Friday, June 22, 2007

For All Gold & Silver's Sorry Performance This Week, Both Ended The Week Higher than They Began

Gold Price Close Last Week : 645.50
Gold Price Close This Week: 653.50
Change: 8.00 or 1.2%

Silver Price Close Last Week : 1299.9
Silver Price Close This Week: 1308
Change: 8.10 cents or 0.6%

I've often remarked that the only thing that counts is the scoreboard, not excuses. How did things finish the week? For all GOLD & SILVER's sorry performance this week, both ended the week higher than they began.

The US DOLLAR INDEX, on the other hand, sank wretchedly after reaching for the moon & coming away with only a handful of mouldy cheese. Today it closed below crucial 82.35 performance. We'll see on Monday whether it will follow thru. If it holds, then the dollar's chances for a rally remain. If it closes lower, forget it.

Charts for SILVER & GOLD PRICES don't particularly encourage. Gold is locked in a down trend & must close over 672 to convince even its fans that it is rallying, although it has stoutly held on this week. Silver has been building a triangle and could break either way, but is riding now along its 200 DMA. Remember that this time of the year both metals generally make a seasonal low. Looked at from that standpoint, recent performance hasn't been so bad.

In these sideways markets it's easy to become bored and complacent, or to get disgusted & throw in the towel. Don't. Remember the long term: silver & gold are in a primary uptrend (bull market)with another 10 - 15 years to run. Even a temporary decline won't change that. Indeed, it only presents buying opportunities. If silver & gold keep on trading sideways here without breaking down, then it's time to buy.

STOCKS fell like a Holstein cow out of a C-130 today,& the excuse du jour was that worries about Wall Street's financial health took stocks down. (Two Bear Stearns hedge funds are floundering.) Yet consider the picture. Today stocks fell 186 points, the fifth daily loss of more than 100 points for the Dow this month. Friends, that's "volatility." It points to stocks rolling over to the downside.

There came yet a more pungent signal of stocks turning down from the Dow in Gold Dollars. After shooting to G$430 (20.801 oz) yesterday, play-acting as if it would go through the G$436 old high, today it dropped clean through G$425 support & came to rest at G$422.62 (20.444 oz). That is the second half of a double top on the chart; it needs only to follow through Monday with a lower close, & the DiG$ will have flashed its warning: "Stocks tanking, gold outperforming." Okay, I'm exaggerating just a leetle. The DiG$ must close below G$415, then G$400 (19.350 oz) to really clinch that message.

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.