Thursday, June 14, 2007

Serious Money Is Buying Silver & Gold

SILVER rose today, but remained in the same range it has been stuck in. Ditto for GOLD. I would go to sleep except for one thing: the premium on US 90% silver coin rose by five cents an ounce. The wholesale buy side has ranged from a 65 to 60 cent an ounce discount for months and months. A couple of days ago it rose from -65 cents to -60 cents, & today to -55 cents. Goodness, I know that seems a small thing, but it's not. It shows buying pressure on the physical market. I am always dubious about any rally that doesn't begin with the 90% coin premium relatively high. Seeing it strengthen here makes me optimistic. This has happened against a backdrop of greatly increased demand here in our office, after a lull weeks long. Serious money is buying silver & gold.

STOCKS gained today, but all at once in the morning. After that they stayed flat, & the Dow closed below its 2 hour moving average. Mmmm . . . Volatility. I noticed today the S&P500 at 1,523 when a few days ago it was below 1,500. Think of somebody shaky, walking on a cane. That's the way the stock market feels, rushing first this way, then that. Oh. 'Twill be painful when it falls. Best thing to do would be to swap stocks for silver and gold.

The US DOLLAR INDEX held onto its above-83 gains to close today at 83.102. If it can fight through 83.50- 83.75, it will scare the shorts silly and run away for a romp -- yet only a romp, the same sort of romp a freshly dead toad makes when you hook him up to a 12 volt car battery. It might cause silver & gold a problem for a few months, perhaps half a year, but there's no fundamental change lurking there.

The Fed & the US Government are destroying the US dollar. That can't change, so stick with silver & gold.
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.