Tuesday, February 02, 2010

Buy Silver and Gold Here, or Wait Until the Gold Price Exceeds its $1,226 Top.

Gold Price Close Today : 1117.40
Change: 13.10 or 1.2%

Silver Price Close Today : 16.736
Change: 8.3 cents or 0.5%

Platinum Price Close Today: 1580.20
Change: 30.10 or 1.9%

Palladium Price Close Today: 442.95
Change: 12.55 or 2.8%

Gold Silver Ratio Today: 66.77
Change: 0.454 or 0.7%

Dow Industrial: 10,296.85
Change: 111.32 or 1.1%

US Dollar Index: 72.00
Change: -0.24 or -0.3%

That eye-gougin', ear-bitin' knuckle duster I was expecting for gold at $1,104 never came to pass. The GOLD PRICE just shot through $1,105, ran to $1,118.50, and backed off. That's perfectly respectable performance. On Comex gold closed up $13.10 at $1,117.40. Tomorrow it will attack resistance at $1,118 - $1,125, and most likely conquer it.

The SILVER PRICE just clotted on the chart under $16.80, but didn't break through. It closed up 8.3c on Comex at $16.73.6. I think it could be laziness to point the finger at the Nice Government Men every time something goes wrong, but they have habits, and have habitually been beating up silver to hold the gold price back for the last 15 years or so. What better way to cast doubt on gold's performance?

Aww, never mind. Tomorrow the silver price ought to shoot through $16.80 and close above $17.00. There's no reason for it to stop yet. Buy silver and gold here, or wait until gold exceeds its $1,226 top.

US DOLLAR INDEX dropped another 24 basis points to 79.002. Looks sick. Is this a correction, or return to previous low? Still looks sick for a while.

STOCKS continued their rebound rally today. Dow climbed 111.32 to 10,296.85. S&P rose 14.13 to 1,103.32. Here is another sucker rally that won't re-gain more than 50% of the January fall. Stay out of 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. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.