Tuesday, February 19, 2008

The Silver Price Broke Out Today and Gold Prices Ought to Follow Tomorrow

Gold Price Close Today : 926.60
Change: 23.80 or 2.6%

Silver Price Close Today : 17.490
Change: 39.2 cents or 2.3%

US Dollar Index Today: 76.04
Change: 0.0 or 0.0%

Over yesterday's market, the platinum price rose almost $100 this morning, & the palladium price about $35. Whew! You are seeing what happens when everybody tries to crowd into a thin market thru a narrow door all at once: price must rise. This process has barely begun for silver & gold prices. Think on that. Let that roll around your mind a minute.

GOLD PRICES leapt up $23.80 today, right out of the gate. The SILVER PRICE jumped 39.2 cents to close at $17.49. That's a slightly higher close than the last high close at $17.433, so that constitutes a breakout for silver. Gold closed only a few pennies higher on 28 January at $927.10, so today's $926.60 close didn't quite constitute a breakout.

Tomorrow or the next day gold MUST penetrate this barrier, or today's whole show will become a failure at resistance, implying that gold's rally has ended. I doubt that will happen, because the silver price broke out today & gold prices ought to follow tomorrow.

STOCKS may have bottomed on 22 January in that panic sell-off, but they're not anxious to rally. Probably we'll see a touchback to that January low before any rally begins. Don't miss this: use any rally to dump stocks & put proceeds in silver & gold.

The US DOLLAR INDEX is holding above 76, just barely. Slowly, slowly, tis building a base. Odd are those rumours but plenty that home re-financings are exploding. If so, & Bogus Ben Bernanke lowers interest rates like he's told to do, then later in the year all that subprime trash paper will begin to rise. The folks who shorted it (who also spawned it in the first place & pawned it off on the suckers) will then cover & go long, just in time for the government (read: taxpayer) to bail them out with gigantic profits. Isn't crony capitalism wonderful?

DOW IN GOLD DOLLARS is flirting with previous low, & must either climb out of that hole or stocks will fall much farther against 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.