Friday, August 28, 2009

Gold Price to Break Through $1,000 This Fall and Silver to Top $21

Gold Price Close Today : 957.00
Gold Price Close August 21: 953.20
Change: 3.80 or 0.4%

Silver Price Close Today : 14.784
Silver Price Close August 21: 14.16
Change: 62.40 cents or 4.4%

Dow Industrial: 9,544.20
Dow Industrial August 21: 9,506.96
Change: 37.240 or 0.4%

US Dollar Index: 78.366
US Dollar Index August 21: 78.044
Change: 0.322 or 0.4%

The really tasty part of today's GOLD PRICE action was that close above $955. That was the next resistance gold needed to cross. Now one more step above $961, and gold can break free and fly for the moon.

The SILVER PRICE is only following, not leading. $15.00 stands as a big block in silver's road, but the most massive block is $16.00. Interesting that silver today closed above its monthly average for the last 32 months, $14.784 against $13.98.

On Monday the serious players come back from vacation and re-enter the market. Days of traders running the market up and down in a tight range ought to be past us now. I expect to see silver and gold prices rallying strongly through September and October. Unless the dollar stages a surprise rally, expect gold to break through $1,000 this fall and silver to top $21.00.

The US dollar index's close on 21 August didn't answer the riddle after all, and we've been living with it another week. Yesterday the dollar performed so poorly that it seemed certain to crash through 77.50 and confirm a fall, but today it climbed -- late and barely -- above 78.33 support/resistance to close at 78.366, up 27.7 basis points today. For now I am concluding that the dollar has expressed its intention to fall, but we still need to see it close below 77.50 to confirm that.

Even looking at the week's results -- the end of the week never lies about what's happened -- we find a contradiction. The dollar index actually rose this week by 32.2 basis points, still clinging to 78.33 support. Yet gold, after a beating this week, rose US$11.50 today to close on Comex at US$957, up US$3.80 on the week. Silver rose a massive 62.4 cents this week,up 56.4 cents today to close on Comex at $14.784.

Please note that our office will be closed on 14 September through 18 September for a family vacation.

I find I have acquired too many of the tiny Mexican two pesos (contains 0.04823 troy ounce of gold) and two and a half pesos (0.0603 troy ounce). Small gold coins are hard to find right now, but I've been buying these wherever I could find them. I have a limited amount of both denominations, and am offering them to y'all at $64.50 each for the 2-1/2 pesos and US$51.50 each for the two pesos.

Here are the conditions, and how you can bid:
1. Sorry, no orders under US$1,500.00, and no orders outside the United States.
2. Shipping charge of $35.00 applies to all orders.
3. To order, just send an e-mail to [email protected] In the subject line type, "Special Offer at"
4. In the e-mail you must type two things, what you want, and how to get in touch with you. Tell me how many pieces of each coin you want, and give me your name, address, and phone number. Remember, I cannot ship to an e-mail address, so include your physical address and phone number.
5. Coins will be sold on a first-come, first served basis, limit 50 pieces of each to a customer. Sorry, no re-orders at these prices.
6. Prices are based on spot gold at US$956.40 and reflect an 11.8% premium over gold content. Not bad for a coin that small.
7. By return e-mail we will inform you how many coins you have bought and we will send you a trade confirmation. Please remember that once we write a trade, we have a contract we cannot change or cancel. You'll need to send us payment by Wednesday.

Y'all enjoy your weekend.

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.