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Gold Price Close Today : $860.60
Gold Price Close September 12th: $760.30
Change: $100.30 or 13.2%
Silver Price Close Today : $12.24
Silver Price Close September 12th: $10.735
Change: $1.69 or 15.7%
US Dollar Index Today: 77.736
US Dollar Index September 12th: 79.040
Change: -1.304 or -1.6%
I ought to rename this commentary "Nuggets from the Nut House."
Thing is, it's only a nut house among the public, who buy the stories coming
out of the Washington phonies & cronies, who are bailing out their friends
& making -- literally -- billions for them at taxpayer expense.
And what did our Great Leaders do today? Well, Bush mumbled an utterly
incomprehensible statement about markets. Meanwhile the people in charge came
up with three new moves that are stunning in their bold fraud & theft:
(1) the Fed government will set up a "trust"(get that word!) to
take all the bad debt off the "troubled" banks' books (if the
economy were a concentration camp, this would equal calling in the bulldozers
to dig a huge crater where you can bury all the corpses) [Think of that: when
you are "troubled" by making utterly stupid investments or
mismanaging your business like a wino on Ripple, just give ol' Ben Bernanke a
call & tell him you need a loan of a couple of hundred thousand to tide
you over. Just guess what he will say.]
(2) No one can short financial stocks. Oh, just think what this means -- the
great Free Marketers in Washington have discovered they don't want a free
market in their buddies' stocks, which would free them to fall, and
(3) Rotten Money Market Funds will be backed by the Depression-era slush
fund, the Exchange Stabilization Fund, the same secret slush fund they use to
manipulate metals & the dollar price.
Oh, I forgot one more leetle action: Comex raised margin rates on gold
contracts by 47% [sic] & on silver by 20%. Wouldn't want you hoi polloi
thinking you could invest in silver & gold in the Big Boys' market, now
would we?. How does the saying go? "They spit in our face & call it
honey." And I will actually puke if I hear one more person say all this
is "necessary" to prevent a crash. Sounds real sophisticated, but
what it really means is this: "We would rather give up all freedom &
let the government subsidize corrupt businesses than let justice come to
those guilty of financial drunkenness." And mark, this great
"wisdom" and "kindness" will reap much more grief &
sorrow & pain than just letting these parasites go bankrupt.
Now, to markets.
STOCKS rallied on news of Paulson's non-existent plan, but any trigger would
have set them off, so oversold were they. Expect the rally to last a short
time, then to be overtaken by a vicious collapse. Sell them while you can.
The US DOLLAR INDEX fell an astonishing 50 points today, growing nearer to
the fateful 76 mark. A fall through 76 would probably mark the death of the
dollar rally. Take this opportunity to get out of all investments that
promise to pay future dollars. The apparatchiki in Washington have sent you a
telegram, & it reads,"We have proved by all our actions that we are
destroying the US dollar, & will keep on to the end." If you won't
read the telegram, you will lose everything you have in dollars. Sell dollars
while you still can.
SILVER & GOLD PRICES made stunning reversals this week. Wednesday
gold posted its biggest one day gain ever, US$70.10 up 10%, & silver
gained 15%. Looking at the weekly charts, gold made a flashy reversal after a
3 leg ABC correction, & burst up through its 50 DMA. The silver price,
which was trading below its 200 Day Moving Average, made a similar reversal,
but rising up through the 200 DMA. All other indicators for both metals are
flashing, "Countdown to blast-off!" Supply is still very spotty,
delays are long, & premiums (especially silver) are historically high.
Look for much greater instability & volatility in all markets. Just steel
yourself for it. Look for the Nice Government Men to attack silver &
gold, more than they [probably] did today, yet the metals will not succumb.
Get your house in order. Buy as much gold & silver as you can. The time
to delay has long passed.
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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