Wednesday, November 25, 2009

The Gold Price is Headed for $1,300 or Higher Before This Rally Ends

Gold Price Close Today : 1,187.00
Gold Price Close Nov 20: 1,146.50
Change: 40.50 or 3.5%

Silver Price Close Today : 18.768
Silver Price Close Nov 20: 18.433
Change: 33.50 or 1.8%

Platinum Price Close Today: 1,475.30
Platinum Price Close Nov 20: 1,447.40
Change: 27.90 or 1.9%

Palladium Price Close Today: 375.20
Platinum Price Close Nov 20: 364.95
Change: 10.25 or 2.8%

Gold Silver Ratio Today: 61.91
Gold Silver Ratio Nov 20: 61.91
Change: 0.00 or 0.0%

Dow Industrial: 10,318.16
Dow Industrial Nov 20: 10,270.47
Change: 146.24 or 1.4%

US Dollar Index: 74.346
US Dollar Index Nov 20: 75.579
Change: -1.23 or -1.6%

Our office will be closed on Friday, so I am sending y'all a weekly report today. God bless you all with Thanksgiving.

I'm beginning to grasp why so many analysts have been missing or questioning the rise in silver and gold. Go look at a gold price history chart, Notice the repeated humps climbing up like a slinky ascending stairs. In fact, the chart is a stairstep.

What's happening? Gold is jumping up to a new level, and the timorous keep waiting for a correction to buy. Gold goes sideways, corrects only the the level it just broke out from, then the sideliners all jump in a buy, sending gold jumping up to the next higher level. This is a VERY strong pattern, because there is so much buying demand right under the market. This is also why "waiting for a correction" has been a terrible idea against today's market.

And more of the same lies ahead. If y'all have been waiting to buy, stop waiting and buy. Gold is headed for $1,300 or higher before this rally ends, and silver to $25.00.

Whoooooo! There she blows, the Dollar Index, headed for Davy Jones' Locker. Dollar index finally broke that support at 74.90 today & sank to trade right now at 74.346, down 73.8 basis points. I told y'all, I told y'all. It may stop at 74 or even 73.50, but could sink all the way to past low at 71. Very good news for gold, unless the dollar makes this a V- or spike bottom and turns around. That is not the dollar's wont, but could happen.

STOCKS: The Dow gained 146 points or 1.4% this week. However, I still think the Dow has burned all its ammunition & is rolling over. Stay out of stocks.

GOLD pulled another jump today, up $21.20 to $1,187.00. Does that make me nervous, rising so fast? You bet, what rises fast falls fast, too, but this rally is real, this rally has legs, this rally is targeting $1,300, and the dollar index just fell through support. That's not quite a recipe for disaster. Will
$l,200 fall next week?

The SILVER PRICE rose 31.3 cents to close the week at 18.768 up only 38.3 cents and 1.8% this week versus gold's 3.5% jump. Silver's lagging has to throw a pall over everything -- but not one so big that it stops the party. If this rally intends to continue, next week gold will burst $1,200 and silver $19.00. Trouble would come only if silver closed below $18 and gold below $1,065.

Premiums on most gold coins rose today. Marketing geniuses at the US Mint announced this week they weren't minting any more silver American Eagles this year, and today announced no more gold American Eagles. Brilliant! What timing!

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.