Saturday, September 27, 2008

Gold Price Closing Above US$900 will Signal a New Breakout, Silver Above $13.50

Gold Price Close Today : $882.90
Gold Price Close 19th of September: $860.60
Change: $22.30 or 2.6%

Silver Price Close Today : $13.458
Silver Price Close 19th of September: $12.425
Change: $1.033 or 8.3%

US Dollar Index Today: 76.961
US Dollar Index 19th of September: 77.736
Change: -0.775 or -1.0%

Technically silver and gold prices backtracked this week on the stunning gains made as they reversed up from lows. The gold price closing above US$900 will signal a new breakout, silver above $13.50. Downside? Trend is good as long as the gold price remains above $850 and the silver price above $13.00. Naw, there isn't any downside, really. Notice that the Dow priced in silver (827.99 -88.582 or -9.7% since September 19th) and gold (12.621 -0.612 or -4.6% since September 19th) has worked its way down from recent highs and draweth ever closer to the March lows, which, when it breaks, will commence a free fall.

STOCKS have been struggling. Next week the consummation of the bailout will be announced, and they will take a little jump from that, but a big slide lies ahead of them. Get out of stocks, and stay out.

Despite the Nice Government Men's best efforts, and I am certain they have been trying, the US dollar closed the week below 77 at 76.961, down a bruising 55 basis points Friday alone, down 1% during the week when silver rose 8.3%. Which kind of money would you rather hold?

Get ready for a wild ride. Volatility will increase from here. Buy more silver and gold, get out of stocks and dollars.

On Capitol Hill the charade continues, a spectacle of easy virtue trying to clean its skirts in advance, most of it (I allow for that statistically rarest of all creatures, an honest congressman) simply to fool the masses. I suspect the financial industry bailout plan will pass pretty much as written (back in March, or July at least).

Briefly reflect on the change made: the US constitution has been officially junked and the economy openly transformed into a fascism for benefit of the banks and well-connected. Probably not the death of the system, but pretty much the end of y'all's economic hopes, if you remain inside that system.

Whether the outcome is a hyperinflation or slow-burn, whether it arrives sooner or later, makes no difference. The Tapeworm is consuming its host. You either swallow the worm medicine, or die. It's what John Milton called "Necessity, the tyrant's plea" when he put the words in Satan's mouth in Paradise Lost.

9/11 ended the personal rights under the constitution and bill of rights, the bailout will end economic rights. It has happened. Be a man, face it, stop living in your dream world. The bright side is that events are confirming the death throes of the monster, even though he might thrash around for several more decades. It's time to get you and yours outside his usurious economy. Revive the local economies long ago gutted to feed the Tapeworm. First, secure your ongoing livelihood. If you don't have a business that produces or sells something people need, get one. If you have no business or farm, make yourself indispensable in your job.

Regarding money, convert your dollar-denominated assets, all of them to silver and gold. Regardless whether events slow-burn or hyperinflate, the dollar will be destroyed. So will you if you stay in it.

Look around your local economy and figure out how you can supply each other's needs. Encourages people to use silver and gold as money, instead of withering dollars. (Go to for an easy exchange calculator.) You cannot survive alone. Okay, call me crazy. But if you do, you have to look at those madmen and frauds on Capitol Hill and call them sane.

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.