Gold and Silver Prices Are Headed Higher - Buy the Dips

Gold Price Close Today : 927.30
Gold Price Close Yesterday: 931.90
Change: -4.60 or -0.5%

Silver Price Close Today : 17.833
Silver Price Close Yesterday: 18.285
Change: -44.7 cents or -2.4%

US Dollar Index Today: 72.72
US Dollar Index Yesterday: 72.72
Change: 0.00 or 0.0%

Wham! The GOLD PRICE fell 4.60 today to 927.30 and the silver price fell 44.7 cents to $17.833. End of the world? Well, think about it. In the forgoing five days, the silver price had gained $1.834. In the same five days the gold price had broken through its old high. Is it any surprise that it touches back to that breakout point? Shouldn't be.

The SILVER PRICE will have to work to climb back to $18.24, but the gold price has held on. We may see a cat fight this week to hold on to these levels, but I cannot shake the notion that gold and silver prices are headed much higher. I would buy dips like this like a country boy buys bananas -- with both hands.

Whoo! That stock market looked sick today. The Dow made three tries early on to break through 11,400, then gave up and wilted to 11,120. About 3:00 p.m. "somebody" (Nice Government Men?) came in buying heavily, but as quickly as it ran up over 11,300, it sank back. However, the NASDAQ Comp rose 13.14 points. That reminds us that a short, shallow rally might happen any time, reacting against the fall so far, but the big trend remains down.

Today the US DOLLAR INDEX stayed flat. Well, at least it didn't sink back toward 72. My mind is slowly turning against the dollar's possibility of rallying. Too many lies and false promises.

Here's a Caroline update: on Saturday after her heart surgery the staff had moved her out of critical care and onto the floor, but they had to take her back to Critical Care on Sunday. Today she is doing much better. Susan and I went up to Nashville to see her, and she looked pretty well but was a little groggy from morphine. Blood oxygen levels have risen and they've cut back the oxygen they're giving her. She's pretty feisty. Thanks very much for your kind e-mails and for your prayers. I'm passing them on to Justin and Ellen.

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.html.

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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