Gold Price Close Today : $860.60
Gold Price Close September 12th: $760.30
Change: $100.30 or 13.2%
Silver Price Close Today : $12.24
Silver Price Close September 12th: $10.735
Change: $1.69 or 15.7%
US Dollar Index Today: 77.736
US Dollar Index September 12th: 79.040
Change: -1.304 or -1.6%
I ought to rename this commentary "Nuggets from the Nut House." Thing is, it's only a nut house among the public, who buy the stories coming out of the Washington phonies & cronies, who are bailing out their friends & making -- literally -- billions for them at taxpayer expense.
And what did our Great Leaders do today? Well, Bush mumbled an utterly incomprehensible statement about markets. Meanwhile the people in charge came up with three new moves that are stunning in their bold fraud & theft:
(1) the Fed government will set up a "trust"(get that word!) to take all the bad debt off the "troubled" banks' books (if the economy were a concentration camp, this would equal calling in the bulldozers to dig a huge crater where you can bury all the corpses) [Think of that: when you are "troubled" by making utterly stupid investments or mismanaging your business like a wino on Ripple, just give ol' Ben Bernanke a call & tell him you need a loan of a couple of hundred thousand to tide you over. Just guess what he will say.]
(2) No one can short financial stocks. Oh, just think what this means -- the great Free Marketers in Washington have discovered they don't want a free market in their buddies' stocks, which would free them to fall, and
(3) Rotten Money Market Funds will be backed by the Depression-era slush fund, the Exchange Stabilization Fund, the same secret slush fund they use to manipulate metals & the dollar price.
Oh, I forgot one more leetle action: Comex raised margin rates on gold contracts by 47% [sic] & on silver by 20%. Wouldn't want you hoi polloi thinking you could invest in silver & gold in the Big Boys' market, now would we?. How does the saying go? "They spit in our face & call it honey." And I will actually puke if I hear one more person say all this is "necessary" to prevent a crash. Sounds real sophisticated, but what it really means is this: "We would rather give up all freedom & let the government subsidize corrupt businesses than let justice come to those guilty of financial drunkenness." And mark, this great "wisdom" and "kindness" will reap much more grief & sorrow & pain than just letting these parasites go bankrupt.
Now, to markets.
STOCKS rallied on news of Paulson's non-existent plan, but any trigger would have set them off, so oversold were they. Expect the rally to last a short time, then to be overtaken by a vicious collapse. Sell them while you can.
The US DOLLAR INDEX fell an astonishing 50 points today, growing nearer to the fateful 76 mark. A fall through 76 would probably mark the death of the dollar rally. Take this opportunity to get out of all investments that promise to pay future dollars. The apparatchiki in Washington have sent you a telegram, & it reads,"We have proved by all our actions that we are destroying the US dollar, & will keep on to the end." If you won't read the telegram, you will lose everything you have in dollars. Sell dollars while you still can.
SILVER & GOLD PRICES made stunning reversals this week. Wednesday gold posted its biggest one day gain ever, US$70.10 up 10%, & silver gained 15%. Looking at the weekly charts, gold made a flashy reversal after a 3 leg ABC correction, & burst up through its 50 DMA. The silver price, which was trading below its 200 Day Moving Average, made a similar reversal, but rising up through the 200 DMA. All other indicators for both metals are flashing, "Countdown to blast-off!" Supply is still very spotty, delays are long, & premiums (especially silver) are historically high.
Look for much greater instability & volatility in all markets. Just steel yourself for it. Look for the Nice Government Men to attack silver & gold, more than they [probably] did today, yet the metals will not succumb. Get your house in order. Buy as much gold & silver as you can. The time to delay has long passed.
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.