Friday, January 09, 2009

Much Higher Prices are Coming Confusion and Fear Reign Across All Markets and that is Draining Energy out of Silver and Gold Too

Gold Price Close Today : $854.30
Change: 0.40 or 0.0%

Silver Price Close Today : $11.295
Change: 22.3 cents or 2.0%

Gold Silver Ratio: 75.64
Change: -1.487 or -1.9%

Dow Industrial: 8,745.57
Change: -143.28 or -1.6%

US Dollar Index Today: 82.48

The last week has left me feeling like a fool at a tennis match, wearing out his neck watching the ball flip from side to side without any outcome. Back and forth, back and forth, but no resolving outcome. Dollar up, dollar down, stocks up, stocks down, metals up, metals down. So what?

Stocks first: they failed at 9000 Dow this week, & that's not what you'd call a superb performance. Dow close below 8200 would be fatal, breaking stocks' backs for a new fall off the cliff. Once Obamaramalama is inaugurated, a short period of good feelings will follow, a few days anyway, in which stocks will float. I still expect that 4 - 6 month rally.

US DOLLAR INDEX, in spite of today's jump up 88 basis points to 82.483, is locked in a downtrend. Only a close above 88 could save it, and that's not likely.

GOLD ended the week in a place that is not terribly re-assuring. It needs to close above 860 first, then 880 to break out of this consolidation area. The week has been spent wasting gas going back and forth from 840 to 857, with no progress.

SILVER has behaved much the same, rocking between 1100 cents and 1150. Here, too, we need a break through, crashing the barrier at 1150.

Be patient with both. Much higher prices are coming, & soon. Confusion and fear reign across all markets, and that is draining energy out of silver and gold, too.

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.