Wednesday, July 11, 2007

The Gold & Silver Breakout Remains

The Silver Price today rose 0.2 cent while the Gold Price fell $2.20, 20 cents more than it rose yesterday. So what? Breakout remains, & gold stocks have broken out. Gold held on, & silver. One problem this time of year is that so many people are on vacation they're not paying attention to the market. That waters the response. Still, silver & gold tomorrow must advance, or attract short sellers. Yes, I would still buy silver & gold here, at least some.

The US DOLLAR INDEX has collapsed, falling past the 81.50 level down, down, down to 80.62 at the low today, now at 80.843. The December 2005 low was 80.39. The 40 year bottom of the range is 80, with one or two spikes as low as 78. Those Nice Government Men who keep so busy manipulating markets, especially the dollar, had best start paying attention. If the buck breaks 80.39, there's not much telling what would happen. Of course, about now, when everybody is short & bearish on the buck, would be a perfect time for them to enter the market & through their shills begin buying and buying from the Bottomless Pocket. If the NGM manage to tip off a rally, it could last six to twelve months and carry as high as 92.50 before it runs out of hot air. O, o, should silver & gold fear a rallying dollar? Maybe -- like an Abrams tank fears the flu virus.

STOCKS bounced today like a dead cat. Yesterday they fell on rising volume. If the Dow doesn't clear 13690 - 13,700 soon, it begins to look like a triple top. The DOW IN GOLD DOLLARS climbed a bit today, to G$425.07. The DIGS has dropped down out of an up-pointing wedge, which spells "breakdown." However, a below-G$415 close is needed to confirm.

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.