Tuesday, January 29, 2008

The Gold & Silver Price Rally Stands a Long Way From Its End

Gold Price Close Today : 925.10
Gold Price Close Yesterday: 927.10
Change: -2.00 or -0.2%

Silver Price Close Today : 16.745
Silver Price Close Yesterday: 16.69
Change: 5.5 cents or 0.3%

US Dollar Index Today: 75.55
US Dollar Index Close Yesterday: 75.566
Change: -0.02 or 0.0%

The GOLD and SILVER PRICE rally stands a long way from its end. My technical friend RL called today -- his gold price target is US$1,030 and his silver price target is $21.60. From here, that's quite reasonable.

Silver offers your best risk/reward ratio right now. Judging from the seasonal chart, you could see these prices by mid- or end-February.

Stocks most likely have bottomed, although there's a good chance they will re-visit their lows before a longer rally begins. If Balloon Ben & the Fed keep inflating even unto hyper-inflation, then stocks will keep rising, although they will also keep on losing value, faster & faster, against silver & gold. I'm as certain as I ever get that they will keep on inflating. Other less likely outcome is that stocks rally slightly, then crash through previous lows and continue to drop toward the earth's core.

'Tis impossible to judge value if you measure in US dollars. Like trying to shoot skeet off the end of a bass boat in a storm -- everything is changing. So you have to toss out thinking in dollars & start thinking in silver & gold. You also have to sell stocks as fast as you can for silver & gold (yes, that includes your IRA or 401k.)

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.