Thursday, January 31, 2008

This May Be the Beginning of the Move Where Silver Outperforms Gold

Gold Price Close Today : 922.70
Change: 2.10 or 0.2%

Silver Price Close Today : 16.948
Change: 23.7 cents or 1.4%

US Dollar Index Today: 75.21
Change: 0.14 or 0.2%

The SILVER PRICE today traded above $17.00 for the first time in this bull market, at $17.04 precisely. Notice also that the gold/silver ratio dropped today. This may be the beginning of the move we've long expected where silver outperforms gold.

I expect silver to reach at least $21.00, so y'all still have time to buy some -- if you hurry. And by the way, you American buyers are wasting money to buy anything but US 90% silver dimes, quarters & halves minted before 1965 ("junk silver"). I know dealers will try to foist off silver American Eagles & bullion on you, but 90% coin is the cheapest, most divisible, most widely traded form of physical silver. It's also self-authenticating. Australian & British buyers may find the same bargain in your 50% or 92.5% silver coin. Check price per oz. by dividing cost by content.

Remember how the GOLD PRICE acted at $700 & $800? How it kept straining at the leash to get through those marks? How during the day it would close below that mark, then in the aftermarket press on through, up $8 or $12? Gold is acting that way now at $930. Yesterday it closed at $920.60, but traded as high as $933 in the aftermarket. The cosmos has given up on holding gold below $1,000.

Bailout Ben Bernanke & his Bumbling Fed Buddies yesterday lowered the interest rate by another half percent, making a total of 1-1/2% dropped in the last week. As expected, at the first whiff of recession or credit crisis, not to mention the full stench, they are pulling the trigger on their only weapon: the inflation gun. Bad for the dollar and you "little people", good for corporations and Wall Street. No hard decision there, huh?

US dollar index rose today. It appears to have bottomed, but will climb only slowly. Not moving nearly fast enough to offer hindrance to silver or gold. Subprime credit crisis has not spread to insurers of rotten mortgage backed "securities." What! They might actually have to pay claims! But wait, that's not what an insurance company is for -- they're only supposed to collect premiums, not pay claims! And why do they call an instrument backed by worthless mortgages or credit card debts a 'security'? Shouldn't it be called an "insecurity"? Gotta be careful with language.

Stocks rose today, but this has become a meaningless study. S&P500 has lost 75% of its value against silver since June 2001, Dow has lost 70% against gold since August 1999. What's to talk about? Swap stocks for silver & gold.

If you want to turn your IRA into precious metals, call the only two trustees in the country who do that, Gold Star Trust (800) 486-6888 or Sterling Trust (800) 955-3434.

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.