Monday, March 03, 2008

Silver and Gold Prices Could Have a Sudden, Sharp Correction and Just as Sudden a Recovery

Gold Price Close Today : 981.50
Gold Price Close Friday : 972.10
Change: 9.40 or 1.0%

Silver Price Close Today : 20.073
Silver Price Close Friday : 19.808
Change: 26.5 cents or 1.3%

US Dollar Index Today: 73.72
US Dollar Index Friday: 73.713
Change: 0.01 or 0%

I am not gloating, but do y'all recall how lunatic I sounded when I said that the SILVER PRICE would reach $21 at a minimum? Doesn't sound so lunatic now, with the silver price at $20.07, and moving up a dollar every three days.

The GOLD PRICE at US$1,000.00 sounded pretty wild-eyed, too, but not now with gold at US$983.50. Now think: that is only the beginning. I am working up price targets now that make me feel like I'm a lunatic, but I know they're reasonable.

'Twouldn't surprise me to see silver & gold wrench everybody's stomach out with a sudden, sharp correction & just as sudden a recovery. Watch out, watch out. Up here volatility is the ever present harpy.

Poor, sad stocks just bled a little more today, and hung near their must-hold level of 12,000. There's still time left to swap stocks for silver & gold.

US DOLLAR INDEX remained below 74, now at 73.718. Not clear yet whether it's putting in second leg of a bottom, or beginning a new down leg.

DOW IN GOLD DOLLARS (Dow measured by statutory gold dollars) today was G$258.19 (12.490 oz), yet another new low. Barely more than 600 ounces of silver now buys the whole Dow.

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.