Friday, March 28, 2008

Expect Higher Silver and Gold Prices Next Week

Gold Price Close Today : 930.60
Gold Price Close Last Friday: 919.60
Change: 11 or 1.2%

Silver Price Close Today : 17.9
Silver Price Close Last Friday: 16.805
Change: 1.095 or 6.5%

US Dollar Index Today: 71.701
US Dollar Index Last Friday: 72.764
Change: -1.063 or -1.5%

Today's big story is silver. Everything else is a footnote. The SILVER PRICE dropped 61.5 cents today to close at $17.90. Is the world about to screech to a halt? No. Rather, the strength of the correction's B wave was so great that it fooled me (and others) into thinking the correction had ended. It hasn't, but should be finished by Monday or Tuesday of next week. Did it stop today? Can it drop further? Either way -- drop to $16.73 or $16.50 or stop here, correction will not last much longer. Keep your eyes on this: the silver price has much further to run on this rally, much further. That new leg up will start soon. Its strength will shock all of us.

The GOLD PRICE is synchronized with the silver price. Today's drop took it below the 50 day moving average, a good move for shaking out and strengthening the market. Low on the drop last week was $904.70, so next couple of days could see slightly lower prices, or today might have marked the low. As with silver, any price dip brings in customers practically hydrophobic to buy. That much buying power sitting right under the market argues that neither silver nor gold can fall far without setting off a buying firestorm. Expect higher silver and gold prices next week.

Keep on buying silver and gold.

The US DOLLAR INDEX -- well, let me be gentle and kind and say the nicest thing I can say -- stinks. It rallies, then gives up the whole gain. All that can slightly be said for it is that it hasn't yet exceeded its previous low, so could be making a double bottom. For now, the intraday high of 73.19 must be beaten or the dollar is merely marking time until it drops through 70 on its way to historic oblivion.

Lo, I keep hearing people I respect talking about a STOCK market rally, but it just keeps dropping. Today it dropped below its 50 DMA. If it crosses that January low (11,971.19) it will skid like an Olympic skier, and they don't ski uphill. Please, please, before it's too late, swap stocks for silver and gold.

GOLD/SILVER RATIO rallied with the fall in metals, hit that 54.7 high, and turned down again. Be patient, be very patient, and watch closely. Our swapping opportunity will come.

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 $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down.