Monday, June 30, 2008

By End October $1300 Gold Price and $31 Silver Price are Possible

Gold Price Close Today : 926.20
Gold Price Close Last Friday: 929.10
Change: -3.10 or -0.3%

Silver Price Close Today : 17.42
Silver Price Close Last Friday: 17.57
Change: -20 cents or -1.1%

US Dollar Index Today: 72.46
US Dollar Index Last Friday: 72.299
Change: 0.16 or 0.2%

The GOLD PRICE was easier to read today than the SILVER PRICE. It dropped back to support at 918.75, then closed higher -- oh, yes, down for the day, but that doesn't tell the whole story. Markets very often -- most of the time -- after a breakout will fall back to the breakout point (resistance now become support) in what I call a touchback. Think of baseball, where after a fly out the runner has to run back and tag the base before he runs to the next base. Same idea.

The SILVER PRICE has established short term support now at $17.20. Today it lost 20 cents to close at $17.42 cents, still well above the 50 day moving average (DMA, now $17.06) and within the uptrend. I expect silver and gold prices to rise tomorrow or the next day, because they have broken out of their correction range and begun the next leg up. By end October $1,300 gold price and $31 silver price are possible. I'm holding back. If the gold/silver ratio drops to 35:1, where it's next move ought to stop, $1,300 gold puts the silver at $37.14.

Yea, it soundeth crazy to me, too, but I have consistently underestimated this bull market's strength. I'm learning that these numbers are possible, indeed, likely. Be ready for surprises.

If y'all have not yet bought or added silver and gold, now's the time.

Most of the day the Dow knocked on the ceiling at 11,440, but couldn't break through. Then it couldn't break through 11,400, and toward day's end it just waterfalled down to 11,350, a measly 3.5 points gain. Friends, y'all are witnessing the decline I have so often warned you of. If you still have stocks, swap them for silver and gold -- before it's too late.

The US DOLLAR index today rose about 15 basis points, after dropping to a new low for the move. After four down days, that has the look of a stop-and-turn-around, but the dollar is so sick it's hard to tell. It certainly offers no big challenge to gold or silver any time soon.

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.