Monday, September 20, 2010

Long or Short, Both Silver and Gold Prices Will Climb Much Higher Into the Fall, Peaking in January 2011 or Spring 2011 at $1,600 and $33.70

Gold Price Close Today : 1,244.50
Gold Price Close 3-Sep : 1,249.20
Change : -4.70 or -0.4%

Silver Price Close Today : 1980.2
Silver Price Close 3-Sep : 1991.5
Change : -11.30 or -0.6%

Platinum Price Close Today : 1,544.00
Platinum Price Close 3-Sep : 1,558.00
Change : -14.00 or -0.9%

Palladium Price Close Today : 522.00
Palladium Price Close 3-Sep : 532.00
Change : -10.00 or -1.9%

Gold Silver Ratio Today : 62.85
Gold Silver Ratio 3-Sep : 62.73
Change : 0.12 or 0.2%

Dow Industrial : 10,447.67
Dow Industrial 3-Sep : 10,428.18
Change : 19.49 or 0.2%

US Dollar Index : 82.687
US Dollar Index 3-Sep : 82.530
Change : 0.16 or 0.2%

Dear Readers: Today is September 20, and somehow as I was tearing out of here for vacation this Friday update was not sent to you. For the record, here it is. I'll be back this evening with a daily commentary. -- Franklin Sanders

Here I am trying to write y'all before I leave town and a rainstorm smothers my satellite internet service. I'll give y'all the best I've got.

This week saw gold hit a new all-time high at $1,257.30 while silver exceeded all the old highs but wrestled with 2000c resistance and couldn't take out the 2068c high from March 2008.

Since silver and gold only backed off yesterday, I can't say yet whether this will be a large (3-4 week) or small (a few days) correction. If small, prices won't drop lower than $1,236 and 1950c. If larger, then we will see $1,210 and 1888c. If the smaller correction ensues, then silver will pierce 2068 soon, but not by much. If the longer correction pursues, silver won't even slow down at 2068.

Long or short, both silver and gold will climb much higher into the fall, peaking in January 2011 or spring 2011 at $1,600 and 3370c. Leastwise, so it seemeth at present.

On Comex today silver lost one cent to close 1980.2c while gold lost $4.40 to close at $1,244.50.
The US DOLLAR INDEX still cannot make up its mind whether it will fade and return to 70 or continue in a rally. Hangs in the balance, and the balance is leaning toward toppling. Lost 3.9 bps today and is now at 82.687.

STOCKS are enjoying a bear market rally, trying to gull in as many victims as possible. Stay away, I don't care how high they go or how your broker whines. Stay away, stay away, and keep your dough to spend another day.

Dow today at 1:30, before the closes, has gained 32.43 to 10,447.67 and the S&P500 has gained 4.07 to 1,108.25.

Remember, I'll be away on vacation all next week, so won't be writing any commentaries. Just to sew up one item, somebody wrote me that in North America there aren't any Japanese hornets, a.k.a., Giant Asian Hornets, vespa mandarina. Somebody ought to tell the hornets that so they'll pack up and move back to Asia. Mercy! I'll buy their tickets.

One last thing: Last year when I went on vacation about this time silver and gold looked very similar. They were rallying but hadn't run hog-wild yet. They spent September sorting things out, then resumed the rise. In September they were confirming a further rise. I believe we're in about the same place today, only holding a larger scale rally by the tail.

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.