Monday, July 14, 2008

If You Have Not Yet Bought Silver and Gold, Buy This Breakout

Gold Price Close Today : 972.20
Change: 13.20 or 1.4%

Silver Price Close Today : 19.175
Change: 43 cents or 2.3%

US Dollar Index Today: 71.95
Change: 0.06 or 0.1%

SILVER and GOLD PRICES have removed all doubt about that break-out business. Today gold closed at a new post-March high of 972.20, up another 13.20. Silver blasted up 43 cents to close at 1917.50, dragging the GOLD/SILVER RATIO down to 50.91.

As this rally unfolds, the gold price will probably have to knock twice at US$1,000.00, but don't worry, it most surely will break through. Silver will rise much faster than gold in this rally, taking the ratio down below 38, maybe below 35.

All this will happen very, very rapidly, carrying to heights that Wall Street "gurus" will proclaim are impossible and monstrously overbought. They will, of course, be dead wrong.

If you have not yet bought silver and gold, buy this breakout.

The DOW JONES INDUSTRIAL AVERAGE dropped 45.35 today to close at 11,055.19 -- a poor, poor performance. The American apparat (Fed Reserve and Treasury dept.) are following the worst course possible, allowing themselves to be pushed around by events. Markets sniff out this feckless weakness like sharks smell blood in the water. Whatever else he was, "Iron" Paul Volcker understood that his job in curbing the inflation 1979 - 1980 was to be seen standing like a rock pushing markets around instead of vice versa.

Of course that's all just blarney and play acting, but markets react to blarney, and with inflation it constitutes the apparat's whole arsenal. Weaklings like those now in charge are the sort who blunder into hyperinflations.

US DOLLAR INDEX "stabilized" today under 72 -- except that anywhere under 72 is NOT stable. Dollar must turn around or crash further. Has everybody in Washington lost his mind? Are they all so arrogant that they believe they are "Masters of the Universe" who can never fail? Alas for us all, arrogance nearly always pupates into stupidity.

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.