Tuesday, December 09, 2008

Check the Silver and Gold Prices Over the Last 6 Weeks, and You Will Find a Series of Rising Bottoms i.e. An Uptrend

Gold Price Close Today : $772.40
Change: 5.00 or 0.7%

Silver Price Close Today : $9.815
Change: 12.5 cents or -1.3%

Gold Silver Ratio: 78.70
Change: 1.493 or 1.9%

Dow Industrials: 8,691.33
Change: -242.33 or -2.7%

US Dollar Index Today: 85.91
Change: 0.25 or 0.3%

Hail storm coming up, so I have to write and send this quickly. Silver, Gold and stocks are all turning up.

Y'all need to bear in mind that moving averages show what sort of momentum a market has. When the market has been below the moving averages and crosses above, then its momentum is up. As it crosses first the 17 DMA and then 50 DMA, it confirms the momentum of that trend. In bull markets, the market usually trades above its longer term (200 & 300 day) moving averages; in a bear market, below. In the crashing prices from July forward, silver and gold have been taken below their 200 and 300 day moving averages, rare but not impossible to see in a bull market.

In stocks the Dow is above its 17 DMA and knocking on 50 DMA. This foretells the stock market rally I have been looking for. Keep watching it for your chance to get out of stocks above Dow 10,000.

The US DOLLAR today rose 25 basis points, but that didn't hurt gold's feelings at all. It rose 5.00 to 772.40. The dollar remains below 86 at 85.91.

SILVER and GOLD PRICES were confused today with the gold price up $5.00 and silver price down 12.5 cents at $9.815. That's confusion, and most likely points to weakness, some kink not yet worked out. However, go back and check the silver and gold prices over the last 6 weeks, and you will find a series of rising bottoms, i.e., an uptrend. Both metals have crossed above their 17 DMA. I interpret this confusion as the unfolding bottoming pushing its way thru negative sentiment. Be careful.

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.