Tuesday, November 25, 2008

Silver and Gold Prices Have Made Their Lows and Now are Climbing in a Rally that Will Last Until Well Into Next Spring

Gold Price Close Today : 818.50
Change: -1 or -0.1%

Silver Price Close Today : 10.27
Change: -8.5 cents or -0.8%

Gold Silver Ratio: 79.70
Change: 0.558 or 0.7%

Dow Industrials: 8,479.47
Change: 36.08 or 0.4%

US Dollar Index Today: 84.77
Change: -1.04 or -1.2%

Although somebody (Nice Government Men?) painted the tape brilliantly yesterday to make metals' performance look worse than it was, their strength could not be hidden. The gold price rose $80 in two days, the silver price over $1. Most of the day the gold price was circling around $830, and the silver price $10.50, although the closes came in much lower.

Today they eased off a little, the gold price down a dollar to $818.50 and the silver price down 8.5 cents to $10.27. The real hurdles now are $850.00 for gold (25 year resistance) and $10.50 for the silver price, but they ought to be surpassed quickly.

Silver and gold prices have made their lows and now are climbing in a rally that will last until well into next spring. If you were waiting for a "sign" to buy, you got it yesterday and Friday.

The US Dollar index is collapsing, literally. Yesterday it dropped 280 basis points. I kept looking at that figure, unable to grasp it. Thought it must be a misprint. Today the dollar index fell another 104 basis points to land at 84.769. Looks like the liquidity squeeze -- and the panicked demand for dollars -- has ended. Down 380 basis points in two days? This is not alarming, it is humiliating. The dollar is trash, and will be trashed.

STOCKS probably have yet one more downward spike, but may have already bottomed. Still looking for a bottom by the end of the month and beginning of 3 - 4 month rally, before stocks fall off the face of the earth into the black hole of a bear market.

Reading back over a few commentaries from the last few months, I realize I may sound fairly, well, sarcastic toward the monetary and governmental powers that be. I confess that I hold them all in contempt, as clowns too ignorant to recognize what damage they are doing, or as mercenary traitors willing to destroy the lives of millions. In any event, they are not serious people. Serious people don't do such things; they take heed of their actions' consequences.

And I realize that I am always urging you to buy silver and gold. There's a reason for that. It will be a long bear market in the economy and stocks and the dollar, and a long bull market in silver and gold. It's hard enough for people to grasp that, harder still for them to act on it. Rather, they will watch like a mouse fascinated by a dancing snake while their capital is gobbled down by a bear market. I trust y'all understand that and have acted -- or will act -- soon.

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.