Tuesday, June 30, 2009

Time is Running out for Lower Gold and Silver Prices

Gold Price Close Today : 927.10
Change: -13.30 or -1.5%

Silver Price Close Today : 13.574
Change: -37.3 cents or -2.7%

Gold Silver Ratio: 68.30
Change: 2.780 or 4.2%

Dow Industrial: 8,447.00
Change: 82.38 or 1.0%

US Dollar Index: 80.18
Change: 0.27 or 0.3%

The US DOLLAR, today's little rise by 27 basis points to 80.178 notwithstanding, has rolled over to the downside, and must now close above 80.75 to turn up. Maybe it will tomorrow, but probably without much enthusiasm.

STOCKS didn't get close enough to smell Dow 8,600 before they turned and fled. Now the Dow stands under its 200 day moving average (8,464.92 today), which in a bear market usually signals a downturn. The Dow should see 8,200 before it sees 8,600.

The SILVER PRICE slipped below its 50 DMA (14.06 cents) today to close on Comex at 13.574, down 37.3 cents. If the silver price cannot defend the line around 13.50 tomorrow, then 'twill drop to 13.00. If the silver price is ever going to drop further it will happen tomorrow. If it holds on here, well, my, that will be strong indeed.

The GOLD PRICE also dipped below its 50 DMA (930.35) and closed on Comex at US$927.10, down 13.30. Several different plots might unroll: (1) The gold price might stop right here, or (2) the gold price might return to its 918.00 previous low and make a double bottom there, or (3) the gold price could drop through 918 to 900 or lower.

If all this sounds bearish coming from my lips, remember that time is running out for lower gold and silver prices. Besides, I hope they do go down and give all of y'all one last chance to buy silver and gold on the cheap, before gold blows through US$1,000 next fall, holding silver's hand.

Tuesday is supposed to be my day off, but I worked bees today with my son, Wright. I'll never get used to opening up a hive of bees while they calmly go about their business. Well, those sweet yellow Italian bees do that. Those black Caucasian bees will eat you alive, and sting you through a bee suit. Is the honey worth the trouble? Are you kidding? Just one single time taste sourwood honey right out of the hive, and you'll know.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2009, The Moneychanger. May not be republished in any form, including electronically, without our express permission.

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.