Tuesday, November 13, 2007

Whether the Gold Rally Resumed Today, or Resumes 2 Weeks from Today, it Will Resume -- Shortly.

Gold Price Close Today : 813
Gold Price Close Yesterday: 797.2
Change: 15.8 or 2%

Silver Price Close Today : 15.029
Silver Price Yesterday: 14.571
Change: 45.8 cents or 3.1%

US Dollar Index Today: 75.83
US Dollar Index Yesterday: 75.91
Change: -0.08 or -0.1%

turned in marvelous, lusty performances today, but I would be neglectful if I failed to warn y'all that reactions run in three legs, down-up-down. What you may have seen today was the "up" part of that correction, with one more down leg to come.

Working a against that was silver's close above $15.00 at $15.027 & gold above $808 at $813. These prices are within the gap left last week, & I interpret that as strong. I know from dealers all over the country that physical demand is the strongest seen since Y2K.

Best strategy I know is not to let the threat of another reaction scare you off -- buy silver & gold now. Whether the rally resumed today, or resumes 2 weeks from today, it will resume -- shortly.

Premiums on all gold coins & on silver rose again today. Huge demand out there.

James Turk wrote a recent article noting that gold today was equal today to its 1971 value about US$42.65. Interesting, since that was gold's last low and it climbed for the next 7-1/2 years, increasing 1993% to top at 850.00. Just got me thinking, you know? 20.73 times $800 = $15,944. Sounds ridiculous, doesn't it? I reckon $850 gold sounded ridiculous in 1971, too.

Whoops! The air done come out of the stock balloon again today, as stocks gave back about a third of yesterday's gains, closing near the day's lows.

Now why is it when you talk to stock brokers & investment advisers about buying silver or gold, they flash you the same look a vampire flashes when you pull out a wooden stake? I know this happens because numerous customers have reported it, & reported the threats of being committed if they carried out their intention to invest in silver & gold. It's hard to think for yourself. You're not likely to do it when letting other people think for you fills your lunch box.

The US Dollar index has dropped about eight basis points since yesterday, no big deal, but the second day of giving up ground. Not an inspiring performance. More I think about the dollar, more I recur to the conclusion that US gov't. & Fed policy is now to let it drop, drop, drop. The con-sequences make me tremble. Where will this end? Get out of dollars.

There are 41 days left till Christmas. If that doesn't make your blood run cold, I don't know what will.

On this day in 1972 the Dow Jones Industrial Average closed above 1,000 for the first time in history.

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.