Friday, February 01, 2008

Silver & Gold Bull Markets are a LOOOONG Ways From Over, 3 to 13 Years

Gold Price Close Today : 908.70
Gold Price Close Last Friday : 910.50
Change: -1.80 or -0.2%

Silver Price Close Today : 1682.4
Silver Price Close Last Friday : 1642.8
Change: 39.60 cents or 2.4%

US Dollar Index Today: 75.484
US Dollar Index Last Friday: 75.969
Change: -0.485 or -0.6%

Yee-owch! The GOLD PRICE took it on the chin today & fell thru the $915 support. Yet consider, O man, that the low was $903.30, hardly bleeding & dying. Yes, the gold price is more volatile now, but what do you expect at these nose-bleed heights? That is not the top. Next week will the gold price will rise, maybe not Monday but surely later in the week.

The GOLD/SILVER RATIO closed lower today, and fell in the aftermarket to 53.94. That mirrors silver's better-than-gold dance this week.

Today the SILVER PRICE hit a 27-year high at $17.38. About now silver prices ought to kick & begin to outrun gold. 'Tis beginning to appear this rally will run longer than I expected, perhaps into May. Mercy! How high will the silver price rise? Past $21 no doubt.

Remember this: the silver & gold bull markets are a LOOOONG ways from over, 3 to 13 years. Only now are they starting that steep rise that will, by the end, draw in the public(after stocks have picked their pockets clean). Keep on buying a while yet. Buy as much silver & gold as you can get.

Clearly, stocks did make at least an interim bottom on 22 January. This week they gained 536 points (4.49%). Although stocks have gained this week against both silver & gold, it meaneth nothing. It is a temporary correction of stocks' oversold condition. Use this as an opportunity to swap stocks for silver & gold.

The unnoticed story overshadowed by gold & silver's rally is the platinum price, up $156 in 2 weeks, and palladium.

The US DOLLAR INDEX had a better week than those numbers show. It rose about 25 basis points today after dropping under 75 to 74.85, & also successfully defended 75 on Wednesday & Thursday. Good going, Buck! Hardly any chance the dollar will run away upside, however. Dollar will keep on edging up, but slowly, not fast enough to damage silver & gold. Stay out of US dollars -- out!

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.