Monday, March 23, 2009

Silver and Gold Prices Looked Confused When the Comex Closed Today

Gold Price Close Today : $952.10
Change: 3.70 or -0.4%

Silver Price Close Today : $13.862
Change: 3.5 cents or 0.3%

Gold Silver Ratio: 68.68
Change: -0.441 or -0.6%

Dow Industrial: 7,775.86
Change: 497.48 or 6.8%

US Dollar Index Today: 83.45
Change: -0.26 or -0.3%

SILVER and GOLD PRICES looked confused when the Comex closed today at 12:30 central time, with gold down $3.70 to 952.10 and silver up 3.5 cents to $13.862. When stocks exploded upward, that sucked air out from under gold and it dropped to 938 (silver lost 12 cents). Does this surprise anyone, that a big bear rally in stocks take eyes off gold? It shouldn't have.

Silver and gold have both gotten ahead of themselves. They're not likely to drop much, given the epidemic of Fear of the Fed and the Almighty Collapsing Dollar, but they can wear us out going sideways for a month.

Stay with silver and gold. Buy on every dip. Wall Street's wholly-owned Treasury Secretary Timmy Geithner finally published the Plan to Rid Banks of Toxic Assets, and guess what? It stuffs a fat plum down Wall St.'s mouth. First they floated the mortgage backed securities which they knew would eventually sink like a -- well, lump -- in a churn, and sold them at at 150 cents on the dollar, shorting them in effect. Then when they have reached the bottom and nobody wants to buy them, forth steps the heroes for a "public-private partnership" who will buy back the securities at 3 cents on the dollar, with 90% loans from the government! and when the toxic assets reach 85 cents on the dollar, they will sell them, having made billions, nay, trillions shorting them, and re-buying them.

Lawsy mercy! Don't y'all love the American Way?

Bear market rallies -- rallies against a primary down downtrend fated to continue down -- come on strong & sudden. They look like they are about to blow the top off the thermometer, but they are part of the bear's bag of tricks to lure investors into his den where he can maul them at his leisure.

Case in point: Today's stock market rally, up 497.48 points on the Dow, up 54 on the S&P500. Wow. Up 4.3%. Wow. It climbed through the Oct. 2002 low, so that convinced more victims to hop on. And tomorrow it may jump another 400 points, & it will appear stronger than a garlic milkshake, until it evaporates just as suddenly. And it will.

US DOLLAR INDEX dropped again today. Looks like it will be sinking for a while.

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.