Tuesday, April 15, 2008

Both Silver and Gold Prices Stand at Breakpoints

Gold Price Close Today : 925.40
Gold Price Close April 4th: 909.00
Change: 16.40 or 1.8%

Silver Price Close Today : 17.768
Silver Price Close April 4th: 17.722
Change: 4.6 cents or 0.3%

US Dollar Index Today: 71.861
US Dollar Index April 4th: 71.964
Change: -0.103 or -0.1%

Both SILVER and GOLD PRICES stand at breakpoints. The last two days' declines may be nothing more than a correction in the wave rising up from the bottom of the bigger correction that bottomed at $16.855 (intraday $16.30) and $882.90 (intraday $876.30), OR, they may be breaking down to lower prices. The next few days will tell us.

If silver and gold prices close lower than those last lows, they will move lower still. If they close higher than the last highs at $949.20 and $18.513, then my current interpretation is correct, and the rally that began last August will resume, headed much higher.

These choppy, sideways markets frustrate everybody, but because the GOLD/SILVER RATIO has not even come close to a new low for this rally, I keep thinking that the price highs lie far above us, and that Ratio low in the near future (by mid-June).

Markets are stalled across the board. Stocks keep falling back from 12,750, unable to pierce that resistance. Don't know what sort of brick hit them in the head today, but it clipped 307 points off the Dow. Maybe I'm just thick-headed, but it doesn't look much like the Promised Land to me.

Likewise the US DOLLAR INDEX can't get through 72.50, hard as it tries. However, I'm loath to make smart remarks about the dollar's weakness, because the more times a market bangs at a resistance level (headed up or down), the more likely it will break thru. I will say this much, however, from a viewpoint of stocks & the dollar, if Ben Bernanke and Paulson were running your sandwich shop, you would now be out of business for substituting linoleum for bologna.

Don't y'all find a cosmic amusement in the notion that the strongest economy on earth has been held hostage since 1913 by the collection of nitwits, cretins, ne'er do wells, and incompetents who have tried to manage the US dollar and the economy?

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.