Friday, February 22, 2008

Hang on to Your Silver and Gold -- Long Term the Rise Has Only Begun

Gold Price Close Today : 944.70
Gold Price Close February 15th : 902.80
Change: 41.90 or 4.6%

Silver Price Close Today : 18.025
Silver Price Close February 15th : 17.098
Change: 92.70 cents or 5.4%

US Dollar Index Today: 75.542
US Dollar Index February 15th: 76.040
Change: -0.498 or -0.7%

GOLD & SILVER PRICES are beginning the really wild stage of their rally. This week the SILVER PRICE gained 5.4% & gold 4.6%. More important, both cleared strong, tricky resistance at $930 & $17.50. Silver needed only Ten (10) days to march all the way through the $17.00 level to close at $18.00, highest silver price since December 1980.

Next weeks will be wild as silver pushes toward $21.00 and higher (I told y'all there wasn't much resistance up here) & gold crosses US$1,000.00. Hang on to your silver & gold -- long term the rise has only begun. This rally could end anytime from now through mid-June. My guess is mid-June. As long as gold remains above $925 & silver above $17.50, rally cannot be questioned. Breaking those supports would raise eyebrows, breaking $16.80 and $900 would bring trouble. Expect, rather, higher silver and gold prices.

The PLATINUM PRICE gained nearly $100 bucks this week, and the PALLADIUM PRICE gained $68, a 15% increase! See what thin markets can do? Markets like silver's.

The GOLD/SILVER RATIO is very slowly falling. A break through 52 will speed things up, then speed up more when it crosses 51. MUCH lower ratio coming soon. Get ready to swap silver for gold.

This week simply beggars comment. Everything worked for metals, & nothing worked for paper money & paper investments. 'Tis a harbinger of days to come.

STOCKS remained flat this week. In their league, not falling below crucial support is an achievement. Most likely the January 22 low will hold for a ,while. A rally will come, but first ,a touch-back to the low. Sell all stocks, other than energy or precious metals, & put proceeds in silver and gold. I continue to watch in amazement as people hang on to stocks, hoping they will come back, like passengers from a shipwreck. Stocks will come back, after this primary down trend ends 7 or 8 years from now. Until then, their trend is down, especially against silver & gold.

Speaking whereof, the DOW IN GOLD DOLLARS this week made a new low at, G$268.41 (12.984 oz), breaking down through 13 oz. & a new landslide -- errr, landmark.

New lows keep showing up on the DOW IN SILVER OUNCES, too, as it broke through the 700 barrier headed for the ground.

US DOLLAR INDEX proved incapable of holding on above 76.00. Yesterday it took a knock on the head of 52 basis points, but was flat today. Look for the dollar to remain above its lows, but to rally later this year.

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.