Monday, June 18, 2007

We are Probably Seeing Seasonal Lows for Gold and Silver Right Here

SILVER & GOLD contradicted each other today, with gold piddlin' up and silver piddlin' down. Neither has moved enough to enable us to say that it has turned up. The only reason metals seem strong to me as I watch them here is not that they are moving so strongly up, but that they are refusing to move down. I keep reading people who are turning pessimists on silver & gold, but so far I don't feel inclined to join them. Yes, there are many potentially bad storms on their horizons, but bull markets always climb a wall of worry. Stick, with them. We are probably seeing seasonal lows right here.

The Dow in Gold Dollars continues to tantalize uswithout giving a clear indication which way it will move next. Today it dropped to G$429.10 (20.758 troy ounce), still equivocal. It needs to break thru G$436 (21.092 oz) to turn up, or below G$415 (20.076 troy oz) to turn down.

For new subscribers, an explanation. The "Dow in Gold Dollars" is the Dow measured in "dollars of gold," that is, statutory dollars of gold according to the Gold Standard Act of 1900: 0.048375 troy ounce fine gold. I state it that way because it gives us one unchanging measure of the Dow back to its start in 1896. I also state it in ounces so that y'all who don't share my mania for monetary probity can also understand.

The Dow backed off Friday's near brush with its old high, potentially creating a double top. Never mind: I don't want to own stocks. Swap stocks for silver & gold.

The US Dollar index fell again today, to 82.716 Its rally attempt was turned back and it fell to the lows of the day. Yet that 82.70-ish level is still a breakout over 82.35 resistance, so after a correction the buck will start climbing again, unless it closes below 82.35.

The GOLD/SILVER RATIO is oscillating tightly around its 200 day moving average. It must break 48.67 to break down. It will.

Whoa! I have way more little Mexican two peso gold coins than I need. They only contain a little less than twentieth of an ounce of gold (0.0482). I have 340 only & will sell them in lots of 10 or more for $34.65 each, plus shipping. Sorry, first come, first served, & no re-orders at this price. Leave a call on our answering machine at (888) 218-9226 & tell us how many you want. (Please mention when you place your order) Remember, ten pieces is the minimum order.

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.