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Gold Price Close Today : 748.60
Change: 12.7 or 1.7%
Silver Price Close Today : 9.025
Change: -28.5 cents or -3.1%
Gold Silver Ratio: 82.95
Change: 3.903 or 4.9%
Dow Industrials: 7,552.45
Change: -444.83 or -5.6%
US Dollar Index Today: 88.17
Change: 0.42 or 0.5%
No sooner had the words escaped my keyboard than the Dow Jones Industrial
average proved yet again that triple bottoms are very, very rare. Breaking
8,000 yesterday broke stock investors' morale, & try as they might
throughout the day to keep a stiff upper pocketbook, shortly after 14:00
somebody yelled, "Every man for himself!" When the dust cleared the
Dow had dropped 444.83. S&P500 fell even more, down 54.14. Final
scoreboard read Dow 7,552.45 & S&P500, 752.44. That Dow figure is
probably within 500 - 700 points of the low, which, after today's debacle,
ought to occur within the next few days.
The Dow in Gold Dollars (DiG$) made a new low for the move today, G$208.55
(9.943 oz), versus the 9 October low at G$200.82 (9.715 oz). DiG$ is telling
us that gold will outperform stocks for some time to come.
The mysterious floating US DOLLAR INDEX rose today 42 basis points to 88.165,
reaching, meseemeth, for another lower high in a series. Possible here is a
spike top to 90 before it finally dries up and drops back toward its
intrinsic value, namely, zero.
Either some confusion exists in the precious metals markets, or the Nice
Government Men busied themselves today selling silver futures in their
attempt to drive down the gold price. The gold price closed up 12.70 at
748.60 while the silver price closed down 28.5 at $9.025 (at 4:30 CST they
were 747.70 & 9.06). Either that is a bad omen, where the silver price
will pull down the gold price, or it is a market making up its mind.
Both silver and gold prices stand on the verge of breaking out of their
downtrends, so if you were NGM strategizing, it was a critical place to sell
silver to make the whole precious metals group look weak.
Platinum and palladium, too, both sold off badly
today and yesterday, but that is easily explained by the American automakers'
troubles, because auto catalysts consume a huge part of both metals.
GOLD/SILVER RATIO continues trending down but needs to break below 76:1.
I believe we've seen the lows in gold and silver. Seasonally they are setting
up for huge rallies into next spring, falling wedges on both charts. Keep on
buying both silver and gold.
Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.
Franklin Sanders
www.the-moneychanger.com
Reprinted with permission from The Moneychanger.
Franklin Sanders lives on a farm in Middle Tennessee by choice, deals in
physical gold & silver, and has been writing and publishing The
Moneychanger for nearly 26 years. In 1993 he wrote Silver Bonanza for
Jim Blanchard. Last year he published "Why Silver Will Outperform Gold
400% and & The Professional Trading Secrets That Will Make the Most of
Your Silver & Gold Investments," still available at www.the-moneychanger.com/order/publications.phtml.
You can sign up for Mr. Sanders' free daily e-mail
commentary on gold & silver at www.the-moneychanger.com, and download your
free portfolio calculator to keep up with your gold and silver investments.
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