Thursday, May 24, 2007

This is the Time to Buy Silver & Gold, Not to Sell

Careful! Something wicked this way comes ---- it is the Spirit of Low Profit Trades, come to suck the money out of your pockets while you watch. No market rose today, except the much despised dollar. Stocks fell, gold fell, silver fell. It was a fell day.

Out of the last four trading days, the Dow has hit a new all time high, but also dropped 3 out of 4 days. All stocks indices were down today. The S&P 500 which only a few days ago made a new high at 1525.10 (barely approaching its 2000 high at 1552), today languisheth again near 1,500. Stocks are incredibly overbought, but in a blow-off top which can go anywhere. Stay out of the way. Swap stocks for silver & gold.

The US DOLLAR INDEX closed today at 82.411. Slowly but surely it has conquered the old low at 82.35. Dollar's course is now upward for a time -- but only for a time. Its long term course is lower toward oblivion.

SILVER & GOLD today broke ---- gold to a new low for the move, silver only to its lowest point of the move so far. Gold faces a lot of support between here & 635, but that's where it seems headed. I doubt Silver will drop lower than 1245. You are now witnessing the worst of this correction, and it will likely last a week or two.

A curse? No, a blessing. The correction shakes silver & gold out of weak hands and into strong, paving the way for another rally. Rest easy. The long term bull market in silver & gold remains fully intact, and has at least another 3 -5 years to run. This is the time to buy silver & gold, not to sell.

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.