Tuesday, September 16, 2008

The Gold Price has Carved out an Uptrend - Yesterday was the First Burst Up, Today the Test of Footing, and Tomorrow the Take-off

Gold Price Close Today: 776.50
Change: -6.6 or -0.8%

Silver Price Close Today: 10.462
Change: -61.3 cents or -5.5%

Limb, limb -- where are you? I want to climb out there. Today's silver trading, combined with the last two days, has formed an upside-down head and shoulders. Unless the silver price drops below $10.37, from this platform it should launch a large rally.

Gold over the past 3 days has carved out an uptrend. Yesterday was the first burst up, today the test of footing, and tomorrow the take-off.

VERY slow deliveries and shortages continue to rule the physical silver and gold markets. Call me crazy, but I would still be buying silver and gold like the barbarians were at the gate. I would also swap gold for silver, since the financial crises have driven down silver against gold, an unexpected opportunity.

The glorious Comrades at the Glorious Soviet Central Bank -- wait, wait, scratch that, make that the "Federal Reserve" -- decided today that what all the rest of us needed was to keep interest rates flat. This was not so much a display of wisdom as it was cowardice. If they raised rates, they risked crashing the stock market; if they lowered rates, they crash the US dollar. What's a central banker to do? Take the middle of the road, where the yellow stripe runs. Meanwhile, add Washington Mutual S&L to the list of potential corpses, alongside Lehman Brothers and AIG and Merrill Lynch.

STOCKS, helped, no doubt by Nice Government Men on the Plunge Protection Team, came back after a rocky start to close up 131 points at 11,049.33. Yes, it's a paltry close, but think of the psychological value of closing over 11,000. Right. And think of all the money you're losing on stocks. But don't take my word for it, just listen to your stock broker, stay where you are, & watch.

The glorious people's US Dollar rose 62 basis points today to close at 79.103. It remains in an uptrend unless it closes below 76. This rally can hardly last longer than end-October, if it can make it to end-September, that is.

Here's something that will really make y'all feel comfy about holding all your assets as electrons in US banks. Customer of ours from upper Texas called today to explain he had meant to wire payment, but his money was in Houston & the bank there had no electricity, thanks to the hurricane, therefore he could get no wire. Yessirree, nothing like modern interdependency.

Sorry, I won't be sending y'all a commentary tomorrow because I will be finishing my September Moneychanger.

I took Susan down to Florence, Alabama today for her orientation for cardiac rehab. She did fine walking, and other than trouble sleeping & fatiguing easily, she's doing very well. Thanks for your continuing prayers.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

Buy Silver and Gold Coins at:

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.