Tuesday, November 02, 2010

The Gold Price Rising Regardless of What They Do Tomorrow or This Week, Gold is Relentlessly Pursuing $1,600 and Silver 3400c

Gold Price Close Today : 1356.40
Change : 6.20 or 0.5%

Silver Price Close Today : 24.832
Change : 0.284 cents or 1.2%

Gold Silver Ratio Today : 54.62
Change : -0.379 or -0.7%

Silver Gold Ratio Today : 0.01831
Change : 0.000126 or 0.7%

Platinum Price Close Today : 1718.00
Change : 9.90 or 0.6%

Palladium Price Close Today : 645.50
Change : -4.80 or -0.7%

S&P 500 : 1,193.57
Change : 9.19 or 0.8%

Dow In GOLD$ : $170.52
Change : $ 0.22 or 0.1%

Dow in GOLD oz : 8.249
Change : 0.010 or 0.1%

Dow in SILVER oz : 448.72
Change : 0.67 or 0.1%

Dow Industrial : 11,188.72
Change : 64.10 or 0.6%

US Dollar Index : 76.69
Change : 0.609 or 0.8%

I'm staring at the SILVER PRICE and GOLD PRICE and trying to figure out whether there are surprises in the world -- or not.

Gainsaying my yesterday's expectation, silver rose a respectable 28.4c today to 2483.2c and gold rose $6.20 to $1,356.04. So much for a quiet day awaiting election results.

SILVER is so strong it startles even me. That's good. On Comex it rose 28.4c to close at 2483.2c, but in the aftermarket silver bested its old 2490c high and touched 2505c. Right now at 2495c. Only caution I have to thrown on this party is that if this were a B-up corrective wave, it would look every bit this strong and it might exceed the previous high. Silver really won't confirm that it is resuming a rally until it closes above 2540c. We might see that tomorrow, or silver and gold might sag in the wake of elections. No mind can parse the heart of democracy, the voice of the people, or how frequently another sucker is born.

Crawling out of these bushes, let me point to the horizon, where shortly you will see the SILVER PRICE and the GOLD PRICE rising (I doubt not), regardless what they do tomorrow or this week. Gold is relentlessly pursuing $1,600 and silver 3400c.

Don't let them leave without you.

The US DOLLAR INDEX is leading the race to the bottom, yet even there only squishy ambiguity meets us. Existing support is around 76.70, and the buck dropped 60.5 basis points (0.78%) to trade at 76.687. That equals the low of 25 October, but -- watch, now! -- doesn't exceed it. Therefore, it might follow through tomorrow and fall like your stock with your girlfriend's Mama when she catches you eating peas with a knife, or that might be the final kiss good-bye where the dollar touches back to support and shoots up. Honestly, I don't know which, and markets are goofy, and not logical.

About all I know is that the dollar won't remain here. . . I don't think.

STOCKS must be driven by the dopiest bunch of optimists on earth. The Dow rose today 64.10 to 11,188.72. S&P500 kept it company with a 9.19 point rise to 1,193.57. Dow looks like a double top, but if it rises tomorrow through 11,250, then obviously it won't be a double top. Stay out of stocks. The bear is hungry for more victims: don't become one by investing in stocks.

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.