With the GOLD/SILVER RATIO at 61.56, I Would Swap Gold for Silver

Gold Price Close Today : $811.10
Change: 11.40 or 1.4%

Silver Price Close Today : $13.093
Change: 0.6 cents or 0.0%

US Dollar Index Today: 76.75
Change: -0.51 or -0.7%

Just a quick word. Odd, don't you think that the Dow in Gold Dollars reached up to its 200 day moving average, around G$306.66 ($14.834 oz), then dropped today back to G$289.23 ($13.992 oz)? DiG$ is still telling us that stocks just can't manage to climb over gold, and that before stocks rise, gold will.

Odd trading today, but that's often how it feels after a big waterfall decline. Bottom is usually hit then the next days feel like walking over the battlefield at Shiloh two days after the fighting stopped. What will happen next?

From the silver & gold shorts is bound to come another attack, but from what level? Perhaps when the GOLD PRICE begins to rap on the $825 door? The SILVER PRICE is following now, not leading any parades, but that's as it should be.

With the GOLD/SILVER RATIO at 61.56, I would swap gold for silver (note: gold for silver, not the other way round).

Dollar index took a 51 basis point beating today, but remains at 76.75. Hard to imagine a dollar rally would last long, or reach very high.

Silver American Eagles are available, but only with six to 8 week delays. Other dealers quote 2 weeks. Gold American Eagles available, but at what a price!

Physical demand for silver & gold is still insatiable, and I hear the same from every dealer I speak with. Feels very bogus, a paper market price lower than the physicals market. Ahhh, but "bogus," well, now that's the word for our markets today, huh?



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.

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