Friday, April 04, 2008

Silver and Gold Prices are Aiming at a High Sometime in May to Mid-June

Gold Price Close Today : 909.00
Gold Price Close Last Friday: 930.60
Change: -21.60 or -2.3%

Silver Price Close Today : 17.722
Silver Price Close Last Friday: 17.90
Change: -17.80 cents or -1.0%

US Dollar Index Today: 71.964
US Dollar Index Last Friday: 71.701
Change: 0.263 or 0.4%

Steely eyed, let's just look at the week's numbers: Stocks up, dollar up, silver prices down, gold prices down, platinum and palladium prices, down. But did the week tell us anything else?

I was certainly wrong last week about silver and gold prices, since they dropped Monday, bottomed Tuesday, then gradually climbed the rest of the week. For the time being, my conclusion is that the sharp correction that began 17 March bottomed this past week on Tuesday at $16.30 intraday and US$876.30.

To prove this conclusion, the silver price will have to rise above the last high at $18.68 and the gold price must clear its last high at $960.30. Those prices should come next week.

Unless the seasonality for metals will vary widely from typical, silver and gold prices are aiming at a high sometime in May to mid-June. Time is running short.

Even though silver and gold prices finished this week lower than last, both were recovering from their correction. On the other hand, the US DOLLAR and STOCKS were doing the opposite, namely, failing to follow through on their rallies.

STOCKS showed their confusion today with the Dow down slightly & the S&P slightly higher. Confused markets usually change directions. Stocks have tried thrice now to clear the barrier at 12,700 - 12,750, wthout success. However, multiple tries usually break through. If stocks really have failed, next week they will drop like your ruby cufflinks down an elevator shaft. A close below 12,200 would carry the Dow much lower. On the other hand, a close above 12,750 will launch a rally. I don't give a hoot either way, since I wouldn't own stocks with your money.

The US DOLLAR INDEX simply can't build on its gains. Today it fell below 72 yet again. Below 71.20, there's nothing to support it. The dollar has established a very slight uptrend, maybe is building a triangle, but expect no great things yet. So far Bernanke's hijinks, tricks, & frauds have availed the dollar nothing.

I don’t wish anybody ill, but I'm beginning to see idiotic articles admitting how smelly Bernanke's bailouts are, and how the taxpayer will eventually pay, but, O, gee-whiz, isn't that better than replaying the Great Depression? Isn't it better to "save the system'?

No, it ain't. The "system" is the mechanism whereby the rest of us are impoverished by lying, fraudulent money and corporations, to the benefit of a few and the economic and moral gutting of the rest of us. No, no, let the Next Great Depression come. Rid us of this vile tyranny, so we can build a new system, some attempt at justice. I for one will shed no tears when the lying banking system and central banking destroy themselves. I won't cry even if I have to buy me a tin bill & peck dirt with the chickens.

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.