• The Gold Price Remains Oversold Adding $3.40 Closing Today at $1,217.50

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    29-Sep-14 Price Change % Change
    Gold Price, $/oz 1,217.50 3.40 0.28%
    Silver Price, $/oz 17.52 -0.04 -0.21%
    Gold/Silver Ratio 69.508 0.336 0.49%
    Silver/Gold Ratio 0.0144 -0.0001 -0.48%
    Platinum Price 1,307.80 5.80 0.45%
    Palladium Price 789.30 5.70 0.73%
    S&P 500 1,977.80 16.86 0.86%
    Dow 17,071.22 167.35 0.99%
    Dow in GOLD $s 289.85 2.04 0.71%
    Dow in GOLD oz 14.02 0.10 0.71%
    Dow in SILVER oz 974.61 11.53 1.20%
    US Dollar Index 85.74 -0.01 -0.01%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE added $3.40 today to close Comex, where the black shirts on the floor take no prisoners, at $1,217.50. Silver backed off 3.6 cents to $17.516. Both silver and GOLD PRICES left behind sideways trails today.

    Well, why don’t they break down worse? Silver broke that triple bottom line around $18.60, waterfalled, but now has stopped. The gold price broke its uptrend line from the December 2013 bottom, but has only eased down through September a maximum of $65 at its lowest so far. End of the world seems a long time coming.

    Gold flirteth still with oversold. Volume is drying up. MACD has turned positive. What if the dollar takes a dip and all those hedge funds who have shorted gold and silver to buy dollars suddenly find themselves losers? They’ll back out of those trades faster’n a tom cat out of the Westminster Kennel Club show.

    The SILVER PRICE remains massively oversold. From today’s close it needs to rise $0.50 to break $18.00 and the downtrend line.

    Get this clear in your mind: neither silver nor the gold price have turned up yet, in spite of all these signs. But when you see the leaves falling off the trees, you don’t look for spring. Besides, a thought keeps popping up in my mind. I know of no other asset that can carry and maintain value outside the financial system. Gold and silver don’t depend on any corporation to pay a dividend, government to give give a stamp of approval, or anything else. People value them because they are gold and silver, and outside that whole fiat money-central banking system. They’ve been money for over 6,000 years of human history. I reckon they’ll make it a few more years.

    Well, that cinches it! The CNN Money headline today was, “The US dollar is on top of the world.” Anytime a headline like that appears in a general circulation publication, it usually signals the end of a trend, or at least the start of a correction.

    US dollar today lost nothing, one big basis point, to 85.74, so it is holding on, but at an overbought level that hard to swallow (RSI at 79.73), and it has been overbought for a month and a half. Way overdue for a correction (as I’ve been saying for days on end.)

    The yen and the euro are wondering when the Dollar is going to fall, too. Euro today made another new low close for the move, down 0.06% to $1.2685. Yen also made another new low close for the move, 91.34 c/Y100, down 0.22%. Both remain as oversold as the dollar is overbought.

    Ten year treasury note yield nearly touched its 50 DMA today. If we have been watching no more than a correction and it still intends to rise, this would be the right place to reverse gears.

    Stocks got roughed up today. Dow opened down 175, losing most everything it had gained on Friday, but worked its way back up to close down only 41.93 (0.25%) at 17,071.22. S&P 500 lost 5.05 (also 0.25%) to 1,977.80.

    Wonder what will happen with the Dow breaks 17,000 this time? I bet that thought leaves the Nice Government Men sweating scorpions.

    Now my mind turneth to the Dow measured in metals. The late unpleasantness in stocks has been mirrored by topping/churning in the Dow in Silver and Dow in Gold. Dow in gold looks like a spread turkey wing, all jagged feathers showing, up and down with the wild stock market volatility and relative flatness in gold. It closed today at 14.01 oz (G$289.61 gold dollars), down 0.15%. DiG has fallen and is falling out of its overbought state. MACD has turned down, as have Rate of Change and full stochastics. Next confirmation comes with a close below the 20 day moving average, now at 13.82 oz (G$285.68). ‘Nother one of those 200 point down days in stocks will pop that out.

    Poor, dear silver, the Rodney Dangerfield of precious metals! Dow in silver rose 0.84% to 977.73 oz. (S$1,264 silver dollars). Here, too, a closely jagged graph mirrors the struggle of a market turning over. We’ve seen the blow-off and are now witnessing the hovering before the plunge.

    About this date in 1916 John D. Rockefeller became the world’s first billionaire. In 1914 Rockefeller hired the founder of public relations, Ivy Lee (born in Cedartown, Georgia) to advise him because he had a public image a little worse than Attilla the Hun but a little better than Beelzebub. Ivy Lee advised him to carry lots of dimes in his pockets and hand ’em out to kids when he went out in public. It worked — with the kids, at least. Probably didn’t fool anybody else. The Muckraker Upton Sinclair nicknamed him “Poison Ivy” after Lee tried to send bulletins saying that coal miners shot in the Ludlow Massacre were “victims of an over- turned stove.”

    On 29 September 2008 as Lehman Brothers and Washington Mutual went bankrupt, the Dow Jones industrial Average fell 777.68 points, largest single day loss in its history.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.

  • The Gold Price Fell $1.20 this Week Ending at $1,214.10

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    19-Sep-14 26-Sep-14 Change % Change
    Gold Price, $/oz. 1,215.30 1,214.10 -1.20 -0.1
    Silver Price, $/oz. 17.781 17.477 0.304 -1.7
    Gold/Silver Ratio 68.348 69.468 1.120 1.6
    Silver/gold ratio 0.0146 0.0144 -0.0002 -1.6
    Dow in Gold $ (DIG$) 293.92 291.38 -2.55 -0.9
    Dow in gold ounces 14.22 14.10 -0.12 -0.9
    Dow in Silver ounces 971.81 979.18 7.37 0.8
    Dow Industrials 17,279.74 17,113.15 -166.59 -1.0
    S&P500 2,010.40 1,982.85 -27.55 -1.4
    US dollar index 84.86 85.75 0.89 1.0
    Platinum Price 1,338.80 1,303.50 -35.30 -2.6
    Palladium Price 812.35 783.55 -28.80 -3.5

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE today tumbled again, down $7.10 (0.6%) to $1,214.10. Silver, gainsaying gold, rose 9.8 cents (0.81%) to $17.47

    Thursday’s 24 hour trading in silver saw three bottoms about $17.40, off of which silver rallied today to $17.73 about 3:30 a.m. eastern time. But the downwave from that high seems to have dropped in three legs, which, if accurate, suggests it was correcting the upmove. In other words, the direction of trend is up.

    That close at $17.477 cents was classic tape painting, since I hardly saw the SILVER PRICE trading under $17.62 all day. End of the day found silver at $17.68.

    On a five day chart the GOLD PRICE made a low this week around $1,206, climbed sharply off that Thursday bottom only to be smacked down again today, but down to a higher low ($1,212.80).

    Gold closed today, as it did yesterday, ABOVE its downtrend line from 1 September. Yes, that does mean something. Add to that the MACD turning up, and the RSI moving up out of oversold-land, and there are the ingredients for an upturn. However, no one has yet lit the eye under the pan.

    Next week and October promise an abundance of pain for stock investors. But until that US dollar Index takes a breather, silver and gold will keep struggling. Look for them to stage a sudden, sharp rally within the next two weeks. Gold may keep chiseling lower in the meantime. A break below $1,205 sends gold lower, above $1,237 sends it higher. Silver needs to clear $18.00 to begin to turn up, and $18.50 to convince a crowd.

    About the time my treacherous brain thinks it’s time to throw in the towel on gravity and monetary reality and call Mother Janet Yellum a winner, common sense slaps my jaws and brings me back. I interviewed the great Harry Browne in 1993 when I was researching for Silver Bonanza, and he said one thing I’ve never forgotten: the size of the rally depends on the preceding government price suppression. So, the longer the government suppressed silver and gold, all the way through the 1960s and 1970s, the stronger the eventual rally and blow up.

    In the past 5 years the Fed has increased is balance sheet by about 4 times, a number for which history offers no comparison. The Fed has also suppressed interest rates to zero percent, and, I doubt not, the prices of silver and gold. At the same time, its money printing has driven the stock market farther into the stratosphere.

    What happens when the suppression can no longer be continued, and it all blows up?

    This is all confusion until you look at the chart and realize that, for all the big moves up and down, stocks have steadily worked lower with lower lows and lower highs, in other words, a downtrend. Yesterday the S&P500 closed lower than its last low (19 September), which proclaims gravity wreaking its vengeance. Today’s rally changed nothing. However, it does seem a bit suspicious, even to such an unsuspicious mind as mine, that stocks could find no traction until 2:00, when “some” Big Buyer entered the market. I won’t say “Nice Government Men” of the Plunge Protection Team, but y’all know that’s who I mean.

    Dow in gold rose 1.19% (thanks to gold’s fall) to end at 14.03 oz (G$290.03 gold dollars). Still needs to close under the 20 DMA (13.78 oz, G$284.86) to begin to confirm a reversal. However, the MACD had turned down already, as has the RSI.

    Dow in Silver ended at 969.58 oz (S$1,253.60 silver dollars), up 0.7%, after making a new high on Wednesday at 974.25oz (S$1,259.64). Still wildly overbought.

    On 26 September 1900 the US Mint ceased minting $1 and $3 gold coins and the three cent piece. Why, y’all ask, were they minting $3 gold coins and 3 cent coins? Because they bought a sheet of postage stamps, why else?

    Y’all enjoy your weekend!

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.

  • The Gold Price Rose $2.60 Today on Comex and Ended at $1,221.20

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    25-Sep-14 Price Change % Change
    Gold Price, $/oz 1221.20 2.60 0.21%
    Silver Price, $/oz 17.379 -0.264 -1.50%
    Gold/Silver Ratio 70.269 1.199 1.74%
    Silver/Gold Ratio 0.01423 -0.000247 -1.71%
    Platinum Price 1315.70 -5.20 -0.39%
    Palladium Price 802.20 -17.30 -2.07%
    S&P 500 1,965.99 -32.31 -1.62%
    Dow 16,945.80 -264.26 -1.54%
    Dow in GOLD $s 286.85 5.09 -1.75%
    Dow in GOLD oz 13.876 -0.246 -1.75%
    Dow in SILVER oz 975.07 -0.39 -0.04%
    US Dollar Index 85.15 0.36 0.42%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE rose $2.60 today on Comex and ended at $1,221.20. Silver dropped 26.4 cents to $17.37.9, taking the ratio to 70.269 (swap gold for silver time).

    The SILVER PRICE is egregiously oversold; RSI stands at 14.95. Yet silver also stands just above its 13 year uptrend line, which ought to catch and hold it. Silver tentatively has made a double bottom around $17.30. Watch that number.

    GOLD/SILVER RATIO today hit a new high at 70.269. This takes it back about to where the great drop began in 2010. This is either the very BEST place in the world to swap gold for silver, or the very worst. I am inclined strongly to think it is the best. What would make it the worst? For gold to stop and rally here while silver keeps on sinking. Highly unlikely. How might that occur? Another 2008 style financial panic.

    Other metals are beaten down as well. Palladium broke below its 200 DMA today after seven months above it, yet its not nearly as oversold as silver. Now platinum, it’s as oversold as silver, but hasn’t broken to a new low for the correction, as silver has.

    The GOLD PRICE has established a two-legged bottom Monday and Thursday, and it climbed back over $1,220 today — on rising volume. RSI has climbed above 30 and out of overbought-land (now 32.67), MACD is straining to turn up, Rate of Change has turned up but remains negative.

    Meanwhile the whole galaxy plus a couple of planets in other galaxies are negative on silver and gold prices. Frankly, that’s the best thing that could happen, because it would mean we have run out of sellers.

    Watch for a sharp upward reversal in silver. That will be your signal to buy.

    Speaking of the stock market, it dove off a cliff today. Dow lost 264.26 (1.54%) and ended at 16,945.80. S&P500 lost 32.31 (1.62%) and closed at 1,965.99.

    A few footnotes: Monday was the aftermath of the Alibaba IPO which became the world’s largest — sure sign of a top. The last four days have seen three digit moves in stocks, down, down, up, down. That extreme volatility characterizes topping markets. That turns the current trend unarguably down.

    (First a note about the RSI. Relative Strength indicator measures speed and change of price, and oscillates between zero and 100. However, it’s overbought when above 70 and oversold when below 30.)

    Look inside. The Dow sliced through its 20 DMA (17,100.57) and fell nearly to its 50 DMA (16,936.47). RSI fell below 50 (momentum is downward). MACD turned down. Gravity is wholly engaged and operational.

    Inside the S&P500 looks even worse. It opened at the 20 DMA and plummeted through the 50 DMA (1976) and just kept on sinking. RSI reads 41.26, MACD dropping. The S&P500 is approaching the uptrend line that has held it up since mid 2013, and today it fell through its last low.

    Dow in gold zagged down again, losing 1.91% and closing at 13.87 oz (G$286.72 gold dollars). First tripwire confirming a downward reversal is the 20 DMA at 13.74 oz (G$284.03). RSI is plunging, down from 78.90 a few days ago to 57.08 today. MACD MA has turned down, and the rate of change has double peaked and turned down.

    Dow in silver hooked down, but only 0.25% to 971.77 oz (S$1,256.43 silver dollars). Remains grossly oversold with the RSI at 78.77, but won’t stay there long with stocks dropping like a piano out of a third story window.

    The US dollar index is monstrously overbought (RSI at 77.25) but still rose 19 basis points (0.23%) to 85.35. Euro dropped to a new low for the move at $1.2746, down 0.26%. Yen is showing some sign of life, rose 0.29% to 91.98 today. MACD trying to turn up.

    Ten year treasury yield fell today, probably cutting off that embryonic desire to rally. Scared money flooding out of stocks into treasuries would have driven their price up and the yield down. Looks set to drop further.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.

  • Silver and Gold Prices Lower with the Gold Price Closing at $1,218.60

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    24-Sep-14 Price Change % Change
    Gold Price, $/oz 1,218.60 -2.40 -0.20%
    Silver Price, $/oz 17.64 -0.07 -0.40%
    Gold/Silver Ratio 69.07 0.138 0.20%
    Silver/Gold Ratio 0.0144 -0.0000 -0.20%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE stumbled and fell $2.40 (0.4%) to $1,218.60 on Comex. Silver lost 7 cents to $17.64.3.

    Gold put in a high about $1,227 today about 4:30 a.m. Eastern time, then spent the rest of the day giving it back. Despite that reach upward yesterday to $1,237, gold’s five day chart shows no excitement. Today was basically a flat day between $1,227 and $1,216. It closed barely below its ruling downtrend line (from 1 September). Holding its breath.

    The SILVER PRICE remains overboughter than woolen drawers at an old ladies’ convention. Today did little for silver except close it above the $17.50 line. There was a bit of movement in silver, with a 3:30 a.m. high at $17.87 and a low at $17.51 about 11:15. In the aftermarket silver has returned to $17.71, about seven cents above its Comex close.

    Despite the excitement silver and GOLD PRICES generated yesterday, they fell back into the glumps today. No sign yet they are turning up.

    Sometimes I was sort of downcast, thinking about all the world’s central banks crowding into markets and manipulating them, or, if not manipulating, overwhelming them with money. As Chris Powell of GATA says, there aren’t any markets any more.

    Then I get a good view of the sky, or remember how huge the earth is looking down from an airplane, and I am reminded how small men are, how arrogant their plans, and how quickly overthrown. Patience doesn’t panic.

    That doesn’t change the closes, but it does brighten my mood some.

    I keep wondering what tyrannical government action will finally make y’all stiffen up your backs and say, “NO!” Better think about it, cause here’s what you have to face next: the Garbage Police.

    Mercy, I wish I had an imagination so overamped I could invent stuff like this, but only the Left Coast could spawn this idea. In Washington State (where all the drivers drive in the left lane) the City of Seattle will soon begin to fine you if you throw banana peels or old tomatoes in your garbage. No, no, no, you troglodytic environmental spoiler! You must sort your compostable garbage so Seattle can meet its self-imposed goal of recycling 60% of all waste. This passed the city council by a 9-0 vote, which makes one (like me) wonder why they haven’t yet recycled the city council.

    There are so many things wrong about this, I don’t know where to begin unraveling it. I could begin by denouncing the socialism of city government owning the garbage collection service, but then I’d have to get into the rest of the evils municipal socialism, and that could take hours.

    God deliver us from do-gooders! They will conform you to their own righteous image even if they have to cut off your hands and feet and kill you to do it.

    By the way, don’t y’all write me any self-righteous emails about recycling, either. I don’t need to compost, I have a PIG. He eats it all, and eventually I recycle him into lard, ham, bacon, and pork chops. Not one shred of edible compost escapes my pig bucket, after every meal. But then, nobody MAKES me do it.

    Now today’s markets:

    US dollar index advanced 36 basis points (0.42%) through the 2013 high at 80.96 to perch at 85.15. This makes a further dollar rally look inevitable, but the present overboughtness begs for a correction soon.

    Head Criminal at the ECB, Mario Draghi (“Mr. Eye-bags”) promised again to keep monetary policy loose for as long as it takes. To do what, I don’t know. Euro obediently sagged to a new low at $1.2781, down 52%.

    Yen can’t muster enough strength to get up off the floor. Lost 0.16% and ended at 91.71 cents/Y100

    After 3 days falling away from the 200 day moving average, the 10 year Treasury note yield gained 1.34% today to 2.569%. Acts as if it wants to climb.

    Stocks meanwhile, buoyed (I reckon) by the myth that a strong currency goes with a strong stock market, rose sharply. Dow added 154.19 (0.9%) to 17,210.06. S&P500 rose 15.53 (0.8%) to 1,998.30. This fierce volatility, way up one day and way down the next, characterizes topping markets. S&P500 closed right at its 20 DMA (1,997.95).

    Dow in gold zagged back up after zigging down several days. DiG rose 1.42% to 14.14 oz (G$292.30 gold dollars), lower than Friday’s high. Dow in silver (Mercy!) made another new high today at 974.25 oz (S$1,259.64 silver dollars). Gravity ought to be pulling down hard on the DiS, as it is monstrously overbought plus has thrown over the upper resistance line.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.

  • The Gold Price Rose $4.20 to $1,221.00 on Comex

      0 comments
    23-Sep-14 Price Change % Change
    Gold Price, $/oz 1,221.00 4.20 0.35%
    Silver Price, $/oz 17.71 0.01 0.08%
    Gold/Silver Ratio 68.932 0.183 0.27%
    Silver/Gold Ratio 0.0145 -0.0000 -0.27%
    Platinum Price 1,334.20 2.50 0.19%
    Palladium Price 815.25 12.35 1.54%
    S&P 500 1,982.77 -11.52 -0.58%
    Dow 17,055.87 -116.87 -0.68%
    Dow in GOLD $s 288.76 -2.98 -1.02%
    Dow in GOLD oz 13.97 -0.14 -1.02%
    Dow in SILVER oz 962.90 -7.36 -0.76%
    US Dollar Index 84.79 0.00 0.00%

    3 Day Gold Price Chart
    30 Day Gold Price Chart
    5 Year Gold Price Chart
    3 Day Silver Price Chart
    30 Day Silver Price Chart
    5 Year Silver Price Chart

    The GOLD PRICE rose $4.20 to $1,221.00 on Comex. Silver rose a piddling 1.4 cents to $17.713. Both closes belie today’s underlying strength.

    On a five day chart gold has made a rounding bottom. Today it came up out of that bowl about 5:30 a.m. with a break through $1,225 and rose in steps to $1,237 by 8:30. Rest of the day it backed off, down to $1,220 again at noon. Rest of the day it oscillated between $1,220 and $1.225.

    The GOLD PRICE today pierced but did not quite close above its downtrend line in place since September began. It has barely moved up from grotesquely oversold, and other indicators appear to be turning up. Today’s gains were confirmed by rising volume.

    The SILVER PRICE made a V-bottom at $17.33 before Monday’s market opened in the US. Since then it hasn’t traded below $17.60. Today I opened strong and ran to $17.99 about 8:30 a.,. It fell off that rise and spent the rest of the day riding $17.75 – $17.80. As long as silver holds above $17.60 we can presume it has reversed upward.

    Unlike the gold price, the silver price has not yet crossed above its downtrend line that began late in August. It needs a price above $18.25 to accomplish that.

    I got to thinking about that GOLD/SILVER RATIO. It gapped up three days ago, and today rose once more to 68.932. That corrects 70.8% of its rise from the April 2011 low. A 75% correction would lift it to 71.06. A drop in that ratio below 67.5 would help confirm a reversal upward for metals.

    I may be foolish, but I bought both silver and gold today. Considerable amount.

    Friend of mine called today to point out that the premiums on some storage scheme silver has reached the point where you can swap that for physical and roughly break even. If you are in one of those schemes and your silver has a 5 or 6% premium, you can almost break even swapping to physicals.

    Oddly, the 5 day US dollar chart shows highs above 84.80 on Wednesday 17 September and Monday 22 September, with a big drop until noon today and a high lower than yesterday’s. That leaves behind what looks like a double top and beginning of a reversal. Needs to close below 84 to confirm that reversal. Today it closed unchanged at 84.79.

    Japanese Yen tried to rise today but was slapped back. Lost 0.06% to 91.83 cents/Y100. Euro played by the same script, rising strongly early but closing near the bottom of its range for a 0.01% loss to $1.2846.

    Stocks had a rough day, following through downward after that nose cone top. S&P500 lost 11.52 (0.68%) to 1,982.77. Dow sank a hefty 116.87 (0.68%) to 17,055.87.

    S&P500 is all negative today. It dropped way below its 20 DMA (1,998.04) and isn’t too far from its 50 DMA below that (1,976). RSI has turned negative, along with MACD and full stochastics.

    Dow today closed below its 20 DMA (17,104.21). RSI at 50.45 didn’t quite close below 50, but the MACD and Full Stochastics turned down. Gravity will control of the next big move, and that right soon.

    Both the Dow in Gold and Dow in silver have plunged sharply. Dow in gold shrank today by 1.33% to 13.94 (G$288.16 gold dollars). RSI has moved down from grotesquely overbought to merely overbought. Must close below that December high at 13.80 (G$285.27) and then the 20 DMA at 13.68 (G$282.79) to confirm a downturn.

    Dow in silver dropped 0.9% to 959.81 oz (S$1,240.97 silver dollars). 20 DMA awaits at 909.03 oz (S$1,171.43). Remains grotesquely overbought.

    Aurum et argentum comparenda sunt — — Gold and silver must be bought.

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold’s primary trend is up, targeting at least $3,130.00; silver’s primary is up targeting 16:1 gold/silver ratio or $195.66; stocks’ primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

    WARNING AND DISCLAIMER. Be advised and warned:

    Do NOT use these commentaries to trade futures contracts. I don’t intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

    NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

    NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

    NOR do I recommend buying gold and silver on margin or with debt.

    What DO I recommend? Physical gold and silver coins and bars in your own hands.

    One final warning: NEVER insert a 747 Jumbo Jet up your nose.