Wednesday, October 31, 2007

Stop Waiting To Buy Gold and Silver

Gold Price Close Today : 792.00
Gold Price Close Yesterday: 784.30
Change: $7.7 or 1%

Silver Price Close Today : 14.377
Silver Price Close Yesterday: 14.267
Change: 11 cents or 0.8%

US Dollar Index: 76.54
Change: -0.20 or -0.3%

Y'all think about this: last week for the very first time in my 27 years of buying and selling silver & gold I sold a gold coin for $800 an ounce.

The GOLD PRICE high today hit 797.30. The gold price jumped US$7.70 at the close, & has risen another US$3.50 in the aftermarket, 3 hours later. Sure, it could bounce off the psychological barrier of the round number US$800, but more likely it will punch through US$800 like wet cardboard.

Folks, we got us a rally. Stop waiting to buy. Don't stand in the way of a bull market, it'll run you over.

The SILVER PRICE was the only sad note in today's performance. It rose 11 cents, to $14.377, and another 12 cents in the aftermarket (so far), but why not close over $14.50?

The US DOLLAR INDEX dropped about 20 basis points to a new low today -- another new low. This is ridiculous. Ask anybody back from a recent European trip about purchasing power parity. They're still burned about paying US$120 for a $60 meal. A dollar rally is overdue. Today's 25 basis point drop (to the day's low) suggests that rally will begin soon -- NOT, of course, that I recommend you hold dollars. I'm just warning you that this might slow down silver & gold.

Fitting for Hallowe'en: clearly the Fed goofs are scairt silly that the subprime credit crunch & liquidity panic (SCC & LP) will drag down the entire rickety house of cards that is the fiat money sponsored US economy. So said goofs lowered interest rates (or, their little part of interest rates, hoping everybody else will follow) a quarter percentage point. The message? Bernanke is really Freddy Kruger of Nightmare on Elm Street & intends to take a chainsaw to the US dollar, or whatever is necessary to bail out his corporate cronies on Wall Street & Elsewhere.

Whoops, sorry, you Little People, your dollars will have to be inflated away -- can't make an omelet without breaking your eggs.

Folks, if y'all have ever had a warning to get out of the dollar & into silver & gold, this is it, the second one. Flee from all investments that oblige anyone to pay you dollars in the future -- annuities, insurance, pensions, etc.
STOCKS thought the Fed's move was very amusing, and responded by climbing a measly 96 points. This doesn't impress me. The Dow still has not signalled which way it will fall off this knife edge, but, as usual, I don't give a hoot because I have long ago swapped stocks for silver & gold, as I urge you to do, too.

The DOW IN GOLD DOLLARS hit G$360.90 in the aftermarket, down enough from the close (G$362.49 or 17.535 oz.) and from the Feb. 2007 low for me to proclaim, announce, and deliver that a new downtrend has begun that won't stop until it crashes through G$330.00 (15.964 oz). Bad news for stocks, great news for gold.

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.