Gold Price Close Yesterday: 876
Change: -6.40 or -0.7%
Silver Price Close Today : 16.617
Silver Price Close Yesterday: 16.780
Change: 16.3 cents or -1.0%
US Dollar Index Today: 73.53
US Dollar Index Yesterday: 73
Change: 0.54 or 0.7%
I hate to give y'all downside targets, because I know from my own feeble performance that we never hear a range of lower targets, only the lowest price. So if I tell you that the SILVER PRICE may bottom from $16.00 to $15.20, y'all only hear "$15.20," and, waiting for that very price, you don't buy when it actually bottoms at $16.00 or $15.80. Human nature.
How do you overcome it? Set a price at which you will buy silver, and regardless how you feel, butterflies in stomach, puking in wastebasket, etc., just buy when you hit that price, and never look back.
Silver and gold prices are bottoming right now. By mid-May or end-May latest, this correction will be history. If you fail to buy this month, you will miss the bargain prices.
Third, right about now we should see silver and gold prices begin to make a double bottom, as they react to resistance at $16.80 - $17.00 and $880-$890. Don't go to sleep; don't let the seeming lack of action lull you into inaction.
SILVER and GOLD PRICES will probably make another run at $16.80 - $17.00 and $880 - $890 resistance tomorrow. Of course they could cut clean thru and never look back, but I suspect that after this try or the next they will fall back, make a double bottom or lower bottom, and put an end for good to this downward correction.
The Dow in Gold Dollars is behaving as it did from May 2006 to July 2007, when it should have rallied to G$475 (22.978 oz, the half-way point of its fall from the 8/1999 high) but never managed to get higher than G$436 (21.092 oz) -- promising, promising, promising, but never delivering. If the DiG$ now reached its 200 DMA, it would hit about G$334 (16.491 oz), but so far has reached only G$315 (15.238 oz). Stocks' continuing failure to rally strongly against gold underscores their bear market weakness against both silver and gold prices.The DOW JONES INDUSTRIAL AVERAGE today fell back 206.48 points to close at 12,814.35. Odd -- Dow just cannot seem to gain and keep ground, hinting at inward weakness. No secret where I stand: sell stocks and put the proceeds in silver and gold.
The US DOLLAR INDEX, after yesterday's fall, climbed 53.8 basis points to close at 73.534. The dollar's rally offers you an opportunity to swap dollar-denominated and dollar-paying assets for silver and gold. Never mind this little rally, the US dollar is locked in a primary down trend, so you want to get out of dollars and into silver and gold. "Out of dollars" means shuck any investment that promises to pay you dollars, because dollars tomorrow will surely be worth less than dollars today. Get out of annuities, insurance policies, certificates of deposit, bonds, anything that pays dollars in the future.
