Friday, February 20, 2009

The Gold Price Closed Today at $1,001.80

Gold Price Close Today : $1,001.80
Gold Price Close 3rd February: 941.50
Change: 60.30 or 6.4%

Silver Price Close Today : $14.485
Silver Price Close 3rd February: 13.62
Change: 86.50 cents or 6.4%

Gold Silver Ratio: 69.16
Gold Silver Ratio Close 3rd February: 69.13
Change: 0.03 or 0.1%

Dow Industrial: 7,365.67
Dow Close 3rd February: 7,850.41
Change: -484.740 or -6.2%

US Dollar Index Today: 86.476
US Dollar Close 3rd February: 86.009
Change: 0.467 or 0.5%

For the week, silver and gold prices rose exactly the same percentage. The Gold Price closed today at US$1,001.80, bare pennies below last March's all-time high at US$1,003.20. Not to be outdone, the silver price rose 86.5 cents to close the week at $14.485.

Both metals continue to hang on a razor's edge. The silver price now has reached last year's high, after breaking through the July 2008 high. Will it keep rising through the March 2008 high, or take a breather here? Seasonal pattern says the gold price should rise further, and worldwide fear is pushing gold higher. If the gold price does close higher on Monday or Tuesday, then it will leap for 1,140, then 1,250 or some even crazier-sounding number. Even if it backs up here before attacking US$1,003 again, it shouldn't drop lower than 920, maybe 880.

Silver is tagging right along with gold, after setting the pace and running ahead for several weeks. It has now smashed through my $14.00 target, so from here $16.00 or higher is possible.

Sooner or later, you have to follow your mind and buy the breakout. The breakout is the close above 977.70. Yes, that makes me nervous, even jittery, but you have to buy the breakout. Silver and gold both.

Today's numbers on the US dollar don't tell the week's whole story. The US DOLLAR INDEX traded up to 88 this week, the last high, but today collapsed 109.7 basis points. Somebody is dumping dollars -- maybe the world. Better get out of dollars and into silver and gold before the dollar sinks to its intrinsic value: zero.

STOCKS broke support at 7550 and last fall's low and are now sinking toward the 10/2002 low at 7,286.27. Better hope they stop there, otherwise they might reach 6,250 or 6,000. Sooner or later stocks have to rally -- don't they?

H.L. Hunt, the great oil man, said, "Never get really elated in victory; when times are tough, never get down." Sure, all you silver and gold investors feel great today, but temper that with the thought of the millions now being dispossessed by a wicked Tapeworm, and deceived by academe, media, and politicians.

In 1965 Lyndon "Landslide" Johnson said, "So here is the Great society. It's the time -- and it's going to be soon -- when nobody in this country is poor." To which I can only add, not if the banks, Democrats, and Republicans have anything to say about it.

On this day in 1839 duelling was prohibited in the District of Columbia by act of Congress. Maybe we ought to bring it back, especially for members of Congress.

One last item which, besides the sky and sun in Tennessee, proves the entire world isn't yet looney. A new Democratic congressman from Idaho voted against the Stimulus bill. When asked why, he explained that every job it generated would cost $250,000. Smart fellow. I wonder if he's from Tennessee originally.

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

- Franklin Sanders, The Moneychanger

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.