Friday, March 20, 2009

Once the Gold Price pierces US$1,000, it Will Swiftly Move Toward US$1,250, then US$1,600. Buy Now

Gold Price Close Today : $955.80
Gold Price Close 27th February: $930.20
Change: 25.60 or 2.8%

Silver Price Close Today : $1382.7
Silver Price Close 27th February: $1326
Change: -56.70 cents or 4.3%

Gold Silver Ratio: 69.13
Gold Silver Ratio Close 27th February: 70.15
Change: -1.03 or -1.5%

Dow Industrial: 7,278.38
Dow Close 27th February: 7,210.52
Change: 67.860 or 0.9%

US Dollar Index Today: 83.708
US Dollar Close 27th February: 87.413
Change: -3.705 or -4.2%

The Gold/Silver ratio this week reached to 72, where you ought to have swapped gold for silver. If it gets there again, swap.

The GOLD PRICE now has put its feet on the road to $1,000 again. Next week it must add to its gains, or melt back for more correction. That appears unlikely, given the astonishing strength this week.

Shortages of gold coins are worsening, delays stretching out. That also points toward higher prices. Once the gold price pierces US$1,000, it will swiftly move toward US$1,250, then US$1,600. Buy now.

The next big move in the market will be a huge gain by silver against gold. Recall that silver took a much worse hit than gold in the decline last fall, so silver has much ground to reclaim. It's easy to imagine silver in the upper 2000s or even lower 3000s this spring, or by year-end. Yep, I know it sounds crazy, but it will prove perfectly sane.

By announcing it would double its balance sheet for the second time in a twelvemonth & buy US debt, the Fed announced at the same time that the US dollar is dead, or at least, would soon be executed. The words were not lost on the markets, who knew what they meant. The US DOLLAR INDEX dropped 255 basis points, while the gold price shot up US$60.

Don't miss the significance of what these Fed goofs are calling "quantitative easing." It is "printing money." It is the same method Rudolf von Havenstein used when he was President of the German Reichsbank during the 1921 - 1923 inflation.

The comrades at the Fed have decided to sacrifice the dollar, and your economic future with it. What I can't figure out is what keeps y'all from marching on Washington with pitchforks, torches, and rope.

STOCKS began rallying this week, but today gave back some of those gains. Probably the martini and Long Island traders closing out positions before the weekend. Dow has a rally up to 9,400 -9,800, then will fall again, for the bottom hath not yet been espied.

US Dollar index has briefly found a resting place in the mid 83s, but will fall further. Certainly answers the question in my mind about whether it would resume its rally. It won't.

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.