Friday, March 13, 2009

The Gold Price Will Test US$1,600 in 2009 - That Will Take the Silver Price as High as $32, Maybe Higher

Gold Price Close Today : $930.20
Gold Price Close 27th February: $942.10
Change: -11.90 or -1.3%

Silver Price Close Today : $13.26
Silver Price Close 27th February: $13.323
Change: -6.30 cents or -0.5%

Gold Silver Ratio: 70.15
Gold Silver Ratio Close 27th February: 70.71
Change: -0.56 or -0.8%

Dow Industrial: 7,210.52
Dow Close 27th February: 6,624.94
Change: 585.580 or 8.8%

US Dollar Index Today: 87.413
US Dollar Close 27th February: 88.680
Change: -1.267 or -1.4%

Big Question this week is whether silver and gold prices have really finished correcting, or not. I thought we might see lower action, maybe as low as $850, or even a quick break below that, but the gold price dropped to $888 and refused to kneel further. Today it closed up at $930.50, which is right in the resistance area. Next hurdle is $942, which turned it back on the last try. Expect next week to see the gold price rising.

One event points portentously at higher silver and gold prices: failing supply. In the last two days two wholesalers have told me they will not sell American Eagles until further notice. Why? They can't get them. Another told me he would sell them, but without any guarantee when he would be able to deliver. Deliveries on other gold coins have now stretched out to two weeks. Silver rounds may be backing up again. Buyers are ravenous.

The SILVER PRICE, I know, lost 6.3 cents this week, but that statistic doesn't tell the whole story. Between last week and this silver went down to 12.46 and revived. Still, I will admit, it is down on the week. Monday silver much walk through 13.50 like Robert E. Lee & Stonewall Jackson walking thru Joe Hooker at Chancellorsville.

If silver and gold are as strong as I think they are, they won't falter next week, but will make good gains within the first couple of days.

Sometime this year, perhaps this spring, the gold price will test US$1,600. That will take silver as high as $32, maybe higher. The bull market in silver and gold, notwithstanding the "experts" in Newsweek, has much longer, and much further, to run. Hop in now or be left hacking in the dust.

Before I forget about it, Catherine Austin Fitts has very graciously made available to you the MP3 file of her Solari Report where I answered the most common questions about investing in silver and gold. You can download it for free at While you're there, consider subscribing to Catherine's weekly Solari Report, available by live telephone hook up. Catherine is one of those rare people who brings the best out of everyone she talks to. Visit her at

One more thing: forget the stories about the US urging the IMF to sell its gold. Iss old propaganda ploy, Comrade! That old "sell the IMF gold" duck has been trotted out since 1992 whenever the Nice Government Men want to drive down gold. For anybody who has been following gold more than 12 months, "Sell IMF Gold" brings only a sneer of derision to the lips. NGM must be sweating bullets and swallowing hard, since even Newsweek contained an article demeaning gold and gold buyers this week.

These are imagination-challenged folks. That the best y'all can do, NGM?

Stocks began their "rally" (in quotation marks) this week, and it surely ought to carry to 9,000, maybe 9,800. Keep a close watch if you have stocks to sell, because you won't get another chance any time soon. Stocks are nowhere near their low value yet.

It's so hard to like the US Dollar Index, because the dollar is so hard on its friends. It broke above the old 88 high, but didn't follow through and has spent weeks pretending it's going to move higher, without ever doing it. Needs to close above 90.50 to confirm an uptrend, otherwise it will at last close below 87 and begin sinking in earnest.

On this day in 1933 banks began to open after Roosevelt's Banking holiday. About 1/3 of the nations' 15,000 banks shut permanently, & today I heard Ben Bernanke say one of the silliest things I've heard since, "If gold were adopted as money, there wouldn't be enough to go around." Ben the B said (I heard it on National Proletarian Radio, so I know it's true) that we couldn't let the banks fail because during the great depression a third of the banks failed and so there weren't enough banks to do all the necessary lending. So, what?! Every bank could only lend X dollars & no more? Come on, Ben! You can do better than this, surely. Throw in some aliens or a conspiracy or something to make it believable. Hey, how about this: aliens from the planet Zambodia kidnapped all the bankers in 1933 & turned them into walking catfish and dropped them out over Florida, where the ones that didn't get run over crossing highways morphed into developers.

If y'all want to have a good time this weekend, go someplace they're playing "Soldier's Joy" on a banjo. Just don't get caught in a tavern shooting.

Y'all have a great weekend.

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.