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Thursday, July 31, 2008

The Bottom of the Silver and Gold Price Correction

Gold Price Close Today : 913.90
Change: 11.00 or 1.2%

Silver Price Close Today : 17.750
Change: 32.8 cents or 1.9%

US Dollar Index Today: 73.22
Change: -0.09 or -0.1%

Whew! That GOLD/SILVER RATIO really dropped, now 51.49 down -0.338 or -0.7%, & that tells a tale of strength.

Yesterday the GOLD PRICE met my expected low by closing at $902.90, right near the $905 support/resistance. The SILVER PRICE, though, closed higher yesterday at $17.42, in effect gainsaying gold's weakness (okay, "non-confirming" for you who can't stand plain English).

Okay, okay, how did they follow through today? Perfectly, with gold rising $11 to US$913.90 and the silver price popping out of its bottoming range altogether, up 32.8 cents to $17.75. Yesterday probably saw the bottom of silver & gold's correction.

Also, silver's trading since the 24 July low at $17.24 buttresses that conclusion. Since then it has trended higher, so it looks like silver has successfully defended that level. The silver price traded from $17.42 to $17.24, back & forth, and today's close shot out of that range. What more could you ask?

For now then I have to conclude that SILVER and GOLD PRICES have finished their correction & will move higher. Yes, you still have time to buy more, and ought to, with both hands. Come end of August, you'll be too late.

Pondering the Dow I went back to the low on 15 July at 10,962.54 & measured performance since. As of today at 11,376.39 the Dow has gained 413.85 points (3.8%). To achieve that somewhat less than historic advance, the Dow went up and down a total of 1,932.01 points, or 18% of its beginning price. What's the point? The Dow has burned a huge amount of buying ammunition to make a pitiful gain. Or think of it this way. Your Cadillac (without Posi-traction) is stuck in the mud. You keep spinning and spinning and spinning your tires, but getting nowhere. Pretty soon, not only are you stuck, you also have burned a hole in your tire. Please, while there's still time, sell stocks & mutual funds & put the proceeds in silver & gold.

The US DOLLAR INDEX, dropped back 9 basis points today to close at 73.215. It remains above the 50 day moving average (now 72.79). It could very well advance from here to assault the last high at 74.31, but could also fail here. That would be very bad news for the US dollar. Stop waiting for a miracle: sell dollars!

In his latest book, Barton Biggs, who has been for 40 years one of the top investment strategists on Wall Street, suggests a great wealth destruction "Apocalypse" is coming, and that "A working farm protected both your wealth & your life." From a man of Biggs' background, this is a breathtaking statement.

You will think it a big jump, but consider. Christendom began to fall with the French Revolution. Her last bastion fell with the South in 1865. Thereafter technology became the West's post-Christian religion. For the first five decades of the 20th century, the remains of post-Christian Christendom spent destroying itself.

Technology is not only a cruel & bloodthirsty god, but it is also not self-sustaining. It is a net consumer, not a net producer. Only agriculture is a net producer, but now technology has seized even agriculture so that it, too, is a net consumer. Now technology & its ruler, fiat money & usury finance, have reached another fevered,crisis. They will die, choking on their own excess, if not this time, then the next or the next. The new god will fall on its face, like Dagon.

But I am not as much concerned with its collapse, as I am with the new world to be built, and now a-building. It is springing up even before the ruins of the old fall to the ground.

That brings me back to Biggs' observation. My family, knowing nothing, moved to a farm 9 years ago this month. We killed a lot of animals learning how not to do things, made a lot of mistakes, but now we can do it. I know that most people are repulsed by the work & the lack of prizes -- no Mercedes-Benzes in the future here. But in truth, the labour is invigorating, the prizes far overrated, and the life style gloriously peaceful. Not everyone can do what we've done, but if you can figure out a way to escape urban areas now, do it. Whether apocalypse arrives or not, you will be infinitely profited, in body & soul.

And you will learn how to tell wealth from money.

Susan's heart catheterization yesterday went very well, & showed that she can undergo the less traumatic "minimally invasive surgery" from her right side rather than through her sternum. She will have surgery to repair or replace her mitral valve on 26 August. In the meantime she is suffering from trouble sleeping because of coughing & shortness of breath, & becomes exhausted from walking up a flight of stairs. Trouble is, she is used to being so active that I am afraid we will have to tie her up with chains & steel balls to keep her still until surgery. I am most deeply obliged and touched by your prayers and well wishes. Thank you -- and DON'T stop!


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Tuesday, July 29, 2008

Silver and Gold Prices Both Dropped Today in What Ought to be the Final Leg of this Correction

Gold Price Close Today : 916.50
Gold Price Close Yesterday: 927.70
Change: -11.20 or -1.2%

Silver Price Close Today : 17.330
Silver Price Close Yesterday : 17.417
Change: -8.7 cents or -0.5%

US Dollar Index Today: 73.29
US Dollar Index Yesterday: 72.219
Change: 0.62 or 0.9%

Sorry, I won't be publishing a commentary tomorrow. I have to take my wife Susan to Nashville for a heart catheterization. God willing, I will return on Thursday. Please remember us in your prayers.

I looked at the portfolio page I keep today for closing prices and I saw stock indices up, dollar up, and gold, silver, platinum, palladium, commodities, oil, & the euro down. Before I had a chance to analyze, my mind jumped up and said, "My, my! That's quite a dance there between markets & the Nice Government Men!"

Problem with thinking that way is that it's plausible, but hard to prove. Plausibly, the reason the dead frogs of stocks & the dollar keep jumping suddenly (other than bear market rallies) is that the Nice Government Men in the Let's-Keep-Crony-Capitalism-Alive Department keep on coming into the market & juicing it with bursts of buying, hoping to spark a reaction in other [idiotic] buyers. This in itself might be enough to rap metals and commodities on the knuckles, or if not the NGM will step in their with bursts of well-timed selling to maximize their expenditures. I'm getting so cynical I can hardly stand me.

Technically I can't see that today's trading alters the outlook for the Dow. It's squeezing out a contrary rally in a massive downtrend, after spending many months building a head and shoulders top. Where does this go but down? Once again, sell stocks & mutual funds & put proceeds into silver & gold.

The US DOLLAR INDEX ran past the 73 barrier today to close around 73.30. High of the last rally attempt was 74.31 in mid-June. If it passes that, it might run away to --- 75? Not much future for the dollar any way you cut it.

SILVER & GOLD PRICES both dropped today, gold $11.20 and silver 8.70 cents, in what ought to be the final leg of this correction. Why do I say that now? Because the GOLD/SILVER RATIO today rose to 53.02, the top of the range. Extremes in the ratio usually mark price extremes in metals. Listen carefully now to what I am about to say: if you still hold gold that you wish you had swapped into silver, tomorrow is the day to do it. (Notice, I am not recommending a silver-to gold swap, but gold to silver.)

Would I buy more silver & gold here? Absolutely Probably we will get one scary day out of the next two when the gold price returns to kiss $905 and the silver price -- $16.80? Be calm, don't let passing events shake you. A reader called my hand on those banks that closed over the weekend. Go to www.fdic.gov & look for the Failed Bank List. On 25 July FDIC close 1st Heritage in Newport Beach & 1st National Bank of Nevada in Reno. First was $3.4bn second $254 mn. Just small fry.

For those of you who bought Confederate General silver rounds on July 2: We were overwhelmed. Sold over three times what we had in stock, so we had to go back to the mint to have more minted. This is a painful 'pushing on a string" process, but we are pushing. As soon as the rounds come in one of our doors, we will ship them straight out the other. Thank you very much for your patience.



Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Monday, July 28, 2008

Get All Your Money Out of Banks - Increase Gold and Silver Holdings

Gold Price Close Today : 927.70
Gold Price Close Friday: 926.60
Change: 0.90 or 0.1%

Silver Price Close Today : 17.417
Silver Price Close Friday : 17.325
Change: 9.2 cents or 0.5%

US Dollar Index Today: 72.219
US Dollar Index Friday: 72.67
Change: -0.18 or -0.3%

SILVER & GOLD PRICES both rose slightly today. More than that, for the first time in a week both metals rose stiffly in the aftermarket, gold 2.30 from 927.70 close to 930, and silver from $17.417 to $17.54. Add to that premiums strengthening on physical silver & gold. Gold sits above its 50 DMA (916.30), silver just below ($17.58).

This situation speaks out of both sides of its mouth. It's scary because the gold price made that great breakout but then failed to penetrate $1,000. That might be interpreted as a permanent failure, destined to take gold down, but I've explained recently what that call is utterly wrong.

It might hold true in a weak market, but gold's performance has been anything but week, and is only 7 years into a primary up trend. On the other hand, bull market moves that kiss the 200 DMA or bring the 50 & 200 DMAs close to each other are perfect opportunities to buy, harbingers of large rises to come.

Besides, look at the trees of the forest we're walking through. Do US banks dropping here & there take demand out of silver & gold? A 97-pound-weakling US dollar? Bumfuzzled Fed and Treasury officials? Threat of a systemic world financial crisis?
Every one of these builds demand for silver & gold, so relax.

But remember that for the next few days silver and gold prices could behave with great volatility, including sudden puke-in-the-wastebasket drops that make you think they will never come back. Don't panic. All this will end with August's passing.

STOCKS sank today, taking the Dow down 239 points to 11,131.08 & S&P to 1,234.37.

More than stocks, banks concern me. Two more fell over the weekend. Anyone who has ever investigated already knows that the supposed "protection" of the Federal Deposit Insurance Corporation is a mile wide and a millimeter deep. It is structured to contain one or two failures, not a systemic failure, and its "insurance" coverage is laughable. If I tell you to get all your money out of banks, I might be thought an extremist. On the other hand, other extremists will call me squishy. I would peel my bank deposits down to a minimum, and, yes, increase my gold and silver holdings. Don't think for a second that I'm joking.

Since 1 July the US DOLLAR INDEX has twice attacked 73, and twice suffered ignominious defeat. Today it fell under its 50 day moving average (72.76) to close at 72.67. Whatever the dollar is, 'tain't strong. Thinking about the crisis in the US Banking system & the US Dollar I keep wondering if I am not caught in August 1914 again. That month the world sat in suspense and disbelief watching European arrogance & stupid draw the world down into war. Now we sit in complacent disbelief, watching banks sink one by one while the dollar treads water, waiting for The Big Crash we all pray won't come. Much as we despise Bernanke, Paulson, & their cronies, a large part of our heart hopes they won't fail, hopes the banking system won't get what it deserves.

Many thanks, dear readers, for your compassion & your prayers for Susan. I deeply appreciate them. I'll keep y'all apprised of her progress. She has a heart catheterization on Wednesday.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Friday, July 25, 2008

The Gold Price Will End the Year Well Over US$1,000, Taking Silver With it - Keep Buying Silver and Gold

Gold Price Close Today : 926.60
Gold Price Close July 17: 970.00
Change: -43.40 or -4.5%

Silver Price Close Today : 17.325
Silver Price Close July 17 : 18.667
Change: -134.20 cents or -7.2%

US Dollar Index Today: 72.855
US Dollar Index July 17: 72.219
Change: 0.636 or 0.9%

SILVER and GOLD PRICES took a beating with a thick cudgel this week. I have been warning y'all that more than one push would be needed to pass through that US$1,000 barrier. This week's savage correction proved that.

I'm not sure yesterday didn't see the lows, but am anyway confident that US$905 will hold if gold weakens again next week. If silver has not bottomed (which it appears to have done), it could drop back to $16.80 cents.

The gold price now stands beneath that resistance (all the way from $925 - $945) that slowed it down before. Relax -- it will pierce that resistance and end the year well over US$1,000, taking silver with it. Keep buying silver & gold.

Ahh, yes, all the blustering & firing the blarney cannon by Paulson this week puffed the DOW up to 11,700, but it still finished the week lower than it started. Sisyphus didn't have as hard a job as Paulson & Bernanke. (As punishment for his deceit, Sisyphus was condemned in the Greek hell to push a rock up a hill, only to have it roll back to the bottom again, and then to repeat that frustration for all eternity. Whether it rolled over him ever time, we aren't sure.) People who keep money invested in stocks will, by this bear market's end, find the bear has eaten all their money. Yet inertia will keep them in stocks, mutual funds, and IRAs/401Ks invested in stocks until all their money evaporates. Maybe it has to do with feeling safe in the herd. I don't really understand.

Having reached a peak of G$260.69 (12.611 oz) on Tuesday, the DOW IN GOLD DOLLARS sank back to close the week at G$253.67 (12.271 oz.) This happens after an all-time new post-1999 low at G$231.86 (11.216 oz) on 15 July. Bottom will fall out soon. Look out for that trap door!

The DOW IN SILVER OUNCES today closed at 656.31 oz, but also made a new low on 14 July at 576.54 oz. The DiSOZ, down, like the DiG$ about 70% from its highs (stocks have lost 70% of their value against silver & gold) will eventually hit 32 ounces or lower.

The nasty US DOLLAR INDEX managed to climb 64 basis points this week on the strength of Paulson's blarney barrage. I haven't seen any news past couple of days, but feel certain the US Congress, original "Parliament of Whores," will do their bidding and bail out their masters by bailing out Fannie & Freddie. Eventually their entire 5 trillion in debt will be shucked off on the taxpayer. Now ask yourself: Does this mean more inflation, or less?


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Wednesday, July 23, 2008

Buy Gold and Silver with Both Hands on Every Silver and Gold Price Retreat

Gold Price Close Today : 922.40
Gold Price Close Yesterday: 948.00
Change: -25.60 or -2.7%

Silver Price Close Today : 17.40
Silver Price Close Yesterday : 17.945
Change: 54.5 cents or -3.0%

US Dollar Index Today: 72.81
US Dollar Index Yesterday: 72.49
Change: 0.32 or 0.4%

Ahhh, when you're wrong, you're wrong, & this morning proved me wrong. The SILVER PRICE slammed down 54.5 points to close at $17.40 (down nearly 100 cents in 3 days' trading) and gold dropped $25.6 to $922.40 (down almost $40 in 3 days).

The correction is of a larger degree than I suspected. Looking at the SILVER and GOLD PRICE charts, it appears to be a pullback to the breakout point.


Draw a descending line across the April & May tops. That upper boundary of the corrective triangle comes out today a bit below the 50 day moving average ($912.78) around $905. No surprise, $905 was heavy resistance on the way up, and should prove heavy support here.


Drawing the same line across silver's April & May tops shows you that silver has already fallen back into the triangle, and below its 50 DMA $17.53).

However, if you check the Fibonacci correction from the $19.55 recent high, you'll find that 38.2% lands around $17.30, about today's low of $17.29. Silver could drop to $17.00 or $16.50. What!! How is this possible? The silver price is MUCH more volatile than the gold price because it is a MUCH smaller market. It always swings wider than gold, tops and bottoms.

Far from being embarrassed by my recommendation yesterday to buy with both hands, I am pleased silver and gold dropped to even lower prices today, so I can say yet again, buy with both hands on every price retreat.

What might contradict my outlook? A gold close below $850 would change everything, & force me to re-examine all presuppositions.

The GOLD/SILVER RATIO raced today up toward its 200 DMA (53.318) to stop at 53.011. It has formed a broadening top or megaphone, as the tops climb barely higher and the lows lower. Usually this breaks out downward.

STOCKS rose 29.88 points, call it unchanged. I'd rather own gold falling 25.60 in a day than the Dow rising 29.88 in a day. A BIG drop is coming in stocks. Wait for this little rally to wear itself out.

The US DOLLAR INDEX rose 32 basis points today to 72.805. Who knows whether it means anything? It remains locked in the same old trading range, and, of course, remains the same crummy fiat currency it was yesterday & forever.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Tuesday, July 22, 2008

If Y'all Haven't Taken Steps to Protect Yourself Against Banking Failures and Closures, Do it Now, Today

Gold Price Close Today : 948.00
Gold Price Close Yesterday: 963.10
Change: -15.10 or -1.6%

Silver Price Close Today : 17.945
Silver Price Close Yesterday : 18.360
Change: 41.7 cents or -2.3%

US Dollar Index Today: 72.49
US Dollar Index Yesterday: 72.18
Change: -0.67 or 0.9%

Let us talk of banks & bankers -- Whene'er I do, my sick soul hankers to cuss, or decorate a lamppost.

We got the full mushroom treatment today, we stupid taxpayers. Our rulers have sent out Hank Paulson, ex-head of Goldman Sachs, the lead vampire feeding on the country & economy, to blast away with the blarney cannon. Whoops -- bad news, taxpayers, but it may cost $25 billion to bail out Freddie Mac & Fannie Mae, the two economic cancers the government created decades ago to feed vampires like Goldman Sachs (yeah, I know I'm mixing metaphors, but they all apply to these swine.) As Patrick Henry said, "I have but one lamp by which my feet are guided, & that is the lamp of experience. I know of no way of judging of the future but by the past."

I remember when the S&L Crisis blew up, & the banking cronies assured us it was only a $10 billion problem, then a $25 billion, then $100, until at last it was rolled off onto the taxpayers' backs, when it metastasized into $500 billion. Wherefore we can safely predict that this problem is fifty times $25 billion, or $1.25 trillion or more. Further, if Our Rulers (perhaps I should call them "Our Bankers") have called Paulson out of his closet & gone to all the trouble of making him sound like he is alive so that he can fire the blarney cannon, things really must be bad. Talked today to a friend of mine in a position to know, & he said it wouldn't surprise him if Wachovia were eaten up by 6:00 p.m. tonight. The hyenas are already circling.

In the face of all this the dollar rises 70 basis points. To borrow Queen Victoria's phrase, "We are not impressed." This is a silly comic opera playing out. These are not serious people in charge. They are beyond feeling compassion, beyond morality, & the nation lies prone & defenseless beneath this greedy vampire.

If y'all haven't taken steps to protect yourself against banking failures & closures, do it now, today. If you have more than $100,000 in any one account, move it around, get it out, do something with it.

The stock market rose today, continuing the cardboard rally I've been warning you about. How long will people keep on allowing Wall Street to skin them? The answer is easy: until they run out of skin. Sell stocks & put proceeds into physical gold & silver you hold yourself.

SILVER and GOLD PRICES took a beating today. The silver price dropped 41.7 cents to close at $17.945 while the gold price dropped $15.10 to US$948. August gold made a low at US$942.10 and September silver at 1789.5. The day started out with higher openings but by 10:00 a.m. silver and gold prices were reeling.

Today's action typifies a corrective wave, when one day (like yesterday) the market is strong as a garlic milkshake, and swooning the next like a 14-year old at an Elvis concert.

Let us calm ourselves by re-examining the fundamentals, as I did in opening. Wall Street & its accomplice, Washington, are blowing smoke because they are in big trouble. This is not the time to panic out of silver & gold and into dollars, I promise. Rather, every time silver & gold drop a penny, y'all ought to stick in your arms to the elbows & buy all you can.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Monday, July 21, 2008

We Ought to See Gold and Silver Prices Surge in the Next Couple of Days

Gold Price Close Today : 963.10
Change: 5.80 or 0.6%

Silver Price Close Today : 18.360
Change: 23 cents or 1.3%

US Dollar Index Today: 72.18
Change: 0 or 0.0%

SILVER and GOLD PRICES hit a short term bottom on Friday. $18.04 and US$950 seem to have been the lows. Their uptrends are intact from the June bottoms, and both metals remain above their 50 and 200 day moving averages.

We ought to see gold and silver prices surge in the next couple of days, then back off once more before the final push that will carry the gold price through US$1,000.00 We could see that price by mid-August.

Y'all ought to be using every day of price weakness to buy more silver and gold.

Today the Dow appears to have rolled over toward the downside for the short term, but over the next month or so might rally -- not that such charm could entice me to buy or hold stocks. It only give y'all a chance to dump your stocks and put the proceeds in silver & gold.

The US DOLLAR INDEX remains in the same downtrend it has wallowed in since the June intraday high at 74.31. It must climb above 72.35 to break out of that channel. I can find no inspiration in the Dollar's chart.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Thursday, July 17, 2008

Gold and Silver to Make Two or Three Tries Before they Finally Thrust Through Old Highs

Gold Price Close Today : 970.00
Gold Price Close July 11: 959.50
Change: -15.90 or -1.6%

Silver Price Close Today : 18.667
Silver Price Close July 11: 18.745
Change: -7.80 cents or -0.4%

US Dollar Index Today: 72.04
US Dollar Index July 11: 71.891
Change: 0.328 or 0.5%

Tomorrow our office will be closed. We will re-open on Monday, 21 July. That's why I'm sending the weekly commentary a day early.

US business media are such a bunch of worthless hogwash spouters! In the aftermarket today gold dropped 14 bucks and silver 18 cents. Some wire service reports said that gold was dropping because oil had dropped sharply ($5) and US economic outlook had improved. Improved? From catatonic to catastrophic? What has changed since last week?

Has Bush or Bernanke found a wagon-load of pixie dust on an alien spaceship? Did Paulson propose backing the dollar with silver and gold? Did US banks suddenly become solvent? Hogwash! People who write and print lies like these ought to be whipped soundly in public and then left to stew in a leaky dungeon for a couple of weeks, down where they throw the old bacon rinds and food scraps.

The best explanation for most market moves is simply "The fullness of time." That may not satisfy your curiosity,but it is always the truth at least.

This week silver and gold prices were knocking on the ceiling of old highs. It is to be expected, and it is usual, for markets to make two or three tries before they finally thrust through old highs. Gold's aftermarket fall today just took it to last week's close. I wrote yesterday that the most likely floor on this downmove was US$950 for gold and $18.50 for silver. Silver's low today was $18.34 and it's now trading at $18.48. Gold's low was $953.60 and it's now trading about $955.75.

More than anything else platinum's quick fall this week (without palladium following) worries me. A correction in the vastly over-bought commodities might, no, would cause trouble for silver and gold, temporarily only. Keep reminding yourself that silver and gold are in primary uptrends, bull markets, with another 8-10 years to run.

Here's an intriguing statistic. The ETF for gold, GLD, added 7.8% to its ounces from end-May to end-June. From end-June through 16 July, it added 8.97% to its ounces. GLD has to buy gold when it sells shares in its trust, and it has bought 1.86 million ounces recently. That’s US$1.77 billion worth.

Stocks rose today 176.85 to 11,416.13 (Dow). Means nothing. Small rally was already in the cards. It shows up. Nothing long term changes. US Dollar index rose 18 basis points today. Also means nothing, except that it managed to hold on above 72.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Wednesday, July 16, 2008

Fear is in the Air, and it is NOT Fear from Silver and Gold Buyers - Buy Any Retreats

Gold Price Close Today : 961.80
Change: -15.90 or -1.6%

Silver Price Close Today : 18.735
Change: -20.6 cents or -1.1%

US Dollar Index Today: 72.04
Change: 0.31 or 0.4%

Sorry I missed y'all yesterday. We were covered up with orders plus we are helping finish our log building for our church. Too much work, not enough people.

But y'all shouldn't have missed me since it was obvious what was happening. The GOLD PRICE moved close to US$1,000 and the fight began with the short sellers. They hit the SILVER PRICE, too, and the volatility was awful, with gold moving $4 or more on a tick (a single trade). Crazy. Hard to trade.

That sort of volatility can occur at tops, or at crucial resistance. Which is this? Because metals only lately broke out of a long correction, it's far more likely crucial resistance than a top. Another thing that points to that: the buyers back off only slowly, grudgingly.

Long and short of it is that both silver and gold prices are bouncing back from obvious resistance, but quivering to get through that resistance. US$950 and $18.50 are most likely support here, but things are so volatile you have to cut the metals some slack. This retreat won't last more than a couple of days. Fear is in the air, and it is NOT fear from silver and gold buyers. Buy any retreats.

Stocks climbed 276.74 to close at Dow 11,239.28. One thing you have to remember to keep from being mauled and eaten by a bear market is that bear markets stage sudden, sharp rallies. So stocks today. So it rallies to 12,000? 12,250? What changes? Nothing. So, then, why would you want to hold stocks? No reason. Sell while you can still find buyers.

The US DOLLAR INDEX rallied today 31 basis points to close slightly over 72 at 72.042. Yaaawn. We've seen this act before. Does it mean anything? Who knows? Nobody has accused the dollar of sincerity recently.

Remember the scenes from the old Tarzan movies? Walking through the jungle, all the bearers suddenly grow quiet. They cock their heads. The safari leader, clutching his rifle, asks the lead bearer, "What is it, Mbwezi?" Dimly in the distance the throb of drums grows louder. The female star creeps closer to the safari leader, grabbing his arm and scooting behind him. The drums throb louder. The bearers drop their loads.

Now if you've seen one Tarzan movie, you know that the Ngali, the most bloodthirsty tribe in all of Africa who specialize in dicing their victims while still alive, are about to attack. You know that unless Tarzan shows up pretty soon, the entire safari will be salsa.

That scene is where the US dollar is right now, hiding behind safari leaders Bwana Ben and Bwana Paulson, while the wild tribes of bond & currency Ngali circle in the jungle, waiting for their chance to bring down the whole safari. Can't you hear the drums throbbing in the distance? Bad juju.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Monday, July 14, 2008

If You Have Not Yet Bought Silver and Gold, Buy This Breakout

Gold Price Close Today : 972.20
Change: 13.20 or 1.4%

Silver Price Close Today : 19.175
Change: 43 cents or 2.3%

US Dollar Index Today: 71.95
Change: 0.06 or 0.1%

SILVER and GOLD PRICES have removed all doubt about that break-out business. Today gold closed at a new post-March high of 972.20, up another 13.20. Silver blasted up 43 cents to close at 1917.50, dragging the GOLD/SILVER RATIO down to 50.91.

As this rally unfolds, the gold price will probably have to knock twice at US$1,000.00, but don't worry, it most surely will break through. Silver will rise much faster than gold in this rally, taking the ratio down below 38, maybe below 35.

All this will happen very, very rapidly, carrying to heights that Wall Street "gurus" will proclaim are impossible and monstrously overbought. They will, of course, be dead wrong.

If you have not yet bought silver and gold, buy this breakout.

The DOW JONES INDUSTRIAL AVERAGE dropped 45.35 today to close at 11,055.19 -- a poor, poor performance. The American apparat (Fed Reserve and Treasury dept.) are following the worst course possible, allowing themselves to be pushed around by events. Markets sniff out this feckless weakness like sharks smell blood in the water. Whatever else he was, "Iron" Paul Volcker understood that his job in curbing the inflation 1979 - 1980 was to be seen standing like a rock pushing markets around instead of vice versa.

Of course that's all just blarney and play acting, but markets react to blarney, and with inflation it constitutes the apparat's whole arsenal. Weaklings like those now in charge are the sort who blunder into hyperinflations.

US DOLLAR INDEX "stabilized" today under 72 -- except that anywhere under 72 is NOT stable. Dollar must turn around or crash further. Has everybody in Washington lost his mind? Are they all so arrogant that they believe they are "Masters of the Universe" who can never fail? Alas for us all, arrogance nearly always pupates into stupidity.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Friday, July 11, 2008

This Move in Gold and Silver Will Leave You Disbelieving and Gasping - You Will Underestimate it at Every Turn

Gold Price Close Today : 959.50
Gold Price Close 3rd July: 931.90
Change: 27.60 or 2.5%

Silver Price Close Today : 18.745
Silver Price Close 3rd July: 18.285
Change: 46.00 cents or 3.0%

US Dollar Index Today: 71.891
US Dollar Index Close 3rd July: 72.715
Change: -0.824 or -1.1%

If markets follow through on Monday their work begun today, then things are coming unravelled for the financial system & the US dollar.

STOCKS had a strange day that could have been manipulation or a market ready to rally. Dow made a new low at 10977.68, then about 2:45 (?) "somebody" started buying and it closed the day down only 128.48 points (at 11,100.54) rather than down 250 points. I reckon that's some kind of success. Forget all my pointless talk about a shallow rally, stocks are getting ready to be flushed down the pipes. Get OUT of stocks.

DOW IN GOLD DOLLARS broke to a new low since the 8/1999 high, G$239.15 (11.569 oz)

US DOLLAR INDEX closed barely above 72 after dipping below that level. Now in the aftermarket (6:00 p.m. CDT) it's trading at 71.89. A lower opening on Monday sends the dollar down to 60, or even 55. Get OUT of dollar paying investment -- CDs, annuities, bank deposits, life insurance, & hedge your pension some way with silver & gold.

SILVER and GOLD PRICES ended my suspense today by closing much higher, and through resistance at $945 & $18.25 - $18.35. The gold price closed up $18.60 at $959.50 and the silver price up 50 cents at $18.745 cents. That's it, we're off to the races. This move in gold and silver will leave you disbelieving & gasping. You will underestimate it at every turn.

There are times when a market is "high" that you don't want to buy it. At other times when a market is high, you DO want to buy because it is going HIGHER. Silver and gold just broke out after a long correction: buy the breakout.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Thursday, July 10, 2008

Gold & Silver Prices Have Already Broken Out of their Correction Ranges but they are in that Sticky Break Out Area

Gold Price Close Today : 940.90
Change: 13.60 or 1.5%

Silver Price Close Today : 18.245
Change: 14.5 cents or 0.8%

US Dollar Index Today: 72.51
Change: -0.05 or -0.1%

Normally I don't read the news because it just makes me mad and I can't do anything about it, but this morning Yahoo financial ran a catchy little story: "Fannie, Freddie Stocks and Bonds Plummet. A firestorm of anxiety over the ability of US mortgage giants Fannie Mae & Freddie Mac to get the capital they need to survive sent their stocks & bonds plummeting on Thursday."

Translation: As a sop to banks & the building industry, congress years ago set up two Government Sponsored Enterprises, a.k.a. "engines of inflation," called Fannie Mae & Freddie Mac. For at least the last 10 years both have been really sick with corruption, but both were necessary to have a hole into which to shovel & legitimate the rotten mortgage-backed paper that Goldman Sachs and Bear-Stearns & their ilk were floating, not to mention rotten mortgages from the land's length & breadth. Now that the accumulating gas hath blown the sewer sky-high, the problems with Fannie & Freddie are worsening, and nobody wants their paper. But wait!

It's time to shuck the mortgage-backed credit crisis off onto the taxpayer's back & away from Wall Street. Fannie & Freddie are in trouble, squawk! Save them, save them, congress, or else how will the government bail out the banks that caused this mess?

Bottom line: Does this mean more inflation, or less? Bernanke already bailed out Bear-Stearns and other culprits, & has tossed into the fire about half the Fed's assets. Will he toss in government assets to keep these two beasts alive? Can a duck swim? Is a pig's rear pork? However they work this latest subcrisis of the great crisis out, (1) they will inflate much more, & (2) the taxpayer, not the culprits, will pay.

Having vented, let us now to markets!

STOCKS hinted, whispered, & winked today that they will, after all, rally, rising 81.58 to 11,229 (Dow). Rally will be short-lived and shallow. Doubt it will rise above 12,250. Stocks will, I fear, drop much further. Dow in Gold Dollars today is barely 1/20th ounce off its post-1999 low. Sell stocks while you may yet find a buyer.

The US DOLLAR INDEX, bless its heart, doesn't know which way to turn. It lost 8 basis points today to wind up at an equivocal 72.49. Most likely it is headed up, probably to 74.50, but not fast, & not steadily.

Before I forget: Remember that the Fed (& the government) have two & only two weapons: inflation & blarney. They are already shooting that inflation machine gun, & since that's not working they will shortly blast us with blarney. Paulson, Bernanke, even King George himself will appear mouthing how "the economy is basically sound & recovering, the dollar is healthy, etc." & other laughable incredibilities. But watch for it. That's their next move, to buy time.

GOLD & SILVER PRICES have already broken out of their correction ranges but they are in that sticky break out area where they have not yet revved up the motor enough to pull away from the past. That would mean crossing the last highs at $945 & $18.35 with a two-day close over those levels. I have been thinking we would see at least one and maybe two more down days before that happens, but all that may be past, thanks to Fannie,Freddie, Bennie, and Muffie.

Do not under ANY circumstances short silver or gold. In fact, buy and keep buying all you can get. An enormous upmove is beginning -- don't miss it.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Tuesday, July 08, 2008

Will Silver Outperform Gold?

Gold Price Close Today : 921.30
Gold Price Close Yesterday: 927.30
Change: -5.40 or -0.6%

Silver Price Close Today : 17.880
Silver Price Close Yesterday: 17.833
Change: -4.2 cents or -0.2%

US Dollar Index Today: 72.98
US Dollar Index Yesterday: 72.72
Change: 0.26 or 0.4%

Time to re-arrange our outlook for everything. Try to picture this: short counter-trend corrections in metals & stocks, offering opportunities to shuck stocks and buy gold and silver. Dollar index continues to trade sideways, fooling friends and enemies alike.

The Dow climbed 152.25 today, taking stocks up to 11,384. S&P gained even more. Evidently stocks have washed out their negative sentiment and intend to rally. First target is 11,650, then 11,750, then 12,200. The Dow will surprise everyone if it proves able to close above 12,200. At least, it will surprise me. Any rally in stocks offers you a chance to swap stocks for silver and gold. Don't miss this, probably your last, chance.

SILVER and GOLD PRICES dropped today. Gold's low came at $912.05 and silver's at $17.44. I never saw that price, I saw $17.52, so if you didn't grab it fast, you didn't get it.

Here's my guess about what we'll see. Silver and gold prices will spend a few days correcting, rally once again nearly to the last high, then drop once more, casting everyone into consternation. Low might carry as low as the 50 day moving average (now at 17.14), but that guess doth NOT constitute a recommendation to wait to buy silver when it reaches that level. The possible gain of buying 50 - 60 cents lower is not worth the risk of missing silver below $18 altogether. (Ditto gold, for the chance of dropping to $905. Not worth missing it at 915.)

Somebody pointed out to me that some analyst made the statement, "Gold will outperform silver." Maybe in the short run, but not over the bull market's life. Before it ends, indeed, about the time it ends, you will see only sixteen ounces of silver buy one ounce of gold. Because the gold/silver ratio drops faster when stocks are doing well, I am somewhat nervous about silver in the short run. But all sorts of things could happen (that is, government surprise parties) to buoy stocks up briefly. But long term, I'm as sure that silver will outperform gold as I am about any future event.

On this day in 1932 the Dow Jones Industrial Average reached its low for the Great Depression at US$41.22, at that time almost exactly two (2) ounces of gold. On 3 September 1929 the Dow peaked at US$381.17 (18.439 oz of gold), so in about 2-1/2 years the Dow lost 89% of its value. (Remember that then, a ounce of gold equalled $20.6718, gold dollars.)

Measuring in the same gold dollars, on 25 August 1999 the Dow peaked at G$925.42 (44.767 oz). Today it closed at G$255.44 (12.357 oz), for a loss of 72.4%. Sort of takes out the mystery when you use an unchanging yardstick, doesn't it?

By the way, before it ends the Dow will again trade at two ounces of gold or 32 ounces of silver -- or less.

Caroline feels better today. They moved her to a still lower grade of critical care, the Red Pod (sounds like a science fiction movie). Oxygen levels are good & this afternoon she will be moved to a regular care floor! She's not as mad as she has been, and she's really improving. Thank you all for your continuing prayers.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Monday, July 07, 2008

Gold and Silver Prices Are Headed Higher - Buy the Dips

Gold Price Close Today : 927.30
Gold Price Close Yesterday: 931.90
Change: -4.60 or -0.5%

Silver Price Close Today : 17.833
Silver Price Close Yesterday: 18.285
Change: -44.7 cents or -2.4%

US Dollar Index Today: 72.72
US Dollar Index Yesterday: 72.72
Change: 0.00 or 0.0%

Wham! The GOLD PRICE fell 4.60 today to 927.30 and the silver price fell 44.7 cents to $17.833. End of the world? Well, think about it. In the forgoing five days, the silver price had gained $1.834. In the same five days the gold price had broken through its old high. Is it any surprise that it touches back to that breakout point? Shouldn't be.

The SILVER PRICE will have to work to climb back to $18.24, but the gold price has held on. We may see a cat fight this week to hold on to these levels, but I cannot shake the notion that gold and silver prices are headed much higher. I would buy dips like this like a country boy buys bananas -- with both hands.

Whoo! That stock market looked sick today. The Dow made three tries early on to break through 11,400, then gave up and wilted to 11,120. About 3:00 p.m. "somebody" (Nice Government Men?) came in buying heavily, but as quickly as it ran up over 11,300, it sank back. However, the NASDAQ Comp rose 13.14 points. That reminds us that a short, shallow rally might happen any time, reacting against the fall so far, but the big trend remains down.

Today the US DOLLAR INDEX stayed flat. Well, at least it didn't sink back toward 72. My mind is slowly turning against the dollar's possibility of rallying. Too many lies and false promises.

Here's a Caroline update: on Saturday after her heart surgery the staff had moved her out of critical care and onto the floor, but they had to take her back to Critical Care on Sunday. Today she is doing much better. Susan and I went up to Nashville to see her, and she looked pretty well but was a little groggy from morphine. Blood oxygen levels have risen and they've cut back the oxygen they're giving her. She's pretty feisty. Thanks very much for your kind e-mails and for your prayers. I'm passing them on to Justin and Ellen.


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Thursday, July 03, 2008

The Coming Ride in Silver and Gold Prices Will Dazzle All Observers, Including the Most Bullish

Gold Price Close Today : 931.90
Gold Price Close Yesterday: 944.80
Change: -12.90 or -1.4%

Silver Price Close Today : 18.285
Silver Price Close Yesterday: 18.337
Change: -5.2 cents or -0.3%

US Dollar Index Today: 72.72
US Dollar Index Yesterday: 72.06
Change: 0.65 or 0.9%


Today's markets were governed by the big moves of the last few days and, most of all, the upcoming holiday. Traders never like to take home positions over long weekends -- it sours the martinis on Long Island, so they sell out and take lumps or profits before holidays. Given the huge gains silver and gold longs have landed this week, it's no surprise they would grab them and run.

The same probably holds true for stock shorts. The Dow rose a meagre 73 points today (to 11,288.54) while the S&P500 rose 1.38 to 1,262.90. Meanwhile, the NASDAQ Comp fell slightly. Can anybody spell b-e-w-i-l-d-e-r-e-d or d-e-m-o-r-a-l-i-z-e-d? The summer will not be kind to stocks, I fear. I hope y'all have been moving heaven & earth & your stockbrokers & IRA & 401k managers to get out of stocks & into silver & gold. Whatever you leave in stocks will be lost.

Shorts in the US DOLLAR INDEX took flight today, too, letting the dollar rise 65 basis points. Doesn't say much really, since a rally off 72 was predictable. Dollar shows no signs of life still, today notwithstanding.

The SILVER PRICE backed off 5.2 cents today to close at $18.2850, not as much as the GOLD PRICE down $12.90 to end at $931.90. EEEK! Should we panic now? No, contrary to the Nervous Nellies who are constantly straining at the horizon for signs of the end of the metals' bull market. Fat profits this week sent traders running to the bank, and that and the holiday cut into the price today. But note, my friends, carefully note that both remained ABOVE, yes, ABOVE their old highs at $18.24 and $928.

Next week we may see the Attack of the Monster Shorts that could take metals below those prices, but if so only for a day. Both have a strong head of steam and you will see higher prices next week.

Buy more silver and gold. Get out of dollars and stocks. Buy more still. The coming ride in silver and gold prices will dazzle all observers, including the most bullish.


Word came from Vanderbilt in Nashville that Caroline came through her heart surgery very well and is now out of surgery and in intensive care. Thank you for praying with us, and please don't stop.



Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Wednesday, July 02, 2008

Silver and Gold Prices Have Confirmed a Breakout Out of Correction and Into a New Rally

Gold Price Close Today : 944.80
Gold Price Close Yesterday: 942.50
Change: 2.30 or 0.2%

Silver Price Close Today : 18.337
Silver Price Close Yesterday: 18.20
Change: 13.7 cents or 0.8%

US Dollar Index Today: 72.06
US Dollar Index Yesterday:72.37
Change: -0.31 or -0.4%

STOCKS melted today, but the Dow stopped short of breaking through 11,200. S&P 500 fell 23.30, roughly equal to 233 on the Dow, which fell only 165.29. Dow probably will fall to 10,750. Along the way, Wall Street and its pimps will keep soothing you with words, assuring you this is a great time to buy. Like Ulysses and the Sirens, stop the ears of your crew and tie yourself to the mast before you listen to that song. It will leave you on the rocks. Swap stocks for silver and gold, while you still have time.

I really don't need to write anything about the US DOLLAR INDEX any longer, just copy the boilerplate from the day before: "Dollar dropped again today."This day's fall was 31 basis points, leaving the dollar hanging by its fingernails above 72 at 72.06. Friends, perhaps y'all don't realize the seriousness of the dollar's position. It has fallen from 120 in 2001 to about 72 today. Next target is 60, and that will complete a 50% drop in the dollar.

AND HEAR THIS: this isn't bad luck or hard markets or leaky vaults, this is the resolute and determined purpose of the Federal Reserve bank and its lackey, the US government. Right, surprise: they are stealing from you on purpose. They will continue to steal from you as long as you keep your assets in phoney-baloney US dollars. Forget the buck, shift to silver and gold as your primary currency.

The GOLD PRICE was only stymied by $946 today. As I suspected yesterday, exhilarating gold dragged the SILVER PRICE up to a new high close today, $18.337, enough to best the old $18.24 high. Now silver and gold prices have confirmed a breakout out of correction and into a new rally. The market is handing you an opportunity on a -- gulp! -- silver platter.

Gold can hit $1,300 by year end, silver who knows? In the last few days the GOLD/SILVER RATIO has dropped to 51.52. This leg down for the ratio will be astounding, stunning, and blitzschnell -- lightning fast.

ONE MORE THOUGHT on stocks against metals. The Dow In Gold Dollars (DiG$) fell today to G$245.42 (11.872 oz), lower than its 17 March low at G$247.14 (11.956 oz). I have charted the DiG$ since 1996, thanks to my friend Richard Ford suggesting it. It's the best single indicator I have ever followed. Now, after 12 years, the DiG$ has sunk lower than its level when I began watching it in 1996. There's really no floor under it now.

The Dow in Silver Today fell to 611 oz, a bit higher than its 14 March 2008 low at 580.85 oz, but headed down. Against both silver and gold, stocks have given up about 75% of their peak values (1999 & 2001). Ultimate bear market target is the Dow at two ounces of gold or less and silver at 32 oz or less.


Y'all overwhelm me.

Many of you have written to assure me that you are praying
for my granddaughter Caroline's heart surgery. I deeply appreciate
it. Today she had a slight fever from teething, but they plan
on operating tomorrow anyway.

Your response to my offer of Confederate general silver rounds
overwhelmed me, too. Y'all ordered about three times as many
as I had, so I had to buy more. There were too many e-mail orders
for us to type up and e-mail back to you today, but if you sent
an e-mail before noon today, we got it and have entered your
order. We'll send the trade confirmations tonight or tomorrow.
Silver rose 13.7 cents today, then more in the aftermarket, but
we'll still honour those prices in yesterday's newsletter for
the orders we are writing today.

Thanks very much. I'm sure y'all will be delighted when
you see them.



Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.



Tuesday, July 01, 2008

Last Chance to Buy Gold and Silver at These Prices - Big Moves Ahead -- Big Moves

Gold Price Close Today : 942.50
Gold Price Close Yesterday: 926.20
Change: 16.30 or 1.8%

Silver Price Close Today : 18.20
Silver Price Close Yesterday: 17.42
Change: 78 cents or 4.5%

US Dollar Index Today: 72.37
US Dollar Index Yesterday: 72.46
Change: -0.08 or -0.1%

I know y'all are anxious to hear what I have to say about silver (up 70 cents) and gold (up $16.20), but I'm going to torture you by talking about everything else first.

STOCKS, whether you look at the Dow, the S&P500, or NASDAQ Comp, look sorry. If they do rally -- maybe when they hit 10,000 -- it won't be a stimulating show. Swap stocks for silver and gold, while you still can.

The US DOLLAR INDEX dropped again today, about 10 basis points to 72.37 last I looked. The Dollar now has entered territory where one slip of the foot (?buck)will end in a terrible fall. It hangs in the balance, and I don't know which way it will flop. Where are those Nice Government Men when a market needs manipulating,anyway?

Suspense has ended in the silver and gold markets. The GOLD PRICE rose 16.30 today, smashing through the old US$928 high to close at US$942.50. The SILVER PRICE jumped a massive 78 cents to close at $18.20, just four cents below its old high.

What meaneth this fury? That silver and gold prices have proven, most dramatically and unarguably, that their correction has ended and they have launched a new rally. The only small piece needed still for that puzzle is a silver price close above $18.24, which tomorrow should see.

Oh, yes, there's a chance the short sellers will creep out of their holes and dens in the ground and attack tomorrow, but silver and gold will beat them back, whether tomorrow or the next day, fear not. US$1,000 gold price and $21 silver price are clearly seen on the horizon.

Don't mess around. This is your last chance to buy gold and silver at these prices. Big moves ahead -- big moves.

A couple of housekeeping matters:

First, my son and his wife, Justin & Ellen, took my
grandaughter Caroline up to Nashville today for
her heart surgery tomorrow at Vanderbilt. I deeply
appreciate your prayers for her, more than I can convey
with words.

Second, anybody who owns one ounce silver rounds can
tell you that there are some dog-ugly ones circulating out there.
So when my friend Larry LaBorde showed me the Confederate
general rounds (Lee, Jackson, and Forrest) he had commissioned,
I gasped. Fine design, frosty images and shiny proof surfaces,
and on the reverse the Great Seal of the Confederacy, a product
I would be proud to purvey, 99.9% pure silver, one full ounce.
I ordered a big bunch of them, and want to make y'all an offer
good for today alone, with three choices:

(1) Three rounds, one each of Robert E. Lee, Stonewall Jackson,
and N. B. Forrest, for $21 each plus 4.50 shipping or $67.50 total.

(2) Rolls of twenty rounds each, all one general, for
$19.80 coin plus $10 shipping or $406 total per roll (we'll
charge a little more for shipping each additional roll up to
a max of $25 for nine rolls)

(3) Ten or more rolls for $19.40 per round or $3,880 + $25
shipping, or $3,905 total.

How to order: To order fewer than 200 rounds, just send
us an e-mail by noon Central Daylight time on 2 July. We will
respond with a trade number. In your e-mail be sure to send
us your name, street address, and phone number (we can't
ship silver to an e-mail address!), Please mention goldprice.org.
Email us at franklin@the-moneychanger.com

To order 200 rounds or more, call us at (888) 218-9226.
You must call before 12:00 Central Daylight Time. If you get
voice mail, leave a message, That counts. Please mention goldprice.org.

CONDITIONS: we have only 1,700 rounds. When
those are gone, they're gone, and we'll have to sell at
current market price only. If we have to backorder, delivery
will be twelve (12) weeks. All our other usual conditions of
sale apply


Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.


- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at the Best Prices"
The-MoneyChanger.com

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.