Both SILVER & GOLD PRICES made hefty jumps today, the silver price jumped up 17.5 cents to $14.695 & the gold price jumping $13.20 to $826. These are the next resistance points. Failure here would probably drag down to lows in May. On the other hand, breakouts here above the last highs ($848 & $16.27) will send silver & gold prices skyward like so many New Year's rockets.
Expect to see $1,200 gold and $25 silver in 2008. Expect the subprime crisis to continue to bleed banks, hedge funds, money market funds, pension plans, insurance companies, and governments like an 85 pound leech next year. Check your money market fund and get your dough out now if they are not invested 100% in government bonds. Better yet, get rid of your money market fund & put the proceeds into silver & gold.
Now remember what I said last week, that markets can become very wild in this holiday week, without much meaning for later action. So many people are vacationing that markets are thin and so easy to move for those few lean & hungry traders on the floor.
No major news moved markets today, just a lot more sorry results from the sinking US economy: home prices sinking faster, disappointing holiday spending. Yet the US Dollar, still labouriously, tiresomely trying to rally, lost a whoppin' 35 basis points today. If y'all expect to survive, y'all have got to shuck those dollars. The buck will rally into next year, torturing its foolish partisans with these back & forth rallies & failures, but ever rising. That can play out over a quarter or half year, but in the end will prove "full of sound & fury, signifying nothing." Truly a tale told by idiots.
US STOCK markets are enjoying a year end rally of sorts, with the Dow at 13,550 & the S&P 500 at a starchy 1,495. Once the money managers books are cleared, their balance sheets dressed up for year end (especially year end bonuses) then reality will return to stocks in January and the carnage will begin in earnest. Make this your New Year's resolution before the Old Year expires: swap stocks for silver & 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"
http://the-moneychanger.com/
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.
