Monday, April 18, 2011

Why Swap Silver For Gold Now With the Gold SIlver Ratio at 34.47?

Gold Price Close Today : 1492.30
Change : 7.00 or 0.5%

Silver Price Close Today : 42.957
Change : 0.391 cents or 0.9%

Gold Silver Ratio Today : 34.74
Change : -0.155 or -0.4%

Silver Gold Ratio Today : 0.02879
Change : 0.000128 or 0.4%

Platinum Price Close Today : 1780.00
Change : -11.50 or -0.6%

Palladium Price Close Today : 735.20
Change : -34.50 or -4.5%

S&P 500 : 1,305.14
Change : -14.54 or -1.1%

Dow In GOLD$ : $169.02
Change : $ (2.73) or -1.6%

Dow in GOLD oz : 8.176
Change : -0.132 or -1.6%

Dow in SILVER oz : 284.04
Change : -3.29 or -1.1%

Dow Industrial : 12,201.59
Change : -140.24 or -1.1%

US Dollar Index : 75.49
Change : 61.000 or 420.9%

Y'all pay attention now: this won't be elegant, but it will be fast.

Bunch of y'all email me Friday questioning me why swap silver for gold now? Go to and read article linked to homepage, "Why Silver Will Outperform Gold 400%." Here's further explanation. Pay close attention, test on Tuesday:

With gold silver ratio at 70:1, you buy 70 oz. of silver. Wise choice.

When the gold silver ratio hits 35:1, you swap 70 oz. of silver for TWO, not one,

ounces of gold. Twice as many as if you'd bought gold in first place.

No market, internet blowhards notwithstanding, shoots straight

to the moon. The gold silver ratio will see 47 or 50 before it sees 16,

although it will EVENTUALLY drop below 16.

Ratio will, internet blowhards notwithstanding, correct. Will correct

AT LEAST to where it fell out of long triangle at 47.5, maybe

50% of total fall from 84.3 to 35, so back to 59.65.

When ratio reaches 47.5, you swap your two oz. of gold for

95 oz. of silver. You now have 25 more oz (35.7%) than if

you had just lain around in silver the whole time.

Then you do it again when the ratio falls again.


GOLD and SILVER PRICES today just kept on powering up the gold price added $7.00 on Comex to close at $1,492.30. Silver gained 39.1c and ended Comex at 4295.7c but in the aftermarket is trading 4327.5c. Dear Ones, one thing people learn young drinking is that even when you have a full load in your belly, you cannot actually fly or perform miracles, no matter how you feel. This is fun, this is exciting, but this is moving to a sharp peak by mid-May, most likely.

Yet before gold lies the minimum target, $1,525. The silver price I expect to hit $44 at the least, before the pain commences.

I still recommend y'all swap silver for gold while you have time and before the reaction sets in.

Something's wrong, something's right, and there's a whiff of skunk on the wind.

US DOLLAR INDEX rose 61 basis points today (0.78%) to clear 75 and land at 75.493. Might be a reversal. Rise out of Friday low looks rally-ish. Euro, which we have long suspected was merely a shell of a shell-game, tanked 1.08% today to end at 1.4228. CLEAR island reversal, signaling copious downside, and closed below 20 DMA. Big fall. Yen today fell 0.61% to 82.441/$ (121.3c/100Y).

Sniff of skunk on wind belongs not merely to the polecat US dollar, but also to Palladium and Platinum. Platinum fell 11.50 today and it fell Friday. Palladium fell a muscular $35 today, very stout wound when you begin at $769.70. Friends, this ought not be. Silver and Gold boogeying ought to take their friends Platinum and Palladium alone. Why are they standing around the edges of the dance floor, wallflowering? Bad juju.

STOCKS took an ice-water shower in reality today and fell clean back to 12,200 support and below the 20DMA and nearly below the 50 DMA. Whooo, Nice Government Men don't like it when the magic buying doesn't work, do you? Stocks remain the cyanide in the Great Cabinet of Investment Poison.

On this date in 1861 Col. Robert E. Lee turned down an offer to command the Union armies. He said, after great deliberation, that he could never draw his sword against his native state.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger

© 2011, 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.