Monday, June 09, 2008

Silver and Gold Prices Dropped Today After Friday's Big Rises

Gold Price Close Today : 894.70
Gold Price Close Last Friday: 895.40
Change: -0.70 or -0.1%

Silver Price Close Today : 17.180
Silver Price Close Last Friday: 17.397
Change: -22 cents or -1.3%

US Dollar Index Today: 72.88
US Dollar Index Last Friday: 72.351
Change: 0.53 or 0.7%

Not surprising anyone very much, SILVER and GOLD PRICES dropped today after Friday's big rises. The gold price dropped US$0.70 to close at US894.70, while the silver price dropped 22 cents to land at $17.18 cents. Both traded lower in the aftermarket. Silver's low at $17.03 remained above $17.00. That close took the silver price below its 50 day moving average (DMA, now $17.28) while Friday's had taken it above. It's a fight I'm counting on silver to win.

The GOLD PRICE, too, is fighting with that 50 DMA (now 900.66) trying to break through. Although silver and gold prices will remain volatile for a while, I remain persuaded that we saw the silver and gold price lows of this correction on 1 May and will not see lower prices.

Buy them while you can.

Ahhh, in my enthusiasm Friday I forgot to remember that oil's big move that one day looked an awful lot like blow-off trading. Anyway, with a one-day move in the oil price that strong, you can bet old Bucket Shop Ben Bernanke and his cronies would be fixing the market come Monday.

Here's an easy shot at those who deny the US Treasury & Fed manipulates markets: currency exchange rates. Per the propaganda, currencies float freely -- Right, and if frogs had wings they wouldn't bump their little bottoms when they jump. Once a month in Basel, Switzerland the heads of the world's biggest central banks meet, and you can bet the don't talk about the coq au vin they had for supper. Folks, they work together! They fix the market! Since 1934 the Treasury has had, by statute, a slush fund called the Exchange Stabilisation Fund. Thus you can bet your mother's retirement money on this certainty: central banks manipulate exchange rates. Therefore, we can conclude that it's not the market alone that's pushing the dollar lower (although its fundamentals certainly make it a sell), but the Fed & the Bush administration who are letting it fall.

So today the US DOLLAR INDEX shot up 53 basis points. Wow. I am impressed, but not much. What other move did Bucket Shop Ben and his gang have, but to punch up the dollar? Even though the dollar chart has been "painted,"they've painted it well. Looks set to move through resistance at 73 tomorrow or Tuesday.

STOCKS were bumfuzzled today, and didn't know "Sic 'em" from "Come here." The Dow rose a mighty 70.5 points, while the S&P500 was smokin' with a 1.08 point rise. Meanwhile the Nasdaq Comp dropped 15.10 points. Confused markets go down or nowhere.

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.