Monday, June 04, 2007

Silver & Gold Prices Should Move Up The Rest of the Week

As I expected SILVER & GOLD both suffered attacks from shorts today, but in an astonishingly narrow range -- for silver, 13 cents, for gold US$5.25. Although neither gained ground, I interpret this a strength. Silver & gold prices should move up the rest of the week.

Y'all keep your eyes on the horizon. I've said many times that you have to keep on reminding yourself of the long term goal when you are investing. Same thing goes for everything in your life: keep your eyes on the long term goal.

I would buy gold & silver here, but most people won't. They'll wait until they break out over 720 & 1500, but they won't buy here, and they wouldn't buy when it dipped. Perfect prices don't exist. In a long term bull market, the best strategy is to buy and keep on buying.

By the way, the European Central Bank's announcement last week that they would not sell any more gold this year was the news event that proved a bottom in silver & gold. Why the Euros are fighting with the Fed is a story for another time.

In 1993 for Jim Blanchard I edited & wrote large parts of Silver Bonanza. It's the best investment book on silver ever written (I can say that because there were so many great contributors). But after self-publishing, Blanchard sold the rights to Simon & Shuster & the editors there did a "history-ectomy" on the book, deleting the first 60 pages of silver's history, the pages that make silver's whole story understandable. I still have some copies of the first edition, & sell them on my website for $37. A couple of days ago in our book storage I found three copies badly water damaged on about an eighth of the corner -- looks ratty, but still quite readable. If any of you would like a copy for $7.50 (about the shipping cost), call me at (888)218-9226. I only have three copies, so first come, first served.

Stocks continue astonishingly, shockingly over-bought. Yet today by a few points reached a new high. Not so the Dow in Gold Dollars, which measures stocks' performance against real money -- gold. Remember last week the DiG$ challenged its old high at G$436 (21.09 oz), failed, then fell thru G$425 (20.559 oz) support to G$420.95 (20.364 oz) and today rose only to G$421.52 (20.385 oz). Will it fall further, to G$415 support? If so, it will help clinch the case for gold outperforming stocks in the near future -- and hint that stocks' long run is over.

I won't try to be subtle: swap stocks for silver & gold. The US DOLLAR INDEX tumbled badly today, back to 82 support, after spending nearly two weeks fumbling around, fecklessly trying to push through 82.35 support. If it closes much below 82, it's buying a ticket to re-visit old lows around 80.50.

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.