Wednesday, October 07, 2009

The Gold Price is in Uncharted, Never-Before-Traded-In Territory

Gold Price Close Today : 1,043.30
Change: 4.00 or 0.4%

Silver Price Close Today : 17.478
Change: 20.5 or 1.2%

Platinum Price Close Today: 1,327.20
Change: 12.00 or 0.9%

Palladium Price Close Today: 311.45
Change: 8.00 or 2.6%

Gold Silver Ratio Today: 59.69
Change: 0.222 or 0.4%

Dow Industrial: 9,725.58
Change: -5.67 or -0.1%

US Dollar Index: 76.41
Change: 0.08 or 0.1%

The GOLD PRICE hit a high today of $1,048.10. It is still advancing, but spent today catching some breath. Gold is in uncharted, never-before-traded-in territory but a close above $1,050 -- a round number -- will attract attention and buyers. On Comex gold closed at $1,043.30, up $4.00. If instead of smashing $1,050 tomorrow gold corrects, remember it must hold $1,020.

The SILVER PRICE moved higher today again, up 20.5 cents to $17.478. That is a new high close, and marks a nearly $1.00 gain in two days. Looks to me like silver is running away. Close above $17.50 tomorrow will send it sprinting toward $18.00. Real resistance doesn't come in until silver crosses above that point.

STOCKS had a confused day. The Dow dipped slightly -- 5.67 points -- to close at 9,725.58, while the S&P 500 & others edged up slightly. Last two days charts of Dow and S&P500 look like somebody swinging a long rag on a stick -- straight up then sideways. Might be consolidating, but looks more like a top. Y'all ought to have sold all your stocks already anyway. If you haven't, you have days, at most a week or two, before another waterfall -- and waterfalls don't run up.

The US Dollar Index may have double-bottomed yesterday and today at 76.15. Let's see if it can follow through tomorrow. My expectation is that after dithering a while, the Dollar Index will fall again toward 74.

More and more of y'all have written about praying for my granddaughter Caroline Sanders when she has heart surgery on 13 October. Your tender concern endears every one of you to me.

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.