary. It drops to 82.65, then refuses to follow through. I know I shouldn't blame every-thing on the Nice Government Men, but this has a taste of malicious glee to it. For now the buck remains in a downtrend, so expect lower prices.

Today the DOW hit its 50 day moving average at 12453 and looked sick all day, closing down 99.96 points (no fudging with that number, huh? Talk about a dime store number, just to avoid it falling a full 100 points). Dow may be rolling over & turning down. A close today below 12,500 raises that suspicion. A close tomorrow below today confirms it. Looks like the correction from the fall may be com-plete. Stop me! Stop me! No, no, I have to say it: swap stocks for silver & gold.

DOW IN GOLD DOLLARS has sunk to the bottom of the range -- that's good.

GOLD/SILVER RATIO is also falling, another plus.

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.