I really think SILVER & GOLD PRICES are due for a rest. Without one they crash through 720 & 1300, but run out of steam shy of 800 & 1500, then correct lower than they did in August. Rather, I'd like to see them struggle around here for a while, building a launching platform. Either way, by end-November both will have seen their lows. Breakout is confirmed by a two day close over 720 accompanied by silver over 1300. Silver's lagging still clouds the promise of a rally.
US Dollar Index rose again today, minutely. As they say in Tennessee, "What a joke!" They also say, "That old dog won't hunt." If you are holding any sort of paper -- bond, pension, annuity -- that entitles you to receive "dollars" in the future, get rid of it now. Swap it for silver & gold.
There's not much to be said about markets until the Fed speaks from Olympus' heights tomorrow about interest rates. Silly, since the market has already priced in a 1/4% interest rate cut. The Fed doesn't like to surprise the market, so it's most likely to give what everyone expects. If it were to cut more, 1/2%, then folks might panic out of the dollar, taking it as a sign of Inflations To Come. If the Fed cuts not at all, stocks tank since everybody expects the Fed to bail Wall Street out of its subprime swamp. Therefore, the Fed will cut 1/4% most likely. That will send stocks, & probably silver & gold, up a day or two until all the enthusiasts sober up & remember that the world is still the world.
Of course, I would be an idiot to underestimate the idiocy & incompetence of any arrogant bureaucracy. After all, these are the same wonderful folks who gave us the Great Depression, & World War I & II. What can't they do wrong? Nothing. They could mess up a steel ball, which is one reason they are so cautious & timid & usually do what they believe the market expects.
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.