Buy, Hold, and Keep on Buying Gold and Silver

Gold Price Close Today : 1,426.20 Gold Price Close 18-Mar : 1,415.90 Change :
10.30 or 0.7% Silver Price Close Today : 3705.8 Silver Price Close 18-Mar : 3506
Change : $1.998 or 5.7% Gold Silver Ratio Today : 38.49 Gold Silver Ratio 18-Mar
: 40.39 Change : -1.90 or -4.7% Silver Gold Ratio : 0.02598 Silver Gold Ratio
18-Mar : 0.02476 Change : 0.00122 or 4.9% Dow in Gold Dollars : $ 177.13 Dow in
Gold Dollars 18-Mar : $ 173.13 Change : $ 4.00 or 2.3% Dow in Gold Ounces :
8.569 Dow in Gold Ounces 18-Mar : 8.375 Change : 0.19 or 2.3% Dow in Silver
Ounces : 329.77 Dow in Silver Ounces 18-Mar : 338.24 Change : -8.47 or -2.5% Dow
Industrial : 12,220.59 Dow Industrial 18-Mar : 11,858.52 Change : 362.07 or 3.1%
S&P 500 : 1,313.80 S&P 500 18-Mar : 1,279.20 Change : 34.60 or 2.7% US Dollar
Index : 76.234 US Dollar Index 18-Mar : 75.572 Change : 0.66 or 0.9% Platinum
Price Close Today : 1,748.60 Platinum Price Close 18-Mar : 1,723.60 Change :
25.00 or 1.5% Palladium Price Close Today : 750.50 Palladium Price Close 18-Mar
: 730.90 Change : 19.60 or 2.7% Quick look: Silver up 5.7% (two bucks) for the
week. Stop fighting it, and climb aboard. Gold, up ten bucks but lots more fun
coming in this ride. Gold/Silver ratio hitting new lows. Dow in Silver ounces
hitting new lows. Dow and S&P500 sneaked up this week. Dollar index gained. I
don't want to hear any whining and whinging about GOLD today. Merciful heavens!
It rose six days running and hit a new all- time-since-creation high this week.
Give it a break. Closed above the 20 DMA ($1,421.58), losing 8.70 to $1,426.20.
Still trying to parse that Gold chart, what emergeth? A rectangular
consolidation between 1308 and 1435. When it breaks out of that box, it'll add
$110 so fast your head will be spinning like that girl in The Exorcist. (Right,
I probably could have picked a more palatable comparison. Sorry.) Never mind all
that. I feel like I'm waking up from an evil spell, cast on me by the gold and
silver bear wizards. "Expect it to go down! Expect it to go down!" they kept
droning at me, then my brain woke up and said, "Are y'all CRAZY? We are in a
primary uptrend, a bull market, and there is one and only one strategy for a
bull market: buy, hold, and keep on buying because it's going higher!" Mercy, I
have fallen into the same trap I keep warning y'all against. It's a bull market,
stop worrying about corrections. They won't amount to hill of baked beans. Get
long - stay long-- get longer. That brings us to SILVER . Stop doubting. It's
running away, and about to run harder. Silver today was forced to give back 33c,
but didn't give a flip and closed above 3700c anyway, at 3705.8c. Traded up in
the aftermarket. Let's stop talking about corrections and start looking for, oh,
3900c, 4200c maybe, before that happens. What are the floors? Silver must not
close below 3650c, 3570c in a pinch. Gold wants to hold above $1,420, and $1,405
for sure. If y'all see the lower end of those prices, buy. Yes, someday, maybe
soon, they will correct, but when they do simply buy more. GOLD/SILVER RATIO
touched more new lows this week. Closed today at 38.486. Shhhh -- Listen. Come
close and I'll tell y'all something you won't hear anywhere else, but don't tell
anybody. At 38.486 the ratio stands below its 10 year, below its 20 year, below
its 30 year, below its 50 year, below its 60 year, and below its 110 year
average. In fact, it's nearer the 220 year average than the 110 year. Put that
into perspective: the 10 year average is 60.53, 22 points higher. Friends, the
big run has begun. Those Biblical scholars among y'all will remember what weapon
Samson used against the Philistines in the 15th chapter of Judges. Just to show
you some technology never goes out of style, the Federal Reserve unlimbered
Samson's weapon this week against all the heathen who trust not the dollar.
Three Federal Reserve governors whacked them hard with Samson's weapon, and old
Ben the Buffoon even jumped in with an announcement that he would in future hold
quarterly press conferences to announce what the Fed is doing. Be still, my
beating heart! And Samson's weapon worked well enough to lift the dollar almost
a full percentage point. Today the buck gained 57.8 basis points, climbing in
fact above 76 resistance to roost at 76.234. Now the scrofulous dollar has lost
a few feathers here lately, plucked and picked over by the market, but that
turkey could still fly up to a high roost this week. What do you reckon the Fed
will do? Will they stop the printing presses when Quantative Easing 2 expires in
June? Or will they do QE3? Can a mad dog stop drooling? Institutionally,
politically, monetarily, economically, intellectually, those Keynesian dodderers
can't do a blessed thing but keep on inflating. However, the dollar is due and
overdue for a rally, on its way to oblivion. Did it reach a double bottom this
week with last November's low? Might have. Might have, but needs to top 77
before I'll even consider it. I've been suckered one time too many by the
dollar. And, Buddy, you can HAVE that euro for my money. Ran straight up on news
the EU had reached an agreement, maybe, to bail out Portugal but Portugal,
amidst resignation of its government, says it doesn't need a bailout. Right, and
pants don't need zippers, either. Here's the crazy-maker: on this, Portugal's
bankruptcy brinkmanship, the ECB is making noises about RAISING interest rates.
Well, that will certainly help the Portuguese, the Spanish, and whoever else is
on the Financial Critical Care list. Reckon that's all the ECB can do to protect
euro's exchange rate in the face of the inevitability it will flood the world
with more euros bailing out its bankrupts. Technically Euro yesterday lunged
upside in what looked strong, and stopped at 1.422. It paused, and then fell
like an anvil tossed out of a third story window, clean back to the sidewalk at
1.406 where where it bottomed yesterday. This has a sloppy, key-reversal feel to
it. And that island reversal on the longer term chart remains in play. Only a
close above 1.4244 would negate it's deadly warning. NGM still have a leash on
the yen. Rose a little today to 81.40/$ (122.85c/Y100). STOCKS have now bulged
their way clean up to the downtrend line and are threatening to break through
it. That's like a dog with dentures growling at you. Watch out! He might gum you
to death, if he doesn't fall asleep first or take a coughing fit. Listen, I call
'em as I see 'em, and nobody with two good eyes can look at the Dow or the
S&P500 and fail to see a broadening top that is begging to tunnel to the earth's
core. Now those NGM may be able to make flatirons float airborne for a day or
two, but I place my money on gravity in the long run. Dow today rose 50.3 to
12,220.59. S&P rose 4.14 to 1,313.80. Before anything significant takes place
here, Dow must first best the March high of 12,283.10 (intraday) and then in
short order breach February's 12,391.29 high. I doubt it, BICBW. On this day in
1894 Coxey's Army of the Unemployed set out from Ohio for Washington, DC. It was
a year after the Panic of 1893, second year into a 4 year depression. In those
days, friends, the imperial government bilked the people in a different way than
they do today. Back then they did it with Deflation, but in our Enlightened Day
they do it with Inflation. 6000 men finally reached Washington in April and the
intensely sympathetic federal government (no change there) had the leaders
arrested for walking on the grass at the Capitol (no kidding). By the way,
deflation was the deliberate policy of the Republican run government (owned by
the plutocrats then, too.). The deflation had several causes, one of which was
shrinking the huge issue of fiat money from the war, then resumption of gold
redeemability in 1879. But before that the Crime of 1873 demonetized silver,
leading to the devaluation of, say, 15% of the money supply. But you must
understand and have compassion on the needs of the bondholders. They had bought
those bonds during the war with good paper money, 50c in gold on the dollar, and
what would happen to the national government's credit if they weren't paid back
in appreciated dollars fully redeemable in gold? Why, it would have been a
shameful catastrophe, so once again, the Treasury and the nation's prosperity
were sacrificed. As the French like to say, "The more this here changes, the
more the same thing." But they say it in French, of course. Today is the
celebration of the Annunciation to the Blessed Virgin Mary, the announcement
that she would become the mother of Jesus Christ. Until not too many years ago
this day marked the beginning of the year in many countries, such as England,
where it is called "Lady Day." Y'all enjoy your weekend. Argentum et aurum
comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The
Moneychanger The-MoneyChanger.com © 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.