Monday, May 03, 2010

We are on the Way to Much Higher Silver and Gold Prices - Wait No Longer

Gold Price Close Today : 1182.70
Change: 2.60 or 0.2%

Silver Price Close Today : 18.813
Change 20.2 cents or 1.1%

Platinum Price Close Today: 1725.40
Change: -14.00 or -0.8%

Palladium Price Close Today: 546.70
Change: -4.85 or -0.9%

Gold Silver Ratio Today: 62.87
Change: -0.543 or -0.9%

Dow Industrial: 11,151.83
Change: 143.22 or 1.3%

US Dollar Index: 82.37
Change: 0.56 or 0.7%

Surprise. Surprise. Surprise. It's Monday and the stock market rose. The Nice Government Men are becoming terribly sloppy, following the same pattern week after week. Ponder -- Denket mal -- The Dow lost 158 points Friday and gained 143.22 today to close at 11,151.83. This is not progress, 'tis merely burning up buying power. If your car was stuck in the mud and you gunned it and the speedometer showed 50 mph while you were standing still, would you count that progress? The stock market's pattern is a broadening top, and soon it will cross the fateful trigger around 10,950 when the nice government men are not watching or are too overpowered to stop it. Then,
then, 'twill begin its cascade. Stay out of stocks. S&P500 closed at 1,202.26, up 15.57.

Get ready for yet another tergiversation. The US DOLLAR INDEX refused to follow through downside in spite of all the opportunity given it by Friday's below-82 close. Today it shot up 56 basis points to 82.366. The chart shows a regular stair step pattern that usually reflects strength. Ahh, but in the world of government and central bank manipulation, which is real and which is Memorex? Only the manipulators know for sure. Just reading the chart as it stands & casting aside my suspicions, I'd say it may drop to 81.50 before advancing above 82.70 (the last intraday high), but in any event should head higher. And tomorrow I may tergiversate another 180 degrees.

As unseen friends seemed to intervene beneath the counter in favour of stocks and the dollar today, so unseen hostiles were sniping at GOLD. By 10 a.m. today gold had scaled the heights of $1,187.60 the Whoosh! A surge of selling sent gold waterfalling to $1,180, then just as quickly buying geysered it back to $1,186. The rest of the day gold spent easing off sideways, and close up only $2.60 at $1,182.70. Not it's trading at $1,184. The gold price will move higher.

The SILVER PRICE today gained 20.2c to close at 1881.3c, fulfilling the second of my Three Criteria for Ease of Mind: gold over $1,170, silver over 18.80, and the gold/silver ratio below 62:1. Today the ratio dropped 63 to close at 62.822.

We are on the way to much higher silver & gold prices. Wait no longer.

Thank you for your expressions of concern, but the floods did not come nigh us. We all live on ridge-tops, although several roads were washed out. North of us in Nashville the flooding was terrible, but we were spared.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2010, 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.