Under the US Mint Act of 1792, the dollar was pegged at 24.75 grains of gold. There are 480 grains in a troy ounce. Thus it took 19.4 US dollars to purchase a single troy ounce of gold. As of Feb 23, 2007 it takes nearly 683 US dollar to purchase that same troy ounce of gold. That represents a 97% drop in value!
The US Dollar isn't worthy of use as toilet paper...matter of fact, one should pick up Dollars with toilet paper. The piece of dung is down some 40 pips on Friday and Gold and Silver both close down? What a load of crap! Oil vaults $70 on the same day the Dollar loses 40 pips, and Gold and Silver close down? What a load of crap!
I could string together a collection of expletives here that could summarize all our feelings about this, but it would simply be a waste of breath. Let's go to the chart of Gold for the month of June:
Please click on the http://www.usagold.com/ chart above to enlarge.
As I've been saying, Gold and Silver will probably flounder around trying to establish a bottom thru the 4th of July. Friday Gold rose to and died at it's downtrend for the month going back to the high on June 8th. We had options expiration this week and Friday was the close of the 2nd Quarter. By hook and by crook the price of gold is being stifled in an attempt to prevent the truth about the economy from becoming a realization. For Gold is the Truthsayer, and the truth will be told. The battle between the Bulls and Bears in Gold is full on. All we can do is stand by now, and be witness what may soon be the detonation of financial Armageddon.
Needless to say, sentiment in Gold right now is pretty negative. And when one side of the boat gets to full, it's best to get on the other side to avoid going under with the herd when the boat finally tips. Amatures are beginning to throw short on Gold now, believing that Golds back has been broken. Hardly... A powerful short squeeze is imminent.
Gold was blatantly power dunked by dem sleazy Rat Bastids on the Comex from noon till the close Friday. It was as disgusting as it was blatant. But like a beach ball being pushed under the water by Shamu the Killer Whale at Sea World, it can only be held down so long. And when it breaks the surface, that ball flies high above the crowd...just as Gold will when it breaks the June downtrend line above. Continued weakness in the Dollar, coupled with Oil remaining over $70 and a close in Gold over $653 could well push the panic button for the shorts in Gold. Most every rally in Gold throughout this secular bull market has been launched with a short squeeze.
Silver has a LOT of work to do. First it must surmount the fools looking to pile on shorts at 12.46. It must then put 12.60 behind it in order to put some much needed pressure on the shorts. The shorts will fight to the death up and to 12.75. 12.75 is where the Battle Royal between good and evil in Silver will take place for bragging rights for the balance of 2007.
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