Monday, August 11, 2008

It Seems the Long Correction from the March 2008 High Was Finished Today

Gold Price Close Today : 821.50
Change: -36.30 or -4.2%

Silver Price Close Today : 14.595
Change: -70.8 cents or -4.6%

US Dollar Index Today: 76.38
Change: 0.53 or 0.7%

Take a good look at the Dow Jones Industrial Average at 11,782 and the S&P at 1305, and the US dollar index over 76 (!) at 76.38. Take a mental picture, because you won't be seeing it for long. My friend BL called today and said, "It's all part of one movement -- stocks & the dollar high, silver, gold, and oil retracing, it's all the same trade." He's right of course.

Today both silver and gold prices fulfilled my targets for bottoms. Yes, they may play kissy-face with these prices sideways for a while, but I doubt they will fall much lower, if at all. The Silver Price has hit its 300 day moving average and pierced it, something that happens only at rare intervals in a bull market, a perfect time to buy. Premiums on all gold coins, even the lesser known ones, have risen. Krugerrands are scarce as honest judges, and at their highest price in 20 years. Best price I can find on US 90% silver coin at wholesale is 25 cents over spot per ounce, and usually it sells for 25 cents under spot. I can't remember ever seeing premiums climb this high and this fast when silver and gold prices are falling. I have to interpret it as HUGE demand for physical silver & gold.

It seems the long correction from the March 2008 high was finished today.

Buy silver & gold.

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.