• The Gold Price Closed at $1,088.40 Down $4.30

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    30-Jul-15 Price Change % Change
    Gold Price, $/oz 1,088.40 -4.30 -0.38%
    Silver Price, $/oz 14.69 -0.04 -0.29%
    Gold/Silver Ratio 74.086 -0.069 -0.09%
    Silver/Gold Ratio 0.0135 0.0000 0.09%
    Platinum Price 988.60 4.20 0.43%
    Palladium Price 620.05 5.45 0.89%
    S&P 500 2,108.63 0.06 0.00%
    Dow 17,745.98 -5.41 -0.03%
    Dow in GOLD $s 337.05 1.19 0.36%
    Dow in GOLD oz 16.30 0.06 0.36%
    Dow in SILVER oz 1,207.95 3.16 0.26%
    US Dollar Index 97.69 0.62 0.64%

    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 PRICE OF GOLD disappointed me today. I’ve been saying that gold can’t close below $1,090 nor SILVER below $14.40 for a rally to begin. Well, silver co-operated today but gold did not. Comex GOLD PRICE closed at 1,088.40, down $4.30. Comex silver lost 4.3 cents to $14.691.

    But still, the best possible headline for the gold price appeared today: “Prepare for gold prices to plunge as low as $350.” Exactly THAT sort of headline is what you want to see for an upward reversal, because it indicates that optimism for gold is historically low, pessimism historically high. You see headlines like that when all the sellers have sold. And how hard did this prediction hit the price of gold? It dropped $4.30 (0.4%), but not even all that drop could be credited to the headline. Got to learn to think contrary to the mob.

    In today’s trading the gold price was driven below $1,092 with a huge fall about 3:00 a.m. Eastern time — right, while most of the world was closed and the market very thin. It tumbled to $1,082.75, climbed back above $1,086, went sideways until 10:00 a.m., then began to rise, steadily, to $1,095 at 1:00 p.m. Rest of the day it settled back beneath $1,090.

    Does that wreck my outlook? Partly, and partly not. Gold price left behind a very plain double bottom at $1,082.75. Mayhap I set my boundary a little too high. We’ll see tomorrow. Time is working against silver and gold prices. The longer they stay down here, the greater the chance they will fall off again.

    Silver, I hasten to point out, did not break. It held on just fine above a $14.62 low.

    US dollar index is back on the radar with a breakout today from its downtrend. Gained 62 basis points to 97.69. Unless it can fly above its last high at 98.31, it is only faking a rally.

    Euro fell 0.47% to $1.0933, back below its 20 day moving average. That thing couldn’t pour a rally out of a boot with directions on the heel.

    Yen broke down again today, losing 0.17% to 80.54. This pierces the little uptrend line it was working off the early June low. More downside coming.

    Stocks ran slap out of gas today. Dow lost 5.41 (0.03%) to 17,745.98. S&P500 rose 0.06 to 2,108.63. Dow remains below its 200 DMA. S&P500 has climbed back above its 20 and 50 DMAs. Big obstacle comes about 2,120, the downtrend line from the May high. Even moving higher tomorrow won’t change my outlook on stocks. A big plunge is coming. Cataract. Waterfall. Put on your rainsuit.

    Since I got calls from five (5) people today who misunderstood what I wrote yesterday about swapping US 90% silver coin for bars, I clearly did not write clearly. Please forgive me. Only the US 90% silver coin has a high premium, and therefore can be swapped for 100 ounce bars or one ounce silver rounds for a gain in ounces. Here’s what I SHOULD have written:

    AN UNUSUAL OPPORTUNITY. The wholesale buy side premium on US 90% silver coin has risen so high that you can swap US 90% silver coin for 100 ounce silver bars (or one ounce silver rounds) and realize an 11% to 12.2% gain in silver ounces. Far as I know this is a “like-kind” exchange so not taxable, but ask your own tax daddy because I don’t know sic-’em from come-here about no taxes. Be careful about doing this swap with any other dealer but us. I believe we are the only dealer in the country that charges commission on one side of the swap only, to increase your realized gain. You can also swap 90% silver coin for one ounce silver rounds, for a slightly smaller gain.

    Warning: do not swap ALL of your 90% coin. Keep at least some of it because the higher premium may be a permanent structural change and not a transitory one. In other words, US90% may never get cheaper again. Call to inquire, (888) 218-9226.

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

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2015, 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 Price of Gold Closed Down at $1,092.70

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    29-Jul-15 Price Change % Change
    Gold Price, $/oz 1,092.70 -3.60 -0.33%
    Silver Price, $/oz 14.73 0.10 0.70%
    Gold/Silver Ratio 74.155 -0.768 -1.03%
    Silver/Gold Ratio 0.0135 0.0001 1.04%
    Platinum Price 984.40 -3.40 -0.34%
    Palladium Price 614.60 -6.00 -0.97%
    S&P 500 2,108.57 15.32 0.73%
    Dow 17,751.39 121.12 0.69%
    Dow in GOLD $s 335.85 3.39 1.02%
    Dow in GOLD oz 16.25 0.16 1.02%
    Dow in SILVER oz 1,204.79 -0.20 -0.02%
    US Dollar Index 97.08 0.21 0.22%

    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 bumped up after the FOMC announcement, but traded right back down. Closed Comex down $3.60 at 1,092.70. SILVER added 10.3 cents to $14.734.

    Welcome to limbo, where nothing is ever resolved and all decisions are avoided and all verbs in the passive so you can’t tell who’s acting. Still, there was no weakness in today’s silver and GOLD PRICE charts, and a spirited defense against an attempt to drive them down about noon.

    We’re stuck at the same place: the price of gold and silver must hold $1,090 and $14.40 and on the upside must hurdle over $1,100 and $15.00 to begin a rally, and $1,140 and $15.50 to prove one. Tomorrow?

    Do y’all know what a wonderful freedom it is to liberate yourself from hogwash? Think of all the goofs in the world who hang around their TV sets to see what are the latest words that drop like fetid liquid lard from the lips of Janet Yellen, believing their future depends on them. How utterly degrading, and how howlingly ridiculous! Mercy, Janet Yellen couldn’t run a Louisiana snow-cone stand at a profit in August! What’s the chance she and the rest of those Keynesian midgets will get the whole US economy right, let alone interest rates?

    Yet the mind control persists. Press conference after press conference, month after month, she says the same thing, and markets react — for a day or maybe two. Folks, the magic don’t work any more. She’s just a pitiful, flabby old woman pretending to be a Mistress of the Universe. I have better things to do than listen to that stuff. I’ve got a sock drawer that needs re-arranging.

    Dow climbed 121.12 (0.69%) to 17,751.39 on another veinful of government heroin, i.e., the Fed’s worn-out promise to raise interest rates some day, but not yet. S&P climbed 15.32 (0.73) to 2,108.57. Wow. Dow almost climbed through its 200 DMA.

    US dollar index scarfed up 21 basis points and closed at 97.08, barely above the 20 DMA. Euro dropped 0.69% to $1.0985 and the yen 0.23% to 80.68. Nothing happening there, dollar still riding the downdraft, despite today’s higher close.

    Y’all go home tonight and do something really important. Kiss your wife or husband and children and squeeze ’em and enjoy the presence of love and peace — and ignore blathering, lardy bureaucrats.

    AN UNUSUAL OPPORTUNITY. The wholesale buy side premium on US 90% silver coin has risen so high that you can swap US 90% silver coin for 100 ounce silver bars and realize an 11% to 12.2% gain in silver ounces. Far as I know this is a “like-kind” exchange and so not taxable, but ask your own tax daddy about that because I don’t know sic-’em from come-here about no taxes. Be careful about doing this swap with any other dealer but us. I believe we are the only dealer in the country that charges commission on one side of the swap only, to increase your realized gain. Trade can also be done for one ounce silver rounds, with a slightly smaller gain.

    Warning: do not swap ALL of your 90% coin. Keep at least some of it because the higher premium may be a permanent structural change and not a transitory one. In other words, it may never get cheaper again. Call to inquire, (888) 218-9226

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

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2015, 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.

  • Gold Price Lost 20 Cents to $1,096.30 on Comex

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    28-Jul-15 Price Change % Change
    Gold Price, $/oz 1,096.30 -0.20 -0.02%
    Silver Price, $/oz 14.63 -0.04 -0.25%
    Gold/Silver Ratio 74.923 0.169 0.23%
    Silver/Gold Ratio 0.0133 -0.0000 -0.22%
    Platinum Price 987.80 -2.70 -0.27%
    Palladium Price 620.60 8.50 1.39%
    S&P 500 2,093.25 25.61 1.24%
    Dow 17,630.27 189.68 1.09%
    Dow in GOLD $s 332.47 3.67 1.12%
    Dow in GOLD oz 16.08 0.18 1.12%
    Dow in SILVER oz 1,204.99 15.97 1.34%
    US Dollar Index 96.86 0.26 0.27%

    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

    Silver and GOLD PRICES flatlined. The gold price lost 20 cents to $1,096.30 on Comex; SILVER gave back 3.7 cents to $14.631.

    Good evenin’, Mushrooms! It’s gold and silver futures options expiry today, so you could expect that metals weren’t going anywhere. No, they had to be kept down just one day so those barely out of the money options would expire worthless. They use the same playbook every month. I’m glad that’s behind us.

    Ranges were very tight, $14.68 – $14.51 for silver and $1,098.20 to $1,090.70 for GOLD PRICE. I can’t promise y’all metals will rise tomorrow, but that’s what I expect. Same rules apply: the price of gold must not close below $1,090 nor silver below $14.40. Upside the gold price must o’erleap $1,140 and silver $15.50 to prove they have any muscle left.

    Dow Industrials rose 189.68 (1.09%) today to 17,630.27. S&P500 also rose, 25.61 (1.24%) to 2,093.24.

    I ain’t impressed. In five days it lost 660.99. It’ll take more than a single day gaining 189.68 to fix that.

    Likewise the US dollar index rose 26 basis points to 96.86. So what? Remains below its 20 day moving average.

    Delays in physical silver deliveries on one ounce rounds and now even 100 oz bars have stretched out to three weeks. US 90% premium has risen to $3.30 over spot at wholesale. Now gold coins have caught the infection with rising prices and delayed deliveries. What do y’all reckon that means?

    The door into silver and gold is an exceedingly low and narrow passage. When too many people rush it all at once, some don’t get through. Y’all bear that in mind.

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

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2015, 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.

  • Gold Price Closed Up $10.90 at $1,096.50

      0 comments
    27-Jul-15 Price Change % Change
    Gold Price, $/oz 1,096.50 10.90 1.00%
    Silver Price, $/oz 14.59 0.12 0.81%
    Gold/Silver Ratio 75.134 0.146 0.19%
    Silver/Gold Ratio 0.0133 -0.0000 -0.19%
    Platinum Price 990.50 8.10 0.82%
    Palladium Price 612.10 -9.50 -1.53%
    S&P 500 2,067.64 -12.01 -0.58%
    Dow 14,440.59 -127.94 -0.88%
    Dow in GOLD $s 272.24 -5.17 -1.86%
    Dow in GOLD oz 13.17 -0.25 -1.86%
    Dow in SILVER oz 989.49 -16.83 -1.67%
    US Dollar Index 96.61 -0.73 -0.75%

    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 closed Comex at 1,096.50, $10.90 or 1% higher than Friday. SILVER added 11.7 cents (0.8%) for a $14.594 close.

    Remember Friday I was watching the first half of a key reversal in the End of Day chart, but the GOLD PRICE did not close the EOD higher today, so that reversal was not completed and verified.

    But look at this. Gold’s new commitment of traders reports shows large speculators (the dumb money) with historically low long positions and commercials (the smart money) with barely any shorts.

    Silver’s CoTs look bullish, too. Commercials have few shorts and large speculators few longs. Also bullish.

    On the 5 day chart the gold price shows a rounded bottom with a surge up through $1,090 on Friday, a rise to $1,105 today, then a plunge to test $1,090 support — a test that gold passed, and rose to end the day about $1,095. Unless the price of gold breaks $1,090, Friday was the bottom.

    The SILVER PRICE chart also shows a low Friday, but a V-bottom, a higher high early today with a test of $14.55 — also passed. Silver must hold $14.40. (Remember it’s much more volatile than gold).

    None of reading markets is metrically precise, it’s an art. That’s why I try to give you a band of prices that both confirms and explodes any forecast. As long as we don’t break $1,090 and $14.40, Friday was the low. I already bought on Friday, so I’m set. What about y’all? Bear in mind that when markets turn around, those universally scorned rise all the faster.

    Ever wake up like Rip Van Winkle wiping the cobwebs from you eyes and wondering what on earth got hold of you? I feel that way today, looking at markets. What on earth have I been thinking about? Stocks have rolled over. That May high was most likely the high for the entire bull phase (spawned by the Fed’s QE). The present deflationary scare will pass, the dollar will fail and resume its downward progress toward zero, and central banks will surely shoot their only weapon: the inflation gun. And one more thing: the goofs in central banks and governments who believe they are Masters of the Universe, ain’t. Gravity still works, truth will avenge itself economically on corrupt politics, and chickens still come home to roost. (What was that stuff those little men gave me to drink while we were bowling?)

    Dow Jones

    Ponder stocks. No longer can the damage be hidden. The Dow lost another 127.94 (0.73%) today to 17,440.59 and has traced out a gigantic rounding top. Today’s close was lower than July’s earlier low close (17,466). It is trading way below its 200 day moving average (DMA, 17,750). There’s another little internal broadening top traced out since March, and the Dow is about to break down out of that. Owch! I forgot to mention that the Dow is now 384.5 points below its 2014 close, and 871.4 points below its 19 May high.

    S&P500 today lost 12.01 (0.58%) to 2,067.64. Skidded to a halt today three points from its 200 DMA (2,064.13). Still 9 points above its 2014 close. After it breaks that 2,039 March low, the fleas will begin jumping off the rats and the rats will be jumping ship.

    Dow in Gold

    Wait! Did I forget to mention that in China, where the government now openly buys stocks to support the market, the Shanghai market posted its biggest daily loss since 2007? How did I overlook that?

    Dow in gold has retraced nearly all its “throwover” final top. That took it to 16.504 oz but today it closed at 15.91 oz. Working off an oversold RSI, falling Rate of Change, overbought stochastics, and a downturning MACD. Chart on the right.

    What about the Dow in silver? The throwover there was less than gold’s, but it, too, has plunged, from 1,236.37 oz to 1,201.97 today.

    US dollar index tumbled again today, right badly, down 73 basis points (0.75%) to 96.61, cutting through its 20 DMA (96.89). Will drop further. Maybe by mid-August its tank will have finally run dry.

    Not that the euro offers any more solace or safety. If the US dollar’s sorry as a three-legged mule, what about the euro? It’s a three-legged twenty-eight-pede! Gained today 1.06% to $1.1090. That is above its 20 DMA, at least, but until the euro crosses $1.1150, it hasn’t even begun to rally. Yen gapped up on dollar weakness, too, plus 0.38% to 81.11 cents/Y100 (Y123=US$1).

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

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2015, 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.

  • Gold Price Bottom – Key Reversal Day

      0 comments
    17-Jul-15 24-Jul-15 Change % Change
    Gold Price, $/oz. 1,131.80 1,085.60 -46.20 -4.1
    Silver Price, $/oz. 14.82 14.477 -0.343 -2.3
    Gold/Silver Ratio 76.370 74.988 -1.382 -1.8
    Silver/gold ratio 0.0131 0.0133 0.0002 1.8
    Dow in Gold $ (DIG$) 330.34 334.54 4.20 1.3
    Dow in gold ounces 15.98 16.18 0.20 1.3
    Dow in Silver ounces 1,220.41 1,213.55 -6.86 -0.6
    Dow Industrials 18,086.45 17,568.53 -517.92 -2.9
    S&P500 2,126.64 2,079.65 -46.99 -2.2
    US dollar index 97.81 97.35 -0.46 -0.5
    Platinum Price 1,001.00 982.40 -18.60 -1.9
    Palladium Price 618.00 621.60 3.60 0.6

    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

    For the week the Comex closes show the GOLD PRICE 4.1% lower and SILVER 2.3% lower. Look at the end of day chart and you’ll see they in fact closed higher this week. Stocks are swimming in deep waters wearing concrete boots. Dow lost 2.9%, S&P500 lost 2.2%. What happened to the Greece- relief rally? It became the no-profits plunge. US dollar index turned down this week, at least for a while.

    My grandfather actually said, “I don’t mind it when they spit on me, it’s when they rub it in that I get mad.” That’s how I felt watching silver and gold prices today.

    Here’s the conundrum: Once upon a time the open outcry market on Comex was the only game in town after the London fixes. Several years ago Comex began offering the computerized Globex market after Comex’ meager hours (8:30-1:30 Eastern), and silver and gold trade now around the world 24 hours a day. This year Comex ended the open-outcry floor. These changes make taking one number — “the Comex settlement price” — problematical. Does that really reflect the price, or was that where the traders manipulated it for the close? Everybody knows that “somehow” on options expiry day silver and GOLD PRICES miraculously slip, relieving options sellers of having to pay off on in the money options by making them out of the money. Ya’ll write this down so I can remember it: Comex gold and silver futures contract options expire on four days from the end of the month, unless that’s a Friday or before a holiday, when it’s moved back a day earlier. That makes next Tuesday options expiry day.

    Now this would be a puzzle whether I suspected markets were manipulated or not. Which price is the most representative price, Comex close or End of Day?

    Today was a rare example of one gainsaying the other. Silver and GOLD PRICES opened lower in overnight trading. Silver hit a low about 9:00 at $14.43, bounced, then made a slightly lower low at $14.33 about 11:30. From there it climbed the rest of the day, but somehow or the other the Comex tape was painted with a LOWER close for silver, down 20.6 cents at $14.477 and a LOWER close for the gold price, down $8.40 at 1,085.60.

    These ain’t minor differences. In the aftermarket the price of gold was trading $15 (yes) higher at 1,100.50. Silver was trading 24.3 cents higher at $14.72.

    Well, which is it? Which price is the “right” price?

    Gold Price

    The mystery deepens. If you take the Comex closes and chart them, it’s just another down day and another down day for silver and gold. Hogwash, if you take the aftermarket close. It that case, it was a strong close and a key reversal day. Same for gold, only more so. (Y’all remember that a key reversal day trades into new low ground for the move but ends the day higher. That has to be followed next day by another higher close, and preferably by one more day’s higher close. It’s a very reliable reversal sign.)

    So the end of day (EOD) charts I always show y’all will today plainly reveal key reversals. Here’s gold on the right.

    Here’s what I like about that chart. Not only does it show that first half of a key reversal, it also shows an oversold RSI become LESS oversold, and typically the low price occurs a day or so after the RSI low. The MACD also wants to curve up, and the rotten Rate of Change has turned up. Full stochastics are trying to turn up. Volume rose very strongly today, and was almost as high as that on Monday’s plunge.

    Silver Price

    Now look at the silver chart.

    There’s that first half key reversal today. Volume shot up nearly to Monday’s level. The RSI was oversold only one day (20 July) and has crept up since. MACD needs only one good up day to turn it up. Rate of Change has already turned up, and full stochastics want to.

    Is all that an ironclad case for a price reversal? Not at all, but it does resemble previous big reversals. Price will tell on Monday whether that’s the right interpretation or not.

    Dow Jones

    What about the GOLD/SILVER RATIO? Rose 0.64% to 74.988, but remained below the 20 day moving average and the uptrend line from the April 2011 low. All indicators point to a lower ratio.

    Stocks opened the day bleeding and it turned out during the day it was an artery. Dow lost 163.39 (0.92%) to 17,568.53. Where does that put it? In negative territory for 215 by 415 points. Below the March, April, May, and June lows, but not yet July’s (17,466). Below the 200 DMA (17,568.53), not to mention the 20 and 50 DMAs. MACD and RSI have turned down. All waypointers point down, and a close below 17,400 adds jet fuel to the fall. Y’all look for yourselves chart on the right.

    Dow in Gold
    S&P500

    S&P500 shaved off 22.50 (1.07%) to 2,079.65. It hasn’t crumpled as badly as the Dow; it remains 20.75 above where it ended 2014, but has plunged below its 50 and 20 DMAs and pointed toward its 200 DMA (2,064).

    I’d say they’ve turned down, but the S&P500 needs to cut through its 200 DMA to confirm that.

    I ain’t a bit ashamed or embarrassed to show the Dow in Gold and Dow in Silver charts. DiG shot up in response to Greece-relief, and has shot down just as fast. Closed the week at G$330.54 (15.99 oz) and falling.

    USD
    Dow in Silver

    Dow in Silver fell this week to S$1,544.18 silver dollars (1,194.33 oz). Indicators have turned down.

    US dollar index rose 12 basis points to 97.35. Correcting the previous rise. Might start rising again next week, but indicators are trying to turn down after it fell out of a rising wedge this week.

    Euro flaked again today, down 0.8% to $1.0978 on its way to par with the dollar. Yen rose 0.05% (does that really qualify as a rise?) to 80.76 cents/Y100 (Y123.82 = US$1). Is anybody watching?

    Y’all enjoy your weekend.

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

    – Franklin Sanders, The Moneychanger
    The-MoneyChanger.com

    © 2015, 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.