Monday, October 29, 2007

$850 Gold Price Soon - Maybe By The End Of This Week

Gold Price Close Today : 789.10
Gold Price Close Friday: 783.90
Change: $5.20 or 0.7%

Silver Price Close Today : 14.365
Silver Price Close 19th of Friday: 14.212
Change: 15.3 cents or 1.1%

US Dollar Index: 76.87
Change: -0.14 or -0.2%

Whooo-eee! Somebody is scared about what Mighty Ben & his Feddites are going to do tomorrow. They've been buying gold today like the Russians were on
Main Street.

The GOLD PRICE rose $5.20 at the close of $789.10, and then rose another $2.00 in the aftermarket! What, ho? High was $794.90, $5.10 from my $800 first target. Some strange Fed act tomorrow might whack gold, something I haven't thought of, but barring that y'all will see $850 gold price soon, maybe by the end of this week.

Oh, and SILVER! The SILVER PRICE rose 15.30 cents by the close, and then in the after market had risen another 14 cents to $14.505 This is frantic buying, leaving me sniffing the air for a cause of this terror. A short squeeze? I would be very much surprised if the silver price stopped here. More, it gives me beautiful dreams just to contemplate where the silver price might go from here -- will it stop first at $18, or $20 -- or $24 ? Very powerful forces take over above $15, which was the last high back in 1981.

If y'all have still failed to buy gold & silver, you'd better run catch the last train before it leaves you behind forever.

On this day in 1929 crashed the US Stock market. The high that year was G$381 (the dollar was backed by gold then), and before the market bottomed in 1932 it dropped to $41.63.

The US DOLLAR INDEX dropped again today to another all time low, and tomorrow Mighty Ben will probably drop the interest rate another quarter percent, which makes the buck even less attractive. One would guess that Ben won't try another trick like his last one, seeing how it roiled markets, but silver & gold have been nervous today, as if every hedge fund & investor out there wanted to take hold of a little gold rope just in case Ben hasn't learned anything from his last party. Logically the dollar ought to rally from here someplace, but logic has nothing to do with currency exchange rates, it seems.

STOCKS gained a little, but it was a slow day because everyone is waiting for the Feddites (rhymes with "Luddites") to "act" tomorrow. Of course, that didn't prevent the Dow in Gold Dollars from sinking more, to another new low at G$362.35 (17.529 oz). How much clearer can the message be? Stocks will under perform gold for a long time to come.

Did y'all also notice that the Dow in Silver Ounces has fallen through 1,000 oz to close today at 956.24 oz.?

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.