Wednesday, January 02, 2008

Gold Price will hit $1000 in Eight Weeks or So and Could Touch $1100 or $1200 Before It Corrects

Gold Price Close Today : 857.00
Change: $22.10 or 2.6%

Silver Price Close Today : 15.167
Change: 37 cents or 2.5% %

US Dollar Index Today: 76.00
Change: -0.48 or -0.6%

On 28 December I wrote y'all about the GOLD PRICE closing at a new high (839.60). "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." Well, you got that today in spades. The gold price leapt $22.10 to $857.00, while silver bounded up 37 cents to close at $15.167

About moves like this -- where gold breaks into higher territory than it hath ever traded in the US dollar's history -- what can anyone say? All along I have suspected that gold's December correction was a half-way correction. If that's correct, then the gold price will hit US$1,000.00 in eight weeks or so. Depending on how crazy it gets at that peak, gold could touch $1,100 or $1,200 before it corrects.

Make no mistake: you just heard the whistle blowing for the last train leaving the station. Buy gold & silver now or get left behind.

The US DOLLAR fell nearly 50 basis points today. Again. Dollar rally's taking off like a pregnant bat with concrete overshoes. By the way, silver & gold stand at range-top against the Yen & Euro. That argues metals are about to break out against those currencies as well as the dollar.

STOCKS simply cannot get up in the air. Mmmmmm . . .A series of lower lows & lower highs, plus falling below 50 DMA & 200 Day Moving Average. Now, what do you call that? Can anybody spell D-O-W-N-T-R-E-N-D. I don't think they're coming back. The Dow in Gold Dollars (DiG$) today fell to a new low since the bear market of stocks against gold began in 1999, namely, G$314.64 (15.221 oz). Swap stocks now for silver and gold, while there are still buyers for them.

If you still want to swap gold for silver, do so now. Stop waiting for a higher ratio. The gold price rally has now resumed, & since (I'm guessing) it has about its "halvecors yronne" (run half its course, for you non-Chaucer readers), the silver price should kick in soon & begin to outperform gold.

The kindness & fervour of your response to my request for prayers for my grand-daughter, Caroline, in her heart surgery, & my great-nephew, Colin, in his cancer surgery, has left me humbled & grateful. Please accept my most hearty thanks. Caroline came home from the hospital on 30 December, and today weighed in at her heaviest weight in her life: ten pounds. We don't know yet the story on Colin's tumour, but he's cheerful & perky.

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.