Wednesday, April 25, 2007

Gold and Silver's Refusal to Make New Lows - May Signal the Correction is Over

GOLD hit a low today of 682.30, higher than yesterday & than earlier this week. Silver's low was 13.69. Their refusal to make new lows -- in spite of closing lower today -- may signal the correction is over. I'm guessing both will close higher tomorrow, then resume the rally. Closes below 675 & 1345 negate that interpretation.

Stocks weren't confused today after all, were they? (Got that one wrong, didn't I?) Dow rose 135.95 to close at 13,089.89, above 13,000. Well, that cuts it, Moneychanger (you might be grumbling to yourself), you've been inveighing against stocks all this time & kept us from buying or even persuaded us to sell out & now look where they stand!

Sorry, you'll get no repentance from me on this subject. If you are out of stocks, I'm glad. If you're out because I made you think about it, I'm double glad. Why? Have I lost my miniscule mind? Nope, I am that certain that six months from now stocks will be lower than they are today, & lower still against both silver & gold? So what else can I say? Just this: Swap stocks for silver & gold.

Technically, there's not much telling where stocks will stop. The rally is overdue to end, but might last another 6 - 8 weeks. It might end tomorrow.

However, the Dow in Gold Dollars (DiG$) gives us a dramatic ultimatum today. It closed at G$395.49 (19.13 troy oz), the very upper end of the recent trading range. Tomorrow, stocks must either fall, or gold must rise, or the DiG$ will be signalling a much larger stock rally against gold. In the aftermarket gold is up two dollars (to 686.20) & silver has risen more than 3 cents to 1380. That's a fairly large aftermarket move for gold.

Here's a surprise: the US Dollar sank again today. Just a couple of basis points. Reckon the Nice Government Men don't want it to fall too fast, & so are easing it down? If it doesn't break around here this week, it may have bottomed.

Friends, I need for y'all to do me a small favour. Catherine Austin Fitts of & I have been developing a website,

For years I have been trying to explain that we forge our own monetary & economic chains by using Federal Reserve money & bank credit money (checks & credit cards). We have a constitutional & legal right to trade in silver & gold coin, but since the Federal government stole all the gold in 1933 & took silver out of coinage in 1965, no one now alive knows how to use silver & gold in daily commerce. Worse, they have no idea what it's worth, so they fear they'll be cheated if they use silver & gold.


Our website overthrows & reverses all that.
With our you can instantly calculate what to pay in silver & gold, & then use it in daily business & so stop using the money that is destroying you & your prosperity.

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.