Wednesday, June 11, 2008

Silver and Gold Prices Will be 10 - 40% Higher in a Year from Now

Gold Price Close Today : 879.70
Gold Price Close Yesterday: 869.70
Change: 11.80 or 1.4%

Silver Price Close Today : 16.829
Silver Price Close Yesterday: 16.60
Change: 22.2 cents or 1.3%

US Dollar Index Today: 73.24
US Dollar Index Yesterday: 73.66
Change: -0.42 or -0.6%

The GOLD PRICE situation is unfurling as a long sideways triangle, chopping back and forth, frustrating its partisans to death, but ultimately breaking out to the upside.

The SILVER PRICE is making a similar pattern. As long as the silver price doesn't close below $16.45 and the gold price doesn't close below $867, that interpretation holds.

By the way, the Dow in Gold Dollars dropped about G$10 (half an ounce) today. How things will look a year from now: Oil will be rising again, stocks, whether higher or lower in US dollar terms, will have fallen much lower against silver and gold, and silver and gold prices will be 10 - 40% higher than today. At least, that's the way I see it, but y'all keep holding on to your stocks and your US Dollars if you don't believe me.

If I owned stocks right now, I'd be sweating bullets. If the Dow closes below 12,000 (11,750 at a stretch) and the S&P500 below 1,275, the slide will be long and hard with screaming and gnashing of teeth. And lo, it looketh to be coming soon.

How do you trade, or forecast, anything as unreliable and inconstant as the US DOLLAR INDEX? Yesterday, at last, it crossed 73.50 resistance, and then, did it do what any other market might do, namely, break away upside? Nope, it crashed back below 73, down 42 basis points. Technically, it hit its upper Bollinger Band line. Disgusting and undependable as it is, the dollar is probably headed higher.

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.