Monday, October 19, 2009

Buy Gold on Any Breakout Above $1,065, or Any Drop Below $1,040.

Gold Price Close Today : 1,057.30
Change: 6.60 or 0.6%

Silver Price Close Today : 17.610
Change: 20.5 or 1.2%

Platinum Price Close Today: 1,357.90
Change: 14.00 or 1.0%

Palladium Price Close Today: 334.35
Change: 5.00 or 1.5%

Gold Silver Ratio Today: 60.04
Change: 0.368 or 0.6%

Dow Industrial: 10,092.19
Change: 96.28 or 1.0%

US Dollar Index: 75.25
Change: -0.39 or -0.5%

The SILVER PRICE jumped 20-1/2 cents today to close on the Comex at $17.61. In the after- market it's trading at $17.86. High so far this move has been $17.893 last Wednesday, 14 October. A close strongly above $18.00 would break silver out to the upside. Buy if it does, but likelier is more sideways to down shilly-shallying in a shallow correction. Shouldn't drop lower than $17.00 at most.

The GOLD PRICE's high close has been $1064.20, so that's another number to watch. A close above that means a breakout. By the way, when I say "a close above that price" I don't mean 10 cents above that price. Ought to be at least 2% above, but less would do as long as it gained again the next day. Gold closed today $6.60 higher at $1,057.30 on Comex. Today may have been a fooler, an upday in a correction. Be careful. Buy any breakout above $1,065, or any drop below $1,040. In the aftermarket gold is trading right at $1,065.

Analysts whom I read and respect see the present gold and silver markets through eyes different to mine. They're calling for $14.00 silver, and who knows where that would put gold -- $950? I think they're misjudging this market's mood. The bull has broken down the fence and run out of the paddock and he ain't coming back. That's why I believe these will be shallow corrections. Next low is due by October 30.

What's the alarm that will tell you I'm wrong? The silver price closing below $17.00 and the gold price below $1,020.

STOCKS edged up 96.28 to close at Dow 10,092.19, a new high for this rally. S&P 500 rose 10.23 to 1,097.91. Looks like the Dow may reach the 50% correction level at10,375 before it collapses.

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.