Wednesday, August 20, 2008

With the GOLD/SILVER RATIO at 61.56, I Would Swap Gold for Silver

Gold Price Close Today : $811.10
Change: 11.40 or 1.4%

Silver Price Close Today : $13.093
Change: 0.6 cents or 0.0%

US Dollar Index Today: 76.75
Change: -0.51 or -0.7%

Just a quick word. Odd, don't you think that the Dow in Gold Dollars reached up to its 200 day moving average, around G$306.66 ($14.834 oz), then dropped today back to G$289.23 ($13.992 oz)? DiG$ is still telling us that stocks just can't manage to climb over gold, and that before stocks rise, gold will.

Odd trading today, but that's often how it feels after a big waterfall decline. Bottom is usually hit then the next days feel like walking over the battlefield at Shiloh two days after the fighting stopped. What will happen next?

From the silver & gold shorts is bound to come another attack, but from what level? Perhaps when the GOLD PRICE begins to rap on the $825 door? The SILVER PRICE is following now, not leading any parades, but that's as it should be.

With the GOLD/SILVER RATIO at 61.56, I would swap gold for silver (note: gold for silver, not the other way round).

Dollar index took a 51 basis point beating today, but remains at 76.75. Hard to imagine a dollar rally would last long, or reach very high.

Silver American Eagles are available, but only with six to 8 week delays. Other dealers quote 2 weeks. Gold American Eagles available, but at what a price!

Physical demand for silver & gold is still insatiable, and I hear the same from every dealer I speak with. Feels very bogus, a paper market price lower than the physicals market. Ahhh, but "bogus," well, now that's the word for our markets today, huh?

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.