Gold Price Close Today : 923.30
Change: -$28.80 or -3.0%
Silver Price Close Today : $13.344
Change: -51.8 cents or -3.7%
Gold Silver Ratio: 69.19
Change: 0.508 or 0.7%
Dow Industrial: 7,659.97
Change: -115.89 or -1.5%
US Dollar Index Today: 84.01
Change: 0.56 or 0.7%
Sorry this is late, but Susan and I took off for Atlanta last night, about 6 hours away on word word from a friend with the Constititutional Tender Act, www.constitutionaltender.com. Georgia Rep. Bobby Franklin entered the act which requires the state to perform its duty under US Constitution Art. I, Section 10 to make nothing but gold and silver coin a tender in payment of debt. Today the House Committee on Banks and Banking held a hearing, and the bill's supporters asked me to testify.
Needless to say, the banks will fight it tooth and toenail, because they don't understand it. If they did, they would support it as it offers the only chance for them to survive. Listening to the banking lobbyists specious objections, it dawned on me: Their time is past. A wave of revulsion against fiat money and uncontrolled fractional reserve banking will become a tidal wave as the economic crisis deepens. Within two decades at most, the fiat system will be dead, and with it, banking as we know it today.
The group behind the bill made stunningly adept and forceful presentations. It was an historic occasion, one I have longed to see for over 40 years, a state legislative body seriously listening to the requirements of constitution and common sense. Thank God I was privileged to witness it!
Mark this, and remember: we are witnessing the end of fiat. We will see silver and gold restored as money, and with them, lasting and stable prosperity. But first the old must die.
Markets today:
STOCKS gave back 116 points (on the Dow) of yesterday's gains. Whether this was the market's normal zig-zag, or 'twas responding to Ben and Tim's Dog and Pony show, who knows. If the latter, then markets don't care much for Timmy's latest Save the Banks plan. Nothing changed that I see. Stocks still rallying toward 9,000 - 9,800, then another drop.
US DOLLAR INDEX strengthened today, rising 56 basis points to 84 and a fingernail. Trend still down.
SILVER and GOLD PRICES took a sock in the jaw. Gold dropped 28.80 to 923.30, silver 51.8 cents to 1334.4 cents. These extended corrections are very frustrating, chopping back and forth, up and down, disappointing and enticing. It's just the way of the world, so don't let it borrow you. Gold now finds itself once again near support at 920. Friends, this is called a "dip" so you ought to be buying here, not puking in your wastebaskets like some green stockbroker.
Quit ye like men!
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
- Franklin Sanders, The Moneychanger
The-MoneyChanger.com
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.
