Monday, September 15, 2008

We saw the Lows in Silver and Gold Last Week. Buy, Buy, and Buy More, While it's Still Possible

Gold Price Close Today: 783.10
Change: 22.80 or 3.0%

Silver Price Close Today: 11.075
Change: 34 cents or 3.2%

When the British surrendered at Yorktown, their army marched out with the band playing "The World Turned Upside Down." Might be a suiting tune for today on Wall Street. Lo, how are the mighty fallen! Failing to convince the imperial yankee government to bail it out, merchant banker Lehman Brothers simply -- failed. Insurance giant AIG is bankrupt, borrowing from itself (its subsidiaries, really, but only in today's cockamamie financial world would such a statement even be possible), from banks, from merchant bankers, from the shoe-shine boy, from everybody who is stupid or self-interested enough to lend. And -- surprise! -- Bank of America gobbled up Merrill Lynch brokerage (?biggest in the US?) with no notice at all. What skunks lie buried under a marriage that hasty?

What's next, foreign exchange controls, before all the money leaks out of the country, living only a green scummy ring around the shores?

Friend of mine remarked that when landmarks like these go under, it attacks the foundation of all your presuppositions, like finding out that pedophiles lurk among the clergy. In fact, it oughtn't have been such a surprise, given the rottenness of the system, the corruption from government financing, and greed unchecked by good sense.

The GOLD PRICE rose 22.80 today, the SILVER PRICE rose 34 cents, closing at $783.10 and $11.078. The US Dollar Index sank to 78.485, down another 44 basis points after falling over 100 bp on Friday. Nobody scared there, huh? Now if I were the Nice Government Men, what would I do next? I would strongarm my fellow crooks in other central banks to buy all the dollars they can, trying to prop up the buck. I would also hint broadly, perhaps even threatening a nuclear attack, that I would like for them to sell gold, maybe make an announcement they intend to sell gold. And I would short silver like crazy.

Who will win, the NGM or the market? Don't bet on the NGM. I watched them work during the 1970s when they kept auctioning off Treasury gold to keep down the price, all of which successfully resulted in holding the gold price down from $42 an ounce to $850 an ounce by 1980. [sic]

Seems nobody much wants to own stocks anymore. Dow sank 504 today to 10,917.51 and S&P500 sank 59 to 1192.70. Remember on Thursday or Friday I remarked that the Dow in Gold Dollars had hit the high of its range, but we needed a couple of days to tell whether it would break out or fail again? Well, it told us today, falling to G$288.19 (13.940 ounces) from G$318.84 (15.414 oz). Is further explanation needed?

Mach' schnell! Today's action, plus all the corpses falling out of Wall Street's closets and cupboards, forces me to conclude we saw the lows in silver & gold last week. Buy, buy, and buy more, while it's still possible! A lot of our customers are complaining that we're not returning their calls. Please, forgive us, but this morning there were 42 calls waiting on us when we arrived. If you're having trouble getting through, just call again. We're running fast as we can.

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.