Tuesday, November 03, 2009

The Gold Price is Headed Much Higher

Gold Price Close Today : 1,084.30
Change: 30.90 or 2.9%

Silver Price Close Today : 17.171
Change: 74.0 or 4.5%

Platinum Price Close Today: 1,357.50
Change: 18.10 or 1.4%

Palladium Price Close Today: 326.25
Change: 1.40 or 0.4%

Gold Silver Ratio Today: 63.15
Change: 1.773 or 2.9%

Dow Industrial: 9,771.91
Change: -17.538 or -0.2%

US Dollar Index: 76.34
Change: 0.05 or 0.1%

HoHoHoHoHAAAAAA! Pardon me while I laugh with glee, long,uncontrollable, and immeasurable!

For nearly two decades, every time the manipulators in the Fed, US Treasury, and bullion banks wanted to drive down gold, they would drag out that old dead duck (the threat of IMF gold sales) and shake it in the market's face. Oh, my, that would send the market shivering, at least, those naïve folks who had not already witnessed the duck two dozen times.

So comes the time that the IMF finally really, really, decides to sell gold, 403.3 tonnes (12.966 million oz). Does gold strangle? Hardly. Decision was made 18 September, but the long-threatened gold never hit the market. Rather, the Reserve Bank of India gobbled up 200 tonnes (6.421 Moz) from 19 - 30 October at an average price of $1,041.96.

And the gold market? Did the mighty IMF garrotte the gold market with its big-bad sales?

Hardly. The GOLD PRICE ROSE $30.90 on the IMF sales news to close at an all time Comex high of $1,084.30! Viola! The dead duck has exploded, leaving only flecks and gobs of carrion all over the IMF.

Back to the markets: The gold price today rose $30.90 to close at $1,084.30. That's a new all-time high close, but more pertinent to our interest, it also is a big, garlicky breakout over $1,065 resistance, and a blaring alarm that gold is headed much higher. Do not hesitate: buy now. Buy at market.

The SILVER PRICE exploded up 74 cents today to close on Comex at 17.171. Before the end of the week, the silver price should close above $18.00. Buy, don't hesitate.

The US DOLLAR INDEX barely moved today, rising 4.8 basis points to 76.338. Parsing that with gold's jump, people are beginning to wonder whether gold isn't decoupling from the dollar. Probably premature on that, but 'twill happen. Is happening, slowly.

Stocks fell back today. Dow closed down 17.53 at 9,771.91, but the S&P500 rose 2.53 to 1,045.41. If stocks are to make that one last surge upward, it will have to begin tomorrow or next day. They can't keep hanging here.

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.