Gold Price Close Today : 877.20
Gold Price Close Friday: 900.50
Change: -23.30 or -2.6%
Silver Price Close Today : 16.477
Silver Price Close Friday: 17.38
Change: -90.5 cents or -5.2%
US Dollar Index Today: 73.03
US Dollar Index Close Last Friday: 72.53
Change: 0.5 or 0.7%
I'm having a crowbecue here today. You know, that's like a barbecue where you eat crow instead of pork. A reader wrote me today from Texas. "The last of the downside, huh? Is that like buying a Tennessee mule at midnight?" Folks from Texas can get tetchious at times.
Okay, I was wrong, and spectacularly, which shows how important that support just under US$900 and $17 was. But it is to be expected when silver and gold prices correct after a crash that for a time they trade up and down in a tortuous zig-zag. However, I still believe that both silver and gold prices have seen their lows. After the sort of peak and crash we've seen this spring, silver and gold tend to hit their lowest price within 35 - 45 days from the peak. I believe we saw those lows on 1 May 2008 and although both metals may trade weakly for a few days, they will not exceed previous lows at $16.115 and $848.50.
STOCKS may rally once more. Can they pierce 13,150? I doubt it, but they can try. Inflation will kill them whether they rise or fall.
The US DOLLAR INDEX is on a tear, up 50 basis points today on top of two days' gains. That implies that the weakness we saw last week really was a second and higher bottom, laying groundwork for a rally that could run as high as 75.5. Yet after 'tis over, what will it gain? Nothing. The dollar is doomed.
Speaking of the dollar's doom, let me recommend you go to www.321gold and read Darryl Schoon's piece, The Shell Game, Don't say I didn't warn you.
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.