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Friday, December 28, 2007

$1100 - $1200 Gold Prices by Mid-February 2008 if the Gold Price Opens the Year Higher and Holds These Gains

Gold Price Close Today : 839.60
Gold Price Close 21st of December: 811.60
Change: $28 or 3.4%

Silver Price Close Today : 14.77
Silver Price 21st of December: 14.346
Change: 42.40 cents or 3.0%

US Dollar Index Today: 76.159
US Dollar 25th of October: 77.687
Change: -1.528 or -2%

It's odd & close as a straight razor shave, but I have to write y'all about it: the GOLD PRICE today closed at 839.60, above its previous high close of 835.20 (8 Nov). Now for a clean breakout you'd like to see a close 2% or 3% above the last high close, say, $852 to $860.25. However, the gold price in Euros has not broken out, nor in Japanese yen, although it is pushing on the ceiling.

Meanwhile the US DOLLAR INDEX has lost 152.8 basis points since last Friday. I keep getting the feeling that something is going on behind the scenes, something very big, but I haven't a clue what so maybe that's my want of insight speaking, trying to find cover.

Gold & Silver Prices both delayed their seasonal lows well into December, while Oil (like Freddy Kruger in Nightmare on Elm Street) refuses to die & make its seasonal peak and recede. The dollar rallies, then fades -- not inspiring, although it is fairly typical.

STOCKS I thought had bottomed, but this week have made daily 200 point swings with no progress at end of day, up or down. On balance, the last week has been a loser.

So where are we? I'm scratching my head. Silver & gold prices, especially gold prices, have behaved very, very strongly this week. If they open the year higher & the gold price holds on to these gains, you will probably see US$1,100 - 1,200 gold price by mid-February.

Downside is that if gold fails here, it puts a double top on the move and means much more time correcting. Thinking on this week's strength, it seems likelier that the gold price will continue to run in the next year.

I won't send out any commentary on New Year's Eve, so will now wish all of you the blessings & tender mercies of God in 2008 & always.

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.



Wednesday, December 26, 2007

Expect to See $1200 Gold and $25 Silver in 2008

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.



Friday, December 21, 2007

Buying Gold Now is Less a Matter of Watching Gold Prices & More a Matter of "Get Some at Any Price."

Gold Price Close Today : 811.60
Gold Price Close Last Friday: 793.30
Change: 18.30 or 2.3%

Silver Price Close Today : 14.346
Silver Price Close Last Friday: 13.826
Change: 52 cents or 3.8%

US Dollar Index Today: 77.687
US Dollar Index Last Friday: 77.396
Change: 0.291 or 0.4%

It's difficult to judge price movements around Christmas time, since traders square off their positions to avoid carrying them over the holiday. Clearly, nobody wanted to stay short silver or gold over the weekend. Yesterday I said the gold price needed to close over $813.50 & silver over $1419.60 to break out of their ranges. Lo, what happened?

The GOLD PRICE rose $12.40 to close at $811.60, not quite enough, while the SILVER PRICE blasted up 15 cents to end the day at $14.346. Silver shorts were paying large money to cover, but I wouldn't call that a breakout, here at Christmas. I believe we will have to wait until next year to gauge real direction, and that, I believe, will be firmly up.

STOCKS today rose briskly, with the Dow up 205 &, more impressively, the S&P up 24. O, I fear for stocks this coming year! Bad news awaits.

My friend RL called yesterday & said, "The firehouses are on fire!" He was talking about the companies that insure bond issues. Lured by greed (like everybody else) they foolishly insured CDOs & MBSs & now find they have reserves nowhere big enough to match such cosmic losses. The rating agencies are downgrading them. Oh, the subprime losses are only beginning.

Without exaggerating, I believe this is the worst financial crisis in my lifetime. Some sort of leadership (bigger than any those pygmies in Washington can offer) will be needed for the banking system to survive this.

Batten down your hatches. Buying gold now is less a matter of watching prices & more a matter of "get some at any price."

The US DOLLAR INDEX continues to hold up over 77. It is building a base for a rally that will carry to 80 or so, & last a number of months before it, too, disappoints & collapses. Put not your trust in fiat money.

In yesterday's commentary I asked y'all to pray for my son Justin's daughter, Caroline, age 5 months who was hospitalized with double pneumonia. On doctor's advice this morning Justin & Ellen moved Caroline to Vanderbilt Children's Hospital in Nashville. There the doctors said she does not have pneumonia but congestive heart failure caused by an unclosed hole in her heart & a constricted aorta. They also say that 95% of infants with these problems lead normal lives after several surgeries. However, right now Caroline is very sick.

My great nephew Colin's surgery yesterday removed 98% of a huge tumour on his kidney, which had not metastasized. He is 18 months old. So far, so good, but a very long row to hoe yet.

Would you please continue to pray for Caroline, that by God's grace she would heal and recover? Pray also for Justin & Ellen, exhausted with yet more challenges again, that God would renew their strength & bear them up on eagle's wings.

Pray, too, for little Colin Sanders, that God would heal him, and that right soon. Please pray for his father & mother, Brett & Mindy, that God would give them grace to bear this burden patiently & with good hope.


- Franklin Sanders, The Moneychanger



Thursday, December 20, 2007

Gold Needs to Rise Along With Silver Tomorrow, Otherwise We'll Just See More Meaningless Back & Forth

Gold Price Close Today : 799.20
Change: -1.90 or -0.2%

Silver Price Close Today : 14.196
Change: 12.3 cents or 0.9%

US Dollar Index Today: 77.81
Change: 0.24 or 0.3%

Gold up, silver down, silver up, gold down -- markets are confused & can't figure out which way to go. Don't like that. It may be merely people settling things at year end that have nothing to do with the underlying direction of the market, or . .

The GOLD PRICE fell $1.90 today to close at $799.20, below the psychologically important $800 mark. Meanwhile, the SILVER PRICE went the opposite direction to close up 12.30 at $14.196, a new high for the move.

Silver says yes, gold says no, & gold drops a couple of bucks in the aftermarket. Bewilderment & confusion, and that's usually weak. If they're going to rise, tomorrow gold needs to rise along with silver. Otherwise we'll just see more meaningless back & forth.

Boundaries for the gold price right now are $813.50 above & $793.30 below. Only trading above or below those lines will move the market. For the silver price the same numbers are $14.196 and $13.826. Remember that this time of year markets are thinly traded. Sometimes the few traders present will run the markets up or down to make themselves a few quick bucks, but the action really doesn’t mean anything.

The US DOLLAR INDEX rose another 21 basis points today, trading now at
77.78. That's knocking on the door of 78. Now the $ stands above its 50 day moving average (76.53) and the 200 DMA stands at 80.17, about where it will meet the downtrend line if it keeps on climbing.

STOCKS breathed new hope into the optimists today by making up yesterday's losses and closing over 13,200 again at 13,245.64. This is a sad story playing out, since the ending shows in the chart already. Look for big trouble in January.

Today I need to beg a favour from y'all. My son Justin & his wife Ellen had our first granddaughter, Caroline, on 26 July. She's always been a little small, but plenty bright. Yesterday she had to go into the hospital with laboured breathing, & was diagnosed with double pneumonia. Would y'all please pray for little Caroline's complete recovery & health, & for God's peace & comfort for Justin & Ellen?

As if that weren't enough, yesterday we also found out that my nephew's 18-month old son, Colin Sanders, has a tumour on his kidney, which is being surgically removed today. Would y'all please pray for Colin's healing, & for his parents, Brett & Mindy?

I do understand that prayers are not measured by the pound, & that the prayer of one person accomplishes much, but it would greatly comfort me if I knew others were also praying for these babies.

- Franklin Sanders, The Moneychanger



Wednesday, December 19, 2007

World's Central Banks Hit Panic Button, Injecting $0.540 TRILLION Dollars Into the Financial System in One Day

Gold Price Close Today : 801.10
Change: -1.90 or -0.2%

Silver Price Close Today : 14.073
Change: 0.059 cents or 0.4%

US Dollar Index Today: 77.57
Change: 0.19 or 0.2%

Metals seem wedged in the spot, not able to rise but not able to be forced down. The US DOLLAR INDEX continues to rally, which no doubt adds to metals' difficulties. Certainly no runaway rally, but likely to continue for 2 - 3 months.

Big news today! Somebody in central bank land is scared. The Euro central bank on Tuesday stunned everyone by pumping $500 billion (half a trillion dollars) into the markets. The ECB's action effectively reduced the London interbank offered rate (Libor) by 50 basis points. Across the Channel the Bank of England auctioned off cheap loans at 14 bps below the base rate, to the tune of $20 billion. The Federal Reserve injected $20 billion into the US by the same means.

Let's see . . . The world's central banks, obviously working together, inject $0.540 TRILLION dollars into the financial system in one day. Would that classify as pushing the panic button? Is a pig's rear pork? Can a duck swim? Does a bank suck blood? Of course! You can hear the sweat dropping off their foreheads from Tennessee. Scares me, I'll promise.

GOLD shed a buck today to close at $801.10 -- good that it closed over $800, not so good that it failed to advance. Gold has formed a tight corrective triangle. As long as it holds above $792, trend remains in force. A break below $792 would forecast a stout fall, say to $750 or even $720, but for now I don't expect that outcome. Between now and New Year most likely gold will keep on treading water. No trader likes to see big breakouts on holidays.

SILVER rose five cents today to close above $14.00 at $14.073. That's okay, as far as it goes, but nothing inspiring. Silver's performance at 13.80 makes me conclude that we have seen the bottom already. Once gold begins rallying again, it will be time for silver to begin outperforming.

STOCKS today disappointed their promoters by falling back to 13,000. Whether the Dow rallies into year end or not, the chart shows an indelible topping pattern. Expect much lower prices next year. Swap stocks for silver & gold while you still have time.



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.



Monday, December 17, 2007

Silver & Gold Prices are not Rising Due to the Dollar's Depreciation Alone, but Due to Depreciation in all Fiat Currencies

Gold Price Close Today : 794.80
Change: 1.50 or 0.2%

Silver Price Close Today : 13.826
Change: - cents or 0.0%

US Dollar Index Today: 77.41
Change: 0.01 or 0.0%


On Friday the US Dollar Index rose 86 basis points. As I have been warning, silver & gold did not like this, not to mention stocks. The Dollar Index has long been overdue for a rally, so this holds no surprise, nor should it surprise anyone that silver & gold dropped on that rally. However, after they have a short while to digest the higher dollar, up they will move again.

Silver & gold prices are not rising due to the dollar's depreciation alone, but due to depreciation in all fiat currencies. People act as if the Euro or Yen were somehow "better" fiat currencies than the dollar, but they're just as sorry.

The GOLD/SILVER RATIO has broken out to the upside, closing today about 57.5. If you are ever going to trade gold for silver, now is the time. Top of possible move is 58.5 - 59. Trading right now might be a bit early, but definitely trade at 58.

Last Friday's break in silver & gold took them below established support, & can be expected to drop further. Yeah, but how much further is the question. GOLD's downtrend line is still intact, but it broke through what had been support around $795. 50 day moving average stands at $788.43, & that's a likely place gold might stop.

The SILVER PRICE broke $14.00 support. 200 DMA stands at $13.34, and of course that's one target, but support at $13.80 is also strong. I've learned that silver sometimes makes its extreme move in the first few days of a break, so we may have seen the low.

Although the possibility looms that silver & gold can drop further, I would buy heavily here, scale down. Buy some, then if it drops, buy more. We are in a full-fledged bull market, & in that kind of market, scale down buying works.

The Dow in Gold Dollars (DiG$, the Dow in terms of gold dollars) had rallied after its after its new low at G$318.92 (15.427 oz.) all the way to G$354.56 (17.52 oz). Whoops. That only took it to the downtrend line, where it failed. Stocks are fixing to drop much further against 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.



Thursday, December 13, 2007

Gold has Been Forming an Even-sided Triangle That Could Break Up or Down

Gold Price Close Today : 799.00
Change: -14.50 or -1.8%

Silver Price Close Today : 14.072
Change: 58.3 cents or -4.0%

US Dollar Index Today: 76.53
Change: 0.25 or 0.3%

Today's action just shows how bewildered this market action has left me. Gold & silver prices fell off after the Fed's action, which was logical as the smaller 0.25% rate cut would not damage the US dollar as much as the expected 0.50% cut. When they failed to break below support ($795 & $14.45) that looked strong. Closing higher yesterday clinched that interpretation -- and then today, both metals fell. Gold didn't break that support, but silver fell all the way to the bottom of its range.

For the SILVER PRICE, $14.00 holds strong support, with $13.80 just below that. The Gold-Silver ratio today jumped over the downtrend line, so maybe we are seeing the ratio spike my friend BL has been expecting. Gold meanwhile has been forming an even-sided triangle. That could break up or down, but given gold's trend, should break out upside.

To me it seems you have to buy silver & gold here, counting on that resistance to hold. The gold price is too close to finishing its chart pattern to wait, & the window for seasonal lows is rapidly closing.

The S&P500 still looks like a top to me, with the Dow not far behind. This week's Dow chart looks like the inside of a meat grinder -- bloody. I still can't figure where the permanent bulls' optimism comes from, except that they expect the future to replay the past forever. Next year will wreak pain, tooth-gnashing, and mourning on the US economy. Stocks will take their share of the beating. Lo, ye have your warning! Swap stocks for silver & gold.

The US Dollar continued rallying today, having defended 76 as support.
It rose 25 basis points to close at 76.53. Even if the dollar began rallying very fast, it still would hit the downtrend channel line about 79. More likely it will slowly rally and top out at 78 or less. That's inspiring, huh?

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.



Tuesday, December 11, 2007

The Silver Price Offers One Reason not to Expect Gold to Drop Lower

Gold Price Close Today : 811.40
Change: 3.70 or 0.5%

Silver Price Close Today : 14.695
Change: 21 cents or 0.1%

US Dollar Index Today: 76.28
Change: 0.2 or -0.3%

The GOLD PRICE closed up 3.70 at 811.40 shortly before the communists at the Fed made their announcement. After that the gold price dropped US$15 to US796 in the after-market. If the gold price is headed lower, it will break 795 support tomorrow.

The SILVER PRICE offers one reason not to expect gold to drop lower. Silver broke like gold today, from a slightly higher close at 14.695 to 14.45 in the aftermarket. It was that 14.45 close that caught my eye, because it had been resistance for weeks. Oh, maybe it will drop a dime or 20 cents early in the day, but provided it close tomorrow above 14.45, silver shouldn't drop any lower.

Lo, the Fed hath spoken, & nobody much liked what he heard. Comrade Bernanke & the Commissars of Money lowered its main short term rate by 0.25% and lowered its 'discount rate' (charged by the Fed to borrowing banks) to 0.25%.

STOCKS responded by dropping 294 points -- wow, that Fed really knows how to manage the economy, huh? Closing at 13,433 the Dow fell below its 50 day moving average (13,545) but not quite as far as the 200 DMA at 13,280. Dow would look very weak if it fell below 13,200. I know many expect a rally into year end and beyond, but my doubt persists. Anyway, I'm sure I want to swap stocks for silver & gold.

The US DOLLAR INDEX interpreted today's Fed interest rate cut as good for the dollar, and it rose over 20 basis points to close at 76.277. That brings the dollar closer to its 50 DMA at 76.70, and the last intraday high at 76.82. Slow as it is, you still have to call that a rally. This won't help silver & gold, but it certainly won't be fatal, either. Just one more hurdle to jump.

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.



Monday, December 10, 2007

Hold on to Silver & Gold, & Buy More

Gold Price Close Today : 807.70
Change: 13.30 or 1.7%

Silver Price Close Today : 14.674
Change: 34.9 cents or 2.4%

US Dollar Index Today: 76.08
Change: -0.2 or -0.3%

Thursday through Saturday last week my wife & I attended the Acres USA conference in Louisville. Whoa. I am speechless. I haven't been around that many bright, intelligent countenances in a long time. No question that conventional agriculture is already dead, & will be replaced by the New Agriculture.

The GOLD PRICE action today persuades me that the market expects Bernanke to drop 50 bps, since it rose 13.30 & closed above 801.20, which had been unbeatable resistance since 28 November. What BB will do I haven't a clue, but I can assure you that lowering interest rates is not a currency-strengthening act. Dollar may rally a few months due to sheer lunacy, but 'twill drop mightily next year, while silver & gold will prosper.

The SILVER PRICE close today at 14.674 was its highest since 26 November, & its first above 1445., so both silver & gold have broken through short term resistance.

But anything can happen tomorrow. That's what I love about government meddling in the economy: it totally wrecks your ability to plan & forecast.

Bottom line: hold on to silver & gold, & buy more. Continue getting out of stocks, US Dollars, and investments that promise to pay you US dollars and into silver & gold.

Res ipse loquitur -- the numbers above speak for themselves, quite loudly. While the US Dollar index has risen & fallen, risen & fallen, it has made no real headway, only established 76 as new support. The Bush administration proposal Friday to freeze interest rates on adjustable rate mortgages is another act of subverting both economy & logic. Where in the world do these people get these ideas? Can't you see 'em all, the whole cabinet or all the apparatchiki at the Treasury, all sloshed, laughing, uproariously as they think up more & more ridiculous ways to bail out the banks? And of course the biggest drug dealer -- the greatest seller of toxic securities -- Goldman Sachs, has sent its former CEO to head up the US Treasury. That's the best joke of all. Man! Where's Madame Lafarge when you need her? Or for that matter, Madame Guillotine?

STOCKS keep on climbing, & this shouldn't surprise any of y'all. They have gained some on gold, as seen by the Dow in Gold Dollars (DiG$) climbing to G$351.32 (16.995 oz) today, after hitting G$354.56 (17.152 oz) on Friday. If tomorrow Berzerker Bernanke lowers interest rates another 50 basis points, expect stocks to surge for a day or two, then lose steam.

By the way, all those hopeless optimists who believe home prices are going to recover next year -- or even the year after -- are waiting for a very bad surprise. The market topped, the bubble popped, & home prices will drop & keep on dropping until they lose 50% to 95% of their peak value. If you're waiting for those prices to come back, I hope you're young, because us old folks don't have that much time.

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.



Tuesday, December 04, 2007

Gold Could Complete an A-B-C Correction at the 50 Day Moving Average ( $776) or May Have Already Bottomed

Gold Price Close Today : 801.30
Gold Price Close Friday: 788.30
Change: 13.00 or 1.6%

Silver Price Close Today : 14.271
Silver Price Close Friday: 14.011
Change: 26 cents or 1.9%

US Dollar Index Today: 75.67
US Dollar Index Friday: 75.95
Change: -0.28 or -0.4%

Looking at the GOLD PRICE chart, there seems to emerge an A-B-C correction that has already once nearly touched the 50 day moving average (today $776.64), & could complete the C-leg by touching that point.

On the other hand, the heat from the physical market is so great that I'm getting a sunburn just sitting next to my telephone. So whether we have seen the low or not (I think we have), you ought to buy gold.

The SILVER PRICE today made good its close over $14 yesterday, and climbed to $14.25 - $14.30 resistance. The gold price stands right under $805 resistance. If they break through here tomorrow, that might be the end of the talk about "corrections."

It's hard to love the US Dollar, expecially if you're a foreign exchange trader. Today it dropped 28 basis points, leaving 76.15 as unbeaten resistance on the chart. If it's bottoming, it's not going to bottom fast.

If the Dow corrected 62% of its fall from the October high at 14,164.53 to its November Low at 12,743, it would reach 13,622. A 50% correction would rise to 13,454, while a 38% correction would reach 13,286.3, about where the Dow has already reached. I see respectable people who are expecting a rally into year end. Right, but it's a rally for suckers. Use any rally as an opportunity to 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.



Monday, December 03, 2007

Gold May Spend More Time Backing & Filling Here

Gold Price Close Today : 788.30
Gold Price Close Friday: 782.2
Change: 6.10 or 0.8%

Silver Price Close Today : 14.011
Silver Price Close Friday: 13.963
Change: 4.8 cents or 0.3%

US Dollar Index Today: 75.95
US Dollar Index Friday: 76.170
Change: -0.22 or -0.3%

Goldman Sachs announcement of its favourite 10 trades in 2008 on Friday included shorting gold. Ahh, what a cheap piece of "talking your position" from a bunch of crooks! Twas pure propaganda for the masses, to keep them out of gold.

Notice that the GOLD PRICE took no notice of Goldman Sachs, and rose today $6.10 to $788.30. Gold may spend more time backing & filling here, but don't look for a great deal further downside as long as $776 holds.

Crooks! It makes everything you think about markets disappear when you begin learning how much is manipulated behind the scenes. But in the end manipulators are not God, & the market always bears them down. Be patient.

The SILVER PRICE rose above $14 today. I still think we have either seen a bottom already for silver & gold, or we are not far from it. Keep on buying. Premiums on physicals show heavy buying pressure.

STOCKS dropped today, but staring at the chart it begins to look like they will rally for several weeks. The Dow in Gold Dollars has rallied up to G$349.15, and today bounced off the long term downtrend line. Possible is a rally to G$370 (17.899 oz). That translates to a Dow of about 13,910.

What's new here? Markets go up, markets go down. The DiG$ dropped a long way, now it's correcting before dropping again. Last chance for y'all who haven't yet jumped out of stocks and into silver & gold.

US Dollar Index dropped 22 basis points today to close below 76, but not far below. Buck still headed up, but don't interpret that as meaning it's any sounder or better than it has been. It's still garbage, backed by the full faith & credit of the US government. But remember what Omar Khayyam said, "Ahh, take the cash & let the credit go!"

By the way, the stock market's rally is a trap for bulls. It won't beat the old high, and will merely complete a Head & Shoulders topping formation.

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.