Thursday, October 08, 2009

Look for Higher Gold and Silver Prices Again Tomorrow

Gold Price Close Today : 1,055.40
Change: 12.10 or 1.2%

Silver Price Close Today : 17.80
Change: 32 or 1.84%

Gold Silver Ratio Close Today: 59.29
Change: -0.4 or -0.67%

Platinum Price Close Today: 1342.50
Change: 12.00 or 0.9%

Palladium Price Close Today: 318.70
Change: 5.00 or 1.6%

Dow Industrial: 9,786.87
Change: 61.29 or 0.6%

US Dollar Index: 75.90
Change: -59.80 or -44.1%

FACE IT: SILVER and GOLD PRICES are going higher. For the fourth day running the GOLD PRICE rose, today up $12.10 to $1,055.40. For the third straight day the SILVER PRICE rose, up 32.2 cents to $17.80, well above the September high and any suspicions this move isn't real. Silver has risen $1.287 in three days.

Although eventually metals will take a breather, that probably won't happen until next week. Look for higher prices again tomorrow to top off the week. Far, far higher prices are coming.

Buy the breakout.

Don't sell, don't take profits. It's a bull market,
so hold your position.

Aaaaaannnnd the US dollar index fainted plumb dead away today. Rallied to 76.3 about 10:a.m., the floor opened up and swallowed it, down 59.3 basis points on the day as I write, and headed at least for 74, likely a tadge lower. As I have so long counselled y'all, get out of US dollars, and all investments that promise to pay you dollars in the future: bonds, annuities, CDs, bank deposits.

Stocks answered my question today about the last two days' chart pattern: top or consolidation? Consolidation, as the Dow broke out to move 61.29 higher and settle at 9,786.87. S&P 500 rose 7 to 1,065.48. Looks like rally begun last spring will end with a little punch through 10,000 before it collapses. Stay away from stocks.

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.