Tuesday, April 24, 2007

Tomorrow After Perhaps a Lower Opening Gold and Silver Should Close Higher

Ponder for a moment silver's moving averages: 17 DMA a6 1374.45, 50 DMA at 1357.65, and the 200 DMA at 1261.12. Now add the strong support at 1345-1350. Silver ought to catch at aht silver if, as I interpret, we are seeing only the last correction before a push to knock at the May 2006 highs. Tomorrow, perhaps after a lower opening & a fight, should close higher, for both gold and silver.

GOLD fell 6.40 today, but with a higher low. $675, maybe 672, should be support gold can count on. Closes below 672 & 1345 would flash brightly that my interpretation erreth.

Yesterday I remarked on the confusion in silver and gold, one down and one up. A confused market usually drops. Today stocks were confused, with the Dow closing only 8 points from the last low, & the S&P500 closing down. The Dow's close might be a double top to set up for a sharp drop to scare the complacent out of their positions.

The Dow in Gold Dollars (DiG$) ran all the way nearly to the bop of its range today, closing at G$391.38 (18.93 oz), above the 50 day moving average (G$387.16) but under the 200 DMA (G$394.02). DiG$ should kiss that 200 DMA at least. Any close higher than G$400 would signal a much stouter DiG$ rally, joy for stocks, and trouble for gold -- short term.

Y'all kept me busy all day with those French 20 Franc Angels and German 20 marks. I managed to find a few more of each -- 20 Angels @ 139.25 & 16 Germans at 166.25, if anyone else is interested. Call (888) 218-9226. Ask for my son, Justin -- let him dance for a while. Please mention goldprice.org when you call.

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.