Friday, July 25, 2008

The Gold Price Will End the Year Well Over US$1,000, Taking Silver With it - Keep Buying Silver and Gold

Gold Price Close Today : 926.60
Gold Price Close July 17: 970.00
Change: -43.40 or -4.5%

Silver Price Close Today : 17.325
Silver Price Close July 17 : 18.667
Change: -134.20 cents or -7.2%

US Dollar Index Today: 72.855
US Dollar Index July 17: 72.219
Change: 0.636 or 0.9%

SILVER and GOLD PRICES took a beating with a thick cudgel this week. I have been warning y'all that more than one push would be needed to pass through that US$1,000 barrier. This week's savage correction proved that.

I'm not sure yesterday didn't see the lows, but am anyway confident that US$905 will hold if gold weakens again next week. If silver has not bottomed (which it appears to have done), it could drop back to $16.80 cents.

The gold price now stands beneath that resistance (all the way from $925 - $945) that slowed it down before. Relax -- it will pierce that resistance and end the year well over US$1,000, taking silver with it. Keep buying silver & gold.

Ahh, yes, all the blustering & firing the blarney cannon by Paulson this week puffed the DOW up to 11,700, but it still finished the week lower than it started. Sisyphus didn't have as hard a job as Paulson & Bernanke. (As punishment for his deceit, Sisyphus was condemned in the Greek hell to push a rock up a hill, only to have it roll back to the bottom again, and then to repeat that frustration for all eternity. Whether it rolled over him ever time, we aren't sure.) People who keep money invested in stocks will, by this bear market's end, find the bear has eaten all their money. Yet inertia will keep them in stocks, mutual funds, and IRAs/401Ks invested in stocks until all their money evaporates. Maybe it has to do with feeling safe in the herd. I don't really understand.

Having reached a peak of G$260.69 (12.611 oz) on Tuesday, the DOW IN GOLD DOLLARS sank back to close the week at G$253.67 (12.271 oz.) This happens after an all-time new post-1999 low at G$231.86 (11.216 oz) on 15 July. Bottom will fall out soon. Look out for that trap door!

The DOW IN SILVER OUNCES today closed at 656.31 oz, but also made a new low on 14 July at 576.54 oz. The DiSOZ, down, like the DiG$ about 70% from its highs (stocks have lost 70% of their value against silver & gold) will eventually hit 32 ounces or lower.

The nasty US DOLLAR INDEX managed to climb 64 basis points this week on the strength of Paulson's blarney barrage. I haven't seen any news past couple of days, but feel certain the US Congress, original "Parliament of Whores," will do their bidding and bail out their masters by bailing out Fannie & Freddie. Eventually their entire 5 trillion in debt will be shucked off on the taxpayer. Now ask yourself: Does this mean more inflation, or less?

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.