Gold and Silver Prices Should Rally Well Into the Spring, Taking Gold Above $1,200 and Silver Near the $28 Mark

Gold Price Close Today : $857.20
Change: -21.60 or -2.5%

Silver Price Close Today : $11.245
Change: 22 cents

Gold Silver Ratio: 76.39

Dow Industrials: 8,952.89
Change: -81.80 or -0.9%

US Dollar Index Today: 82.66
Change: 1.17 or 1.4%

Except for my office still being torn up and trying to learn to work on Apple instead of PC computers, I'm glad to be back. I hope y'all enjoyed your Christmas.

Silver and gold prices worked their way higher during the week between Christmas and New Year, but remember that during that time most traders are away, so that trading sometimes is just a blip on the screen, meaning nothing. Gold closed out last week at US$878.80, and silver at 1146.5 cents. I held my breath. What would happen when the bandits returned to the market?

Early on, the short sellers drove silver down to $10.90, and gold to the ropes of US$850. Did they break?

Not for a minute. They began clawing their way up again. The gold price closed at $857.20, down 21.00, and the silver price at 11.24, down 22 cents. If you merely glance at those closes, you might mistakenly conclude that silver and gold had a tough down day. In truth, the black shirts on the floor played with the market last week. Today those phantom gains were lopped off, but more importantly, both silver and gold held above critical support ($11.00 and $850). Both bottomed back in November, ran up to the top of the trading channel, then traded sideways through Christmas.

Following the typical seasonal pattern, gold and silver prices should rally well into the spring, taking gold above $1,200 and silver near the $28.00 mark.

STOCKS are very slowly trying to pull up into a rally. Although the S&P500 has reached a respectable 927.45, the Dow just can't climb over that fence at 9,000. Expect stocks to rally into the spring, too, but after 4 - 6 months to swoon again. Use this rally to sell off any stocks you may yet hold. If ever there was a "last chance", this is it for stock investors. (Yes, I exempt from that recommendation precious metals stocks.)

The US DOLLAR INDEX at 82.66 today showed a big one day jump -- 116 basis points -- but is only about 100 basis points above its December 23 close. We are not impressed. The dollar is struggling and wallowing like an old scow in high seas. Eventually it will sink.

Before we go to sleep, y'all look at the GOLD/SILVER RATIO. It is driving toward the bottom of the range, and should shortly break through 70. A very big rally in silver and gold prices lie in front of us. Notice that as metals' prices climb, premiums are slipping. I bought a few Austrian 100 coronas and Mexican 50 pesos today at rates that translate into 4.5% retail premiums, best we've seen in a long time. Platinum American Eagles are once again available, but at a starchy 5.5% premium at wholesale.

I appreciate y'all's enthusiastic reaction to my Christmas Clearance Sale. All the lots disappeared quickly. Thanks very much.

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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.

After Christmas Gold Coin Clearance Sale

Dear Readers:

Yes, even gold dealers have after Christmas clearance sales, and here's mine below, to clean out my inventory.

I am selling these in lots ONLY, and will not break up the lots. You are buying the coins "as is", so if it says the coin is "polished," that's what it means.

To each lot price, add $25.00 for shipping. Gold basis for prices below is US$849.60.

If you want to order, please do NOT call us, because no one will be answering the phone. To order, please e-mail us at at Franklin@the-moneychanger.com The first e-mail to reach us will be the buyer of the lot. You may buy more than one lot, but we will NOT break up lots. They are sold as lots only.

In your e-mail you must mention the "Lot" number. For instance, if you want "Lot 2," then write, "I want to buy Lot 2." Your e-mail MUST include your full name, mailing address, and telephone number. Please mention goldprice.org in your email.

Once we receive your e-mail, we will answer with an e-mail with an invoice attached, and you will need to send us a check within two (2) days. Packages will be mailed fourteen (14) days after we receive your check, by registered, insured mail.

May God bless you all in the New Year and always!

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

- Franklin Sanders, The Moneychanger

The-MoneyChanger.com

Moneychanger After Christmas Clearance Sale:

Expect Silver and Gold to trade Sideways Until the End of the Year

Gold Price Close Today : $846.20
Change: 9.30 or 1.1%

Silver Price Close Today : $10.829
Change: 10 cents or 0.1%

Gold Silver Ratio: 78.14
Change: 0.787 or 1.0%

Dow Industrials: 8,519.69
Change: -59.42 or -0.6%

US Dollar Index Today: 81.24
Change: -0.06 or -0.1%

Stocks are still mired in the swamp, but the rallying dollar lost its mojo today against silver and gold.

The GOLD PRICE closed today up $9.30 at $846.20, still trying to break through the $850 barrier. The SILVER PRICE rose a penny to close at $10.8290. No big shakes there.

Expect silver and gold to trade sideways until the end of the year. The dollar is trying to rally, and a lot of investors are holding their breath ahead of next year, uncertain what to do, hoping the government and the Fed can pull a rabbit out of the hat, but disbelieving -- about like an 11-year old looking at Santa Claus.

After the first of the year Stocks ought to stage a four-month rally. US DOLLAR INDEX slowed nearly to a stop today, at around 81.25. Dollar's rally was strictly of the corrective type, so Dollar will resume its plunge shortly, probably around the beginning of 2009.

Our office will be closed for needful repairs from 24 December through 2 January 2009. During that time we will not be returning voice mails or writing trades. However,you can e-mail us if you like.

I will try to get one last commentary out before year end. May God bless you all with peace and goodwill, at Christmastime and always. Today is the Winter Solstice in the Northern Hemisphere, the shortest day in the year and the day the sun appears at its furthest south in the sky. Go ahead -- light your Yule log tonight!

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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.

The Silver Price Will Rise 4.83 Times as Far as Gold Price

Gold Price Close Today : $836.40
Gold Price Close 12 December: $818.90
Change: 17.50 or 2.1%

Silver Price Close Today : $10.819
Silver Price Close 12 December: $10.199
Change: 62.00 cents or 6.1%

Gold Silver Ratio: 77.31
Gold Silver Ratio December 12: 80.29
Change: -2.98 or -3.7

Dow Industrials: 8,579.11
Dow Industrials December 12: 8,629.68
Change: -50.570 or -0.6%

US Dollar Index Today: 81.300
US Dollar Index December 12: 83.619
Change: -2.319 or -2.8%

In spite of the metals' drop from Wednesday's highs, look at those gains posted this week!

The US DOLLAR INDEX and the Fed were the major actors in this week's events. The Fed announced (translated from Fed-speak) that they were lowering the Fed Funds rate to a 0.0% to 0.25% target, and that they were going to fire up the money-creating machine, and hire three shifts to man it. As the dollar market had been declining for 6 days expecting catastrophic news, the announcement took the pressure off the dollar, and it began a reaction rally. After dropping 150 - 180 basis points a day, it began rallying 100+ bps a day, jumping from 78.603 on Wednesday to 81.30 today. This is no longer a foreign exchange market, it's a casino.

But never mind these short term events, don't miss the big point: the dollar is dead. After shoving some $8 trillion in new credit into the monetary system -- "inflation" -- Bust-up Ben won't be able to suck all that out of the system. Within 6 - 12 months the inflation will start showing up in price increases. Those with eyes to see -- the "realisers" -- already see the bar-fight coming and are edging toward the exits by buying silver and gold. Next year will see gigantic rises in both metals. Get out of dollars while you can.

Stocks were confused today, with the Dow and a few other indices down while most rose. Stay out of stocks. Keep on looking for that rally next year which will offer you your last chance to sell stocks.

The GOLD PRICE, having hit the top of its trading channel and its 200 day moving average on Wednesday, predictably bounced off the channel and fell back some. If we have not already witnessed the downward limit of gold's reaction, it might reach $820. Use any declines as an opportunity to buy more.

The SILVER PRICE, ever more volatile, hit $11.3890 on Wednesday, but then fell back to close at $10.8190 today. As long as it remains above $10.50 cents, silver is just taking deep breaths before it runs for $14.00. Yes, yes, yes, I know that croakers and doomsayers are all croaking and doomsaying about silver being an "industrial metal" and therefore not rising like gold. These are many of the same people who have fought the silver bull market all the way up, so why should you listen to them now?

Unless you understand this one principle, you understand nought about precious metals' bull markets: monetary demand, and monetary demand alone, drives both gold AND silver. It's not Indian wedding demand or the popularity of silver jewelry that drives their prices, but sheer monetary demand, holding them as "money" because the alternatives -- national currencies -- are clearly failing.

WHEREFORE, before this bull market ends, you will need only 16 ounces of silver to buy one ounce of gold, which means from here that the silver price will rise 4.83 times as far as the gold price. Forget the siren song of the "gold-only" bugs, who have fallen for the myths of the money interest: both silver and gold are money, and always will be.

From 24 December through 2 January our office will be closed to celebrate the Twelve Days of Christmas, and to perform certain needful renovations. You can e-mail us during that time, but we won't be manning the telephones.

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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.

Gold Price Uptrend Remains in Force, When it Crosses the 200 DMA ($862.61) It Will Only Send Gold Running Higher and Higher

Gold Price Close Today : $859.60
Change: -$7.90 or -0.9%

Silver Price Close Today : $11.089
Change: -30 cents or -2.6%

Gold Silver Ratio: 77.52
Change: 1.348 or 1.8%

Dow Industrials: 8,604.99
Change: -219.35 or -2.5%

US Dollar Index Today: 79.76
Change: 1.16 or 1.5%

The GOLD PRICE hit its 200 day moving average ($862.61) and bounced off. 'Tisn't evident yet whether this means a correction long or short. Not terribly material, since the uptrend remains in force. When it crosses over 200 DMA will only send gold running higher and higher.

The SILVER PRICE has formed a big bowl or rounding bottom on the chart, with the rim about $14 -- or $10.70 -- depending on your viewpoint. Silver might drop back down to $10.85-$10.65 in a typical touchback to breakout point, but the worst is past us and the trend leads much higher.

The Fed's announcement yesterday removed the uncertainty over the dollar, and helped the DOLLAR INDEX rally today. Other than that, there was no particular technical reason for it to turn around here, just the monotony of six days steady plunging. Both the 200 day moving average at 76.89 and the last low at 75.89 lay below where the dollar stopped. It was just time for the dollar index to rebound. Might rally as high as 80 - 80.25, and that rally might take a couple of weeks. That would put silver and gold pricse to sleep over the holidays. Get out of dollars; stay out of dollars. Dollar Index closed up 116 basis points at 79.76. Mercy -- how volatile hath the dollar become!

Stocks are trying to make a stand, but didn't like the rising dollar today. Dow must hold 8300-8250 or risk revisiting 7500. Upside, the Dow won't run until it closes above 9,000. Dow in Gold Dollars (DiG$, the Dow valued in gold) has formed a huge falling wedge, which normally breaks out to the upside. That would take stocks up in a rally against gold. Matters not, I am not tempted by stocks, except for the temptation to run from them hard and fast as my feet can carry me.

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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.

Gold Price Above the 25-year Resistance at $850 and Above its 200 Day Moving Average $863.24, so it's Off to the Races

Gold Price Close Today : $867.50
Change: $25.8 or 3.1%

Silver Price Close Today : $11.389
Change: 71 cents or 6.6%

Gold Silver Ratio: 76.17
Change: -2.648 or -3.4%

Dow Industrials: 8,824.34
Change: -99.80 or -1.1%

US Dollar Index Today: 78.60
Change: -1.62 or -2.0%

I expected the silver price to jump up once it crossed $10.50 resistance, but I wasn't expecting the Fed to execute the dollar. Yesterday's Fed antics cost the dollar another 155 basis points today to land it at 78.66. That loss drove the silver price wild. It rose 71 cents to $11.389.

The gold price gained $25.80, closing at $867.50. That takes the gold price above the 25-year resistance at $850, so it's off to the races. Most significant here is gold's crossing above its 200 day moving average ($863.24). Bull markets are supposed to remain above their 200 DMA most of the time, dropping back to that 200 DMA only rarely. Driven by the last 5 months' financial turmoil, both silver and gold prices have fallen below their 200 DMAs, even their 300 DMAs. Thus gold's crossover looms all the more important. Not only must it rise above the 200 DMA, it needs to stay there.

The silver price has little substantial resistance between here and $13. That implies the rise to $13 ought to be fast. The silver price now stands above its 17 DMA and 50 DMA ($9.97), confirming that upward momentum. The 200 DMA lies far above at $14.27, but remember silver's mighty volatility and great speed when rallying. That price is possible by end-December or mid-January. Yes, the silver price will move fast, very fast.

The GOLD/SILVER RATIO virtually collapsed today, falling from 78.893 to 73.905, five gigantic points. This alone signals great strength in metals, and fiery demand supporting them. First small support lies at 72.5, then 70.4, but a drop below 68 takes the ratio below the descending top boundary of the triangle the ratio broke out of when this debacle began, that would indicate that this summer's rise to 84.33 was a double top, and not a change of trend. Remember that the ratio shows the value of an ounce of gold in ounces of silver. As a bull market in silver and gold unfolds, that ratio should drop since silver climbs faster than gold over the bull market's life.

Ever notice how long and laborious is the climb to a fifth floor apartment with a large, weighty suitcase, and how quickly it reaches the ground when you push it out the 5th story window? So also the US DOLLAR INDEX chart. Although its rise was fast, still it was laborious, and hard to engineer. On the other hand, just one announcement the Fed is going to start printing money round the clock is enough to send the dollar index back under 79.

Read the handwriting --- nay, neon sign -- on the wall and get out of US Dollars.

Stocks have crossed above their 50 DMA (Dow 8715). 4 to 6 month rally has begun, your very last chance to sell stocks before you get skinned.

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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.

Do Not Wait Now to Buy Silver and Gold - This is the Breakout

Gold Price Close Today : $841.70
Change: $6.30 or 0.8%

Silver Price Close Today : $10.674
Change: 8.5 cents or 0.8%

Gold Silver Ratio: 78.86
Change: -0.038 or 0.0%

Dow Industrials: 8,874.84
Change: 310.31 or 3.6%

US Dollar Index Today: 80.22
Change: -1.87 or -2.3%

The GOLD PRICE closed at US$841.70, up $6.30, until the Fed announced its "plans", sending gold up to US$861, another US$19.30. The SILVER PRICE, which had closed up 8.5 cents to $10.67, jumped 70 more cents to $11.37. The prices show for gold and silver items above derive from those higher aftermarket prices.

Today the silver price closed above the $10.50 first hurdle, but the gold price didn't quite make the $850 resistance. In the aftermarket, both metals shot through resistance levels, especially silver. Tomorrow should produce yet more gains.

Do not wait now to buy silver and gold. This is the breakout. Buy now or pay much, much more later.

Whoa! You men paying attention? Stand up where you are, twist your body to the right, place your right hand in your back pocket, withdraw your wallet, pull out a green federal reserve note, lift it to your lips, and KISS THE DOLLAR GOOD-BYE!

You women will have to fish in your purses ten minutes to find your wallets, then dig out a buck and kiss it good-bye.

Not only have the Fed and the Treasury executed a coup d'etat and taken over the yankee government entire, the Fed reduced the Fed Funds rate to 0.5%, lowest level in history. But in case that doesn't work, they also have yet another new strategy: "quantitative easing." That is "Fedspeak" for printing money. Let the presses begin! Let there be money, and let it flood the hills & valleys, yea, let it flow into the shallowest pockets in the land, and let the desert economy bloom!

Folks, if any of y'all yet cling to the "deflationary" outcome, you had best let it go today. Although the economic outcome will be depression, the monetary outcome will be massive inflation, and quite likely, hyperinflation. The dollar will evaporate, while silver and gold prices will skyrocket, unless the laws of cause and effect have been repealed by a compliant congress.

All bets are off, friends, for any sort of peaceful landing. Every man for himself! Today your government and the private corporation that controls the economy and the money, the Federal Reserve, threw you, and the US dollar, out of the boat, with an anvil tied to your feet. Every one of us had better learn to swim.

As proof, he brings forth the next exhibit, the US Dollar Index, which today posted its biggest swing yet in a mighty long string of big swings, down a full 186 basis points to close at 80.22. Mercy! This isn't currency exchange, it's Las Vegas. Stocks liked the lower dollar. The Dow rose 310 and the S&P500 37, but stocks still haven't broken out above the critical 9,000 Dow level.


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

- Franklin Sanders, The Moneychanger

"Buy Silver and Gold Coins at:"
The-MoneyChanger.com

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.