SILVER and Gold PriceS Probably Made Their Last Low Last Friday

Gold Price Close Today : 1,541.20 Gold Price Close 1-Jul : 1,482.30 Change :
58.90 or 4.0% Silver Price Close Today : 3653.6 Silver Price Close 1-Jul :
3369.4 Change : 284.20 or 8.4% Gold Silver Ratio Today : 42.183 Gold Silver
Ratio 1-Jul : 43.993 Change : -1.81 or -4.1% Silver Gold Ratio : 0.02371 Silver
Gold Ratio 1-Jul : 0.02273 Change : 0.00098 or 4.3% Dow in Gold Dollars : $
169.77 Dow in Gold Dollars 1-Jul : $ 175.48 Change : $ (5.71) or -3.3% Dow in
Gold Ounces : 8.213 Dow in Gold Ounces 1-Jul : 8.489 Change : -0.28 or -3.3% Dow
in Silver Ounces : 346.43 Dow in Silver Ounces 1-Jul : 373.44 Change : -27.01 or
-7.2% Dow Industrial : 12,657.20 Dow Industrial 1-Jul : 12,582.77 Change : 74.43
or 0.6% S&P 500 : 1,343.80 S&P 500 1-Jul : 1,339.67 Change : 4.13 or 0.3% US
Dollar Index : 75.082 US Dollar Index 1-Jul : 74.296 Change : 0.786 or 1.1%
Platinum Price Close Today : 1,730.50 Platinum Price Close 1-Jul : 1,719.20
Change : 11.30 or 0.7% Palladium Price Close Today : 775.05 Palladium Price
Close 1-Jul : 759.70 Change : 15.35 or 2.0% SILVER and Gold PriceS probably made
their last low last Friday, but remember the difficulties of summer, so they may
see more range trading, bounded by $1,560 and $1,490 and 3850c - 3370c --
through most of August. However, as it was plain last week that the Gold Price
closing above $1,510 would turn the Gold Price up, and turn up it did, with a
vengeance, gaining 4% in 4 days. Today it added another $11 to reach $1,541.20.
Yes, I did say yesterday that a close over $1,540 would take gold at least to
$1,560. Look for it next week. The Gold Price chart in euros looks even more
bullish than the dollar gold chart, as my friend Bob the Technical Genius
pointed out to me. There it touched its 200 DMA last week, and has climbed
nearly to its all-time high. If the Gold Price can pierce $1,560 (closing basis)
and $1,575 intraday, it will launch a new leg up. Right now euro-fears are
driving it, but just be careful. A market trading in a range is just a
rattlesnake weaving back and forth trying to figure out where to bite you. If
you're buying for the long term, just look at the Gold Price and ask yourself,
"Can I buy here and swallow the risk it will drop 5%?" If you can, go ahead and
buy it. The Silver Price gained 284.2c or 8.4% in four days. Stay out of the
way. What's odd is that today it only added 8/10 of a cent. In the aftermarket
its about 20c higher. The area 3650-3675c is old resistance now, and the 50 day
moving average is kicking in its share at 3667c, too. Above the next barrier is
3850c. The Silver Price has turned up dramatically, but is it only for another
rally-within-the-range up to 3850c? Will it re-visit 3370c? Once again, how
greedy are you? How much risk can you stand? Buying here you risk a fall of 300c
or 8.2%. Want to risk that, or wait until silver either breaks out above 3850c
or drops down to 3370c? Oh, I'm not worried about silver or Gold Price for the
next few years, or even after August, but right now we have to deal with this
frustrating bottoming process, and you can never be certain you've see than
bottom until an upside breakout is confirmed. If you wait until then, you'll pay
a lot more. All those clowns and commentators who are pronouncing an end to
silver's bull market, let alone gold's, ought to have their microphones and
computers confiscated and be locked up in the stocks where people could throw
rotten eggs at them. No, the long term bull market is not in any doubt or peril.
Once again, I turn to the consolations of Tennessee Philosophy. What doth it
matter if a man for the sake of 8.2% risk misseth buying a bull market position?
We aren't working for 8.2% or 10%, or even 20%, but the triple or quadruple the
bull market will bring from here. That's what I like about Tennessee Philosophy:
it brings perspective, even to a natural born fool. Y'all are watching a
correction in a bull market. Don't get hung up on buying at the perfect price,
just beware you buy all you can stand. Stocks had their brief moment in the sun,
then gave most of it back this week. Silver and gold astonished, while platinum
and palladium did little. US dollar index proved its uptrend. Whatever fuel was
driving stocks was used up this week. They fell a little short of the high I
expected, 12,753 versus 12,875, but they may make that point yet. Most
interesting is that stocks squandered all their strength against gold in one
fell spurt, like some kid laying a toothpaste tube down on the counter and
hitting it with his fist. Big spurt shoots toward the ceiling, but nothing
happens after that (except your mother finds toothpaste on the wall and you have
to fetch a switch off the peach tree). The Dow in Gold Dollars shot above its
200 DMA (G$172.61 or 8.35 oz) for one whole day, then fell beneath again, and
today approached the 50 DMA down below (G$168.27 or 8.14 Oz). Only a matter of
time until stocks begin free-falling against gold. Stocks -- they are the empty
parachute pack in Investment Sky-diving Gear. US DOLLAR INDEX rose modestly
today to 75.082, up 12.5 basis points. Not a big deal, but still a big deal
because (1) dollar broke 75 this week without following thru downside, and (2)
dollar index double bottomed yesterday and today at 74.85, (3) dollar remains
above 75 and so in the uptrend begun off the May 1 bottom. The euro reeled
backward again with news of troubles in the Italian banking system, arrest of a
friend of the finance minister, and said minister's nearness to resigning. "Is
Italy next to fail?" wonder the fearful. Euro closed down 2/3 of 1% today at
1.4264. The yen jumped today back to the 20 DMA, closing at Y80.61/$
(124.06c/Y100). 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.