Monday, May 05, 2008

Buy Both Silver and Gold at These Prices

Gold Price Close Today : 872.30
Gold Price Close Last Friday: 856.1
Change: 16.20 or 1.9%

Silver Price Close Today : 16.746
Silver Price Close Last Friday: 16.381
Change: 36.5 cents or 2.2%

US Dollar Index Today: 73.18
US Dollar Index Last Friday: 73.514
Change: -0.33 or -0.5%

GOLD and SILVER PRICES steadily advanced today. They've just about reached the previous bottoms, now become resistance rather than support. Gold's resistance kicks in at $875 and silver's at $16.75.

Tomorrow should be interesting. Coming off such a long decline, silver and gold prices have a number of rising days ahead. Once that falters and corrects, we'll have confirmation of bottoms in the metals, but for now I must tentatively conclude we have seen those bottoms. Physical demand remains very, very strong as bargain hunters crowd in to buy at these low prices.

Buy both silver and gold at these prices.

Stocks' advance has carried the Dow as high as its 200 day moving average (today 13,044) but, as you might expect, the Dow's feet have gotten tangled trying to work through this barbed wire fence. I suspect higher prices are coming, but wouldn't it devastate stocks if the Dow couldn't pierce the 200 DMA?

The schizophrenic US DOLLAR INDEX, father of ulcers everywhere, dropped 33 basis points today to trade now at 73.18. I don't doubt it's headed higher, to 76.50 or 77, but it will torture everyone on the way.

On this day in 1893, panic hit the New York Stock Exchange. By year-end, the entire country was suffering a severe depression. The more things change (as the French say) the more they stay the same.

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.