Friday, July 23, 2010

Keep on Buying Gold on Any Gold Price Weakness

Gold Price Close Today : 1,187.70
Gold Price Close 16-Jul : 1,188.00
Change : -0.30 or 0.0%

Silver Price Close Today : 1809.6
Silver Price Close 16-Jul : 1777.3
Change : 32.30 or 1.8%

Platinum Price Close Today : 1,546.00
Platinum Price Close 16-Jul : 1,515.30
Change : 30.70 or 2.0%

Palladium Price Close Today : 470.00
Palladium Price Close 16-Jul : 453.35
Change : 16.65 or 3.7%

Gold Silver Ratio Today : 65.63
Gold Silver Ratio 16-Jul : 66.84
Change : -1.21 or -1.8%

Dow Industrial : 10,412.74
Dow Industrial 16-Jul : 10,097.90
Change : 314.84 or 3.1%

US Dollar Index : 82.664
US Dollar Index 16-Jul : 82.577
Change : 0.09 or 0.1%

Life is not going to be easy for the next few weeks.

The prices above are for 1:00 p.m., because I must leave early today. The US DOLLAR INDEX acted as if it would finally rally this week, only to lose all gas at 83.40 and faint back toward 82.20. As long as it remains above 82.20 there remains the chance of some rally, at least.

STOCKS have reached their previous high, but rejoice not, O ye permastockbulls! That's called a "double top." Big downside is about to hit stocks, great mourning and wailing and gnashing of teeth! Stay out of stocks.

Yesterday it appeared that gold and silver had probably bottomed, but today gold dropped 7.80 to close at $1,187.70. Bottom support here stands about 1,175, then 1,185. Silver closed down only 1.9c at 1809.6. Clearly, somebody doesn't agree on direction, but which one?

I stick with my opinion that silver and gold made their bottom this week, but until gold climbs above $1,225 and silver above 1850c, that's no more than my opinion.

Most emphatically I do NOT expect silver and gold to make new lows for the year. Greatest likelihood is frustrating sideways movement between now and mid to end August, then the climb begins. Note that the June $1,257 high was NOT the end of the movement, only the end of one stage of the rally. The end of that rally is $1,400 or more, and silver at -- I know it sounds outrageous -- 2900c or more.

Keep on buying silver and gold on any price weakness.

Dear Readers, I asked y'all not long ago to pray for my dear friend Stan Poston, who has brain cancer. His symptoms have gretly accelerated, and I don't believe he can live much longer. Please pray for him and his family.

Y'all enjoy your weekend!

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.