Monday, November 05, 2007

Gold Price is Headed Higher - Buy Silver Now

Gold Price Close Today : 808.10
Gold Price Close on Friday: 805.7
Change: 2.4 or 0.3%

Silver Price Close Today : 14.732
Silver Price Close on Friday: 1454.6
Change: 18.6 cents or 1.3%

US Dollar Index Today: 76.45
US Dollar 25th of October: 76.274
Change: 0.17 or 0.2%

So the GOLD PRICE makes two, three, or four bucks a day. Not much, until you throw in some $10 days and add a pound of relentlessness. Gold is headed higher still, overbought though it be. Physical demand for investment gold is relentless, too.

The SILVER PRICE battered away again today at that old 1486 high that stopped it four days ago. You think this rally has been exciting until now? Wait until silver crosses 1500, when, in the words of John Milton, "all hell will break loose." Yes, buy now.

The gold silver ratio looks like it has turned down again, so perhaps we won't get to swap gold for silver at 58:1. The ratio won't climb above 55.5.

The US Dollar Index hit a new low today at 76.24, but managed to close higher at 77.449. Now in the late (18:37 Central time) aftermarket it's down to 76.393. It just keeps on grinding lower while silver & gold grind higher. Believe it or not, the Dollar Index is not so oversold that it can't go lower. Of the last 10 days, 8 have been down days. Avoid all investments that promise to pay you dollars in the future.

STOCKS look ready to plunge through Dow 13,400 & freefall. The Dow needs a close above 13,963 to prove that conclusion wrong. If it weren't for the Nice Government Men on the Plunge Protection Team, where would the Dow be now? The DOW IN GOLD DOLLARS, a more honest & reliable indicator, has broken down and today closed at G$346.45 (16.760 oz). It shows no signs at all of levelling off.

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.