Wednesday, May 28, 2008

Time to Buy More Silver and Gold

Gold Price Close Today : 900.50
Gold Price Close Friday: 907.9
Change: -7.20 or -0.8%

Silver Price Close Today : 17.38
Silver Price Close Friday: 17.42
Change: -4.5 cents or -0.3%

US Dollar Index Today: 72.53
US Dollar Index Close Last Friday: 72.38
Change: 0.15 or 0.2%%

Did today disprove my thesis that yesterday's gold and silver price drop was occasioned by options expiry? No. True, gold and silver prices dropped a bit more, but not past significant support. The gold price stopped at $900.50 and the silver price at $17.38, rather than breaking down further.

I think that's the last of the downside. Tomorrow should recover a little, then next week should see silver and gold prices rising. Rising dollar index and falling oil make a headwind for silver and gold prices.

Stocks are dead in the water. Time to buy more silver and gold, unless tomorrow sees them drop sharply (below $880 and $17).

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.