You Will Make a Big Mistake Waiting to Buy Silver or Gold

goldsilver.com

Been cogitating, and am beginning to conclude that markets did --after an initial misapprehension -- react properly to raising the debt ceiling and the Greek bailout. What do both events promise, nay, guarantee? Much more inflation. What will inflation do to stocks? Wreck them. What will inflation do to silver and gold? Drive them wild.

I reckon logic sometimes triumphs, even if it takes a few days.

The GOLD PRICE reached another new all-time high today, touching intraday $1,675 and closing the doors at Comex up $21.50 to $1,663.40. GOLD has reached the top of its trading channel so will probably bounce off that and correct a few days. Yet it will return to batter at the ceiling again. Point and Figure chart gives a $2,060 (Two thousand Sixty U.S. dollars) target.

The SILVER PRICE is nearing the top of its long term trading channel which it will strike about 4350c. Today it gained 4.2% or 166.6c to end its day on Comex at 4174.7c. Merciful heavens! Probably a little correction will ensue with silver, too, having run up two dollars in two days. New support is now 4100c. New resistance 4200c.

Any breakout thru the top trading channels, long standing trends like these, leads to an explosion. You literally have to double the channel when that happens. A little more likely here is at least a temporary rebound downward off those lines, even if silver and gold intend to penetrate them soon.

A GOLD PRICE close above $1,675 would whisper that some huge crisis is brewing behind the scenes, huge on the scale of fall 2008.

You will make a big mistake waiting to buy silver or gold. Huge. Yes, we may see a sizeable correction, but we have entered the wild stage of a bull market. Y'all can't even imagine how much wilder it will get.

Stocks recovered just enough to pull their tattered rags about their naked, bruised body and hide their shame. Raggedy, raggedy day for stocks, most of it spent underwater, slapped back when they tried to rally, then eeking out a close 29.82 points higher or 1/4 of 1% at 11,896.44.

Way down below 10,700 has a target painted on it. Maybe lower.

S&P 500 today gained 6.29 points or 1/2 of 1% to close at 1,260.34.

If you are one of those procrastinating putter-offers still clutching the delusion of a come-back to your breast, now would be a good time to drop the delusion, stamp on its face with your brogans, sell those stocks, and get out of harm's way.

Stocks -- to the investment question of, "How do you feel today?" they are the answer, "Flu, food poisoning, and chiggers."

US DOLLAR INDEX fell thru 74 a bit -- down 53.3 basis points to 73.98 -- but remains in this protracted bottoming process. Won't resume its downward progress for a while.

Euro rose today to close at 1.4322, up 0.91% and thru its 20 and 50 dmas. I'd buy shares in a lottery ticket before I'd buy euros. Japanese NGM are trying to edge the yen down off its uppity new high.

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger