Tuesday, November 20, 2007

Buy Gold and Silver Now - I Wouldn't Get Cute Right Here Waiting For The Lows in Silver and Gold

Gold Price Close Today : 790.30
Gold Price Close Yesterday: 776.8
Change: 13.5 or 1.7%

Silver Price Close Today : 14.478
Silver Price Close Yesterday: 14.136
Change: 34.2 cents or 2.4%

US Dollar Index Today: 75.11
US Dollar Index Yesterday: 75.77
Change: -0.66 or -0.9%

About 14:30 today some mysterious power began buying stocks, right when the Dow was around 12,839, 7 points below the August low. Stocks then rallied smartly to close at 13,010.14. That might have been the low for the move. In any event, swap stocks for silver & gold.

The US DOLLAR INDEX spent all day trying to break through 75.40, without success, dropped to 75.20 & trod water for 2 hours, then dropped down to its present 75.112, down 67.4 beeps for the day.

Not inattentive, gold watched the buck & rose an astounding $14 in the aftermarket, from $790.80 to $804, but has since backed off to $801.80. Silver closed the day at $14.478 but rose to $14.70.

Looking at the silver chart, yesterday's lows bounced off the bottom of the trading channel, steep as it is. When markets get very jumpy, spooking at anything, it's best to remain humble & hope. Sure, silver & gold could drop further, to some technical target like the 50 day moving average (now 1386), but maybe we've seen the bottom already.

The gold price basically rose all day long, then really became jumpy after the 13:30 EST close. Somebody is scared about financial risk, about market risk, about systemic risk. Demand (pictured for us in the premiums on physical gold & silver coins) remains stronger than a garlic milkshake.

I wouldn't get cute right here, waiting for silver & gold to make THE lows. I would just buy.

We will be closed on Friday, Nov. 23 as part of our Thanksgiving observance. We will return to the office on Monday, November 26.

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.