Tuesday, October 16, 2007

Buy Silver and Gold On Any Dips

Gold Price Close Today : 757.00
Gold Price Close Yesterday: 757.10
Change: 0.10 or 0.0%

Silver Price Today : 13.560
Silver Price Yesterday: 13.760
Change: -20 cents or -1.5%

I admit that silver & gold have me quandrified. The SILVER PRICE wants to correct, while the GOLD PRICE champs at the bit to run off. Today's double close in gold (yesterday 757.10, today 757.00) makes me wonder, as double closes always do, whether gold might drop tomorrow.

Silver did stop above 1350, which was encouraging. Even if metals take a well-earned breather here, before too long they should move up smartly. Bull market seasonals (since 2001) point toward that, as do silver's moving average comparisons. Buy more silver & gold on any dips.

What on earth was I thinking about yesterday? Had I looked more closely I would have reported that the Dow in Gold Dollars (DiG$, the Dow measured in gold) broke down yesterday through G$385-386 (18.624 oz - 18.673 oz) support which had held since 7 September. Now beneath the DiG$ stands only the Feb. 2007 low at G$369.25 (17.862 oz), then the May 2006 low about G$331 (16.012 oz). Now it's possible the DiG$ will catch and stop at G$369.25, but it is very, very doubtful, on the same odds with your unknown great aunt dying and leaving you half of Saudi Arabia. Listen carefully to what the DiG$, my most reliable indicator, is whispering: "Gold will outperform stocks for a long, long time."

Stocks must stop at Dow 13,700 or drop much lower.

The US DOLLAR INDEX won a small skirmish today, up 12.5 basis points to 78.208. This should be the week when it either double bottoms at 77.66 or stops above 78. Next big move is a rally.

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.