Tuesday, January 06, 2009

Silver and Gold Prices Impressively Fought Off Another Attack Today

Gold Price Close Today : $865.40
Change: 8.20 or 1.0%

Silver Price Close Today : $11.42
Change: 17.5 cents or 1.6%

Gold Silver Ratio: 75.78
Change: -0.450 or -0.6%

Dow Industrials: 9,025.10
Change: 62.21 or 0.7%

US Dollar Index Today: 82.79
Change: 0.19 or 0.2%

Who's afraid of the big bad dollar? Not stocks or silver or gold, at least not today. Today the US DOLLAR INDEX rose 18.8 basis points, but it might as well have been rising on the moon for all other markets cared. The point? The dollar remains in an upward rally in a downtrend, and its days are numbered. Panic is over, need for dollar liquidity is vanished, hangover from inflation is hitting, and dollar is resuming its trajectory toward the center of the earth.

impressively fought off another attack today. The gold price broke below $850, allegedly down to $838.50 (I never saw it that low), while silver hit $10.75 (I never saw that either), but both closed the day much higher, the silver price up 17.50 at $11.42 and the gold price up $8.20 at US$865.40.

What jumps out at you from those closes? That gold remained above $850 support and silver above 11.25/11.30. The shorts have now wasted a lot of ammunition in the past 2 days trying to break metals, without success. Now they have fistfuls of losing positions, which will lose even more as silver and gold prices keep on climbing.

That means at some point we have a price piƱata in our future when these shorts panic out of their position, yelling "Buy it for whatever you have to pay!" That day will witness big jumps in silver and gold prices.

And that should happen soon. Resistance above silver until $13.50 is like the earth's atmosphere above 30,000 feet -- very thin. Look for big jumps when silver finally and permanently closes above $11.50 - $11.80.

STOCKS finally closed over Dow 9,000 at 9,025.10. They'll inch up a bit more, then dig into a rally, but don't expect anything spectacular. Get your selling ready for Dow 10,000 to get shut of any remaining stocks.

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.