Wednesday, October 06, 2010

We are Still at the Early Stages of the Gold Price Bull Market's BIG Rises

Gold Price Close Today : 1346.40
Change : 7.50 or 0.6%

Silver Price Close Today : 23.020
Change : 0.306 cents or 1.3%

Gold Silver Ratio Today : 58.49
Change : -0.458 or -0.8%

Silver Gold Ratio Today : 0.01710
Change : 0.000133 or 0.8%

Platinum Price Close Today : 1713.30
Change : 14.40 or 0.8%

Palladium Price Close Today : 587.75
Change : 9.15 or 1.6%

S&P 500 : 1,159.97
Change : -0.78 or -0.1%

Dow In GOLD$ : $168.39
Change : $ (0.57) or -0.3%

Dow in GOLD oz : 8.146
Change : -0.028 or -0.3%

Dow in SILVER oz : 473.25
Change : -2.25 or -0.5%

Dow Industrial : 10,967.65
Change : 22.93 or 0.2%

US Dollar Index : 77.43
Change : -0.319 or -0.4%

Whooo! When markets rise as fast as silver and gold are rising, it takes away your breath! Remember the wisdom of H.L. Hunt, "Never get really elated in victory; when times are tough, never get down." The world is always changing -- you have to learn how to ride the changes out without losing hope or making a fool out of yourself.

In September 2010 the US Social Security system passed the great watershed. In that month Social Security began paying out more than it took in. Demographics have plainly showed this coming for years, and it will get much worse rapidly. Left alone, social security will metastasize to something like half the federal budget by 2040. But then, social security has always been a Ponzi scheme, it's simply running out of new suckers. That's one reason for illegal immigration, and the push to legalize the still-damp newcomers. The other reasons are the Baby Boomers turning 65 and their becoming the Baby Busters by not having children. It's a demographic nightmare.

How will it be paid? Inflation.

TODAY silver and gold kept on shooting up and the US dollar kept on falling. Stocks stalled.

The US dollar index fell another 31.9 cents to 77.43. Clearly, the Nice Government have a plan, namely, to let the US dollar drop until the economy re-ignites. Good plan. Ought to kick in about, oh, say, 2092.

STOCKS today stalled in confusion. Dow gained 22.93 to close at 10,967.75 but the S&P 500 lost 0.78 to 1,159.97. Other indices were mixed. Looks like one of those Roadrunner cartoons where Wile E. Coyote, chasing the Roadrunner, runs clean off a cliff and churns his legs in mid-air a brief second before he grasps what he's done, then plummets. So stocks are looking bewildered today.

GOLD rose 7.50 to $1,346.40, and is trading in the aftermarket at $1,349. It's looking spooky, nose-bleed high blindingly fast. It gathered and bunched under $1,350 today as if deciding to punch through tomorrow. Don't know how high gold will rise before a correction. Maybe $1375? Do NOT stand in its way.

SILVER added 30.6c today to close Comex at 2302c. Trading now in the aftermarket at 2317.5c. Should reach 2450c. Gold/silver ratio is still falling like an anvil out of a 747 Jumbo Jet. Today nearly broke through 58. No sign there of the rally slackening.

Folks, if they silver and gold behave this way in the green tree, what will they do in the dry? Already these rises are crazy, with new all-time highs day after day, but crazier still is to come. We are still at the early stages of the bull market's BIG rises. The very early stages.

On this day in 1536 died William Tyndale, in Brussels. For translating the Bible into English he was bound to a stake, strangled by the hangman, then burned with fire. His last words cried from the stake, "Lord! Open the king of England's eyes."

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.