Wednesday, December 10, 2008

Gold Price Needs Close Above the November High at $834.50 then $850 the 20 Year Resistance

Gold Price Close Today : $807.10
Change: 34.70 or 4.5%

Silver Price Close Today : $10.165
Change: 35 cents or 3.6%

Gold Silver Ratio: 79.40
Change: 0.704 or 0.9%

Dow Industrials: 8,785.31
Change: 93.98 or 1.1%

US Dollar Index Today: 85.43
Change: -0.37 or -0.4%

Silver and gold prices worked through their confusion today and settled it by jumping straight up.

THE US DOLLAR INDEX topped in November at 88.46, and left its December high at 87.70. The series of lower highs has been accompanied by a series of lower lows -- a classic downtrend. The dollar's decline will accelerate on any close below 84.27 (the last low) or below the 50 and 20 day moving averages (84.88 and 88.94). Beneath that, alas, stands only air, and nothing to catch the dropping dollar. Only thing that could contradict this decline would be higher closes, first above 87.70 and then 88.46. Hold not thy breath.

The DOW has taken stocks above the short-term downtrend line, breaking out of a falling wedge formation. That falling wedge foretells an upward breakout, which is what I have been expecting. Look for that rally to 10,000 or more, and grab that like the last train west out of Berlin in 1945. Sell your stocks then, or watch them wither over the next several years.

The GOLD PRICE rose $34.70 to close at $807.10 today. It needs to climb above the November high ($834.50) and then crash through $850, the 20 year resistance line. Already the gold price stands above its 50 DMA ($780.48) and is ready, at long awaited last, to climb above its 200 DMA again ($866.50). Today confirms once more my interpretation that the gold price has begun a rally.

The SILVER PRICE has been wrestling with its 50 DMA ($10.06) but today crossed it and closed up 35 cents at $10.165. The real target here is $10.50, the fence that has held in the silver price so long. Once that fence gives, silver will boogy.

Yet again, I urge you to lift your head up and look around at what is happening. The Fed and US Treasury have executed a coup d'etat over the US government. The US and world economies will need years to work through this mess. Over the next 5 - 10 years it will be extremely difficult to make a living. Be warned. Heed not the lying sirens, nor their song.

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.