Wednesday, November 24, 2010

The Gold Price Remains in a Bull Market That Will Keep Prices Rising Another 4 to 10 Years

Gold Price Close Today : 1,376.00
Gold Price Close 19-Nov : 1,352.20
Change : 23.80 or 1.8%

Silver Price Close Today : 2752.8
Silver Price Close 19-Nov : 2717.5
Change : 35.30 or 1.3%

Gold Silver Ratio Today : 49.99
Gold Silver Ratio 19-Nov : 49.76
Change : 0.23 or 0.5%

Silver Gold Ratio : 0.02001
Silver Gold Ratio 19-Nov : 0.02010
Change : -0.00009 or -0.5%

Dow in Gold Dollars : $ 168.07
Dow in Gold Dollars 19-Nov : $ 171.27
Change : $ (3.21) or -1.9%

Dow in Gold Ounces : 8.130
Dow in Gold Ounces 19-Nov : 8.285
Change : -0.16 or -1.9%

Dow in Silver Ounces : 406.40
Dow in Silver Ounces 19-Nov : 412.27
Change : -5.88 or -1.4%

Dow Industrial : 11,187.28
Dow Industrial 19-Nov : 11,203.55
Change : -16.27 or -0.1%

S&P 500 : 1,198.36
S&P 500 19-Nov : 1,199.73
Change : -1.37 or -0.1%

US Dollar Index : 79.790
US Dollar Index 19-Nov : 78.480
Change : 1.31 or 1.7%

Platinum Price Close Today : 1,655.50
Platinum Price Close 19-Nov : 1,666.20
Change : -10.70 or -0.6%

Palladium Price Close Today : 693.30
Palladium Price Close 19-Nov : 703.50
Change : -10.20 or -1.4%

On Friday I will be in Nashville with Susan having her pacemaker implanted, so I am sending you the weekly early. (Please remember to pray for Susan, especially that the pacemaker will fix her fatigue.)

The SILVER PRICE the last couple of days took a back seat while gold played catch-up. That's reflected in a slightly higher GOLD/SILVER RATIO. Yet the last five days haven't been a waste of time. Silver has moved sideways the past 3 days, forming a long narrow triangle. That tightlipped triangle tells us nothing of which direction silver will break out, only that it will. Silver must hold 2710c, and to resume rallying must close above 2790c. On Comex it closed at 2752.8, down 4.4c.

The GOLD PRICE was boosted by the Red Korean artillery this week, but today merely moved sideways. Again, this is probably profit takers trimming and selling positions before the long holiday. Gold must hold $1,365 and above needs to break through the ceiling at $1,380. It fell $4.60 today to $1,376.

SILVER and GOLD remain in a bull market that will keep prices rising another 4 to 10 years. Hold position, add to them when you have opportunity or money.

Swappers get ready to trade silver for gold when the GOLD/SILVER RATIO reaches 47.50 to 1. We will swap back to silver in about 15 weeks after that.

Amazing, isn't it, how standing back to look at the week makes everything plain! You can see that both silver and gold steadied and rose, even in the face of an aggressive, yapping dollar. Somebody painted the tape for stocks today or something, so that they appear to have lost little this week, when in fact they are trending down. White metals have lost their luster.

US DOLLAR INDEX today climbed another 16.3 basis points to 79.790, solidifying and digging in above 79. Look for the buck to rally further, maybe to 82 but surely to 80.50. Euro slacked off today, closed 1.3325, and is hurrying earthward to meets its 200 DMA.

Noteworthy here is that a rising dollar hath not crippled silver and gold, croakers and doomsayers notwithstanding. Bear that in mind. Every silver and gold investor must understand this one principle: it is monetary demand that drives silver and gold bull markets, and nothing else. Earth and sky, stars and sea are witnessing a global revulsion against all fiat currencies that will not end until they are all dead (I hope).

STOCKS probably benefitted (as gold and silver lost) by people closing out positions before the long weekend. Stocks rose today about as much as they fell yesterday, but this is like buying watermelons in Mobile for 50 cents and trucking them up to Chicago and selling them for 25 cents. Sooner or later, you're going to need a bigger truck.

Stay away from stocks as if they were a rabid skunk.

Y'all enjoy your weekend, and give thanks for all God's blessings.

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.