Tuesday, October 23, 2007

Silver and Gold Prices Will Move Higher Before a Major Correction

Gold Price Close Today : 759.00
Gold Price Close Yesterday: 755.80
Change: $3.20 or 0.4%

Silver Price Close Today : 13.572
Silver Price Close Yesterday: 13.475
Change: 9.7 cents or 0.7%

STOCKS today bounced up 109.26, but it signified nothing. The area around 13,675 is a minefield filled with resistance, & I doubt the Dow will pierce it tomorrow. Yet the Dow in Gold Dollars reveals the real truth of a 109.26 point Dow rise: spit in the wind. In gold dollars it amounted to only G$1.41, or 0.068 oz. of gold, about the size of a tiny Mexican 2.5 peso.

Continuing to bolster my suspicion that both SILVER & GOLD PRICES will move higher before a major correction, gold jumped over 757.50 today to close at 759, and silver scrambled above 1350 to close at 1357.2. Although the metals rally has lingered a long time in overbought territory, the end is not yet -- I'm betting.

Today that unreliable friend, the US DOLLAR INDEX, gave back nearly 50 basis points, to close little above last weeks 77.3 low (77.525). It's beginning to make me wonder whether the dollar ever will rally. But then if it holds it will confirm last week's low as a bottom.

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.