Friday, April 13, 2007

Gold Should Reach and Perhaps Pierce 720 in the Next Two Weeks

My goal for the GOLD PRICE has been a close above 686.50, but today it didn't quite reach that. It spent all week trying to break through 675, then today jumped up $10.30. There's a slight chance that the shorts attacking on Monday at 686 might drive it down, but gold ought to continue rising for at least two more weeks. It should reach 720, perhaps even pierce that level. Seasonally gold could keep on climbing well into June. If it does it will be knocking on $900.

The SILVER PRICE had to work very hard to break through 1400, but at last clawed its way over that mark. Both Gold & Silver need to advance from here to confirm these breakouts. From here to 1450 Silver faces hard fighting. Last May's peak was 1484.50. Once silver crosses that line things will really go crazy. Above it the first resistance stands at 1625.

Unless Monday sees silver close below 1380 and gold below 675, next week both metals ought to climb strongly into last year's highs. A dropping dollar won't hurt, either. Stay out of stocks. They're a sucker play.

It was a week of break throughs, and one break down. The US DOLLAR INDEX broke down today, closing below December's low. It will drop at least to 81.50, maybe 81.28, maybe even 80.39,but then will come a rally. Longterm, you don't want to own dollars, or have any dollars owed to you. The buck is headed much, much lower over the next 10 years, say, down to 60 or 40.

STOCKS yesterday appeared to verge on breaking down, but today put themselves back in the races with a new high for the move. The Dow may yet reach that old high, & may coast along sideways for a couple of months, but soon, soon the decline will begin. You will be much better off holding silver and gold in the next 5 years, so swap stocks for silver & gold.

The DOW IN GOLD DOLLARS fell this week to the bottom of its recent range. It hints that gold will be losing against gold in the near future.

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.