Tuesday, July 24, 2007

Silver & Gold Have Now Reached Their Crisis Point - They Must Clear Resistance Here.

SILVER & GOLD PRICES rose well today, yet not quite enough to unquestionably break through the downtrend lines containing them. I expect resistance for gold from 684 all the way to the old high at 692. Silver is trying to work up strength to burst through 1350 and then 1380.

Silver & gold have now reached their crisis point. They must clear resistance here, or fall back in a correction that will last nearly six months. My guess is that they will continue upward, but the market will speak for itself. If they break through 1400 and 692, I expect the 2006 highs at 1486 and 720 to be breached, followed by a rally that smashes thru every barrier in its way.

Silver's 50 & 200 day moving averages have kissed. In the past that is a prime signal of a coming huge rally.

GOLD/SILVER RATIO is acting as it should if a rally is on the way. It should begin dropping soon.

The US DOLLAR continues to make new lows. Today gold continued its rise against the Euro, nearly clearing 500.

Big, big news today: The Dow in Gold Dollars closed at G$414.43 920.20 oz), below critical G$415 support. More, the DiG$ has fallen clean out of the trading channel, moved back to test the channel, then fallen down again. Barring a close above G$415, that's it. You've got your signal that stocks have turned down against gold & wil continue down for the foreseeable future.

The DOW today took stocks to 13,701 at its low, a hair away from critical 13,700 support. Watch for the Dow to drop further tomorrow. All stock indices dropped today, heavily. The S&P is only 11 points above psychological support at 1,500. Stocks are looking a lot like they've topped for the year. Continuing to plead & beg. I urge y'all to swap stocks for 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.