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Gold Price Close Today: 776.50
Change: -6.6 or -0.8%
Silver Price Close Today: 10.462
Change: -61.3 cents or -5.5%
Limb, limb -- where are you? I want to climb out there. Today's silver
trading, combined with the last two days, has formed an upside-down head and
shoulders. Unless the silver price drops below $10.37, from this platform it
should launch a large rally.
Gold over the past 3 days has carved out an uptrend. Yesterday was the first
burst up, today the test of footing, and tomorrow the take-off.
VERY slow deliveries and shortages continue to rule the physical silver and
gold markets. Call me crazy, but I would still be buying silver and gold like
the barbarians were at the gate. I would also swap gold for silver, since the
financial crises have driven down silver against gold, an unexpected
opportunity.
The glorious Comrades at the Glorious Soviet Central Bank -- wait, wait,
scratch that, make that the "Federal Reserve" -- decided today that
what all the rest of us needed was to keep interest rates flat. This was not
so much a display of wisdom as it was cowardice. If they raised rates, they
risked crashing the stock market; if they lowered rates, they crash the US
dollar. What's a central banker to do? Take the middle of the road, where the
yellow stripe runs. Meanwhile, add Washington Mutual S&L to the list of
potential corpses, alongside Lehman Brothers and AIG and Merrill Lynch.
STOCKS, helped, no doubt by Nice Government Men on the Plunge Protection
Team, came back after a rocky start to close up 131 points at 11,049.33. Yes,
it's a paltry close, but think of the psychological value of closing over
11,000. Right. And think of all the money you're losing on stocks. But don't
take my word for it, just listen to your stock broker, stay where you are,
& watch.
The glorious people's US Dollar rose 62 basis points today to close at
79.103. It remains in an uptrend unless it closes below 76. This rally can
hardly last longer than end-October, if it can make it to end-September, that
is.
Here's something that will really make y'all feel comfy about holding all
your assets as electrons in US banks. Customer of ours from upper Texas called today to explain he had meant to wire payment, but his money was in Houston & the bank there had no electricity, thanks to the hurricane, therefore he
could get no wire. Yessirree, nothing like modern interdependency.
Sorry, I won't be sending y'all a commentary tomorrow because I will be
finishing my September Moneychanger.
I took Susan down to Florence, Alabama today for her orientation for cardiac
rehab. She did fine walking, and other than trouble sleeping & fatiguing
easily, she's doing very well. Thanks for your continuing prayers.
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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