Gold Price Close Today : 972.10
Gold Price Close Last Friday : 944.70
Change: 27.40 or 2.9%
Silver Price Close Today : 19.808
Silver Price Close Last Friday : 18.025
Change: 178.30 cents or 9.9%
US Dollar Index Today: 73.713
US Dollar Index Friday: 75.542
Change: -1.829 or -2.4%
Whew! SILVER and GOLD PRICES are blasting the hair off our heads, and it's not over yet. Meanwhile, the dollar looks like squash on a dead vine. Stocks don't look much better.
It's obvious that SILVER & GOLD PRICES are in the last stages of their rally because they are moving straight up every day by leaps & bounds. The SILVER PRICE cleared the $17s in nine days, the $18s in three days, and after two days is 3/4 of the way through the $19s.
However recognizing that silver and gold prices are blowing off topside isn't the same as knowing (1) how high they will go, or (2) how long it will last. Longstanding seasonality says that gold and silver should peak sometime from late April to mid-June, but they might peak sooner.
I still expect to see the silver price above $21 (minimum) & the GOLD PRICE over US$1000 before this ends, and that y'all could see next week.
My key to the top is the GOLD/SILVER RATIO, which I expect to drop shortly before silver and gold peak in price. That Ratio should reach at least 38.63. The gold/silver ratio dropped from 52.41 last Friday to 49.08 today, a drop of -3.33 or -6.4%.
Now here's the most sobering thought of all: today's silver and gold market is not yet as wild as it gets. It will get much, much wilder still, & it has years to run. Much wilder. Sort of makes you wonder where that will leave stocks & the dollar, doesn't it?
The Dow Jones Industrial Average took stocks down 300 points today to close at 12,281.70. Dow's MUST HOLD level is 12,000. A break below that (technically, below the last low at 11,971) will send stocks into free fall.
Another interpretation is that stocks are bottoming in preparation for a rally. Matters not to me either way, because I want to be out of stocks, which are losing value against silver & gold, and into precious metals.
The DOW IN GOLD DOLLARS (DiG$), measuring stocks' value against gold, hit another new low today at G$261.17 (12.634 ounces). There is no support underneath it, so no telling where it might stop soon. The Dow in Silver Ounces has plummeted this week, stopping at 620.04 ounces, less than a fourth of the 2001 high.
The US DOLLAR INDEX this week broke its November 74.5 low & fell to new lows. I believe today's low was another new one at 73.71. If the dollar dollar doesn't drop further than 73, it is making a double bottom & will rally later this year. If it falls thru 73, look for 60. The Nice Government Men who manipulate the dollar's exchange rate have decided that you all are living too high on the hog, & they've decided to take y'all down a peg or ten. If you stay in dollars, you'll lose almost everything. Get out of CDs, bank deposits, annuities, whole life insurance, bonds, bond funds, and try to hedge your pension by buying 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"
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.