Monday, October 15, 2007

If Silver & Gold Prices Both Gain Tomorrow - Then We'll Soon See Much Higher Prices

Gold Price Close Today : 757.10
Gold Price Close Friday: 748.70
Change: 8.40 or 1.1%

Silver Price Today : 13.760
Silver Price Friday: 13.803
Change: -4.3 cents or -0.3%

SILVER & GOLD PRICES dropped a big question in my lap today. The silver price can lag the gold price, or gold can lag silver, & it doesn't mean much. Today, however, the gold price rose smartly, eight bucks, while silver sank four cents. That looks like a non-confirmation. Markets speak with forked tongue. Gold/silver ratio drop. Makes me nervous, although I have been expecting the gold price to rise.

If silver's dallying today was not a harbinger of lower prices to come -- if silver & gold prices both gain tomorrow -- then we'll soon see much higher prices. But if gold has out run itself & needs a rest, that will probably show up with a lower close tomorrow. Aww, I'm probably worrying about nothing.

The US DOLLAR INDEX sagged today again, trying to defend 78. We'll either see a double bottom with 77.66 this week, or the dollar will succeed in holding on to 78.

Today I figured out why I have been so suspicious of stocks lately (well, okay, more suspicious than usual): they were fixing to tank. Now two different things might happen. First, stocks might decline to, say, 13,550 or so, the 50 day moving average, and then soar again. They will then crash through the old highs and keep on moving. Or, second, they might drop to the 50 DMA and fall right through, and keep on falling, having painted on the chart a gigantic double top, and finish. From here, I don't know which, I only know (as much as I know anything in this sublunary world) that silver & gold will outperform stocks monstrously in the next decade.

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.