Friday, September 12, 2008

Wade into Silver and Gold with Both Hands, Buying all the Physical You Can

Gold Price Close Today: 760.30
Gold Price Close 5th September : 797.60
Change: -37.30 or -4.7%

Silver Price Close Today: 10.735
Silver Price Close 5th September : 12.24
Change: -$1.51 or -12.3%

Less than a week has passed since the Fannie Mae and Freddie Mac bailout by the government was announced last Sunday, and already the other hogs are pushing to get their snoots into that fat gummint trough, too. Lehman Brothers investment banking house is going down, and talks are underway to see how to bail them out. Insurance giant American International Group fell 31% Friday, and both institutions have portfolios chock-a-block full of mortgage based securities. Like Freddie Kruger of Nightmare on Elm Street fame, every time Paulie Paulson and Ben Budget-buster Bernanke assure us the worst is over, worse yet comes back.

Do y'all realize what the Fannie and Freddie takeover means? It means that the constitution no longer exists, and American fascism, the marriage of Big Government with Big Business, that has so long preferred to pretend it was a "democracy" has now come out of the closet. And what a suck-sess it is! A year ago Fannie stock stood at $68, today it closed at 74 cents. Freddie a year ago was about $60 a share, and today closed at a massive 46 cents. All the management skill that for years has been the monopoly of the US Postal Service will now be lavished on the US mortgage industry, of which the government now controls, O, say, roughly 100%.

Of course my native suspicion already had me staring at my charts and saying, "This ain't possible -- there's a government skunk somewhere in these woods," and turns out I am not alone. Go read the short article at:

The real reason commodities are tumbling

A reputable Canadian, Donald Coxe, chairman and chief strategist of Harris Management, has said out loud that he, too, believes the Nice Government Men trashed markets to make the dollar and stocks look good just as they floated the Fannie and Freddie bailout. Y'all draw your own conclusions.

Volatility is now the name of the game, which means you're going to have to stop puking in your wastebasket and cinch up your belt. My guess is that SILVER and GOLD PRICES probably bottomed last week, but they will have to hold Thursday's lows at $10.49 and US$741.30.

Most of all, do NOT be sucked into this ploy, that the dollar is healthy. "Just look at that tan!" scream the shills. Forget Paulson, forget Bernanke, forget all the other shills -- it's not a tan, it's jaundice. The dollar is sunk, and will resume its downward course shortly. Stocks peaked yesterday against gold, barely managing to reach the top of their trading range. The dollar fell today over one hundred basis points.

Now is the time to wade into silver and gold with both hands, buying all you can. The last six weeks have shown how really thin supply in the physical market is, how small the doorway into silver and gold. You've been warned.

Many thanks to all of you for your prayers and well wishes and cards and e-mails for my wife Susan. Two weeks have passed since her heart surgery, mitral valve repair, and she is recovering nicely, although I am spoiling her shamelessly. She still tires easily, but most of her pain is past. Most hearty thanks to you all for your sweet compassion.

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.