Monday, March 10, 2008

Silver and Gold are Making a Minor Correction Before Surging to New All Time Highs

Gold Price Close Today : 969.90
Change: -2.3 or -0.2%

Silver Price Close Today : 19.698
Change: -46 cents or -2.3%

US Dollar Index Today: 73.00
Change: -0.03 or -0.3%

A theory in motion tends to stay in motion until knocked in the head by the facts. Thus, I will stick to my theory that silver & gold are making a minor correction before surging to new all time highs - much higher

What facts would knock my theory in the head, knobkerrying its brains all over my computer? Well, if it really is a minor correction, it shouldn't fall
much further than $19 and US$950.

What happened today? Silver fell as low as $19.18 (I think that happened over the weekend, because I never saw it even near that low) and gold to $960.90. That would take both low enough. If however metals breach those lows more than 1 or 2%, down comes the shillelagh on my theory's head. To remind y'all, my theory argues that gold & silver price peaks do not occur before the Gold/Silver Ratio troughs, & the Ratio is nowhere near making a trough yet commensurate with the last two troughs. Ratio needs to drop about 11 points from here. But remember, the Ratio can drop very fast, blindingly fast, so all you swappers get ready.

STOCKS have broken support, followed through, & issued one half of a new Dow theory down signal. Standing in front of that (by holding on to stocks) is akin to kids standing in front of a roaring freight train because they want to flatten pennies on the railroad tracks. The prize ain't worth the game.

US DOLLAR INDEX still hath not resolved my indecision: hath it broken down, or hath it not? My outer limit to prove a breakdown was 72.99. It spiked briefly thereunder, then climbed back to loll around 73.00. Dollar index speak with forked tongue - which will it be? Well, doesn't make that much difference because the most it could rally would be to 83 or so before it falls off again.

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.