Friday, February 13, 2009

Gold and Silver Prices Are in a Precarious Place

Gold Price Close Today : $941.50
Gold Price Close 5th of Feb: $913.60
Change: 27.90 or 3.1%

Silver Price Close Today : $13.62
Silver Price Close 5th of Feb: $12.745
Change: 87.50 cents or 6.9%

Gold Silver Ratio: 69.13
Gold Silver Ratio 5th of Feb: 71.68
Change: -2.56 or -3.6%

Dow Industrial: 7,850.41
Dow 5th of Feb: 8,063.07
Change: -212.660 or -2.6%

US Dollar Index Today: 86.009
US Dollar 5th of Feb: 86.024
Change: -0.015 or 0.0%

And the big winner for the week is --- platinum, up 8.9%! Week's big loser is -- the Dow in Silver ounces, down 8.9%!

Watching stocks and the Dow reminds me of watching one of those old silent movies, where the heroine is always being tied to the tracks in front of an on-coming locomotive, or hanging by an unravelling rope off a cliff -- always about to perish, but not quite yet.

The US DOLLAR INDEX managed to stay flat this week, which, if you are a planarian worm, is success.

GOLD and SILVER PRICES are in a precarious place. Wide assumption is that once the Obailout is signed, silver and gold will drop. Maybe, but let us ponder.

First, the 5-day charts seem to show for gold, silver, and platinum a completed move up, with the beginnings of a correction. However, silver and gold are out of synch, with silver a bit ahead of gold. We must face the possibility that if gold clears $950 and silver $14.00, they MAY run wild, sending the gold price above US$1,000 and silver price over $16.00(guessing that the Gold/Silver Ratio drops to 62 before correcting).

Second, since 2 January the silver price has run from $11.25 to $13.62, up $2.37 or 21% in six weeks. From its low last 13 November at $8.80 until today's 13.62, silver has risen $4.82 or 55%. Whew. Modesty forbids my comparing silver's performance to stocks or the US Dollar, & the like.

Meanwhile, since 2 January gold has climbed 62.70 from 878.80 to 941.50, up 7%. Since the 13 November low at 704.90, gold has gained 236.60 or 34%. Stocks, since January 2 have fallen from 9034.64 to 7850.41, down 1184.23 or 13%. Since November the Dow has fallen from 8835.25 to 7850.41, down 984.84 or 11.1% So silver and gold prices have advanced enough to complete a leg, and some indicators are looking overbought, but no Cosmic Law says they can't get more overbought still.

Next week if you see gold fall back from 950, then wait for it to settle around 930 - 906 before you buy, say, 2 - 5 days. But if gold closes above 977.70, stop waiting and buy silver and gold with both hands. And wouldn't you know it, Monday is a US holiday, but not in the rest of the world, so we'll only get a shot at it after everybody else.

Catherine Austin Fitts last night showed me a breakdown of where the Obailout money is going. It's a joke. The Nice Government Men and Obamaites have not a clue where they are going. They're like ushers standing in front of the crowd after somebody has yelled "Fire!" in a theater that really is burning.

Now, more from the experts from the Last Great Depression: "Gentlemen, you have come 60 days too late. The depression is over." Herbert Hoover, responding to a delegation requesting a public works program to speed the recovery, June 1930.

Happy Valentine's day.

Y'all have a great weekend.

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.