Friday, December 12, 2008

Once the General Public Catches on What the Fed and Government Have Done to the Dollar, Panic Buying of Silver and Gold will Increase

Gold Price Close Today : $818.90
Gold Price Close 5 December: $750.50
Change: $68.4 or 9.1%

Silver Price Close Today : $10.199
Silver Price Close 5 December: 9.401
Change: 79.80 cents or 8.5%

Gold Silver Ratio: 80.29
Gold Silver Ratio 5 December: 79.83
Change: 0.46 or 0.6%

Dow Industrials: 8,629.68
Dow Industrials 5 Decemeber: 8,638.42
Change: -8.74 or -0.1%

US Dollar Index Today: 83.619
US Dollar Index 5 December: 86.713
Change: -3.094 or -3.6%

Numbers speak for themselves, and the numbers from silver and
gold -- and from the US Dollar Index -- speak loudly enough this week.

GOLD and SILVER PRICES keep on confirming their November 18 bottom, and their uptrend, but the fight is far from over. The silver price must cross $10.50 and the gold price must cross the 25 year resistance at US$850 before the rest of the world will believe again that the metals are in a bull market. Be patient. It will happen. A rally has begun which will carry into spring.

Now is the time to buy silver and gold. Once the general public catches on what the Fed and government have done to the dollar, panic buying of silver and gold will increase. Next year will not be kind to owners of US dollars and stocks. As if things weren't bad enough, the Fed is now making noises about selling its own debt, and (I reckon) issuing notes against that. Now why do they want that power, unless Bust-up Ben plans on using it?

Woe! Woe! The outcome is unthinkable!

The massive de-leveraging of hedge funds and the scramble for liquidity (in the form of US Dollars) had been buoying up the US DOLLAR INDEX for several months, but that appears to have ended. The dollar has made a series of lower highs and lower, marking out an undeniable downtrend. If you think the dollar is popular now, just wait until the $8 trillion plus of inflation slammed into the system already expresses itself in prices next year. You may see eggs at $12 a dozen. The US Dollar has the same future as an arm-garter manufacturer in 1925 --- none.

STOCKS just burned up friends and buying power all week long, up and down without any progress. Still, the bottom was placed in November, and a 4 - 6 month rally is beginning. If you still have stocks, look for the magic 10,000 Dow to sell them all. Get out.

On this day in 1925 the first motel -- the Motel Inn -- designed for motorists to drive right to their door of their room, opened in San Luis Obispo, California.

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.