Monday, March 17, 2008

Today the Gold Price Jumped as High as $1,029 on Fears the Entire World and Several Adjacent Planets Would Financially Melt Down

Gold Price Close Today : 1001.40
Gold Price Close Last Friday: 998.10
Change: 3.30 or 0.3%

Silver Price Close Today : 20.220
Silver Price Close Last Friday : 2057.5
Change: -35 cents or -1.7%

US Dollar Index Today: 71.44
US Dollar Index Last Friday: 71.649
Change: -0.21 or -0.3%

Well I remember than when the stock market crashed in 1987 I witnessed how the manipulating Nice Government Men (at that time hatchet man Robert Rubin, I understand) killed the gold price. Rather than wading in to the huge gold market and trying to knock down the price there, they waited till after the market had closed, went into the much thinner aftermarket trading, and into the MUCH thinner platinum market. Why? Because anyone watching gold would be watching platinum, too, and arbitrageurs would sell gold if they saw platinum dropping sharply. In 1987, it worked.

Today the GOLD PRICE jumped as high as $1,029 on fears the entire world & several adjacent planets would financially melt down. But at the day's close the gold price had been battled back to $1001.40, the silver price had actually dropped 35 cents, the palladium price fell 29 bucks, and the platinum price crashed a huge $102.60. Mmmmm. Does that spark a memory? This time, it didn't work.

Today on Wall Street the Big Shark (J.P. Morgan) ate the Little Shark (Bear Stearns), saving himself 93.7% over last Friday. The Big Shark drove a hard bargain, but got his lunch anyway, paid for by the Fed. 'Tisn't clear at all whether the Fed's emergency 1/4 point interest rate drop & the saving "sale" of Bear Stearns saved anything yet. The bloody mist of panic fills the air, & the Fed with its feckless trick is trying to calm the crowd -- and shift the banks' losses off onto the taxpayers' backs.

Biggest force in favour of avoiding a complete catastrophe is that every morning, five billion people wake up with one question in their minds. It is not, "What will I do when the financial system collapses?" but "What can I do today to make things work?"

Inertia is the system's greatest ally. (We already knew it wasn't righteousness.) Events of last few days have left me very thoughtfully examining everything. In the event of a bank holiday, where would you rather have your assets: in bank deposits, or cash in hand? In bank deposits, or silver & gold in hand? Principle to remember is this: when the crisis arrives, it will be too late to take protective action. If you ought to do it, do it now.

Stocks traded as low as Dow 11,756 today, but -- O look, Mama! -- managed to finish up a whopping twenty points on the day. Thanks, Nice Government Men on the Plunge Protection Team! Bottom line? By no means has the threat of systemic collapse disappeared, but it has been wounded. Be warned: it's every man for himself.

GOLD/SILVER RATIO swap (swapping silver for gold) is still coming, the ratio dropped 1.003 or 2.1% to 49.53 today. Keep careful watch.

US DOLLAR index sank again, down 0.3% to 71.44.

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.