Monday, July 30, 2007

Silver & Gold Prices Rose Nicely Today - Just Enough to Show so far They Refuse to go Lower

SILVER & GOLD PRICES rose nicely today, but not in any decisive manner -- just enough to show so far they refuse to go lower. I think we saw the lows last week, and now is the time to start buying both -- especially silver -- with both hands. Silver is forming a bullish falling wedge on the chart.

The GOLD/SILVER RATIO has refused to move above 52, and can't pierce the upper channel line. Break down from here should be spectacular, which is an upside down way of saying a big silver rally loometh.

The US DOLLAR INDEX today dropped back 18.5 basis points, unable to hold onto its seat over 81 at this first try. Remains to be seen whether it can climb over 81 in the second try. Jury's still out on whether the Dollar will rally or sink through 80. You know, it's really a pretty good joke on all of us. We sit around wondering what the US dollar's worth, while the Nice Government Men must be laughing their vests off at all us fools who don't understand the dollar's worth nothing at all, except the confidence we give it.

'Tis hard to keep remembering to look not at the seen but the unseen. All the Gurus & Gurettes (and the rest of the Establishment flatters & hangers-on ) today were crowing about stocks' gains. Sounded a mite hollow to me, since I looked at the Dow in GOLD Dollars. From Friday to until today the Dow rose a magnificent 32 gold cents (0.014 troy ounce). When you look at the unseen rather than the seen, it turns out you're not seeing much.

August is my vacation month, so I will only be posting commentaries on Fridays during August. Rest of the time I will be performing hard manual labour so my mind will work better the rest of the year. Our office will remain open to help you, except I won't be around.

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.