Thursday, February 05, 2009

Sharp Sudden Rises Are Possible in Silver and Gold Prices Next Week

Gold Price Close Today : $913.60
Gold Price Close 29th Jan: $905.10
Change: 8.50 or 0.9%

Silver Price Close Today : $12.745
Silver Price Close 29th Jan: $12.14
Change: 60.50 cents or 5.0%

Gold Silver Ratio: 71.68
Gold Silver Ratio 29th Jan: 74.56
Change: -2.87 or -3.9%

Dow Industrial: 8,063.07
Dow 29th Jan: 8,149.80
Change: -86.730 or -1.1%

US Dollar Index Today: 86.024
US Dollar Index 29th Jan: 85.294
Change: 0.730 or 0.9%

I will be out of town tomorrow, so am sending y'all the weekly report today.

The US DOLLAR INDEX has made one, two, three tops since 22 January. Yes, it remains above its 50 day moving average (DMA)but keeps grinding downward. A close below 83.89 will send the fall into high gear. I am no longer looking for dollar's rally to reach 88.

The GOLD/SILVER RATIO has broken 72 -- good, good, O, very good! Ratio should drop quickly toward the 200 DMA at 65.62. That implies that silver is about to leap, and leap much further and faster than gold. Fasten your seatbelts.

Look at SILVER'S huge 60 cent gain this week, 5%. Silver has targeted its 200 DA at 13.54 at a minimum, but more likely it will scream through 14.00 or higher before it runs out of gas. Next week should see big doings in silver.

GOLD is now knocking on the door of 920 - 940 resistance. Tomorrow or next week will break through and challenge the July high at 980. This can unfold very fast. Once Gold pierces 980, it will begin a run for US$1,200. Expect a big party in gold next week, so wear your party hat.

I suspect both gold and silver are entering the last leg of this particular move. Sharp sudden rises are possible in silver and gold prices next week, but a rest ought to follow after that. Looks like we've seen the last of silver below 1200 and gold below 900.

On this day in 1937 Pres. Franklin Roosevelt tried to pack the US Supreme court with pliable judges who would allow his radical fascist takeover of the economy by the federal government. He proposed to simply increase the number of Supreme Court justices. If Roosevelt had been pushing harder and harder to see when the country would finally say NO! he found that point with his packing scheme.

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.